$800 dollar Gold, $100 dollar Oil…

First we would like to thank Chris Prevatt and the Officers
and Men of the Liberal OC for naming us #10 of the OC Bloggers
Scariest! Glad to know someone actually reads our stuff! That
is both surprising and refreshing!

OK, if you turn on the Bloomberg Channel these days..the shock
just keeps coming. Yes folks take a few days off from Hannity
and O’Reilly….Tim Russert and Matthews at Hardball. Roll
right over to the Asian chick at the Bloomberg Channel. Pretty
shocking really! Without compunction she tells us that it is
our last days…with that funny look on her face. Gold broke
$800 dollars yesterday on the commodity markets. The last time
that happened was during the Carter years. We remember vividly
seeing Gold go to $848 dollars a ounce before the crash in
March of 1980. Oil at that time was $44 dollars a barrel and
so was an ounce of Silver! People were busy selling their homes
to go buy all manner of commodities….those were scary times!
Our prime interest rate then was almost 20%….Carter said it
was time for us to “sacrifice”. A gallon of gas was over a buck!
Today, the Prime Interest rate is falling to 4.5%…which if
they can print the money fast enough will cause a continued
rise in inflation!

Fast forward to today! The head of Merrill-Lynch just got
“lunched” for his $13 billion overestimation. Today Citi Bank
is facing a similar $9 billion write-down on its sub-prime
mortgage investment vehicles and we don’t doubt that several
heads will roll there quickly. How many dominos will follow?
We have been playing Paul Revere on this issue for about three
years. It is strange that our local OC Treasurer and our old
Treasurer have been less than forthcoming about this Hedge Fund
and Derivative Market meltdown. How is it going to affect the
“people’s money” which chooses Investment Managers to hold and
insure future returns? Guess they figure if they don’t talk
about it….it may just go away! Well, by the look of it….
if we start counting the Bankruptcy figures, the Re-Assessment
of Property requests by County Assessor’s Office and the lower
interest rates….hmmm, things start to add up!

When will those Pensions, Health Benefits and Insurance
Companies start to feel the heat? Don’t we rely on these
“experts” to keep the Public Trust? They aren’t saying much.
Maybe they are in the same boat we are – plum fixated by
watching the Asian chick on the Bloomberg Channel! Seems that
the Treasury Secretary of the United States is on this question
and has a whole bunch of concerns. Mr. Paulson seems to think
Allan Greenspan was a big jerk! We maybe just reading into Mr.
Paulson’s daily remarks…but we get that uneasy feeling that
the sub-prime meltdown will keep going like the Energizer Bunny!
Stabilizing world currencies and commodity prices and trying
to write down the value of a couple of Trillion bucks in Hedge
Funds maybe a little tougher than just having President Carter
ask us to “make sacrifices”. In those days, that crisis was
caused by Charles DeGaulle demanding all International
Payments in Gold hording all our Gold from Fort Knox! Carter
kept selling Gold for $212 bucks an ounce when it went to
$848. Carter didn’t want to upset Charley boy by halting the
sale! Who was the Chairman of the Fed then? Was that Paul
Volker or someone else?

Ok, Oil is now heading over $100 dollars a barrel. What does
that mean? As long as China keep taking our Balance of Trade
money and threatens to buy oil from Hugo Chavez and continues
to grow their economy….we are going to be in a bit of trouble.
If you think that is scary….try this: Hillary and Obama get
elected next year and sell all OUR oil to China and India for
under market rates! If you think that can’t happen, go out and
get your own crystal ball. So, what do we do? Invest in Hedge
Funds for China? Maybe! Right now on the world market however
…they are a little oversold with the Koreans, Malasia and
Japanese buying like crazy! So, Chriss Street and John Moorlach
..tell us the rest of the story! Or are you going to wait till
the whole system self-destructs?


About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk show...is the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.