The Cynical Economist

Where record cold winters mean global warming,

Where the rights of the illegal aliens prevail over the rights of the American citizens,

Where the middle class doesn’t know what is good for them, but the politicians always are finding ways to “fix” that,

Where trillions are spend for the good of the people, but the people are obligated to pay back those trillions with interest,

A place where failed corporations get unlimited access to taxpayers money,

A country, that allows people who are defaulting on their mortgages  to stay at their overvalued homes,

A country that uses  a ponzi scheme like structure –  social security – to pay peoples retirements,

A country with a corporate structure that keeps incompetent assholes on the helm of the corporations that destroy the value of the company,  then gives them golden parachutes, when they screw up so bad that everyone knows it,

A country which is led, not by the individuals that build and create goods and services and employ people, but rather intellectuals that have never had a real jobs and never made a payroll or created a business plan….

A country that hold the terrorists rights higher than the rights of its citizens, because that way it will be seen as civilized society

A country that is doomed to fail, because of the politicians and the crony corporatism….

Welcome to Bizarro America

I wish I had more time to write, what I think about where we are headed as a country, but personal and other engagements are preventing me of doing so….

So here it is … thoughts about GOLD

*Gold probably is going higher… cause (it is what I read and what I think)

Reason 1 -The United Nations are producing bullion coins as world currency and also here

Wednesday, 16th December 2009 (2379 views)

The United Nations (UN) has licensed the minting of gold bullion coins bearing its logo to provide a “public option” world savings currency.

According to the Vancouver Examiner, Oro gold coins are hoped to contribute to making the UN better funded by 2015, with revenue rising by ten to 15 per cent.

The coins are set to be produced in Europe and then distributed globally, with any licensee able to produce such bullion under contract.

Armand Dufour of the European Bank says that he welcomes the introduction of the gold coins.

However, he goes on to add that there is a danger that if the US dollar weakens, there will be a strong move towards the Oro.

In turn this could potentially drive the value of the coin up to a level where international governments will not allow it to be circulated.

UN coins were previously made purely for commemoration in the 1970s, but they hold no monetary value.

Reason 2 - In The State Of Georgia USA, there is a bill that will make GOLD AND SILVER COINS legal tender as if they are equal to the fiat money. The PDF document is here

To amend Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, so as provide a short title; to provide legislative findings; to define certain terms; to require any bank or lending institution serving as a depository for the state or any department or agency of the state to offer and to accept gold and silver coin for deposit; to amend Title 50 of the Official Code of Georgia Annotated, relating to state government, so as to provide legislative findings; to define certain terms; to require the exclusive use of gold and silver coin as tender in payment of debts by or to the state; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

This Act shall be known and may be cited as the “Constitutional Tender Act.”

SECTION 2.

Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is amended by adding a new chapter to read as follows:

“CHAPTER 9

The General Assembly finds and declares that sound, constitutionally based money is essential to the livelihood of the people of this state, to the stability and growth of the economy of this state and region, and vitally affects the public interest. The General Assembly further finds that Article I, Section 10 of the United States Constitution provides that no state shall make anything but gold and silver coin a tender in payment of debts.

Didn’t have the time to research, if  the bill has been passed to become a law and also, I think  it is interesting to know, if other states are passing similar bills…

And I am not joking this is a real bill!!!

Reason 3 – reading these articles….5 Reasons Gold Is Going to Rise: A Response to Nouriel Roubini and Bankers and Economists Say Gold is a Bubble. Here’s Why You Should Ignore Them

So here it is … thoughts about the ECONOMY

*USA Economy is Doomed cause… (it is what I read and what I think)

Reason 1 – The slip knot around public deficits is going to strangle Western states and their social security systems

LEAP/E2020 believes that the global systemic crisis will experience a new tipping point from Spring 2010. Indeed, at that time, the public finances of the major Western countries are going to become unmanageable, as it will simultaneously become clear that new support measures for the economy are needed because of the failure of the various stimuli in 2009 (1), and that the size of budget deficits preclude any significant new expenditures.

Reason 2 – Trucking is DEAD = no demand of any kind (except government) and if you remember the USA’s GDP is 70 percent CONSUMER SPENDING…

I have made a pictures of a trucking hub, that belongs to one of the largest trucking companies in the USA and which  I pass almost every day.  I have noticed a big difference of how many trucks are stationary parked during 2008 – 2009.

Because of that I went and took a pictures December 21, 2009.

Right now I am having trouble with my camera and, that’s why even though I planed to upload the pictures before Christmas to show you , that there is no truck shipping  going on before Christmas  I wasn’t able to do so. Will do as soon I fix my camera.

Meanwhile why you should be concerned….Trucking companies are suffering loses because of the reduced consumer demand of goods, so they  borrow  money and as things are not getting better, they become easy pray for the banksters ….

There is a tremendous amount of reasons why you should be paying attention to the trucking industry at the current moment.Arrow Trucking just went down the drain on Thursday, December 24, 2009— halting all operations, canceling fuel cards, and telling drivers (by direction of Daimler Financial who funded the entire fleet of trucks) to return their rigs to the nearest Freightliner dealer and get a bus ticket home. I have recently seen this article concerning YRC Trucking (YRC Worldwide) and that GOLDMAN SACHS IS TRYING TO BANKRUPT YRC through bad derivatives and credit default swaps. Keep in mind that YRC(W) is the largest, most comprehensive network in North America and one of the largest in the world for that matter. IT IS OF GREAT CONCERN to pay attention to such a matter.

Trucking Bankruptcies threaten 3 major necessities:

1. Food
2. Goods/Materials (commodities necessary for everyday life [-life essentials/non-life essentials])
3. Fuel Delivery

Why do you need to be concerned with YRC?……because when the trucks stop—
IT ALL STOPS.

The American Trucking Association presents a sobering view of possible consequences to a partial or complete interruption to our nation’s trucking business. You should take a few minutes and read the entire paper

Also consider this article –  Warren Buffett Buys A RAILROAD? Berkshire Hathaway Acquires Burlington Northern Railroad

The biggest name in investing is making what he calls an “all-in wager” on the U.S. economy – $34 billion to own a railroad that hauls everything from corn to cars across the country.

…meaning that.. trucking is dead as he said in a college meeting in which he was guest  together with Bill Gates. He also said that he made the purchase of the rail road company because…

1 gallon of diesel fuel will move one ton 423 miles, which is far more efficient compared to moving products by tractor trailers on the highways

Reason 3 – For now consider these links as a good read and why I think we are screwed ….

Serious U.S. mortgage delinquencies up 20 percent

10 Industries That Will Lose The Most Jobs In Next Decade

Stores Face New Kind of Shopper

Hiring, Business Investment and Other Big Variables That Will Drive 2010 Economy

House Under Water: Walk Away?

will be back tomorrow some time after 8 pm ET