I'd like to comment on a recent 60 minutes story that discussed the human side of the real unemployment story. A story Goldseek Radio has been bringing our listeners for two years now, finally, a major media outlet has presented the story and gotten right. Namely, by pointing out without equivocation, that when you take into account the underemployed as well as the unemployed, the national rate hits 17%; and in California, where this story was based, it hits 22%. Beyond that, 1/3 of the unemployed have been out work for over a year and that hasn't happened since the great depression.
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The story ended with seven painful words that at least 1 in 5 Americans and their families will live with: My lifestyle will never be the same. Jobs have been lost. Retirements have been spent. Homes have been foreclosed upon. Those lifestyles will never be the same. The American Dream has temporarily been shattered and bankrupted. The cause of this crisis is not the victims of this tragedy, but rather, the policies of the Fed, the Treasury, the Congress and yes, the Presidents, plural. The cause of this crisis is the greatest ponzi scheme the world has ever known. If you or I practiced this, well, we would be in trouble. But when our government leaders engage in this activity, they are either re-elected or re-appointed. That ponzi scheme is also the greatest bubble of all time and that: is the US Dollar.
Tens of trillions of dollars have been created out of thin air with no production to back them up. These are loans, guarantees, bailouts and direct investments that have been borrowed, rather stolen, from your future production. The healthcare bill that recently passed congress was not just a healthcare bill, it was a financial bill whose aim was more and more control over your future and your finances.
If you have been an elected official in Washington, you are part of the problem and must be voted out next week. That means if you, as a citizen, call yourself a Republican, and your candidate is an incumbent, you vote him out. If you call yourself a Democrat, and your candidate is an incumbent, you vote him out. But regardless of how that plays out, troubled financial waters are dead ahead following the election. The volatility index is going to spike dramatically. The very individuals profiled in the 60 minutes story are going to face even more challenges, along with the rest of the population who, up until this point, may have considered themselves immune from the effects of this depression.
I'm here this week at the New Orleans investment conference and started things off with a brief interview with Brien Lundin, the CEO of Jefferson Financial who sponsors the New Orleans conference. Brien told me he sees a strong possibility of gold continuing to correct at or below the $1350 price level, as indeed it continues to do, as we move into the election and the fall. But then he sees gold continuing to advance due primarily to Washington's preferred method of overcoming debt by inflating it away. He told me that with renewed quantitative easing, fiat currencies the world over will be deflated right along with the dollar which will be good for gold, and a sugar high for equities.
We also talked about the superb line up of speakers who are heavy hitters; including Eric Sprott, Newt Gingrich, Charles Krauthammer, David Walker and many others who will be gracing the stage here. This is my third time at the New Orleans conference and I can tell you they do not flinch at spending the big honorariums to bring in top political and economic thought leaders. I'll have a full report next week. One of things I am personally looking forward to are the stock picks that are presented throughout the conference by the analysts and newsletter writers who will be speaking here. Lots happening here. Lots to report on next week.
