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John Dalt
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John Dalt is a retired small business owner who is now operates galtstock.com for stock investors and traders.
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  • Dollar Demise, Will We Answer? 0 comments
    Oct 6, 2009 7:14 PM | about stocks: UUP
    The big news today was that Russia, China, Japan, and France were in discussions with Saudi Arabia to price oil in a basket of currencies and gold.  The UK Independent has the story, and it does not bode well for the U.S.  We have spent the king’s ransom, and now there is hell to pay.
    According to the article, “Demise of the Dollar,” meetings have already been held.  These meetings were confirmed by banking sources in Hong Kong.  Amateurs that think they can talk nice and everyone will get along are currently leading our government.  Our executive branch (Oh! Bama) better wake up, the world does not want to sit around and sing Kum Ba Ya. 
    The world is a dangerous place; military strength and economic power are the only currency a nation has.  Every government deals in their own self-interest.  They are our friends when they need us, and work to defeat us when the winds change.
    The congress has plunged our nation onto a path of unsustainable deficit spending, piling up a huge national debt that cannot be repaid building solar panels and windmills.
    I, and many others have been screaming daily of the stupidity of the so called “Stimulus bill”, “Omnibus Spending Bill”, “Cap and Trade Bill” or the present “Health Care Bill” all added on top of entitlement programs that are going broke. Now to quote Rev. Wright, “The chickens are coming home to roost.”
    Our economy is strangled by regulations at every turn. Employee protection laws that make it a liability to hire people, environmental laws that block or impede progress every step of the way. Consumer protection laws that strangle our manufacturers but allow China to import lead tainted toys.  Politicians pass laws that try to pick winners and losers, increasing the costs of some items and subsidizing other products. This leads to an inefficient economy.
    We hamstring ourselves while China and others harness their populations to produce anything that can be sold at a profit.  They understand the importance of low costs and use energy produced at the lowest cost, from coal and nuclear.  They place restrictions on our imports and do not protect our property rights, while dumping products in our market until they drive out competition.
    We would rather import oil, at great cost, than allow our oil companies to employ people exploring for our own oil.  The resulting oil production would recirculate money in our economy, producing more jobs.  Our country is blessed with natural resources, but they are off limits by government fiat.
    This is the world we live in.  Think of the U.S. as a rich, fat and bloated boxer that is trying to stay in the ring with the young and hungry kid from the ghetto.  The contest is entertaining, but the only chance the old guy has is to use his experience and knowledge to overcome the advantages held by the youngster.
    Government needs to get out of the way. Government needs to encourage business to grow through lower taxes, and less regulation. Government needs to concentrate on free trade that is fair. Not protectionism, but fair trade that stops government sponsored industries from buying market share by dumping products with prices below their production costs. Government needs to cut the cost of non-productive spending. Government does not produce anything except misery and higher costs for everyone. Every activity the government engages in becomes a poster child for waste and fraud.
    These are our challenges, the shot has been fired over the bow of our state’s ship.  Will we answer with determination, or whimper away from the competition?  Sadly, our country is populated by a good many individualists and capitalists that are ready for the challenge, but Washington is full of whimperers.
    Subscriber W.A. writes:
    “Please don’t ever take the interview of Milton Friedman off your website.  It is so to the point it makes the hair on the back of my neck stand.  Like you, I have to go back for replay often, and am always amazed.”
    I knew when I watched the video it had to be featured prominently on the site.  I just hope we don’t wear it out watching it!---John Dalt

    Disclosure: Long UUP
    Themes: Currency, Dollar Demise Stocks: UUP
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