President Obama Still Wrong
- The worst way to invest
- Obama’s policies and gold
- How we know Obama is wrong
Yesterday I wrote some strong words about President Obama’s State of the Union address.
Many of you wrote in to praise me, and I appreciate the compliments.
But some readers took offense to the particular line where I accused the President of being a liar or a fool. Some readers actually canceled their subscriptions!
Now, I want to emphasize and point out that I’ve never endorsed any candidate for office in this letter. Nor have I disclosed my political affiliation. I won’t ever do so, for the simple reason that many people will immediately frame everything I say inside of a political construct.
I don’t write this letter under any political banner.
I’m a commodity investor for entirely market-driven reasons, and I’ll tell you what I told one of my critics: if you invest with a political ax to grind, you will lose money.
Politics and investing do not make good bedfellows.
So when I accuse the President of being a fool or a liar I do so apolitically, and I do it entirely of the construct of being a commodity investor.
The commodity analyst inside of me doesn’t care about the President’s political affiliation anymore than his gender, race, religion or shoe size.
It’s the content of his actions and his statements that I’m paying attention to. And his actions so far in this Presidency indicate to me in the broadest and strongest possible terms that he has no willingness, ability or inclination to pursue fiscal and monetary responsibility.
Which is why I’m using every dip and correction in the price of gold and silver to further de-leverage myself from Federal Reserve notes.
We can disagree about President Obama’s policy decisions on a personal level, but there’s really little room for debate about the destructive nature of further deficit spending, which he admits himself that he will continue to pursue.
When the price of nearly every commodity rises precipitously month after month, commodity investors have leaders like President Obama to thank. It’s strictly because of people like President Obama enacting policies like President Obama’s policies that there are currently, as I type, food riots around the world.
You can not spend your way out of deficits. You can not fund massive deficits with more deficits - at least not for long. And the fallout of these policies has always been higher prices. I don’t have to tell you that poor people are hit hardest by higher prices.
I also don’t have to tell you that President Obama is a self-proclaimed champion of poor people. And yet, the very actions he’s taking today will hurt poor people most.
Eventually these policies will cause a complete meltdown of the dollar. But in any event, investing in commodities will continue to be a great strategy. More so because we just heard President Obama tell us, in so many words, that he has no plans to make any changes to the policies that backstop the commodity investment thesis.
It might sound like I’m picking on our President. To be honest, I don’t envy him. It is true that he came into office in the middle of a recession, during a time of high unemployment, high deficits, and two wars.
But he hasn’t done ANYTHING to remedy any of those problems. Instead of playing to win, he’s playing prevent defense for the 2012 elections. It’s probable that if he enacted the kinds of reform necessary that he would be a single term President.
But that’s politics, and I’m not interested in politics for the purposes of this letter.
So my point stands - in an entirely non-political way: if President Obama tells us that deficit spending is the right policy, he’s either a fool or a liar.
Have a great weekend,
Kevin McElroy
Editor
Resource Prospector
