Arab Today, arab today why gold is so high and obama so low
Last Updated : GMT 10:48:49
Arab Today, arab today
Arab Today, arab today

Why gold is so high and Obama so low

Arab Today, arab today

Arab Today, arab today Why gold is so high and Obama so low

Maryland - UPI

Since U.S. President Barack Obama took office, the price of gold has more than doubled to about $1,800 an ounce and public approval of his handling of the economy has more than halved. These are much connected events. During the 1980s and 1990s, thanks to new technologies and market deregulation by Presidents Jimmy Carter, Ronald Reagan, George H.W. Bush and Bill Clinton, the U.S. economy enjoyed a renaissance -- falling inflation, stable growth, low unemployment, and decent returns on stocks and bonds. "Sound as a dollar" took new meaning as central banks around the world sold off gold holdings and increasingly backed their currencies with greenbacks. The dominance of the dollar, in part, inspired Europeans to create a rival currency -- the euro. Holding gold makes less sense when the U.S. economy is doing well and confidence in the rule of law ensures that investors will get solid returns on portfolio investments. After all, gold is costly to hold and it pays no dividends or interest. In 2000, the U.S. federal budget surplus was $236 billion, the Standard and Poor's 500 index hit its inflation-adjusted peak at 1,520 and gold sold for $280 an ounce. Since, King Dollar has been shattered by Presidents George W. Bush and Barack Obama. Thanks to big deficits, the world is awash in dollars and Treasury securities, which function much the same as cash in international finance and commerce. The U.S. economy -- overwhelmed by subsidized imports from China, bleeding to pay for expensive foreign oil and hamstrung by intrusive and often counterproductive new government regulations -- can't grow. By 2007, the year before the financial crisis and Democrats took control of Congress, George W. Bush's free spending on agricultural subsidies, military adventures, prescription coverage for seniors and tax cuts turned Clinton's surplus into a $161 billion deficit. Enter Nancy Pelosi and then Obama and government spending exploded from less than 20 percent of gross domestic product to nearly 26 percent. Increases in the regulatory bureaucracy and government pay, new Medicaid and Medicare entitlements, and crony spending on fraudulent solar energy schemes, bailouts for Chrysler and GM and similar follies push up federal spending by $1.1 trillion in four years. Inflation would have required only $200 billion. Meanwhile, after nearly two years of economic recovery, real GDP is stuck at 2007 levels, family incomes are falling and the ranks of the unemployed and poor swell every month. The president doesn't grasp the magnitude of the structural problems holding down real growth. He refuses to develop domestic oil and natural gas and genuinely confront Chinese mercantilism. He refuses to address business concerns about over-regulation and a generally hostile environment to private enterprise. In the name of lowering costs, ObamaCare mandates the scope of coverage businesses must offer employees but insurance premiums, drug prices and co-pays are rising at an alarming pace. Obama simply ignores this failure. In the Chrysler bankruptcy, the administration managed to pressure a federal judge to subvert 100 years of bankruptcy law to award company assets, which should have been distributed to creditors, to the UAW and an Italian automaker. In yet another payment to organized labor for campaign support, the National Labor Relations Board -- stuffed with recess appointments -- sued Boeing for opening a factory in South Carolina. Now, the president will decide which states are permitted new manufacturing jobs. He can't persuade Congress to put a limit on carbon dioxide emissions so he proposes to curb those by administrative fiat. He punishes the entire oil industry for the sins of one rogue company. Overreach is so intrusive that it borders on expropriation. U.S. companies are investing in China for good reason. Beijing likes capitalism and aspires to global leadership, things Obama appears to distain. And for all their complaints about intellectual property enforcement in China, U.S. investors may enjoy greater security under the law in the Middle Kingdom than in the Middle West. Over the next several years, GDP growth will likely be no more than 2 percent, perhaps less, and given the paltry targets set for the congressional supercommittee on budget deficits, the federal spending gap will likely exceed $1 trillion for many more years and Social Security likely will be broke within two decades. All that money and U.S. bonds, which function much like money, will eventually drive up inflation. With bonds paying little interest and stocks going no place in the current atmosphere of fear, many investors go where fear always takes them -- into gold! As the president campaigns around the country for his economic policies, even some liberal Democrats are pushing back. He finds fewer supporters to pay for $457 billion in additional temporary stimulus spending with permanent tax increases and cuts in aid to states to pay for healthcare. Gold is high and Obama's approval ratings are low because investors and voters see the economy failing and an American president who cannot learn from his mistakes.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today why gold is so high and obama so low Arab Today, arab today why gold is so high and obama so low

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 10:30 2016 Sunday ,25 September

Your dog can make you feel better, and here’s why

GMT 03:21 2016 Wednesday ,08 June

Is it just tiredness or something more sinister?

GMT 07:32 2016 Thursday ,21 April

Will US secrecy laws boost the death penalty?

GMT 08:33 2016 Thursday ,31 March

Online teaching -- fad or future?

GMT 12:44 2016 Friday ,15 January

Drug approval: How does it work?

GMT 13:35 2016 Wednesday ,06 January

Does North Korea have 'H' or 'A' bomb?
View News in Arabic - Education: سؤال وجواب
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday