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Auguries Evil And Stupid


February 8, 2013

gold, banks, dollar, immigration

“The New Colossus”: Soon to be incorporated into the US Constitution.

Gold was up (at press time) $7.70 (+0.5%) for the week to $1,671.80, and silver was up $0.04 (+0.1%) to $31.47. Thursday has been a bad day for gold lately. It fell $7 today (-0.4%), a development Reuters attributed to comments made by Mario “Batman” Draghi, a concomitantly stronger US dollar—and our old friend “technical resistance.”

Recent columns in this space may have given the impression that the United States intends to take no steps to address its fiscal crisis. Nothing could be further from the truth. A great bipartisan effort is shaping up in Congress, one with momentous consequences. For as Stan Evans, that lion of the Old Right, reminded us, “We have two parties here, and only two. One is the evil party, and the other is the stupid party… Occasionally, the two parties get together to do something that’s both evil and stupid. That’s called bipartisanship.”

Eric Cantor, Majority Leader of the House of Representatives, gave a speech, “Making Life Work,” to the American Enterprise February 5. He declared, “A sonnet by Emma Lazarus, ‘The New Colossus,’ was placed at the Statue of Liberty in 1903. Parts of it read: ‘Here at our sea-washed, sunset gates shall stand A mighty woman with a torch…From her beacon-hand Glows world-wide welcome…I lift my lamp beside the golden door!’ The message of this sonnet should sound familiar to most of us. The image of the Statue of Liberty blended with the stories of our immigrant past serve as humble reminders of who we are as a country.”

Cantor’s dog-whistle indicates that the game is up, that the Republican Party will certainly not oppose and will most likely support both the DREAM Act and “comprehensive immigration reform,” ie, the regularization of the anywhere from 11 million to 30 million illegals currently resident in the US.

In 2007, in response to President Bush’s failed amnesty bid, Robert Rector of the Heritage Foundation produced a study which calculated the cost at $2.5 trillion. In response to President Obama’s amnesty bid, Rector told the Daily Caller January 31, “[This proposal] seems to be virtually identical to the 2007 bill and would be extremely costly to the US taxpayers.” Even costlier than the 2007 bill would have been, “due to the increase in benefits programs and number of undocumented.” In addition, “Everything now has gotten more expensive. Obamacare increases the costs considerably.”

Rector explained, “The majority of the undocumented immigrants…are largely uneducated and therefore more likely to be dependent on government assistance. Fifty percent to 60% of the new immigrants are high-school dropouts, and 75%-80% have no more than a high-school degree.”

Specifically, “It’s not like they pay in a lot when they are young, and they take it out when they’re old. They are in fiscal deficit every year of their lives. For example, the typical household headed by someone who does not have a high-school degree, as I said in that paper in 2007, got back then $30,000 in benefits and paid $10,000 [in income and consumption taxes]. It’s a net cost of $20,000. That would be significantly higher now.”

And it gets better. “Rector warned that people should remember the lack of border and employer enforcement that followed the 1986 amnesty. ‘They almost all came here after the last amnesty, and almost all have been employed here because we did not enforce the law we put on the books in 1986… All administrations have basically turned a blind eye to the hiring of illegals, and we’re to somehow pretend that won’t happen in the future.”

If George Santayana were alive today, he would say, “Those who cannot remember the past are condemned to repeat it—and then pat themselves on the back.” (Bonus Republican stupidity: there is no evidence their support for amnesty will win Hispanic votes.)

In related news, at Seeking Alpha February 3, Tim Iacono presents a graph showing “the gold price alongside the combination of rising US debt and increased central bank money printing.” The two graphlines are joined at the hip—$2,000+ here we come!

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