So much bull crap gushed out of the anointed one’s mouth last night that an emergency call was made to the EPA. Clean up in aisle “hope for change.” For our President to not understand the word “no” is telling. In 2010 the Republicans took the House, in 2014 they took both the House and Senate; in between BO emerged the victor securing a second term. In Obama’s mind this is a winning hand, the implosion of the Democrats (can’t blame it on Bush this time)  in both years is meaningless, but what makes it more remarkable is the fact that Obama still believes in his ascendancy, when in fact his star is crashing to earth;  or we can put it another way, he has flown to close to the son.

In his 6 years in office Obama has pissed off one group after another – his campaign style is divisive,  a divide and conquer mentality where hard working Americans, those who have succeeded without a government handout are to be demonized. Never  will POTUS accept the conclusion that some people don’t have a job  for a reason. Taking from the rich and giving to the parasite is Obama’s modus operandi, starting a cultural war is his cup of tea. Class warfare the coin of the realm. “We are the victim and the rich are to blame.”

One of the main issues pitting Republicans and a handful, possibly more, Republicans is the ongoing negotiations with Iran. One deadline was not met, another is set to expire in June. The Senate is adamant on passing legislation which would once again punish Iran with more sanctions if the negotiations fail. However, Obama says no, do this and Iran will be mad enough to walk away from the table,  they will not negotiate with a hammer over their head.  Why is Obama is in Iran’s corner touting their position?  Why is he  their advocate; for what reason?  It is still fresh in our mind,  Obama’s vigorous and unwavering support for the Muslim Brotherhood. That too is very suspicious.

Taxes, Obama loves that word more than any other in the English language; without them his socialist utopia collapse. So he must tax more in order to spend more, a financial nuclear reaction. And we can go on and on, but what is the use. Perhaps the Senate will give him a good kick in the butt with his first override. Humble pie is hard to digest – can’t wait to see the snake lash out and Democrats after that happens. Stay tune!

In passing, the price of gold has not responded the way many pundits have prognosticated. On the way to $700 the gold has surged to $1300. What has inspired many to hop on the gold wagon is the continued debasement of world currencies. Venezuela and Russia have seen their currencies lose 50% of their value in short order. their citizens have learned their lessons well, many have purchased gold as insurance for just sort an event. But Europe is  approaching the abyss, printing fiat money like it is going out of style – we have to believe that many of the EU’s citizens are buying as well, for the Euro has dropped 15% too. What is surprising is that the dollar run up vs these currencies, typically not good for gold, has not had the usual effect. One other item worth mentioning, deflation is not good for gold too, then why is it going up? Our guess, “somebody big knows something.”

Through out history gold has been the medium of exchange; the store of value. Paper money displaced gold early in the 17th century; first used in Massachusetts then by the states during the Civil War. The banking industry’s genesis was initiated early on by warehouses which issued a receipt – thus a warehouse receipt – entitling the holder to redeem the receipt for the said amount of gold as defined in the receipt. As the industry blossomed it became apparent that the holders of receipts very rarely requested the physical gold; they only transferred the receipts. Thus the warehouses evolved into lenders realizing that a call for 100 percent of the gold at any one time was not a probability.

The 18th through the 21st century became the glory days of gold. Banks became behemoths lending more gold than they had in inventory. When a run on a bank occurred, which it ultimately did, culminating in bankruptcy and ruin. As the United States entered the 20th century as the world’s big money player the world treated the dollar as if it was good as gold.

This was true up until 1971.  Not dismissing the illegal taking of individuals gold by FDR back in 1933 (see executive order 6102).  The world was on the path of becoming a dynamic and risky adventure from 1971 on; the dollar was no longer convertible to gold, the dream of El Dorado became a reality by inventing paper gold on a scale never seen before. The physical gold window had closed, the dollar pyramid scheme began.  Hence the printing of paper money on a scale never seen before. Economies were on financial cocaine, a euphoria that is still manifested by governments gone wild. More printing enabled the exalted to exert control of economies, countries and world politics. But good times don’t last forever.

Entering the 21st century has proved that the dollar panacea has a long reach, but things can changes in a quant moment. Across the globe one country after another has defaulted; Greece and Argentina head the list. Is it possible that the United States is next?  A probability that cannot be counted out. What brings us to that conclusion is the loss of faith in the United States. We are no longer control world events – Obama saw to it.

Future obligations are the tail wagging the dog and that is about to become the albatross under our neck for the next two decades. Obligations are coming due. And the question remains, who will be responsible to pay them. for sure you can’t count on today’s youth to hand over their hard earned cash.   17 Trillion and counting is a gargantua number, that is just debt, counting social security, medicate obligations and interest on the debt we are looking at a google type number closer to 100 trillion. $100,000,000,0000,0000.

Another relevant question to ask a politician of the goldbrick variety is:  Will we ever be able to pay back the money we owe?   Don’t expect a straight answer.  The next question is, Will gold provide a solution to political largesse?