08-Jan-09 
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Special Bulletin, #9

By Richard J. Maybury
Copyright © 2009 by Henry Madison Research, Inc.
www.richardmaybury.com
1-800-509-5400, Fax 602-943-2363

08-Jan-09

Dear Reader,

If you read the January EWR, Obama's speech today came as no surprise to you. In the whole half-hour, there was nothing new in it. It was just a continuation of the Bush strategy of, Print Money!

Obama has charisma, but no originality. There wasn't a hint of Austrian economics in any sentence he uttered. It was all just another load of Keynesian tripe.

The only important thing in the speech was what he did not say. He made no mention of protecting the value of the dollar or averting a global flight from the dollar.

The entire speech boiled down to, we will throw a lot more money from helicopters.

I strongly suspect that Obama's advisors have secretly made a decision to sacrifice the greenback, and they haven't told Obama that this is what his plan means.

For investors, the message in Obama's speech was clear: buy anything that cannot be created on a printing press.

It appears to me that this time a year from now, the media buzz will be not about runaway deflation but about runaway inflation, and we will be back to controversy about $300 oil, $3,000 gold and so on.

What's next? My guess is that Congress will soon enact Obama's destroy-the-dollar plan, and that will mark the bottom in the investment markets. When I'm highly confident of that, I will let you know on the Subscriber Access part of our web site.

Best of luck to you. These certainly are difficult times, but I will be with you all the way.

--Richard Maybury

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