—Alexander Tyler

The above is a great quote, however the true question is where are we on the list and how do you profit from it?

My answer is “apathy to dependency”.

Mainstream media will tell you that the financial system has stabilized, but how is that possible? We haven’t changed anything except taking on Trillions more in debt.

Support Political Lore; Visit Our Advertisers

We have billions in bank bailout, Cash for Clunkers, Cash for Appliances, cash for new home owners, talk of changing health care, and increased military spending (remember when Obama was going to bring the troops home?). Seriously? Am I the only person left in America who sees this for what it is? We are simply borrowing from our future. Does no one understand that paying off a credit card with another is NOT prosperity?

Ignorance is bliss I suppose.

I consider myself a realist and the above quote explains a lot about humans in general. Of course we voted en masse for Obama, he promised “change”. Of course “change” simply meant free stuff. Free stuff means printing and borrowing money. Why pay for your own health care when you can have the government take on billions in debt for you. Who wouldn’t vote for that right?

The answer of course is everybody will vote for free things as history has proven, and it has already lead us to a “loose fiscal policy”.
Now, let me explain the title of this article, and why you need to pay attention to what’s going on around you.

CNBC all week was saying “why is gold so high, it doesn’t make any sense”.

Wake up America. It makes perfect sense.

Back on August 6th I told you to start watching gold. I gave you a buy point on GLD (ETF ticker for Gold) of $96.59, and it closed the week at $97.53 on big volume. Gold has finished basing and is set for a new leg higher. I believe gold will crack $1000 with ease and finish the year above $1100.

Why do I believe Obama is “golden”?

Polls show Obama’s ratings are slipping. This was quite easy to predict given the amount of euphoria surrounding his campaign, keep in mind the herd is almost always wrong.

So, what do I believe will happen during the rest of Mr. Obama’s campaign?

I believe his ratings will continue to fall. Things will not improve; they can’t, because fighting a credit crisis with more credit only makes the situation worse. So, what is a politician to do? He will do what all power hungry politicians do. He will seek reelection at all costs. “Costs” being the keyword.

Obama reappointed Helicopter Ben Bernanke, who publicly stated “he would not be the one to oversee the next Great Depression”. His doctrine is to print like a drunken sailor.

I predict Obama will push for a 2nd stimulus in early 2010. This one will most likely be a larger amount.

Should a 2nd stimulus be introduced, gold will move to $2000 within a year’s time, and the dollar will crash…

I believe this is a very likely scenario. Here are a couple quotes from self-made million and billionaire stock investors:

Jim Rogers – “We may experience hyper inflation, DOW 30,000 is possible” (this is NOT a good thing).

Marc Faber – “I am 100% convinced we will see hyper-inflation”.

Peter Schiff – “Gold will be $5000 an ounce”. “The rally is the correction”.

My advice – Pay off your debts. Live within your means. Buy gold, silver, oil. Invest in emerging markets or abroad (China, Brazil, India, Australia, and Canada).

Most importantly, stay vigilant.

Great Investing To All!