February 24, 2011

There is a war going on, the winner of which will determine the very direction the United States will take.  It is a battle for nothing less than freedom, individual rights, and property rights. The fight is against government domination through control and regulation, and it is a war that has been fought throughout the world since the dawn of mankind.

 The war looks like this:


Big Government                                                                                    Limited Government


More Government Spending                                                                   Less Government Spending


Higher Tax Rates                                      VERSUS                                Lower Tax Rates


Greater Government Control                                                                   Less Government Control         


More Regulation                                                                                     Less Regulation

Less Individual Choice                                                                             More Individual Choice




If you are leaning toward the left side of this ledger--you are on the wrong web site.                


Let me say at the outset that I believe this battle will be won by the freedom fighters. Here, and around the world.  Never before have I seen such an outpouring of pro-freedom sentiment. Those in power who are on the wrong side of this issue are about to lose position and power.  Their days are numbered.


Last election, America kicked out most of the pro big government, and anti-freedom congressmen.  More will be deposed next time.  Dictators around the world will fall one by one.  Think about this…arguments that were tolerated, even accepted, a few years ago are being laughed at today.  Take excessive government spending for example; no longer is a decrease in the increase of government spending passing for true spending “cuts.”  When the President claimed his budget would cut a trillion dollars over ten years, his plan was immediately condemned in light of the fact that it actually adds seven trillion to the national debt. Because of this, Obama’s budget was declared "Dead on Arrival.”


Pushed by the Tea Party, republicans have countered and passed a bill with 61 billion in real cuts to be made over the next 7 months.  I believe this is just the beginning.  They won’t get everything they want, but clearly the direction has changed.  In a just released poll, when those polled were asked whether they sided with the public employees union or Governor Walker of Wisconsin, 45% said they support Governor Walker's attempt to end compulsive bargaining for public unions. Only 35% side with the unions.  And this is in a state that has been overwhelmingly democrat for years!
In other states we are witnessing outright confrontation and condemnation of public employee union power.  Twenty two states have "right-to-work" legislation that ends any public union power which forces people to join a union. The average working person in this country no longer sanctions his neighbor living at his expense.  A line in the sand has been drawn--taxpayers have said "No more!"  
The image of public servants, who used to take jobs at less than market rates in order to help people, is no more. Now these servants make much more than those in the private sector.  How is it fair to have people who make less than you, pay for your benefits? It isn’t, and that is why this will end soon.
Today Wisconsin is ground zero. But this confrontation will be played out in every state before it is over.  As states balance their own budgets, they will demand that the federal government do the same.
This battle will be won by the pro freedom faction here in America.  The evidence of fiscal irresponsibility is out in the open, and playing games with our future will no longer be tolerated.  I encourage every individual who cares about returning this country to a sound fiscal and monetary policy to participate in this fight. 
Simply complaining about too much government will do nothing to free us from the corruption and lack of responsibility those in power have demonstrated.  The battle can only be won by those who stand up and fight for the right of individuals. It is our right to make our own choices, keep our own money, and live our lives without government interference. The fight will be won by those of us who clearly define what is right, and fair, and who fearlessly outline what must be done to solve our problems.
Those who merely tell us how bad things are from the sidelines, and who insist nothing can be done to change the world, should take notice. The world is changing. A new day has dawned…
   Market Update:

I wanted to get this Market Update to you quickly due to the recent action in stocks.  Here are several actions and options I am considering.
I am raising my stop on CDE about a point or two just before and just under Friday's close.  CDE will report earnings before Monday's market opening.  If CDE disappoints, or even drops in light of good earnings, it could set the tone for the entire resource group.  If CDE can't perform really well in this environment, what are we doing in these stocks? 
Newmont just reported disappointing comps, and could have influenced the degree of the sell- off today. I will probably sell out all trading positions if I am stopped out. I would be likely to call a "time out" for awhile and reasses. 
DNN fell when it announced it was buying a small uranium mine. This stock will most likely linger for awhile.  I am tempted to pick up a little more.  It is a stronger and richer company as a result of the acquisition.
RBY is falling back to the lower end of its range.  We are waiting for the revised drilling report.  If it is benign I will consider buying more.  Freeport MacMoran is looking very attractive at these levels.  Amazon Mining has also fallen to a tempting buy area.
These options amount to buying and holding good properties long term.  It is only the trading portion of my portfolio I am considering liquidating. The main question is whether to stand aside for awhile, or replace some of these stocks with others.
There is one more option I am considering.  If CDE and the resource stocks rise from here in general, at some point I will look to take profits.  I am already looking at alternative investments in which to lock those profits up.  Sometimes the best strategy is to get conservative.  One such time is after a huge run where you meet or exceed all of your goals.  Such a time may be at hand soon...