Fooling Some of The People
Research for Online Investors

by John Dalt

9/11/09

“You can fool some of the people all the time, and all of the people some of the time, but you can not fool all of the people all of the time.”  That famous quote from Abraham Lincoln comes to mind this morning.  The present political situation in Washington stretches the imagination of what the pols are thinking.

The healthcare tug of war illicits strong reaction in this corner.  Aetna employs 35,500 people as the largest health insurer in the U.S. Medicare, Medicaid and the Veterans Administration make up 46% of all health care spending. I read that the bureaucracy to administer national health care would be the equivalent of creating another United States Air Force. It makes you wonder who wants power, and control.

We have had the pleasure of my wife’s mother and father visiting for a few days.  My wife’s mother grew up in 1930’s Germany.  Her father fought “on the other side” in WWI.  She lived through the Soviet occupation after the war, as forced labor, washing the troop’s uniforms.  Her father died in one of Stalin’s camps.  Some of her family could not escape, and lived under Communism until the wall fell.   She knows firsthand, the danger of fascism, socialism, and communism.  She is not fooled “part of the time.”

Should I tell you what she thinks of our present “Orator”?  I think you know.  She has seen it before, the “class warfare.”  The vilification of “capitalists.”  The mobilization of youth.   The prosecution and persecution of previous government officials.  The grabbing of power and centralization of authority are not new to her.  The crushing regulations on every facet of daily life and doing business are familiar.

How does a country slide so fast and so far into such a state?  I have a few ideas.  Our present political and social climate centers on “political correctness.”  Everything is beautiful, in its own way.  Is that not what we are told?

We have businesses that must give Muslims prayer breaks, or be prosecuted for denial of religious freedom.  Parents won’t expend the effort to take back public education that is managed down to the lowest common denominator.  We spend more money on the slowest and mediocre, and ignore challenging the brightest.  Where will the best and brightest come from, if we don’t nurture them and exalt them?   How can our society, and economy advance if we do not demand excellence and reward performance.

We have an EPA that regulates “particulate matter” in exhaust fumes so stringently that new diesel engines use 40% more fuel.  We import oil, but we have to burn more under present regulations to satisfy the “green” movement.  Am I the only sane person in America?

If you have not read F.A. Hayek’s “Road to Serfdom”, and Ayn Rand’s “Atlas Shrugged”, you may be part of the problem.  Like a frog in hot water, you will feel good until it is too late.   The old Chinese curse “May you live in interesting times”, has evidently been exported to us, along with all their lead laced widgets and drugs.  We face Armageddon for our society and political system.  Are we able to stand in the face of this debasement of our system of government and economy?  I do not know, but our children will judge us in the future by our actions today.

How does this affect your investments?  The recent run up in precious metals may reflect investors moving to “liquid” assets.   I told a friend who made and lost a lot of money in real estate, “I can sell everything with a push of the button.”  The problem we must remember, the money is not in my hand, like the gold and silver in my safe.

Do you trust these three?
Oh! Bama won't even send a dollar to his own half-brother living in squalid conditions,
but he wants to provide you health care!

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions. It may contain errors and you should not make investment decisions based solely on what you believe you have read here. Do your own research, it is your money. If you lose it, it is your responsibility, not ours or your grandmothers! The editor may or may not have a position in any securities discussed. The editor may have held a position in a security earlier, or in the future.

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