Posted by: rotenochsen | January 15, 2008

Tax, Spend Or Fiscal Conservative?

Gold As An Indicator

In January 1980, when Jimmy Carter was President and we had gasoline lines, gold was priced at $675.00. Today we are looking at gold prices that spiral day to day. This morning the market price for an ounce of gold is $910.00!
In 1968 during the Vietnam war, the price of one ounce of gold was just $36.50.
However, during these last 40 years Americans have lost confidence in OUR paper money. A rising gold price means investors are fleeing paper money for gold. This may be the result from the central bank issuing too much money, more than what’s demanded to support trade, or by the U.S. Treasury selling dollars and advocating a lower foreign exchange value, as we have seen the devaluation of the the dollar compared with the Euro.
This policy has lowered the demand for dollars and raised the demand for gold. Today we see inflation running wild, the dollar declining and the secondary mortgage industry in free fall. We are spending money as a Country that acts like a drunken sailor on his first leave!
The stock market is a perfect illustration of the lack of confidence that Americans have for the economic condition in the United States.The free fall of most stocks illustrates the shift from stocks and bonds to gold.
This lack of confidence is directed by all the Democratic aspirants to the Presidency, and too many of the Republican candidates, toward President Bush. To be sure, he has some blame for the lack of a sound dollar. He should have used the veto pen many more times on spending bills passed by Congress than he did.
But the real culprit in this debasing of our dollar is the Congress of the U.S.. The profligate spenders in Congress sent more Pork back to their constituents this past session of Congress than ever before in our history. This despite the fact that as of December 19, 2007, the total U.S. federal debt held by the public was roughly $5 trillion.
This does not include the money owed by states, corporations or individuals, nor does it include the money owed to Social Security beneficiaries in the future. If intragovernment debt obligations are included, the debt figure rises to roughly $9 trillion If unfunded Medicaid, Social Security, etc. promises are added, this figure rises dramatically to a total of $59.1 trillion. In 2005 the public debt was 64.7% of GDP according to the CIA’s World Factbook .
Of this outstanding debt a total of $2.079 trillion is owed by the Federal government in long term Bonds and notes held by such adversary Countries as Communist China.
U.S. Treasury statistics indicate that, at the end of 2006, foreigners held 44% of federal debt held by the public. About 66% of that 44% was held by the Central Banks of other countries, in particular the central banks of Japan and China.
This debt is a burden borne by the American public. Wikapedia states the following: The debt equates to $28,412 per head of the U.S. population, or $58,390 per head of the U.S. working population.
Despite these stark statistics, not one of the Democrat candidates who promise change in Washington, says anything about how they will reduce this burden on the U.S. taxpayer.
All we hear is promises to spend more money on welfare programs to garner votes.
The fires of National bankruptcy have been lighted, but like Nero in ancient Rome, Congress continues to spend and call for more money in the form of increased taxes.
The choice is clear. We Conservatives must turn our backs on the tax and spend Liberals, and elect a person who stands for fiscal responsibility.
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