Financial Sense Blog

Before getting to the heart of today’s article I’d like to first provide the following definition: Myopic: Unable or unwilling to act prudently; shortsighted; Lacking tolerance or understanding; narrow-minded; Lack of discernment or long-range perspective in thinking or planning.

Linear thought is simple. We all get 2+2 = 4. What is not so simple is to reach the right answer when variables are involved. Hence to solve 2+X =Y requires assumptions, cognizance and eventually recognition.

America is so hopelessly addicted to credit that unlike the family that understands its addiction to heroin has destroyed everything they once had, Americans don’t even yet understand they are addicted.

The truth will set you free. But freedom signifies responsibility, and who wants to be responsible? Ignorance, after all, is bliss - and bears no responsibility whatsoever. The most common excuse in any language is, "I didn't know."

As promised, today’s article picks up where last week’s article left off with the focus predominantly on gold, not gold stocks. This year marked an historic event, as something occurred for the third time in nearly 80 years, which is the value of gold exceeding the value of the S&P 500.

Soviet GRU defector Viktor Suvorov has come out with a new book titled The Chief Culprit: Stalin's Grand Design to Start World War II. It is Suvorov's thesis that Stalin tricked Hitler into starting the war. This was easily done because Hitler was impetuous.

Groping in the dark for the golden gun with silver bullets, should they get their hands on it- the Fed, Treasury, and the political bodies at large, may soon discover they have been on their knee’s pleading to engage in a willfully ignorant round of Russian roulette with a fully loaded revolver.

The reaction by the market yesterday to Treasury Secretary Geithner’s comments was clearly buy the rumor and sell the news as the markets began to sell off before it became clear his speech was void of any details.

Why is it that such wisdom comes from the leader of China, but is absent from the leaders of other countries? Do other presidents and prime ministers intentionally play a backstage role, letting their Treasury secretaries or finance ministers communicate with the public to avert blame when policies fail?

President Roosevelt was correct. The generation he was speaking to was already dealing with the worst financial crisis in the history of the United States, the Great Depression. By 1945, over 400,000 of this generation had lost their lives.