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Posts Tagged ‘Kevin Crosby’

The following was submitted by Kevin Crosby. He is a software engineer, conservative, and independent contributor to ScottFactor.com. His opinions do not necessarily reflect those of the administration of ScottFactor.com. He can be reached at [email protected]

I have three charts here for you today.  The first one depicts the value of the dollar, or the lack there of.   The second is the price of gold over the last ten years, and the third being the price of silver since 1985.  Go look at the charts (at the bottom) for a bit and meet me back here.  I  have cup of coffee and I can wait for you, so take your time.

Lets look at the math. If you had $30,000 in cash in 1970, it would be worth $5,400 today. If you had bought $30K in gold ten years ago, it would be worth approximately $153,900. If you bought $30k worth of silver ten years ago, it would be worth $237,885. Fun numbers, but I’m not writhing this for fun and I know for a fact that less than 1% of everyone who is going to read this blog owns any gold and silver, so these numbers are somewhat meaningless, right?

The most important thing that I want you to take away from this, is the trend in the value of the dollar. Ask yourself, where does this end. What happens when the value of the dollar reaches $0.0? When you look at the long term trend is there any doubt in your mind that this is what is going to happen? If there is any doubt in your mind, I would love to hear what you are thinking. Maybe, you think that the government could somehow come up with a plan to magically fix this. Not likely, as the governments magic is the cause of most of this.

Obvious to me, by looking at these charts, is the fact that owning gold and silver might be a good idea right now, as opposed to having money in the stock market or a savings account. Yes the stock market has been a pretty good tear as of late, but you don’t have to look very far to find out that the tear has been more of the governments magic than anything resembling market fundamentals. Oh, and by the way, the governments magic(QE2) ends on the 30th of June. Can’t wait to see the fireworks from that stock market explosion. As far as having money in a savings account, look closely at the first chart and tell me why you think that is a good idea. If your keeping you’re money in a savings account because you think its safe there, go look at chart 1 again.

I have heard and read a lot about the fact that gold and silver are in a bubble and it won’t be long until that bubble bursts, just like the dot com bubble and the housing bubble. Well lets examine this intellectual dung for a moment. In both the dot com bubble and the housing bubble, there was a very high percentage of private investment driving those bubbles. To state this another way, in order for there to be a bubble, there has to be a large percentage of private investment. Now, you might find this interesting but the fact is that less than 1% of the people of this country have any investments in gold or silver. What bubble? I don’t see any bubble. Do you see any bubble? Wait, I’ll run down the street and talk to guy on the corner and see if he thinks there is a bubble. I’ll be right back……………….. Nope, he doesn’t see any bubble either, but I did get a good cup of coffee out of it.

This banter is not intended to be doom and gloom, even thought it would be easy take it that way. What this is, is a possible method to prevent doom and gloom. Same thing as recommending you change the tires on the car instead of waiting to have a blow out while driving down the highway at 70 mph. See chart 1.

As always, I would love to hear your comments. Feel free to pass this on and have a good day!

Editor’s Note:  This article originally appeared in a different format, because the editor took it upon himself to desecrate Kevin’s fine work. Editor promises never to do that again, if readers promise to forgive the clumsy editor. :-)

 

The following was submitted by Kevin Crosby. He is a software engineer, conservative, and independent contributor to ScottFactor.com. His opinions do not necessarily reflect those of the administration of ScottFactor.com. He can be reached at [email protected].

Representative Paulson:

I have been watching the antics of both the House and Senate on the issue of the short term budget bill and I can honestly say that I’m getting sick of it. This is not what we in the Tea Party were expecting when we spent time and money to get conservatives elected.

I see that republicans have called for $61 billion in cuts for this year. What about next year, you going to try for maybe $70 billion. Be real careful not to set the bar too high, wouldn’t want to see you fail. Except you are failing and miserably at that. This whole idea of the conservatives not being able to come up with more than $61 billion in cuts against Obama’s $1.1 trillion budget is truly absurd and shameful.

Do you and your congressional conservative colleagues really believe that you were elected to cut a percent of a percent off the budget? It truly appears that way to me. With the exception of the Tea Party representatives in this congress it looks to me like the same old, same old.

Obviously, its too late to modify whats in the mill for the current 3 week continuing resolution, but as far as the next one, its time for a major change.

What I would like to see is a $500 billion cut to the budget for this year. The elimination the Dept. of Education, Dept. of Energy, foreign aid and the Federal Reserve along with privatizing the Post Office and Amtrak. When this fails the Senate, shut the government down and keep it shut down until it does pass the senate.

While all this may seem draconian, it pales to what is on the horizon if this doesn’t happen. If you have ever read the history of countries that have tried to finance themselves out of debt by printing money, you understand that the outcome is allways the same. Hyperinflation! How draconian would that be for the American public? Do you really want to continue pushing your luck by not cutting spending and having the Fed print more money? Or, more accurately, pushing America’s luck ………………….

The house of cards of the good old boy politics in Washington is going to come down one way or the other. This can’t be sustained. It appears to me that in the last election which brought the conservatives to power in the House, that in fact the people were not looking for bi partisanship or a new gentler tone. They are looking for you folks to take charge and stop President Obama and his minions from further trashing of our Constitution and driving our nation into financial ruin. If a rather vociferous urinating contest breaks out, so be it.

If $61 billion is all you folks up there can find to cut, please let us all know that, so we can start the process of finding people that will be able to save the United States.

Respectfully,

Kevin Crosby

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