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Paul Nathan

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  • Why A Romney Win Could Be Bad For The Market [View article]
    "A Romney presidency would mean a repeat of George Bush policies..."

    I have had enough of this bush bashing.

    It really says something about Obama that he can sneer at the past while presiding over the worst economic recovery since the Great Depression. His policies have resulted in years of high food and gas prices, health care costs which remain out of control, a stagnant GDP, and a soaring debt and deficit. But the most blatant distortion Obama makes regarding the Bush Administration is that it created no net new jobs.

    During the Bush years we were at full employment or about 5.5% (5% unemployment usually represents full employment because at any one time there are many who choose not to work or are in transition). In fact, for most of that period the unemployment rate was even lower, in the 4%-5% range. No new jobs were created because everyone who wanted a job had a job. “Help wanted" signs were everywhere, yet there were few takers during the Bush years.

    Obama blatantly evades the reality of full employment and prosperity during the Bush years while boasting that his Administration is creating millions of new jobs. All this self-congratulation in an economy of sub par growth rates of about 2%, unemployment of 8%, and a runaway debt and deficit that will grow at about a trillion dollars a year until it bankrupts the country. Obama attacks the “failed policies of the past,” which is a fiction, while lauding his own ineffectual policies.

    But Obama doesn't stop there when it comes to rewriting history. He blames “trickle down” economics for ruining the country and warns that a return to this and other "failed policies of the past" would destroy us. But “what trickled and then rained down,” as I wrote in Myths and Revelations, “were computers, mobile phones, GPS technology, flat screen TV's, satellite radio, online trading, online banking, bill pay, Facebook, new hi-tech cars, new medical devices, and medicines that extended and enhanced life. All of these became common place [During the Bush years]."

    The recipients of all that innovation became some of the richest people on earth. Even our poor were counted among the richest people on earth. In fact, the term “poor” was rarely used or heard during the Bush years. This is what Obama warns us we may be forced, kicking and screaming, to go back to if Romney should win the election?

    Obama is selling a different vision of the future, where we are all our brother’s keeper; where the best are brought down to the level of the mediocre, where the exceptional are punished by higher taxes and the needy rewarded at other peoples expense; where the government looks over us all, and makes the "important" decisions for us; and where fairness is not equality of opportunity for all, but where lifestyles are equalized by government dictates.

    If you'd like to see the reality of such “fairness”—visit Cuba. There, you will find what Fidel Castro believes is the fairest society of all. Cuba is a nation without progress. He ended it decades ago. Sixty year old American cars are still on the roads because the incentive to produce new cars, or new anything, has been taken away. Besides, most of Cuba’s innovators and producers fled long ago to freer societies where incentives still exist.

    Imagine a place with no new industry or new buildings springing up. What would life be like without mass transit or technological innovation? That’s the “ideal” as expressed in Cuba. Yet, there is full employment and national health care. In Cuba everyone works, and everyone gets a free education and free health care. But no one excels at anything. There is no upward mobility, no possibility of getting rich, no dreams. The standard of living just stays the same and there are no new and better cars or homes to buy. Things just stay the same year after year, decade after decade.

    Obama rightfully claims that this election is about two different visions of the future. Obama’s vision is one of government control, regulation, and redistribution of wealth to make us all more equal. Romney’s vision is to increase incentives, freedom, and opportunity to make us more prosperous.

    We can already see the result of Obama’s vision in America—we have lived it over the last four years. We are experiencing the Cuban disease of stagnation as our growth has slowed to an anemic pace. Our economy has gone from being dynamic and ever expanding to something more controlled and restrictive. The Obama years of government control and regulation have stunted this country and his deficits have drained our wealth. Soon, if allowed to continue, we will see the creators stop creating and the great producers stop producing as the innovators are leveled to an “equal” mediocrity. At long last we will live in Obama's realized vision of the future. We will finally have “fairness.” We will have Cuba.

    (Done!) Paul Nathan
    See for additional commentary
    Oct 13 10:21 PM | 11 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    To all those who are holding gold: I am also a holder of gold and resorces stocks. I have a core position in both that I do not intend to sell. I have been a writer and invester of gold, for over 40 years. This article is not intended to convince anyone to buy or sell, but rather to keep in perspective where we were and where we are. All investments -- stocks, commodities and markets go up and they go down. This article tries to explain why gold is falling. It does not attempt to predict where gold will go from here.
    Mar 1 01:40 PM | 7 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    Thanks, and of course you are right. We are headed for insolvency. My comment was made in the context of the banking crisis which we averted and the euro-zone financial panic that has abated. But yes, we are headed for fiscal default. See my article "The Full Faith And Credit' at under commentaries.
    Mar 1 11:36 AM | 6 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    That may be true but keep in mind that the purchasing power of the dollar eroded between 1980 and 2001 and gold fell from 850 to 250. Unpleasent to think about...but true.
    Mar 2 01:52 PM | 5 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]
    "If he has a plan to bring jobs back from offshore by having plants relocate i have not heard of it."

    It would help to lower the corporate tax rate here to those abroad. trillions of dollars are being held over seas due to the disparity in tax treatment. If they come back home, jobs will be created.

    By the way, what is Obama's plan to get the economy going in the next four years?
    Oct 12 08:45 PM | 5 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    It all depends on where you live and what you do. If you've been in the electronics industry or real estate, you've experienced a deflationary world. If you are in energy or transportation you've enjoyed higher wages and low unemployment. Either way you can protect against your particular nemesis. But my point in the article is we have had neither progressive inflation or deflation. Both have been contained over the years -- by any measure.

    See: Protect Against Inflation With ETFs - Seeking Alpha
    Mar 2 06:21 PM | 4 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]

    There you go again calling your opinions facts. You need to learn how to deal with reality rather than figments of your imagination. End of conversation.
    Oct 14 08:06 PM | 4 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]
    Keep in mind that Romney does not only have an excellent record as a turn around and efficiency specialist (Staples is the most visible example), but he has a record as a Governor that successfully worked with a state that was predominately controlled by democrats.

    If we want to turn the economy around and return to a fiscally responsible government, you need a guy that focuses on not only how to succeed but how to achieve consensus. Anything less and we just continue on the same road we're on for another four years.
    Oct 13 03:18 PM | 4 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]

    Your following description of my views are entirely wrong.

    "The author's conflicted feelings are evident. He sees clearly that the rhetoric offered by the Romney-Ryan ticket, if transformed into policy, would create recession if not depression. He also sees that Romney, if left to his own devices, is a pretty moderate guy on economics at least -- but that he cannot show his true colors without enraging the "base" that has taken over his party. So Romney chose radical Ryan and even in the debates, continues to parrot some of the rhetoric that scares politically neutral investors. It is quaint that the author identifies himself as a Rockefeller Republican; they don't exist any more in elective office, only in the dreams of some nostalgic folks who wish for a party that does not exist."

    You are subitting opinions, not facts. And those facts that you do submitt are interpreted in a way I would disagree with.
    Oct 13 02:18 PM | 4 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]
    Bain Capital is a for profit company. It succeeds and gains new customers on its reputation. Like any business it could not survive unless it was successful at what it does. What has it done? Turned around failing companies and made them profitable. If it had raped companies, as you believe, companies in need of help would not go to Bain but to their competitors, and Bain would not exits. But as Bill Clinton said...
    "I think he (Romney) had a good business career," Clinton told guest host Harvey Weinstein, a movie mogul who is one of Obama's top fundraisers. "There's no question that in terms of getting up and going to the office and, you know, basically performing the essential functions of the office, the man who has been governor and had a sterling business career crosses the qualification threshold."
    Oct 13 12:19 PM | 4 Likes Like |Link to Comment
  • Why A Romney Win Could Be Bad For The Market [View article]
    Good to hear from you -- I too lean a lot more toward the center. Unfortunately it's pretty lonely there now-a-days. Nobody's home.
    Oct 12 09:14 PM | 4 Likes Like |Link to Comment
  • What Gold Is Predicting Now [View article]

    You make lots of points, but the bottom line is since the Fed took charge of the dollar a hundred years ago, its purchasing power has fallen 98%, and gold has risen from $22.67 to thirteen hundred and twenty five dollars today.
    Oct 7 05:07 PM | 3 Likes Like |Link to Comment
  • The Fed Is Not Pushing Stock Prices Higher [View article]
    Lawrence, I appreciate your intelligent comments, and we can get into a lot of technical points, but my point is simple. Monetary policy alone cannot explain interest rate levels. Simply look at the chart I supplied for evidence that three different nations pursuing three different monetary and fiscal policies all have low interest rates.

    Commissions, reserves, or leverage is not really the subject I'm addressing. Check out my article "The Fatal Flaw" at
    Apr 3 01:26 AM | 3 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    "Over 95% of the purchasing power of the dollar has been lost since the inception of the fed."

    Yes Jim. And it is a point I make constantly in my book the New Gold Standard. But that is Fed policy of the 100 year history of the Fed. The Inflationary Fed in the 60's and 70's which led to 14% inflation rates, a crashing dollar, and 20% intest rates was much different than the Volker, Greenspan, Bernanke Fed. Since Volker, the rate of inflation has been falling and is at this time lower longer than anytime since world war ll.
    Mar 2 11:03 AM | 3 Likes Like |Link to Comment
  • Why The Price Of Gold Is Falling [View article]
    Right on!
    Mar 1 11:39 AM | 3 Likes Like |Link to Comment