Jump to content


Photo

What does an Obama Administration mean for investors?


7 replies to this topic

#1 Steve Netwriter

Steve Netwriter

    Tri-Millennium Guru

  • Super Admins
  • PipPipPipPipPip
  • 5,856 posts
  • Gender:Male
  • Location:Christchurch, New Zealand

Posted 06 November 2008 - 11:54 PM

What does an Obama Administration mean for investors?
http://cij.inspiriting.com/?p=577

QUOTE
Now that the initial euphoria of the Obama election victory is over, it is time to get back to reality. No doubt, although Obama’s victory is very meaningful for the aspirations and dreams of millions of African-Americans, the truth is that nothing has changed fundamentally. America’s economy (and by extension, the global economy), is still in a mess. On the geo-political and foreign policy front, there are still a lot left to be desired. Although we admire Obama for his victory against all odds, we would not like to be in his shoes because the tasks ahead is colossal. After 2 terms of mismanagement under the previous administration, we doubt Obama could undo all the damages very quickly.

As investors, we will leave the politics aside and look at what the implications of an Obama Administration for investors:
.
.
.
This is not to say that if hyper-inflation ever happen, it will arrive soon. Such development can take many years to unravel.

Fiat: What starts becoming worth less eventually becomes worthless.

Notable Threads Notable Posts

#2 Commander T

Commander T

    Jesse Livermore Protégé

  • Members
  • PipPipPipPip
  • 2,389 posts
  • Gender:Male
  • Location:UK

Posted 07 November 2008 - 12:05 AM

Invest as if there will be a war soon?

^ My words do not constitute financial advice, please do your own research.

 

Nov 2013; Gold 2yr high must clear $1800, Silver 2yr high clear $35

 

My Trading Blog

My Gaming Channel + Videos

Indices Watch List

Deflationhyperinflation


#3 Steve Netwriter

Steve Netwriter

    Tri-Millennium Guru

  • Super Admins
  • PipPipPipPipPip
  • 5,856 posts
  • Gender:Male
  • Location:Christchurch, New Zealand

Posted 07 November 2008 - 12:17 AM

Recipe for hyperinflation
http://cij.inspiriting.com/?p=337

QUOTE
There is no way any politician can sell the message that America needs a severe recession (or even a depression) to cleanse the economy from the gross excesses, imbalances, blunders and mal-investments. Thus, it is very likely that they will have to fight deflation till the very bitter end, till the last drop of blood from their last soldier.

Since the current structure of ‘rules’ will be too restrictive in such a war against deflation, there will be popular momentum towards the bending and rolling back of these ‘rules.’ If they press on relentlessly till the final end, there can only be one outcome: the US dollar will be joining the long list of failed fiat paper money in the annals of human civilization.

Since the rest of the world’s currencies are as fiat as the US dollar and are based on the US dollar standard (see How does the US export inflation?), you can be sure the result will be ugly for the global financial system.

Fiat: What starts becoming worth less eventually becomes worthless.

Notable Threads Notable Posts

#4 Steve Netwriter

Steve Netwriter

    Tri-Millennium Guru

  • Super Admins
  • PipPipPipPipPip
  • 5,856 posts
  • Gender:Male
  • Location:Christchurch, New Zealand

Posted 07 November 2008 - 12:28 AM

QUOTE (notanewmeber @ Nov 7 2008, 12:05 PM) <{POST_SNAPBACK}>
Invest as if there will be a war soon?


Ah ha, so you're the guy who has a picture of my gold laugh.gif

I've nicked your Dow-Gold ratio chart to compare with my S&P500-Gold chart biggrin.gif

http://www.greenener.......ost&p=74742

Fiat: What starts becoming worth less eventually becomes worthless.

Notable Threads Notable Posts

#5 Commander T

Commander T

    Jesse Livermore Protégé

  • Members
  • PipPipPipPip
  • 2,389 posts
  • Gender:Male
  • Location:UK

Posted 07 November 2008 - 12:31 AM

Thats OK I nicked it from somewhere else ...

^ My words do not constitute financial advice, please do your own research.

 

Nov 2013; Gold 2yr high must clear $1800, Silver 2yr high clear $35

 

My Trading Blog

My Gaming Channel + Videos

Indices Watch List

Deflationhyperinflation


#6 Steve Netwriter

Steve Netwriter

    Tri-Millennium Guru

  • Super Admins
  • PipPipPipPipPip
  • 5,856 posts
  • Gender:Male
  • Location:Christchurch, New Zealand

Posted 10 November 2008 - 09:45 AM

November 10, 2008
Barack Obama backs plea for Henry Paulson to extend bailout to car industry
http://business.time...icle5119805.ece

QUOTE
Barack Obama, the US President-elect, has thrown his weight behind a plea to Henry Paulson, the Treasury Secretary, to use some of his $700 billion (£444 billion) bailout fund to rescue America's car companies.
...
However, since the election of Mr Obama last week, the appetite for throwing a lifeline to the car manufacturers appears to have grown.

In his first post-election news conference, Mr Obama said that his transition team was compiling “policy options to help the auto industry adjust, weather the financial crisis and succeed in producing fuel-efficient cars here in the United States”.

Mr Obama defined the failing car industry as “the backbone of American manufacturing” and indicated that he would be more aggressive in rescuing it than the Bush Administration has been.

Fiat: What starts becoming worth less eventually becomes worthless.

Notable Threads Notable Posts

#7 Steve Netwriter

Steve Netwriter

    Tri-Millennium Guru

  • Super Admins
  • PipPipPipPipPip
  • 5,856 posts
  • Gender:Male
  • Location:Christchurch, New Zealand

Posted 10 November 2008 - 11:51 AM

John Rubino
Obama - A Look Ahead *AUDIO*



Fiat: What starts becoming worth less eventually becomes worthless.

Notable Threads Notable Posts

#8 romans holiday

romans holiday

    Tri-Millennium Guru

  • Members
  • PipPipPipPipPip
  • 8,675 posts
  • Gender:Male
  • Location:The Southern Alps

Posted 10 November 2008 - 12:19 PM

QUOTE (Steve Netwriter @ Nov 10 2008, 06:45 PM) <{POST_SNAPBACK}>
November 10, 2008
Barack Obama backs plea for Henry Paulson to extend bailout to car industry
http://business.time...icle5119805.ece


Also from the article.
QUOTE
Mr Wagoner, who said that the liquidity crisis has put an end to GM's merger talks with Chrysler, also gave warning that banks had stopped offering credit to car companies to fund their restructurings


Remind me again, what was the idea behind TARP money? I think the banks are either going to hold onto the new money or invest it in treasuries. laugh.gif
Modern money "shorts" the currency, and is backed by debt. The debt is real. A debt deflation will lead to a prolonged period of deleveraging, where the short-covering of currencies will strengthen currencies relative to asset prices. At the global level, in the FX market, central currencies will benefit from deleveraging at the expense of peripheral currencies. Due to instability and uncertainty, gold will benefit against all currencies as it continues to be re-monetized.

Hold on to your hats for hyper-deflation, where cash is king, and gold the King of cash.
[Silver? A Volatile Queen].




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users