Obviously, I'm being sarcastic here.   The dollar is still rallying on the great – non farms payroll number (totally bogus of course).  Its actually all out intervention in my opinion.   Unfortunately for the "monetary authorities" they are spitting into the wind.   The policy as stated recently by the Fed and now by the US president Obama, the policy is to SPEND and BORROW our way "out of the recession."  Whether or not this is the right approach isn't my concern.

My concern is that this kind of news should be sending the dollar down hard and gold up and yet its clear that the spin in the financial media is an orchestrated attack and that the weak longs are being kicked out by the manipulations of a small handful of government and Federal Reserve directed banks are now taking record super concentrated short positions in the silver and gold positions.  They've had them for years but now they are up to massively larger record short positions in their effort to use derivatives to keep the prices down.

If  our regulatory and enforcement systems were legitimate and trustyworthy, this kind of criminal manipulation would not be taking place.

It is important to recognize that this manipulation is nearing the end of its effectiveness.  The need for transparency, trust and markets that engender all that is good about a free market will not long tollerate this stealthly government mandated manipulation and by holding the beach ball under water so long and so deep, the ball is going to fly above the surface and provides those well prepared and who understand the depth and breadth of this manipulation to play a hand based on the understanding of the manipulation which will allow a optimal profit from the unwinding of the massive and growing US and UK central bank puts against gold via their primary dealers.

The growing awareness of this situation is prompting more and more central banks to become buyers of gold and to leave the cartel of central banks that have been selling their national treasures in support of the US and UK operations for the last decade or more.

No, we can not "spend our way out of the recession" without debasing our currency even more.   Here is the article that inspired this post:

Obama proposes spending our way out of recession

"…

In a speech at the Brookings Institution, President Obama said the nation must continue to "spend our way out of this recession.” He then laid out a series of new spending including additional highway projects, tax breaks for small business and tax incentives for clean energy. No price tag was offered.

In almost his next breath he said, “I'm still committed to halving the deficit we inherited by the end of my first term — cutting it in half.” Which will be a pretty good trick since in less than one year, Obama has already more than doubled the deficit he inherited.

As of the end of the fiscal year, September 30th, the deficit stood in the neighborhood of $1.4 trillion – that's a mighty lofty neighborhood. President Obama would like you to believe that this huge deficit is all George Bush's problem. He said so – “the deficit had reached $1.3 trillion when we walked into the White House” – so it must be true. Except that it isn't.

$787 billion of that is the awesomely successful economic stimulus act which has managed to create new jobs at the meager price of $246,436 apiece, while at the same time the nation's unemployment rate has skyrocketed into double digits. (These are the administrations own figures: 640,329 jobs from spending $157.8 billion.) President Obama signed this monstrosity into law and claims that it is working. He also claims that he inherited the spending. Interesting how he wants to have it both ways.

Already in two months of this fiscal year, the United States government has spent $292 billion more than it took in in tax revenues. To meet Obama's lofty goal, the government will have to run in the black from sometime around the 15th of December to the end of the fiscal year in September. Don't hold your breath.

Of course, the government doesn't have to do that this year, it only has to do that in 2012 to meet Obama's forecast. Don't bet on that either. Certainly not when we are busy “spending our way out of the recession.”

Which will be pretty good trick if it happens, but we all know better. If you are having trouble making ends meet, does it make financial sense to max out your credit cards in order to buy a new car? Of course not. You keep the old one running, and try to cut other spending to ease your budget difficulties.

It's no different for government. This continued spending binge will ultimately harm the economy under a crushing debt load, or devalue the dollar resulting in major inflation, or both. No good can come of continui9ng to spend like drunken sailors – actually government spending makes drunken sailors look fiscally conservative.

You cannot reduce your debt by borrowing more money. You can't do it as an individual and the government can't do it either. Some time soon, this hell bent for leather spending will result in a train wreck.

When it does, you can be certain of one thing: it'll be George Bush's fault…."

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