Seeking Alpha

Michael Fitzsim...'s  Instablog

Michael Fitzsimmons
Send Message
I focus on investments in the oil & gas sector with an eye for dividend income and long-term capital appreciation. I typically allocate a portion of my own portfolio and devote some of my Seeking Alpha articles to small and medium sized companies offering compelling risk/reward propositions.... More
My company:
Independent Investor
My blog:
The Fitzman
  • It's Going to Get Ugly 11 comments
    Oct 31, 2009 6:45 AM
    The United States has a lot of problems. Most of these problems can be traced to a few root causes:
     
    1)    An unstable energy foundation dependent upon importing foreign oil. This has led directly to the economic, ecological, and national security issues the country faces today.
     
    2)    Unwise fiscal and monetary policies.
     
    3)    A government which is longer democratic and capitalistic; instead the U.S. government increasingly resembles fascism and is simply being used to funnel the country’s wealth to the well connected “chosen few” at the great expense of the middle class.
     
    Most people know my opinion of George Bush: I believe he was the worst president in the history of the United States. Not only did George Bush not recognize the problems above and attempt to fix them, his policies worsened each problem such that they are all now at the crisis stage. Let’s take a look at recent history before looking at where we are today.
    Bush refused to acknowledge the foreign oil import problem and instead invaded Iraq supposedly to assure long term oil supply. This action took millions of barrels of crude off the market just as China’s demand was ramping up. It also led to a huge geopolitical risk premium being tacked onto the price of each barrel of oil and Americans are stuck with this “tax” forever. The result was $145/barrel oil and the economic crisis we are in today.
    Bush’s insistence on tax breaks for the wealthy coincident with spending like a drunken sailor doubled the country’s debt load in a mere 8 years. This was unprecedented in the history of the country and even exceeded the idiotic fiscal policies of another supposed “fiscally conservative” administration: Reagan/Bush#1. The result was huge U.S. Treasury debt issuance putting China firmly in control of the U.S.’s financial future and entrenching that country in the world’s catbird seat when it comes to buying up the world’s natural resources.
    The country took a huge turn away from democracy and capitalism under George Bush’s “watch”. First, the events of 9/11 were used as an excuse to take away American citizens’ rights and freedoms starting with the infamous “Patriot Act”. Next, another “shock event” (the economic crisis) was used as a fascist excuse to take middle class tax-payer money and bail out the banks, insurance companies, and pay the already rich executives of these bankrupt entities billions of dollars in bonus money for their wonderful jobs. The result of course was a vastly weakened middle class and a chosen few very lucky (and very rich) people. We should call it what it is: fascism (http://en.wikipedia.org/wiki/Fascism).
    Things aren’t getting any better under Barack Obama.
    Despite all rhetoric about renewable energy policy, the most important issue that needs to be addressed is the country’s reliance on foreign oil imports. The fact is we are making no progress on reducing foreign oil imports other than decreased demand as a direct result of the severe economic contraction. Obama’s choice of Steven Chu for Energy Secretary was simply disastrous. How Obama could put someone in the critical Energy Secretary position that was “agnostic” about natural gas transportation and pro the oxymoronic and myth of “clean coal” was shocking. I continue to call for Obama to fire Energy Secretary Chu of, alternatively, for Chu to resign his office.
    On fiscal and monetary issues, Obama is continuing (and expanding) the failed policies of the Bush administration. The deficit spending and printing of money is continuing. We now find out that another Obama appointee, SEC head Mary Shapiro, was reported to be a “good dear friend” of Madoff. The inner circle of Greenspan, Shapiro, Geitner, Bernanke, Milken etc. etc. seem to be firmly entrenched in monetary policy as well as financial oversight. Again, it’s the fox in charge of the chicken coup and I call for Obama to fire Mary Shapiro or, alternatively, for her to resign.
    Also under Obama, the wealth continues to flow to the well connected. Bailout and bonus money has not been stopped, and in some cases accelerated on Obama’s watch. The Department of Justice, the SEC, Congressional ethics panel, FBI and CIA all seem to be incapable of putting a stop to the raping of the nation’s wealth by insiders.
    So much for “change”. At the most critical juncture in U.S. history, we are now quite likely to see the worst president in U.S. history followed directly by the second worst president in history.
    What does this have to do with investing? Everything! It’s going to get ugly folks (hell, it’s ugly already!). Buy gold and silver. More importantly, fight back. We need all 50 states to call for a constitutional convention. We must put a stop to the Ivy League dream of a “new world order” and “one world currency” which is dependent first on the destruction of the United States in order to implement. This is what Bush (Yale) and Obama (Harvard) have been working overtime to achieve. The American people must *wake up* and refuse to cooperate. We need to change the game, or we are going to lose our freedom and our country, not to mention our paper money investments in Wall Street and in our brokerage accounts.

    Disclosure: the author is long gold and silver.
Back To Michael Fitzsimmons' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (11)
Track new comments
  • anarchist
    , contributor
    Comments (1271) | Send Message
     
    Fitz, I couldn't agree with you more and have been saying the same things over and over and lost a few friends because of it. "Homeland security" sounds like something Goebbels would have come-up with along with the oxymoron "Patriot Act" but of course oxymoron labels were the Bush administration's specialty, no child left behind, forest preservation act, etc. The Government no longer responds to the need of the citizens only to the campaign contributors, the pinnacle being reached when Enron virtually wrote Bush's so called "energy policy".
    But still the public is not offended by their loss civil rights, the breakdown of separation of church (Christian of course) and state, being lead down the road of Fascism-I just don't get it. I am sure there are plenty here at SA that will set me straight.
    31 Oct 2009, 12:11 PM Reply Like
  • doubleguns
    , contributor
    Comments (7939) | Send Message
     
    It has been ugly for a while. Every election we get to chose the least ugly sister to vote for. Demicians and republicrates are totally corrupt. Until we fix the corruption in Washington all of the other problems will remain. It starts with campaign finance. No one should be allowed to contribute a penny unless they are the elected officials constituent. End lobbying and contributions from them. I agree a constitutional convention would be helpful but only if we have enough support from the states. We need to return states rights, eliminate the 17th amendment, fix the 10th to truly limit Washington's power. Reduce fed govt to the executive, legislative, judicial, Military, NSA, treasury, and state dept and I could be missing something small. Every other Washington program should be sent back to the states (with its budget) and allow the states citizens to vote on the issues they want and how much they want to fund them. Without a constitutional convention the only other alternative I have found is goooh.com

     

    I just woke up and realized....I had a dream!
    31 Oct 2009, 12:20 PM Reply Like
  • Mark Bern, CFA
    , contributor
    Comments (4781) | Send Message
     
    Guns - I agree completely! You missed interstate commerce, which was included in the original Constitution, I believe, and is essential for a level playing field. I would probably add an Energy Department, but make it more strategic instead of just reporting data. Maybe FDA to support/ensure safe food (but I don't condone taking away choices because they aren't as healthy as others) and maybe to support/coordinate research in major areas like cancer. Research may take care of itself if the regulatory red tape process becomes less expensive because that alone would make more product research and development based on cost/benefits.

     

    So, how do we call for a constitutional convention? How does it all get started without government interference?
    31 Oct 2009, 01:27 PM Reply Like
  • H. T. Love
    , contributor
    Comments (17447) | Send Message
     
    On Oct 31 01:27 PM Mark Bern wrote:

     

    > Guns - I agree completely! You missed interstate commerce, which
    > was included in the original Constitution, I believe, and is essential
    > for a level playing field. <snip>

     

    Got to watch out for that one. It is one of the primary levers that our congress pulled to extend control into every area of our lives.

     

    If you think of the tools that should be continued, examine each against the test of "How can they abuse this tool"?

     

    Sometimes we can remedy the potential abuse by placing specific limits in the language. But first you must have faith that the intentions will be honored and the document will not be seen as a "living document".

     

    Government will eventually abuse every resource or power at its disposal. It is in the nature of the beast. It comes tightly coupled to hubris, a necessary condition for folks to presume they are qualified to "lead" the rest of us.

     

    There are some exceptional individuals that will not be controlled by this, but I dare say they are rare breeds.

     

    HardToLove
    31 Oct 2009, 02:07 PM Reply Like
  • doubleguns
    , contributor
    Comments (7939) | Send Message
     
    Mark, it is the bastardization of the interstate commerce clause in the 10th amendment that needs fixed to cap Fed powers. FDA and entities like that should be stand alone entities that charge fees to support them, not take tax dollars. If they cant stay in business there will be someone else out there that would be more business savy and be glad to take over. Like consumer reports organization. They are not part of the govt.

     

    I also believe the states could put together any combined organization they wanted. Just keep the fed out.If the citizens see no value in it they can vote to have their state not participate.

     

    By no means do I have all the answers but I would sure like to see this happen and we would get the answers as we need then. We have a lot of smart people out there.

     

    Just do not tread on the constitution and with that in mind, decisions could be made to deal with our system.

     

    If we don't fix this situation we know what the fascist govt is going to do to the patriots some day. See below

     

    melis.bbaron.sk/wav2/s...

     

    I cant help myself, I am sick.
    31 Oct 2009, 02:07 PM Reply Like
  • Fred W
    , contributor
    Comments (481) | Send Message
     
    You actually have friends?

     

    On Oct 31 12:11 PM anarchist wrote:

     

    > Fitz, I couldn't agree with you more and have been saying the same
    > things over and over and lost a few friends because of it. "Homeland
    > security" sounds like something Goebbels would have come-up with
    > along with the oxymoron "Patriot Act" but of course oxymoron labels
    > were the Bush administration's specialty, no child left behind, forest
    > preservation act, etc. The Government no longer responds to the
    > need of the citizens only to the campaign contributors, the pinnacle
    > being reached when Enron virtually wrote Bush's so called "energy
    > policy".
    > But still the public is not offended by their loss civil rights,
    > the breakdown of separation of church (Christian of course) and state,
    > being lead down the road of Fascism-I just don't get it. I am sure
    > there are plenty here at SA that will set me straight.
    31 Oct 2009, 02:32 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (8299) | Send Message
     
    Author’s reply » anarchist: i agree with you. note SA never publishes this type of article, and i have submitted several. the reason, of course, is that advertisers don't want to see this kind of talk (other than the precious metals dealers!). but yeah, the great majority of americans are completely ignorant of what is going on, but i suppose it's easier for them to be happy existing in life's day-to-day routines without worrying about such things...

     

    doubleguns: yup, i came to the same conclusion - it will be up to the states to drive fixing the US government. if enough states go bankrupt to the point bond sales can't be floated, things will have to change. we're not too far from that point now. the next big oil spike will probably see that happen, and i certainly think that will be within 3 years. i mean, if oil is at $80 during the "great recession", what will it go to when the world economy starts growing again?

     

    MarkBern: you ask a good question "how does it get started". well, you can of course ask your state's governors and congressional members, but don't expect them to support it because guess what? they are living high on the hog. i don't think it will happen until civil disobedience gets much greater than you see today. gasoline rationing and hunger and crime will most likely make it happen (unfortunately). btw, i had to laugh at the more strategic energy dept comment...that implies there is anything strategic about it currently (and there obviously isn't). energy secretary chu is exactly the WRONG guy at the WRONG time. to be "agnostic" about America's greatest domestic energy resource (natural gas) is, quite simply, criminal.

     

    HTLove: and that is why the US gov doesn't support natural gas transportation - because they can't control it!! i mean once an american can refuel their vehicle in their garage off the natural gas feed, they lose all control over that person's ability to be mobile, and they WANT control of everyone's mobility. that is why i always say a Civic GX and a "Phill" in every garage is REAL freedom...certainly not the kind of "freedom" bush used to wax poetically about at every opportunity.

     

    doubleguns: yup, keep the constitution and bill of rights. pretty much start over after that. outlaw lobbyists on the grounds of congress, term limits up front, balanced budget amendments, real money backed by gold and silver reserves, and campaign finance reforms. all good places to start.
    1 Nov 2009, 09:39 PM Reply Like
  • longoil
    , contributor
    Comments (763) | Send Message
     
    Fitz,

     

    Your dream of auto NG outlets in every home will never happen.
    Gas that feeds your home is considered a necessity (for heating and cooking) and is taxed lightly. How will the government tax (or should I say overtax) NG that is used to fill your car from the same connection ? Yes, you could add a separately metered device for filling cars, but we know many clever people simply attach their Phill to the lower taxed heating and cooking outlets. Goverenment does not care about energy indepedence, but rather a nice revenue stream (i.e. gasoline tax) to pay special interest grousp (banks, auto manufactureurs, etc.)
    2 Nov 2009, 08:13 AM Reply Like
  • anarchist
    , contributor
    Comments (1271) | Send Message
     
    My cat loves me

     

    On Oct 31 02:32 PM Fred W wrote:

     

    > You actually have friends?
    2 Nov 2009, 09:54 AM Reply Like
  • blu
    , contributor
    Comments (224) | Send Message
     
    Fitz,
    this is one of your less appealing blogs...

     

    Obama's Marxist regime will end ... fuel demand will not.
    Government will find a way to tax the hell out it and justify it to the ignorant masses. It doesn't matter which party is "in control"..
    The only thing that is saving us at the present is the poor economy.
    3 Nov 2009, 01:35 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (8299) | Send Message
     
    Author’s reply » longoil: if we can figure out how to split an atom, surely we can figure out how to install natural gas meters (which can be read remotely). you're correct to point out the gov will want to tax natural gas, but you're incorrect to think this is some kind of technical hurdle which cannot be overcome.

     

    blu: if you mean less appealing because it paints a dire picture of the future of the US, i agree. if you mean less appealing because my thought are wrong, please be more specific and debate me on exactly what was written, what you disagree with, and what your alternative thoughts are. othewise, you simply aren't making a good case for exactly why this post was "less appealing".
    18 Nov 2009, 10:55 AM Reply Like
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
  1. How I Retired At 45 (61 Comments)
  2. The Big Picture (22 Comments)
  3. John Hess' comments in Copenhagen (16 Comments)
  4. It's Going to Get Ugly (11 Comments)
  5. August Foreign Oil Bill (8 Comments)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.