These days I’m finding it more difficult to separate politics and the economy. It is after all an election year and to put it mildly, the circus is coming to town… if it hasn’t already arrived.
I thought last year was jammed packed with interesting developments. Looks like this year may actually shape up to be even more interesting!
As the race between the Democrats and the Republicans (some suggest the race has already been run) heats up, it seems that it has become a contest of who is going to spend how much on whom.
Normally I associate the Republicans with fiscal restraint and the Democrats with increased spending on social programs, but now it is growing exceedingly difficult to tell who intends to spend more money in the next four years. Seems like a debt race. Could there possibly be a winner?
This year has had its share of eye opening and confusing events, and we have barely made it through the third week of January! A circus indeed.
A large peaceful pro-democracy rally by thousands of Shiites in Iraq drew the world’s attention. A 22-year-old mother of two blew herself up at a Gaza crossing with a nail infused pipe bomb. A Pakistani woman who married outside her tribe has had to have around the clock police protection from her brothers. What is the world coming to?
Every media outlet in the world seems possessed with the falling dollar and debt accumulation in the U.S. The Democratic leadership race is on and leaving many contenders by the wayside or tossing their hat in with their recent adversaries.
Our old friend Mr. Greenspan just doesn’t seem to give a hoot about anything and seems bent on a weak dollar policy no matter how he speaks to the contrary.
The President seems to be showing up all over the U.S., kissing new hands and shaking babies. A sudden longing for space travel and exploration has overcome him and a generous charitable status has been extended to various religious institutions shrinking the distance between church and state.
The stock markets are slightly off their recent highs and seem to struggle with the notion of movement up or down. I can feel the pressure building. Will they blow up, go up or cavitate? Hmm. Wish I knew.
With all this to contend with how is a person supposed to make money? To pick any kind of direction?
I’m sticking with an old trader’s strategy. When there is little or no direction and the political climate is uncertain and the world seems too turbulent for words… buy gold. It will get you through these interesting times and more than likely give you something to smile about at the end of the year.