By Craig R. Smith and David M. Bradshaw
Mar 19, 2009
Mass media mind control shifted into overdrive this weekend.
The Obama Administration wants Americans to believe their plan for economic recovery will magically work, simply by presenting carefully worded statements by respected authorities over and over again. Welcome to Orwell's 1984 -- 25 years later than George first imagined.
In a full-court press assault this weekend the Obama Administration pulled out all the stops to shore up public confidence in the government's multi-trillion dollar spending spree, cloaked in fighting "the worst financial crisis since the Great Depression."
Everyone from; White House Chief Economist Christina Romer to White House Council of Economic Advisers Austan Goolsbee to the Director of Council of Economic Advisers, Lawrence Summers to Federal Reserve Chairman Ben Bernanke faced the nation with happy talk about how Obamanomics will work -- if we can muster up the "political will".
Computer replaces printing press
The secret weapon? The printing press, or as Ben Bernanke said; "Simply using a computer", to create trillions of dollars in debt. The Fed "won't let the banks fail," said Bernanke -- which guarantees no consequences for abuses of the past, thus encouraging the same risky investments in derivatives that helped create this crisis to begin with.
President Barrack Obama himself is scheduled to appear on Jay Leno this week in an attempt to fight a growing populist backlash against banks and Wall Street and his proposed $3.6 trillion budget.
Today Obama lashed out against AIG executive bonuses. "It's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay," said Obama during his announcement of a $15 billion bailout for small businesses hurt by the recession.
Obamanomics is all about wealth redistribution -- "from each according to his ability, to each acording to his need," said Karl Marx. Obama views the government's role as the great Robin Hood, which completely blurs the relationship between morality and work, and ultimately between financial productivity and consequences.
Physical gold vs. 'Bernie Maddoff' gold
The only way to protect your hard earned money today is by holding hard-owned money in your own hand. Even gold ETF's like GLD have counter-party risk and may or may not be backed 100% by gold.
The physical gold coin (or bar) market represents economic reality. In 2009 U.S. gold coin prices have moved higher, rather than the sideways movement of Wall St. gold bullion substitutes. For example, while bullion prices are up 7% ytd, U.S. American Eagle and historic $20 gold pieces are up 25-30%! Last year gold bullion was up just 5%, but $20 gold pieces moved up 20-30%.
Which would you rather own; real gold or 'Bernie Maddoff' gold certificates?
Bottom Line: When you hold an ounce of gold in your hand you do not have to believe, trust or hope in government. Instead you are taking personal responsibility for protecting and growing wealth -- despite inflationary government manipulation of interest rates, inflation, jobs, etc.
Real wealth is physical, not psychological. Both require faith and hope. One has a 6,000 year track record of never failing, the other is and should be behind bars.
Obamanomic media blitz ... smile for the camera
1) CBS Meet The Press -- Romer: “We Are Staging A Wonderful Battle”. White House Chief Economist Christina Romer said the Obama administration is staging a “wonderful battle” in an economic war that hasn’t been won. Speaking on “Meet the Press" with David Gregory, she described the current situation as a temporary mess, and said that the Obama economic team has prescribed “incredible medicine” and comprehensive programs to “put us back in a good place.”
2) Fox New Sunday w/ Chris Wallace -- Austan Goolsbee, White House Council of Economic Advisers -- "GOOLSBEE: The president is saying in his budget that he's carrying out in the recovery package and in the budget giving a tax cut to 95 percent of working people, and that people who make more than $250,000 a year will go back to the rates as they were at the end of the '90s, that if they pay a bit more, that isn't going to bring the economy down, and that style of thinking, that it's going to trickle down and we should just keep cutting taxes at the top, got us where we are today."
3) ABC This Week -- Lawrence Summers, director of the White House National Economic Council, called AIG bonus payments “outrageous”. AIG is “abusing the system,” Barney Frank, the Massachusetts Democrat who heads the House Financial Services Committee,told “Fox News Sunday.” AIG, which has received $170 billion in taxpayer money, succumbed to demands from the U.S. Treasury to scale back the payments. -Bloomberg
4) CBS 60 Minutes -- Ben Bernanke's appearance on "60 Minutes" Sunday night was a great public relations move. Calling a lack of "political will" in stabilizing the banking system the "biggest risk" facing the economy, Bernanke is putting added pressure on an increasingly testy Congress even if the largely softball interview (including a home-town visit to Dillon, S.C., which felt a pretty forced) failed to uncover much new insight into the Fed's thinking on the crisis. -USNews&WorldReport. When asked if we are heading into another Great Depression, Bernanke confidently said, "I think we've averted that risk. I think we've gotten past that." When asked if he had a message for the American people, Bernanke said he has three: 1. The Federal Reserve is here, and is gonna do everything possible to support this recovery. 2. Recovery is not gonna happen until the financial markets and the banks are stabilized. Gonna take some patience. 3. Every confidence that this economy will recover, and recover in a strong and sustained way.
5) NY Times -- A.I.G. Lists Which Banks It Paid With U.S. Bailout Funds: Amid rising pressure from Congress and taxpayers, the American International Group on Sunday released the names of dozens of financial institutions that benefited from the Federal Reserve’s decision last fall to save the giant insurer from collapse with a huge rescue loan. Big foreign banks also received large sums from the rescue, including Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion; Barclays of Britain ($8.5 billion); and UBS of Switzerland ($5 billion).
6) NY Times -- Obama Braces for a Backlash: "The Obama administration is increasingly concerned about a populist backlash against banks and Wall Street, worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda."
Gold & Obamanomics
9 Realities of Obamanomics
Did you see this? ...
Financial "bets" vs. a real investment: If anyone still doubts that Wall Street is rigged against the small investor, please watch this Jim Cramer interview with Jon Stewart -
Laugh of the day ... Sesame Street on Ponzi Schemes.