Sunday, August 14, 2011

Anchored Out

I keep hearing from friends and neighbors how glad they are things are getting better, the economy is coming back, things will be back to normal soon. Investment gurus on the other hand are fleeing to gold and muttering about recession coming back, as though we were ever out of recession.

Michele Bachmann won the straw poll in Iowa this weekend though I was glad to see the maverick Ron Paul came in 150 votes behind La Fascista. I'm guessing the money bags that own our politicians have figured by now that President Obama, as compliant as he is, has no hope. We on the left have abandoned him and those on the fence in the middle are disenchanted with his unemployment numbers and the investor classes need a compliant replacement. If Bachmann can do what Paul can't, and that is convince the money bags that they can own her, she could get elected. That will make for interesting times, with a Koch/Bachmann world view emanating from the Oval Office.

It has amazed me how we in the Keys have weathered the storm Up North this summer. Weather events have swept the rest of the country, too much rain or too little, crops ruined everywhere, sea levels rising around Alaska's coast and the price of food sky rocketing. No one really knows where unemployment levels are but gold has gone through the roof which devalues our currency, thank you Federal Reserve,and the next President of the US will be required to balance the budget by destroying our old age, even as our soldiers continue to wreck lives around the world for no known purpose except to increase Bechtel and Haliburton profits. Another Key West cop recently left to work as a mercenary in Jordan of all places and who can blame him? A city pension will mean nothing in twenty years while fifteen thousand a month tax free right now means a great deal.
And through it all I continue to be glad I live here, on the edge, out of the mainstream, away from reality. Where the money comes from that keeps funding these islands I don't want to know, it can't be anywhere good, but it might as well come here as anywhere else.

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1 comment:

Chuck and the Pheebs said...

You have it backwards...

Gold, while somewhat speculative, is a secure standard by which to measure the relative health of a given currency. If we look at linked currencies (USD, Yen, Euro and the renminbi there's not a lot of movement, but...

de linked currencies (Swiss franc, New Zealand Dollar, Austrian Dollar and Singapore Dollar) have tracked gold's rise rather closely - far more closely than their respective economies would suggest.

In 2002 I was in Switzerland with my family as it was CHEAP - the swiss franc was about 70 cents on the dollar; it peaked around 1.36 last week.

That's about a 100% increase in nine years - or - a 50% devaluation of the dollar.

that's the tale of the tape - one which doesn't get airtime for some reason.