This blog is written weekly by Dock David Treece, a registered investment advisor with Treece Investment Advisory Corp. It is meant to share insight of investment professionals, including Dock David and his father, Dock, and brother, Ben, with the public at large. The hope is that the knowledge shared will help individuals to better navigate the investment world.

Sunday, June 21, 2009

Saving Toledo

It seems President Barack Obama just can’t get enough control, not even after his well-publicized takeover of General Motors (a.k.a. Government Motors), as well as his blatant string-pulling in the board rooms of the nation’s largest banks (Bank of America, Goldman Sachs). Now, our commander in chief is pushing for even more (official) oversight of the financial system, and greater control of the media.

In case you missed it, ABC recently announced that on June 24 the network will relinquish control of programming to the Obama Administration so it can make its case, without debate, for government-run health care to the American people.

What we simply fail to understand is why the media is so enamored with Obama. We admit we’re just money managers from Toledo; how can we be expected to grasp the greatness of this man? But in all sincerity, will someone please explain to us why this guy is so special in the media’s eyes? What has he done, in his entire lifetime, to be deserving of such attention, praise and adoration?

In the meantime, we continue to watch as Obama takes this country in an entirely new direction. If you think I’m going to cry socialism, think again. No, Obama seems more set on achieving a different goal under the precepts of socialism: fascism.

Consider the following excerpt from Sheldon Richman’s article on “Fascism from The Concise Encyclopedia of Economics,” which begins with Richman’s simple statement that “fascism is socialism with a capitalist veneer.”

“Under fascism, the state, through official cartels, controlled all aspects
of manufacturing, commerce, finance and agriculture. Planning boards set product
lines, production levels, prices, wages, working conditions and the size of
firms. Licensing was ubiquitous; no economic activity could be undertaken
without government permission. Levels of consumption were dictated by the state,
and “excess” incomes had to be surrendered as taxes or “loans.”… To maintain
high employment and minimize popular discontent, fascist governments also
undertook massive public works projects financed by steep taxes, borrowing and
fiat money creation.”

While the idea of Obama as a fascist is obviously one for debate, what we know is this: America’s foreign relations are suffering, especially since Obama took office. As an example, the world’s largest emerging markets, so-called BRIC countries (Brazil, Russia, India, China) and others are seriously considering shifting away from dollar-denominated reserves. Representatives for many of these countries are meeting in Yekaterinburg, Russia, to discuss just such a move. U.S. officials were denied their request to attend these meetings, even as observers.

By now you may have inferred that, personally, we do not agree with Obama’s policies. However, frequent readers will remember that in previous blogs we have stressed the need to leave political preferences aside when it comes to managing money. So while we disagree with Obama’s policies, we can’t help but love the opportunities that he is creating to profit.

Like former President Jimmy Carter, Obama is digging himself into a hole. We know exactly where his policies lead, and we know how we will get out of this, and we know that as a result of his policies, many Americans will suffer. However, knowing the direction he will take means that we can make a lot of money from these policies, just like we made money under Carter. However, those people who aren’t prepared will undoubtedly suffer, just like they did under Carter.

Shifting gears, we want to talk a little bit about the Toledo mayoral and city council elections. Over the past 20 years or so, this city has worked its way into a major rut. This election may well decide the city’s fate. For that reason, these elections are perhaps the most important, and probably the most-watched local elections of this generation.

Due to the importance of this coming election, we want to hear the thoughts of our readers: What would you do to change Toledo? What we’re looking for is not just minor issues like repealing the garbage tax. Instead, we want ideas that could be used to formulate a comprehensive plan to turn this city around. For example, it is widely recognized that we need to attract businesses, residents and money within the city limits, especially Downtown. How could we make Toledo more business-friendly, safer, more fiscally sound, etc?

What we would like for you to do is to e-mail us your ideas. Our hope being that, with the help of Toledo’s residents, our new leaders after this election can put together a plan to revive this city and return it to its former glory. E-mail

No comments:

Post a Comment