Excuse Me If I Come On Too Strong …

Larry Edelson

Excuse me in advance if I come on too strong, sound a bit cynical or emotional — or even unpatriotic — at any time in my column today.

But gold’s continued strong price rise is a resounding warning shot. And I want to put what it means on the table for you … without mincing any words … without sounding mealy-mouthed … and without tip-toeing around any of the issues.

So I’ll start by saying that… if you think gold’s rise to one record high after another is mostly about inflation, or even future inflation, think again:

Gold’s role as an inflation barometer, or even as a hedge against inflation, is its least important role right now.

In fact, that’s way down on the list, because what gold is really telling you is that …

A. Our current form of government is broken. Period.

It’s corrupt (it either missed, ignored, or perhaps even turned a blind eye to the Madoff Ponzi scheme and the real estate bubble, just two examples) …

It’s inefficient (it can’t pay its bills without robbing from Peter to pay Paul, or by printing more fiat money) …

And Washington clearly doesn’t give a hoot about the average citizen.

Of course they say they do. Our leaders and those running for election and re-election are all great orators when it comes to grabbing your ear.

But come on, who can’t see through the B.S. these days?!

Republicans are battling Democrats. Democrats are battling Independents. Tea Partiers are bashing the left and the right. And all they care about is themselves. It’s pure and simple self-interest.


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And the worst of the bunch, in my opinion? The President of the United States. Not only is he getting caught up in all the political B.S., but he’s making matters a heck of a lot worse.

Don’t believe me? Just listen to his recent speeches, where he not only encourages the political warfare, but worse, he is even stoking the fires of class warfare, pitting the rich, middle and lower classes against each other.

How, I ask you, can any of this be good for our country?

I’m not going to stop there. Because in the last week or so, Washington has taken our problems to the international level, turning up the heat on China, blaming the yuan for all of our problems.

This one really has my dander up. Mind you, I’m not favoring China, or any other emerging country that we’re buying from or shipping jobs to for that matter.

But give me a break. Do our leaders in Washington really think that by beating up on Beijing that our sinking economy is going to be righted?

Haven’t they realized that no matter how much the Chinese currency goes up in value — which is just another way of saying the U.S. dollar has to go down in value — that we simply cannot compete with the low cost of wages in those countries?

Stoking the fires of class warfare isn't helping the U.S. to compete globally.
Stoking the fires of class warfare isn’t helping the U.S. to compete globally.

Look, the U.S. started losing manufacturing jobs in the early 1970s. I can recall my Uncle Herman owned a women’s lingerie manufacturing plant in New York back then. High taxes and the textile and garment unions almost killed his business.

What did he do? He moved his manufacturing plants to Haiti and Honduras. Not only did his business survive, it flourished.

Uncle Herman became a very wealthy man, and retired to spend time with his family on his 50-foot Chris Craft, which, incidentally, put a whole bunch of money that he made back to work in our own economy.

Uncle Herman was not unpatriotic. Quite to the contrary, he was very proud to be an American.

The bottom line: Like it or not, we are in a global economy. And if you start erecting trade barriers and staging currency wars, the only thing that’s going to change is that the free market is going to become a black free market, and go underground and overseas.
 
In other words, more and more transactions, and hence, more and more money, is going to go OFF the radar screen and out of the government’s reach. Period.

That won’t solve anything. Instead, it will just make matters worse. It could even lead to major wars, as it has in the past, which no one wants.

Want two more examples of some very foolish moves the government has recently taken that prove my point that it’s broken beyond repair, and is making matters worse?

Consider …

1. The new, absurd reporting requirement that businesses must file a 1099 tax form identifying anyone to whom they pay $600 or more for any product or service — INCLUDING GOLD.

It was buried in the ObamaCare legislation, Section 9006 of the 2,409-page Patient Protection and Affordable Care Act. It becomes a law on November 2, 2010.

Although it doesn’t go into effect until the tax year beginning January 1, 2012 — this is another example of how the government is not only becoming more and more intrusive, but how it’s also trying to fix its own problems by dragging you into them.

A new law requires businesses and individuals to report transactions of $600 or more any product or service — including gold.
A new law requires businesses and individuals to report transactions of $600 or more any product or service — including gold.

The new law doesn’t cover only business-to-business transactions. It also applies to individuals who buy cars, appliances, and yes, even guns and gold coins.

And, you won’t be able to technically get around the law, because the reporting requirement applies to total transactions during the year, not to each transaction (so if you thought you would skirt the system by making separate transactions under $600 each, think again.)

Sound like a semi-confiscation scheme? Confiscating, or taxing more of everyone’s wealth?

You bet it is. And it’s just another example of how far astray the government has gone in trying to fix its problems … how it’s overreaching into your life … and how it’s got it ass backwards — because this little law is simply going to drive more and more goods and services underground and overseas, and make matters worse.

Also, making matters worse — the latest, harebrained proposal to come out of the U.S Treasury …

2. Just released last week, the U.S. Treasury set forth a proposal to require banks to issue weekly reports on ANY electronic money transfers that move in or out of the United States. Even if it’s one cent.

The existing threshold is $10,000 or more. The rationale for lowering the requirement to every cent is that it will make it easier for the Treasury and Department of Homeland Security to track transfers tied to money laundering, terrorist activities, or internet gambling transactions.

To be sure, there are valid national security concerns. But lowering the reporting requirement to one measly penny is not only going to cost banks an enormous bundle of money to comply with the proposal …

It’s simply going to backfire with unintended consequences, yet again, by driving more and more money underground and off shore, exactly the opposite of what our country needs! (Never mind it’s an insult to our liberties.)

I could go on and on. But the fact of the matter is that as a result of ALL of the above, and more than I can uncover for you in this single column today …

B. Nothing short of a complete rewrite of how our country is governed … including restructuring the dollars-backed-by-debt monetary system — will solve the problem.

Don’t get me wrong. You should vote in the upcoming elections for the candidates you believe are best equipped, best skilled, and best qualified to put our country on a better path.

But in my opinion, nothing short of a complete overhaul of our government and a reworking of our fiat monetary system — will fix our problems.

Which is why I put forth my 10 bold steps to save America in the September issue of my Real Wealth Report, and even published a summary of them here in last week’s column.

In the meantime, and for as far as the eye can see …

C. Savvy money is running away from anything having to do with government. Period.

That’s the real reason gold is flying, and headed much, much higher, despite the occasional pullback that will occur.

Over the longer-term though, it won’t just be gold that moves sharply higher. It will dramatically impact the price of black gold, oil, pushing it higher along with other tangible assets and natural resource markets.

Eventually, it will even send select blue-chip stocks higher. Despite what the economy is doing.

Hard to believe, right?

Well, although I am short- and intermediate-term bearish on the broad U.S. stock markets …

Their recent strength in stocks is giving you very subtle clues as to what’s likely to happen longer-term. Select stocks could explode higher just like gold is doing.

Until next week, and more food for thought …

Best wishes,

Larry

P.S. For all my “uncommon wisdom” thoughts including ALL of my wealth-protecting and wealth-building recommendations — become a Real Wealth Report member now by clicking here.


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Your thoughts on “Excuse Me If I Come On Too Strong …”

  1. Dear Larry – I sympathise with your frustration and admire your proposals – but why take a sledge-hammer to crack a nut. `better perhaps to back-track to the beginning. Remember the huge Clintion projected surpluses followed by the Bush tax cut? Then cane the growing bubble
    given a special name ” ……….exuberance ” by the Fed. Meanwhile Americans were changing
    from Saving to Spending-on-credit mode – the bubble burst and the Fed started the stimulus and continued with it when Obama came. But people took fright and stopped spending so factories stopped making and stopped hiring. The stimulus may yet work – but can you think
    of a simple alternative – Regards – Richard

  2. Hi, I did not catch this run and I felt very sad not making more money from this recent run in market. Do we need patient and wait for declining, like you told us.

  3. We are all fed up and are trying to do what is best for us and for our families investment wise (weiss?). We read; we study; we reguritate to our friends; we discuss. I “buy” most ot what is being said; I have made investment decisions based on the advice, but the one item I cannot get my brain around is the premise that the DOW under currency devaluation can sky rocket. I understand the principle but cannot pull the trigger on this; that is betting that the DOW will sky rocket to 55K or so just because the currency significantly devalues. What I am asking for is a detailed discussion about this subject in a future paper; from someone at or associated with Weiss. Thank you.

  4. This isn’t Democrat, Republican, Libertarian, Tea Party, Green Party or Independent; it’s the Right Thing for all parties.

    ( Received this from a very un-political friend and thought it appropriate here.)

    You’re part of my 20 people, hoping you will send this on to your 20 so we get this out
    before November.
    If each person contacts a minimum of twenty people then it will only take three days for most people (in the U.S. ) to receive the message. Maybe it is time.

    THIS IS HOW YOU FIX CONGRESS!!!!!

    **********************************
    Congressional Reform Act of 2010

    1. Term Limits.

    12 years only, one of the possible options below..

    A. Two Six-year Senate terms
    B. Six Two-year House terms
    C. One Six-year Senate term and three Two-Year House terms

    2. No Tenure / No Pension.

    A Congressman collects a salary while in office and receives no pay when they are out of office.

    3. Congress (past, present & future) participates in Social Security.

    All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people.

    4. Congress can purchase their own retirement plan, just as all Americans do.

    5. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.

    6. Congress loses their current health care system and participates in the same health care system as the American people.

    7. Congress must equally abide by all laws they impose on the American people.

    8. All contracts with past and present Congressmen are void effective 1/1/11.

    The American people did not make this contract with Congressmen. Congressmen made all these contracts for themselves.

    Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, serve your term(s), then go home and back to work.

    If you agree with the above, pass it on.

    This is similar to the idea behind the proposed 28th Ammendment which states that any law that congress makes has to be for all of us. They can’t make a law to apply to
    ONLY us, or ONLY to them.

  5. I recently fell on the subject of “Raw Materials Economics” and, from my perspective, closed the circle on financial matters. This approach is based on over 100 years of economic data and will allow one to predict a nation’s economic performance at least 6 months in advance. As the dollar dies, we will need to identify what really brings value and wealth to a society. This approach does exactly that.

    Unforgiven is derived from Walters’ research and in-depth interviews with Wilken, conducted shortly before Wilken’s death in 1968. The crisis that this book addresses has become even more pronounced in the years since it first appeared — an increasing wealth gap, a crumbling internal economy, human and economic harm inflicted upon our trading partners, millions of family farmers driven from their land, and small, privately owned businesses becoming extinct, ultimately leaving millions of Americans either directly or indirectly dependent on government handouts for existence. Wilken feared the concentration of power “in a few strong hands” as the deadliest enemy of a free society and saw the demise of independent enterprise and the family farm as the final curtain for the most dramatic social experiment in history: the American Dream.

    Walters presents not only the causes and effects of our continuing rural and urban decay, but also a way to stop it — the construction of an economy operating in tune with the laws of physics.

    Unforgiven – Charles Walters

  6. Don’t blame Obama, Bush or any body else. This is a Plan. The planned implosion is inevitable. A new form of government/economy will merge. God and Gold have mercy on us!

  7. Larry,
    I believe what you are saying is right on the mark. Senator Ron Paul has submitted a bill that would solve most of are financial problems. How, do away with the income tax all together and replace it with a flat tax. Can you emagine what it would be like without the I.R.S. police.. Of course it has been tied up for over a year in committies. Those in charge don’t want to loose their free ride, and their power over the government finances. GREED, GREED, AND MORE GREED!!!!

  8. you’re spot on. My question is that even a six-year old could understand that govt has regulated business out of existence why don’t our supposedly brilliant (glib) politicians seem to have no clue about it

  9. You haven’t mentioned bills #HR 4646 and related #’s S2965 & S2853! transaction tax bills that will charge 1% on ALL financial transactions, cash, checks, deposits, purchases, money movements etc. Scheduled by Democrates to be brought up and passed after elections in Nov. Alert everyone you know about this new tax plan!

  10. Sergei Haramundanis: Our founding fathers were about wanting the individual to have liberty and happiness and, yes, success in business without government intervention. Our founding fathers wanted to protect us from government, not business! A good book about the beliefs of our founding fathers is “The 5000 Year Leap” by Skousen.

  11. Larry–Your comments are good and timely except for one. That one is your snide comment about the “tea-partiers”. They are about just what you say is needed to stop or reverse this financial nonsense, adhering strictly to our constitution. You owe them an apology. In fact, I think you should join an honest grass-roots effort to turn this country around.

    A subscriber and patriot, Robert E. Ritchard, Sr.

  12. This was a good column. Your passion and your anger toward the Washington bureaucrats is shared by many of us. However, I don’t agree about the Tea Party’s motive being self-interest. The Tea Party is about returning our country to its Constitutional roots, which will be better for the country as a whole and for our individual freedoms which are becoming fewer and fewer thanks to the poor charletons that have taken them away in the name of good governance. Here’s a book for you to read ” The Roots of Obama’s Rage” by D’Souza. Very enlightening. You can’t fight to win what you don’t understand (this means the whole country, because we knew and know now very little about his man).
    Faithful subscriber

  13. It’a likely that the US is too far gone to save. The Congress has given in to the lowest common denominator to the point of no return, in its desire to buy votes, presidency has fallen to the same fate. Only a revolution could save the principles the nation was founded upon, but revolution is impossible. We are going to get a dictator very soon. Remember that Hitler took power through the ballot box.

  14. Thank you to Larry for standing up- for walking your walk and talking your talk. Bringing to light what needs to be revealed and what needs to be said. It takes work, faith, courage. I look forward to your column all the time.

    In my line of work, I am a healer and I help others to learn how they can heal their own bodies, spirit, soul, heart, mind, etc. Essentially, I am often encouraging -and lately urging- others to ‘remember’ their own energy, their own power. Until they do, they will not be taking full responsibility for how powerful they really are in their own healing process. And though I am very present with information, support, love and commitment in helping them move their old energy, I cannot do it for them.

    The reason I am mentioning this is to help reveal an obvious link going on here in this ‘transformation-revolution’ we find ourselves participating in. Being new to the ‘investing world’, what I am noticing is, whether it is finances, politics or the human body, we are now looking to fund a credit for our lives. Credit that is our birthright, that has been here all along but somehow we have been in an energy slumber and paradoxically, it has leaked in every direction. Our finances and politics are all about personal and collective power, just as our own healing, health and spirit is. It is very helpful to know the players, but important to remember it is no ones ‘fault’. When we get into that, we lose sight of the target…the target here is our personal power and using it with integrity and spirit will bring about the changes we wish.

    Simply put, we are in the midst of protecting ourselves, standing up for ourselves and creating the lives we know deep down and have the birth-right to. Financially, politically, energetically, physically, emotionally, spiritually, this is all a transformation(or transmutation)-revolution.

    Essentially, most people have forgotten their power. We have learned to give our power, our energy (a.k.a. money and health) to others. When we remember our human VALUE, not of our money, but of our own selves, we will begin to make progress.

    The awesome Nelson Mandela quote..post it high upon the mirror! “Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure.” And if that doesn’t hit ya, go with the Hopi Indians, they have a poem and the title says it all, “WE are the ones we’ve been waiting for.”

  15. It is heartening to find that there is somebody else who can see through Obama’s rhetoric and lies. God forbid that he be given a second term. He and Michelle want to control the entire life of every American. Our economy is in very serious trouble and nothing that Obama and his idiotic Congress has been of any real value—-just more control. I just heard this morning that food stamps can no longer be used to “buy” sodas—–Michelle says they make you fat and so are not good for you.
    And all of this from a Marxist president who cannot and will not produce a certified birth certificate. Those who voted for him should immediately seek a brain transplant because the one they’ve been using is NOT working right. Wake up America before we become the Socialized States of Meximerica.

  16. Thank you very much for your article. You are so right! And I absolutely agree with Sergei, as well. What to do, guys? Do you really trust those voting machines?

    Best,
    Elissa

  17. Larry sounds fed up with these *WHITE SHOE BOYS* in 400 dollar suits. Millions more will be rioting before this RAPE of OUR savings is finished. They must figure we wont have enough money for gas to get to the protest marches. The rest of the population are starting to wake to this— and when they DO– look out baby!!!

  18. Don’t express cynicism about the Tea party. As you so lucidly explain, the left is worthy of severe opposition. It is not negativity to expose and destroy irresponsibility and corruption. It is responsibility. Tea partiers are sincere right-thinking people who intend common sense approaches to the real issues being either ignored or exacerbated by Dems and Repubs. That does not equate to caring only about themselves. Quite the opposite. Don’t fall into the easy trap of categorizing everyone as selfish. If you do, there is NO ONE who does well. That error plays well in a frightened and cynical era, but isn’t true. People who do right, are right, and for the right reasons. It should be acknowledged. If you believe no one has the county’s good in mind, then give up. There’s no way out regardless of what the blue chip stocks or gold do.
    Otherwise, your comments seem well taken.
    We would do well to elect non-reactive normalcy and straighforward strategic thinking in the coming election cycles. By simple observation for the last few decades, we’ve discovered that neither of the two entrenched parties support the public when it threatens their hold on power. So there must be change: toward historical common sense. No political correctness, no party preference, no labels, no vaporous contemporary scientific fads.
    Good business and personal responsibility inevitably benefit everyone nationally, because they’re socially conscious, accountable, respectful, orderly, socially supportive, morally decent and perpetually sustainable. Left and right fisticuffs are none of those. Centralizing any system is inevitable death if not limited by right-mindedness and non ideological others-centric self-motivation.
    Folks posting here have rightly pointed out that other nations play by manipulation. Good business and common sense realizes that, and deals with it wisely. It doesn’t pick a philosophical approach and insist on it while the country dies. Right-think sees what’s going on, and responds appropriately; not ideologically. It applies humane and decent applications of practical wisdom.
    I suggest each of us identify the decent people, join them and correct our mutual problems rather than just finding hedges against inevitable economic collapse and / or anarchy. Prepare, sure. But stop calling everyone tainted, and certainly don’t do it for marketing purposes. That’s just keeping one foot in the mud and proclaiming “I’m almost clean.”
    By the way, corporate governance would still be government by another name, and no better than what we’ve devolved to now, if not guided by the same immutable principles of individual accountability and personal responsibility. Top-down anything does not work. You know it at work. You should know it for government. The impetus is always from below. Leadership only LEADS. You get the milk from the cows; not the farmer. All any government can do is defend us, and keep the wheels from falling off, or else it oppresses. It can’t generate good. It can only reflect good as borrowed from the citizens.
    These are the basics. They can’t be improved on. Change is personal or else it’s either totalitarian, socialistic, or both. And either always ends in some admixture of regression, war, poverty, and despair. Everybody choose to make it personal; not political; not ideological; not defensive; not reactive; not self-centered; but wise, hard-working, personally managed, self sufficient and self motivated, helping the weak that you know about. Stop sending governance to do our job.

  19. Strange how the “greed is good” crowd are always whining about “entitlements” but never mention the third largest entitlement. America’s military budget is larger than the military budgets of China, Britain, France, Russia, Germany, Japan, Saudia Arabia, Italy, South Korea, Brazil, Canada, and Australia COMBINED! Social Security is not an entitlement; it’s an annuity. American workers paid into it and when we retire we want OUR money back. Medicare and Medicaid are not entitlements. Affordable healthcare is not an expense; it’s an INVESTMENT! A healthy workforce increases productivity. The job of the military on the other hand is killing people and destroying things. While some killing and destroying is unfortunately necessary the huge bloated military budget is in no way justified. Who appointed us World Police? The fear mongering military contractors that’s who. Ten times as many people die in car accidents each year as 9/11. Where’s the war on cars? Ten times as many children starve to death EACH AND EVERY DAY in this world. Where’s the war on hunger?

  20. i have question for you is our goverment losing money now in the bad econamy you can reply me in your next post or by my email witch i filled out above

  21. Sad but true. Both parties contribute to the mess we are in, it is only a question of degree. The bottom line is that government needs to be smaller and has to understand that individuals are more efficient at contributing to their own good than some bureau or agency. In order for that to happen there has to be a sea change in what our government is. We do need to elect people who understand this and then do it again in 2012. The most important elections are the primaries – in my mind that is where philosophical differences emerge within parties. Good, qualified people need to be encouraged to run for office. Throw all the other bums out – we can turn this in the right direction by 2014 if we pay attention to our own process.

  22. checked out health care package.looked up Section 9006.Did not see were what you were taking about taxing over $600.In fact the wording there is very misleading.I guess I have to be a lawyer to understand this bill!But I tried to read some of it to figure out what the bill was about.And we pay these people in Congress?I think we could do better.

  23. great article and a comment. WIth Uncle Sam continuing to make absurd changes as they are, you WILL see low level common folk leaving the country. They will go to 3rd world places where they can dissolve into the local flora and fauna. Hey, the Phillippines is a great place to live and WORK!. Yes, and for 10K deposit to the bank, the Phillippines gov’t will let you move there and be a retiree worker. They are the nation that has the most english speaking peoples on the planet. Good stuff. Or try Poland, yes, Poland! A great place to live and to work. Nice people, and gov.t isn’t into your shorts.

    You must realize that by our govt continuing to make these changes they are doing nothing to help people except to get them to move off short. Why worry about having your money tracked as you send it to an overseas bank? Just move there!

  24. Dear Larry,

    Thanks greatly for your clarity of thinking and for drafting your “10 Bold Steps to Save America” all of which I appreciate very much and agree with you whole-heartedly.

    Being a natural-born American from New England, having been brought up within the suburbs of Boston in the Concord-Lexington area, I would like nothing more than to see our great country turn around to the principals the original 13 colonies established at its founding: to protect the principles and rights of the people from the disastrous, self-serving, avaricious and treasonous acts of Corporate America that are solely motivated by greed and profit at the expense of the livelihood of tens of millions of hard working American Citizens, their families and the General Commonwealth and National Security of the nation.

    I would take it a step further and add that the U.S. Government, under control by major U.S. Corporations, is imposing such severe economic manipulation, with very disastrous consequences, that they are creating very similar pressures the British Empire created on the original 13 colonies back in the 18th century, which forced the Declaration of Independence and eventually sparked the American Revolutionary War.

    I believe it can therefore be unequivocally stated that the duly elected U.S. Government no longer protects the best interests of the Commonwealth and, because it is the responsibility of the duly elected government, which has not lived up to what it was elected to do, which is to protect the commonwealth of the people, but instead have through legislation and through the Supreme Court, protected only the special interests of the large corporations, banks and financial institutions, they have failed in their responsibility to the electorate and no longer serve to protect our livelihoods, our families and our futures.

    To reflect on this and obtain some confirmation, I highly recommend re-reading Common Sense by Thomas Paine, which was a major motivating factor in the American Revolutionary War, and replace “British Empire” with “Corporate America” and I believe you will find how uncanny it applies to the economic situation we have in the U.S. today.

    Your idea of a national corporation to run the government is a good one and is similar to an idea I had for a United Confederation of American Workers, which would be non-affiliated with the U.S. Government and formed by Legal American Citizens as a non-profit organization for the purposes of establishing contracts with U.S. corporations to provide skilled teams of workers as a unit and would hold the corporations legally obligated under contract to invest in and protect the future of said citizens and the future of their families. The corporations should by all means necessary, and with legal precedent suffer great hardship in any unilateral decision made toward dissolution of the contract or of being disingenuous to it.

    For what it’s worth, it is very heartening to read the clarity of your analysis, and the radical changes it will take to bring this country back to the principles it was founded on. It certainly raises my morale in knowing there are others of like mind and have the conviction to say something about it.

    Best Regards,

    Sergei

  25. great post Just like Larry Edelson said gold is going up it is slowly creping I might not be no expert but I listen to roomers but gold I know is good to invest in you never louse it .becose in stocks they might add more stocks so you will louse some of the value .I mean gold up record high now It might keep going up farther in price so I advise you to sell when it gets high and if it starts to go down then sell before you louse money well that’s that of gold .now for stocks ,now what about stocks if they start going down which I think is going to happen .now I could I’m not much In to the market .even thou I watch it like a hawk I’m still not all that good . But you do not have to even listen to me you know now on to other things the u.s. keeps moving large plants over seas .to places like China and other countries thanks to high taxes . the government keeps putting more taxes on us to you who use the health care bill don’t take this offensive to you but I don’t use the health care bill I get my own .so I’m still getting charged
    And all the taxes on all the stuff we bye food and needs so if these taxes keep going up then i cant tell you all the bad job loss we will have too dill with it wont be good for us as Americans to have any more job loss . You know if you go out to the store only bye tools made in the USA it’s not hard to tell it should say on the side. But craftsman is one that is made in the us but try to only made in the USA so you know that money is not going over seas for example of taxes just released last week, the U.S. Treasury set forth a proposal to require banks to issue weekly reports on ANY electronic money transfers that move in or out of the United States. Even if it’s one cent. That is stupid that even if it is only 1 cent why should

    we have to go thou that mush trouble for one sent , But lowering the reporting requirement to one measly penny is not only going to cost banks an enormous bundle of money to comply with the proposal… but all of that for only one penny
    That’s insane but its thanks to the government and the idea to tax biasness stand the idea to tax bossiness I mean look why don’t they tax the imports not things made here . They say millions of thing comes from over seas each year so if they tax them they would not need to tax us.

    Thanks mr.a.j.

  26. Good insights, although I am with bruce on the ‘trade barriers’ comment. For one thing you left out Germany, as well as the fact that all of the countries that you mentioned have import tarrifs, yet we don’t (since NAFTA, CAFTA and GATT)…

    Import tarrifs paid our government’s bills until the income tax was initiated, including the construction of most of the Fedeal buildings in DC. Tarrifs are the only way to protect our economy from cheap and slave labor. Not having them is just like Sears letting Wal-Mart set up tables inside their stores to sell cheap imports and compete with domestic products for free, in their own store… Not charging for access to our markets is ridiculous on it’s face and the reason for our trade deficit and lack of real industry, period.. Germany would think of it, nor would Japan or China.

  27. “The bottom line: Like it or not, we are in a global economy. And if you start erecting trade barriers and staging currency wars, the only thing that’s going to change is that the free market is going to become a black free market, and go underground and overseas.”

    I appreciate your insights, in your areas of expertise. This statement crosses outside that boundary. Massive trade barriers already exist, the term, “global economy,” as you use it is a mirage, a delusion. Japan and China have outthought, out-managed, and outfought the “free trade” policies of the United States. “Global economy” is a euphemism for a bankrupt trade policy and the propaganda to keep it going for parasitic vested interests. There is no “free market,” only a stacked deck and if Uncle Sam doesn’t cut it, doesn’t take off his rose colored glasses and start playing by the real rules of the game, the market will indeed go overseas.

  28. Great column. An example of two of the most respected and I suppose selfish SOB’s are Warren Buffett and his buddy, Charley Munger. I have heard and read several times Buffett say without the actions of Bernanke we would not have made the progress we have made to date. It is no secret that he was and is an advisor to the Obama administration on these financial matters. I have recentlyh read a Charley Munger interview , (I have noted below) praise the bailouts as a necessity also gold is a foolish purchase etc. It is my opinion, the really rich just don’t give a damn for the stability and health of this country. See following for Munger interview.

    http://www.fool.com/investing/general/2010/09/24/charlie-munger-on-communism-botox-and-goldbug-jerk.aspx

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