Obama Stop Digging

Yes, Bush drove us into the ditch, but Obama will not stop digging!!

Here is a A Brief History Of Obama's Fiscal Record

Obama 2006 On Raising the Debt Ceiling

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.

Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion.That is “trillion” with a “T.” That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.

Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.

And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.

Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities.

Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006

Not sure who wrote this for Obama in 2006 but he should go back and read his speech again. This is all a farce, the debt ceiling will get raised at the last minute and both parties will come out shaking hands taking about how that they got a deal done…"Status Quo" err "Kicking the can down the road"

I lean more toward Jim Rogers take on this subject:

June 2011 Net Worth: Another Down Month

Another down month for our net worth, with our assets down -1.31% and overall percentage change being -3.88%. This is the FIRST TIME since I tracking my net worth that we had a falling net worth back to back months. It is also the biggest percentage drop since September 2009.

Lets break it down:

Cash & Savings: Down this month big...this is because my wife does not receive her regular pay check for July/August. We put money a side so that money goes into our budget but it comes from saving over the two months. She will be receiving a paycheck from her part time job which we will just be putting into savings. This might drop again over the next month for the same reason, along with summer vacations and have a lot of fun over the summer(smile).

Precious Metals: (Spot : Gold - $1485.00 / Silver - $33.77) (Gold/Silver Ratio: 43.97)(Dollar cost - 28.94) Another big down month for the metals portfolio, but this allows us to purchase more at a lower price. Currently, we are still buying monthly and the plan is still to keep buying until we see fiscal restrain from our government. Currently, this part of the portfolio feels the best. I sleep very well knowing we have invested in PMs (this could change, but as of right now I feel very good) Just my thoughts from the people I read and the feeling from them is that come this fall we could possibly see some fireworks in the metals market.

...we are currently investing mostly in silver which I plan to sell and purchase gold when the silver to gold ratio is 30/1 then 20/1 the finally 10/1 if it make it that far which I do believe it will at least reach 16/1(its historic ratio). I plan on always owning silver and gold bullion to pass along to my kids/grandchildren. We own silver as an investment and we hold gold as an insurance policy on our investments. We currently prefer to keep a percentage of our wealth in PMs instead of federal reserve paper(dollar bills).

Stocks/Brokerage: Pulled the trigger on (AG - FIRST MAJESTIC SILVER CORP @ $17.82) bought a initial position and might look to add if we see it back down near $18.00)

I am also looking into buying some options on (AUY) that I am still trying to figure out. Have also been thinking about getting in to some Natural gas plays like a Marathon(MRO) or Chesapeake Energy (CHK).

The list of stocks we currently own: (AG)(FVITF)(SLW)(SVM)(SSRI)(PAAS)(AAU)(DNN)(EXC)(PWE)(PHYS)(EGO)(AUY)((LYSCF)(RGLD)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets/natural resources. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio being diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This bracket is just both my wife and my retirement, adding money to our retirement funds every month.

Retirement IRA's: (Same as last month) Still having some cash on the sideline and will figure out what this market wants to do and see if I can put it to work. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX, VGPMX)

Real Estate: All units of our development have now sold. This is a huge relief as we were the second purchase out of the eight that were available. We will try and hedge our payments with trying to pay off the home in 10-15 yrs depending on what comes our way. This might change along the way depending on kids, economy, jobs and so forth.

Debts and Liabilities -

Credit Cards: Debt from couple monthly purchases - will be paid in full.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. When it hits 3k I might just write a check and pay it off. Will see how the economy and money goes the next couple of months.

Home Mortgage: Mostly paying interest on our home at the moment, so not much of a dent here.

So we have had a couple of down months and will be looking to have a positive month for July. I believe it might be hard unless the stock market helps us out. The cash(flow) situation is a bit tight for right now and will hopefully get back on track once the summer comes to an end. It is hard to save with everything we have going on this summer. We might just have to tighten our belts come the fall. We will be enjoying the rest of the summer and wait to see what comes our way...

Economic Armageddon and You

This is the best example I have seen of summing up the economic mess we are in. It is easy to understand and the average joe on the street should be able to grasp.