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I AM Commander In Chief!Frank Lechner  "I AM Commander In Chief!" ... so little GWB says to anyone that will listen. Now, he seems to think that he is governor of a state, instead of the supposed leader of the free world. Hunkering down in command post central in Colorado while Rita comes ashore, fully ready, fingers poised on the fiat buttons, ready to bomb the hell out of the US with yet another avalanche of debt spending. (btw, will someone please wipe that smirk off his idiotic face? ) All the while, congressmen quiver with glee as yet another way to initiate further pork barrel spending, or what does a bridge over a river in North Dakota have to do with the hurricanes? Nothing of course, but you can bet that there will be much of this going on as the appropriations churn out of Washington. These twits are absolutely out of control. Bush lost so much credibility during the last hurricane, that he was bound and determined to get it 'right' this time. Too bad he hasn't a clue as to what is right or wrong. He has no business running a storm center. He has much more pressing items on his agenda that should be tended to. That is what the rest of the overpaid, underworked government types were hired to do. Imagine that... These government types actually believe that they are essential personnel. Realistically, they are just people doing jobs that shouldn't exist. The real reason he is losing credibility is not related to the hurricanes, but because the opposing side senses weakness. Smelling blood, they are going for the throat. His counter to this has been promises of grandiose proportions, unending supplies of fiat, and an unwavering desire to belittle the presidency through the assumption of a local issue. The promises made are so encompassing and vast, that there is simply no way the warm bodies inhabiting the seats of this myriad of government agencies can live up to them. Maybe you remember the days, where as a minority party, the Republicans preached that they were the party of fiscal sanity. I guess it just depends on who is majority at the time, huh? Seems to me same story, different party. Now, the democrats actually preach fiscal responsibility, ha, ha, ha. (I have even more in reserve for the Marxist liberals, morons anyway). The government has NO place in rebuilding doghouses, or garages, or homes. The government does have a place in the rebuilding of the infrastructure. The Federal Government does have a role in national security. The Feds have no role in supplying gas to wayward travelers as they scoot out of any particular town. Has no one heard of personal responsibility anymore? Is there anyone yet alive that believes more can be accomplished person to person, than by person to government to person? It continues to amaze me, this fascination that people have with the government as the sole supplier of any and all things. I don't have health insurance... it doesn't matter, the government will save the day, sir, that is at government line number 3,546, 212. I don't have flood or home insurance... again it doesn't matter as Generale' GWB is here to save the day, please refer to government line number 4,987,312. I want the government to provide presciption drugs to all... great, just sign up at line number 6,793, 444 in the lines of government give away programs. It is forever endless. The WWII generation and before started this crap, and they continue to feed from the trough of government spending and entitlement programs to this day. Over all these years, they have created ever more socialistic programs as they meander through life. This has been passed on to the boomer generation, who has taken this philosophy to a whole new level, almost artistic. So be it. For us as investors, what this is screaming at us, is simply 'pay attention'. The bills for this excessive fiat creation, this inflation of monetary supply, this debt spending, will eventually come due. Each one of these programs and spending authorizations add nails in the coffin of the US. I heard one economist who is telling a story of how this recent fiat spending for Katrina is but a drop in the bucket of US GDP. His story is that the US is so large that a couple of days GDP will cover this expense. That would all be great in theory, except when you account for the existing outstanding prior created debt levels. The imbecilic American consumer buys goods from China, all on credit of course. China takes this dollar credit, converts it to local currency, then goes on a shopping spree of its' own. China walks into Canada, and others, and says I will take one of these, and one of those, and, and, and. Only in this case, they are purchasing 'hard assets' such as companies with oil assets, or maybe steel suppliers, or mining assets. So, let me get this straight, the US consumer buys trinkets from China, and China buys hard assets with this fairy tale fiat... hmmmm, I wonder who is the more 'learned' in this particular game? I guess my question really is, when does the music stop, when does the country without a chair in this game of musical US fiat say I am not accepting this any longer? The reason for this question should be paramount to most with half a brain, as this would be the precursor to the rejection of the US Dollar as the reserve currency worldwide. The other fiat currencies will also have been destroyed accordingly, leaving but a vacuum in place of the existing system. If you think you are going to hide in Yen or Euros, think again, as they too are being inflated away into never never land. Which brings me to my position in all of this, and that is to continue to purchase gold and silver on pull backs. It will be the only sure currency some time in the future. Of course, at that time, fully digitized 'money' will be in vogue, but as they say, digits come and digits go. There really is no need to know the when, IF you are fully prepared. Many times I have been asked, but when 'massah Frank?' Again, it really doesn't matter. We have been given a gift of immense proportions, and that is a solid bull market in gold and silver. That is a true opportunity to hedge yourself against this fiat monetary system. The pullbacks and the sideways trading of recent history, is soon to be behind us. The recent pop in prices has re-energized the market, and the window of time in which to accumulate further positions at discounted levels grows ever tighter. While some stocks such as GG have already went to their old highs, many many out there are just beginning to move once again. Having said that, I would expect that this recent pop is overdone, and a pullback is imminent. That will be the all clear signal to load up going into the seasonally bullish period just ahead. We can all thank your favorite government for this, as they are doing everything in their power to expedite your greed and gains in gold and silver. I really do not see anything during the next 6 months to slow this down after the much needed pullback. Buy physical for long term safety and protection, without regard for all of the known buzzwords like 'storage costs', 'transfer fees', or 'bulk'. The persons or companies making these comments are incapable of understanding or even participating in this acquisition of physical. Nor do they want any of their fleeced clients to remove any of their monetary punchbowls from the system. Buying gold and silver stocks is a risky business. You need to understand that these are not like buying a BP Oil, or a share in China-Mart. They are fast to move up, and just as fast to the down. Their movement is much more predicated on investor emotions and greed. If trading the stocks, you need to be fleet of feet, and understand what you are involved in. You may purchase solid performing companies in this sector, and expect long term gains. If you do this, you will also have to ride out the ever present 'out of favor' periods associated with this strategy. Remember, that the role of gold in the world is always changing, and the sentiment fluctuates wildly as the oil, gold, US dollar, and other currency relationships morph over time. As for those that choose to walk near the edge of risk, there is always the gold and silver Jr miners. Those that are soon to produce, or sitting on mountains of lies. There are many great young companies out there, that are speaking true, and have the resources to back it up. Those are the Jr's that you want to find. Then there are the Jr's, that are nothing but a liar standing over a hole in the ground, printing up resources that will never be recovered. The immense promise and gains, will be realized by those that can sift through the nonsense, and discover those companies that really do have the 'goods.' Frank A. Lechner
321gold Inc |
