The Goldsmiths Tale
04.04.10
Scrap gold and old gold jewelry sell for excellent prices right now
04.04.10
03.11.10
02.26.10
01.20.10
The Global Marketplace.
First off, do you agree with me that we have a global marketplace? If you do, read on. If not, go to economics 101 and read the first sentence again. Stimulus of a country’s economy does not work in a global marketplace. The reason being: It is IMPOSSIBLE to know where all the money is going. Here’s an example. Who makes the condoms Nancy Pelosi wants?
While the company may be BASED in America, the raw materials to make the product come from all over the world. The plastic made for the condom probably goes to China, the oil used to transport it goes to the middle east, the lubricant that goes in it goes to Europe…and so on.
What about reworking the Washington Mall? Well, if any bricks are used, they probably come from South America. The workers might also come from South America and will send their paychecks back to their homes. Stimulus, while good in writing, is not very effective to get the economy of a single country back on its feet because you simply do not know where the money is going. Which leads me to my next reason:
You Can’t Make Value from Nothing.
China is not going to lend us a trillion dollars. They have their own problems to worry about just as we do. This money is going to be printed, and according to the laws of supply and demand, that means since the supply of the American Dollar will go up, the demand (value) of the American Dollar will go down. That means the dollar you have right now will be worth significantly less after the stimulus bill. I suggest you invest in gold.
This means that all the government will be doing is taking value from dollar, and spending the value lost on this stimulus bill. It will essentially be a stealth tax on every single American.
This bill will not succeed, and if Obama approves it…it could lead us into a deeper recession and possibly a depression.