Monday, December 08, 2008

Seeing the Humor in Obama's Bold New Economic Recovery Plan

Couldn't resist this one after reading about Obama's bold new economic plan.

[Click on the photo for a larger version.]

The Ghost of Times Past. The New Deal all over again. I guess we never learn.

In other news today, I read some interesting figures in an article by Martin D. Weiss, Ph.D. Although I'm not sure I can agree with his advice (he says we should all sell everything and buy Treasuries, keeping the faith that the dollar will maintain its credibility through this crisis), he points out this:

"By mid-year 2008, there were $52 trillion in interest-bearing debts in the United States, including mortgage loans, credit cards, corporate debt, municipal debt and federal debt; the federal government needed about $50 trillion for Social Security, Medicare and other commitments kicking in at a quickening pace; and U.S. commercial banks held another $182.1 trillion in side bets called “derivatives.” Grand total in the U.S. alone: $282 trillion. The numbers are not directly comparable, but just to give you a sense of the magnitude of the problem, that’s 402 times more than the $700 billion bailout package."

These are some pretty astounding figures.

(There's another fellow, Michael Hodges, who gives some great charts and data and whose horn I have been tooting for years now. See his wonderfully informative website.)

The rest of Weiss's article makes a lot of sense and even seems to point to the fact that the dollar is in great danger. But then he gives his recommendations to remain in dollar-denominated instruments.

If there is danger of a flight from the dollar and other paper currencies, as he warns Congress, isn't gold the only thing left?

For more about his warning, read the white paper he submitted to Congress on 9/25/08 (corrected 10/1/08) and other papers he links to therein.

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