ALL ANIMALS ARE EQUAL. BUT SOME ANIMALS ARE MORE EQUAL THAN OTHERS - George Orwell, "Animal Farm"If this is such a good law, then how come Congress - the people who passed this law - are not covered under this law but under their own "special" healthcare coverage?
There's not a lot to say about the SCOTUS decision on Obamacare other than, "okay, now how does the Government pay for this?" That plus now that the SCOTUS has upheld the ability of the Government to "mandate" how you have to live your life by calling the individual mandate a "tax," where exactly will our Government draw the line on regulating everything you do?
Quite honestly this is probably one of the most depressing events I have witnessed with respect to the abdication of individual liberty - and the annexation of power and control - by the Federal Government. The fact that this particular SCOTUS put its stamp of approval on this move toward a totalitarian system is quite shocking.
Initially the precious metals were blatantly smashed when the decision was announced. This is because once the dust settles, the toughest question is "where will the financing for Obamacare come from?" Several close studies of the entire legislation have suggested several trillion dollars will be required. Raising taxes on a declining income-earning workforce will not even remotely accomplish the task. The Government already has an insatiable demand for the funding to finance its rapidly escalating spending.
The big banks backed by Fed know that this means more debt issuance and more money-printing and that's why there's been inexorable downward pressure on the precious metals once Asia - the phsyical gold buying part of the world - goes to sleep and the paper trading criminals in NY and London go to work.
The past 14 months have been extremely difficult for those of us heavily invested in the precious metals sector. But the fundamental factors for doing so have become significantly stronger during this time period, punctuated by the affirmation by SCOTUS of Obamacare. In the context of the globally collapsing banking system and the serially collapsing EU countries, when the markets fully understand what has happened in this country today, the precious metals will take off to new highs as it will become crystal clear that the only two possibilities going forward are to print or allow complete financial collapse of the western world.
Other than that, Mrs. Lincoln, how did you enjoy the show?
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Jeepers. Who coulda figured that wild government spending would cause the gold smash to occur? (There was some Tweeting suggesting the smash preceeded the announcement, but I haven't compared the timelines.) There really is no place to hide in this beast of a market.
ReplyDeleteThomas aka DBC
Or, Monty Hall asking which of the 2 doors do you want.
ReplyDeletethanks for the reality of it
Follow up dave:
ReplyDeleteI just do not feel people here in US understand the gravity of the global financial situation--you and your readers are far more intimately involved with the details than the general population-and maybe even many financial advisors/brokers who still don't get it.
Most do not even want to hear the gloom and doom. Have to keep a positive mental attitude.
This is like a 200 year flood. and the people will wake up when the water reaches them.
Hal, I've said several times that there's a big 2x4 being swung at the head of the middle class that they don't see coming. By the time they see it coming, it will be too late to duck.
DeleteI found it interesting that since it's viewed as a tax, it's cool. Didn't the arguments flatly deny that this was a tax and instead a fee or something like that? My concern is now that this tax is a-ok, what other "taxes" are coming in the years ahead? Will there be a Domestic Auto Tax where if you don't buy a GM, Ford of Chrysler, you're subjected to a $5,000 yearly tax hit. The sky is the limit when it comes to all the different fairness and behavioral taxes that these idiots can think of.
ReplyDeleteI believe this will simply hasten the collapse. As you stated Dave, how are they going to pay for it? My guess is greater and greater debt issuance on the back of falling tax collections. It'll continue until it can't.
It just hit me as how to pay for all of this. They'll simply mandate that you have to purchase treasuries. The rumor/worry that they'll force people that direction via their retirement accounts has been around for awhile. It has now gotten a whole lot easier to implement.
Delete+1. It's crazy talk ... 'you are entitled to have someone else pay for whatever you need.'
DeleteYou already get taxed for not buying domestic. Import tariffs. Subsidies... bailouts... get used to it... Pay American!
DeleteWould a different SCOTUS vote have caused the metals to rise?
ReplyDeleteI don't know. I do know that right now, they are aggressively using Comex paper to suppress the metals in order to suppress the warning flag provided by precious metals that things are getting worse.
DeleteHow else would you explain that 80% of the time the metals move higher during Asian trading and then get hit as soon at the Comex opens?
Dave,
ReplyDeleteColor me naive but I just don't get the metals smash down. Surely the idiots responsible must know that it only makes it cheaper for the Asian buyers and so they'll buy more. Please help me understand.
Thanks for all your work. -- Sam
Wake me when a black swan arrives. Until then we'll be subject to this bs.
ReplyDeleteMe thinks the "black swan" has arrived -it goes by the title : CHIEF JUSTICE ROBERTS
ReplyDeleteI wonder what Egan, Moody's and Fitch will do once they run the numbers for this through their little calculators?
ReplyDeleteI hope silver goes to .50! That's the only way I'll ever be a millionaire! I'm guessing the gov wouldn't consider bringing some military home to re-direct some $$ to our new health care system. I'm always reading about how interesting these times are. It's getting a little too interesting if you ask me.
ReplyDelete