Our New Export...
In a recent conversation with a dear friend, we discussed what America's number one export was. We discussed industries such as as defense, technology, and even infrastructure materials. Other ideas were foods, medical devices, and banking. Jobs seem to be one of the most popular export items. With unemployment erupting to a near 7% mark, there is a reasonable case here. However, after the recent agreement between the Fed and Korea, Singapore, Brazil, and Mexico, it appears that the U.S. dollar is our best export. The Fed has gone to great lengths to insure credit markets in those countries. Could the dollar be as "good as gold?" How easy it is to control other governments and policies when you run the printing presses. The only other export that compares to this Treasury's efforts is U.S. debt. And that could well be the biggest of the exports. (1) The real concern should be who is holding the debt. He who prints the money makes the rules. Yet, he who holds the debt will have their say!
The New Brenton Woods...
If you are looking for a few extra bucks, there's always the jewelry party. Invite your friends over to your house. Remind them that they are supposed to bring all of their leftover or unwanted gold. Sell the gold, get some cash, and everyone is happy! According to one representative, "People love the idea of coming to a party and making money," said Janine Cosek, from the The Gold Refinery.com. Janine averages approximately $5,000 per party of which, she kicks back approximately 10% to the hostess of the party. Sounds like a great way to fleece and lose your friends! (2)
Maybe these folks know something. Great Britain's Prime Minister called for a "new" Bretton Woods Conference. The original Brenton Woods Conference established the U.S. dollar as the world's currency. All other world currencies are pegged to the value of a dollar. If the dollar gets too high, or too low then central banks would step in to deliver the respective medicine. Gold was supposed to back the U.S. dollar. There was supposed to be stability, and everyone would be happy. However, it appears that there is increasing discomfort with the status and future erosion of the U.S. dollar. In essence, the U.S. has thus far avoided economic disaster by exporting devalued dollars all over the world. But this trend will not let continue.
If the dollar is replaced by the Euro, or some other currency, gold will take off like the space shuttle. It's been said that is increasingly difficult to find gold bullion, and coins in local retail type shops. The U.S. Mint has "temporarily" discontinued selling gold coins. Yet, central banks have kept pressure on the price of gold. Today, its spot price closed at 741.00. Yet, an ounce of gold is selling close to $1,000.00 on EBay. Something is not right!
The New President...
Congratulations President Obama!!! The people have spoken. It is time to get behind the new President of the United States. I believe Obama will bring an upbeat and pragmatic administration to D.C.. Obama's attitude and vision for America deserve our support. Obama is a reformer and will have a welcome opportunity to challenge the status quo. More than ever, we need fiscal responsibility and reform. Most of all, we need leadership. Let us pray for him and his administration!!!
1. http://www.bloomberg.com/apps/news?pid=20601080&sid=a7r4BwvoXaBU&refer=asia
2. http://www.marketwatch.com/news/story/Gold-parties-let-consumers-trade/
story.aspx?guid=%7BAEAFCA8A%2DCEA6%2D49C7%2D839C%2DFDDBF4E7E6D2%7D
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