RCM Editorial: Three Cheers For The President-Elect

Today, I am announcing my elephantine (this is what happens when a Republican supports a Democrat) support for Barak Obama. As a major holder of precious metals how could I not show my support after this weekend's announcement? Had Obama kept any of his campaign promises and brought "change" by "sharing the wealth" I would not be able to write this today. However, he has brought back the Clinton cronies and through this weekend's story announced the sharing of the world's wealth. He stated unequivocally he will not be worried about the deficit and that it will grow to over $1 trillion before his stimulus plan, which means it will be at least $2 trillion. (When have you ever known a politician to overestimate a deficit number?) In order to fund this deficit the U.S. will collect the world's wealth by selling debt. And in the end, the only way to work out from under this gargantuan deficit will be to devalue the currency. No matter how you look at it, these developments are breathtakingly bullish for the future price of gold and commodities in general.

Obama to focus on stimulus not deficit - Financial Times
Financial Times reports Barack Obama on Sunday spelled out his plans for the biggest infrastructure investment in the US for half a century. The president-elect argued that with the economy reeling, his incoming administration could not afford to worry about a spiralling budget deficit. Mr Obama's proposals for government works on roads, bridges, internet broadband and school buildings, together with energy efficiency measures and health spending, are far more detailed than the normal announcements during a time of transition. Noting the US budget deficit might surpass $1,000 bln before his spending plans are factored in, Mr Obama added: "We understand that we've got to provide a blood infusion to the patient right now to make sure that the patient is stabilized. And that means that we can't worry short term about the deficit. We've got to make sure that the economic stimulus plan is large enough to get the economy moving." He wanted a strong set of financial regulations to make banks, credit ratings agencies, mortgage brokers and others "much more accountable and behave much more responsibly". "I am absolutely confident that if we take the right steps over the coming months that not only can we get the economy back on track but we can emerge leaner, meaner and ultimately more competitive and more prosperous," Mr Obama said at a subsequent press conference.