David Walker On The "Truth" Campaign Trail

Good day… OK… This Pfennig is going to set the record for the shortest on record. I’ve got a plane to catch in less than two hours! A book on what men know about women would be longer!

The European currencies rebounded a bit on Tuesday… And the Asian currencies gave back some of their gains… Things seemed to be returning to normal.

I was talking yesterday with my old friend and former boss, Ed Bonawitz, who now works with us again, and we were trying to discover the reason for all that volatility last week. My thought was simply that Big Al Greenspan spooked the markets with his comments on the United States entering a recession in 2007.

I think Corporate America and their leaders sent a message to Big Al, and asked him to go away… Not go away mad, just go away! We’ll have to see if he decides to listen, eh?

How about that David Walker? Not familiar with Mr. Walker? Well, I’ve written about his thoughts before, but here’s the skinny… David Walker is the comptroller general of the United States, and he has been on his soap box for over a year now, trying to alert people to the problems of the debts and deficits the United States keeps mounting higher and higher. Well… Mr. Walker was on the tube the other night, and I’m glad a reader reminded me of this, as I had let it slip my mind yesterday.

Mr. Walker was on TV to tell the U.S. voters that he is going on the campaign trail to let every voter know the perils we are facing as a country. But Walker doesn’t need, or want, your vote in the next general election. He already has a job as head of the Government Accountability Office, an investigative arm of Congress that audits and evaluates the performance of the federal government.

Basically, that makes Walker the nation’s accountant-in-chief. And the accountant-in-chief’s professional opinion is that the American public needs to tell Washington it’s time to steer the nation off the path to financial ruin. So… He wants you as a voter to make educated decisions in the next general election.

So, as I’ve said many times before, I’m not the only one beating this drum regarding deficits. I’ll repeat something I wrote a couple of months ago, and is now part of my presentations… When considering the deficits we’ve built and will continue to build in the United States, think about it this way: It’s not always easy to know exactly when a Chevy in a tailspin on an icy highway will make impact with the guardrail. But the fact of the matter is, when a situation is this much out of control, you know that impact is guaranteed at some time…and better to be prepared now instead of waiting, when it could be too late to do a thing.

And being prepared is all about diversifying your investment portfolio, and I don’t mean just between stocks, bonds, mutual funds and indexes… I mean to really diversify your investment portfolio with currencies and precious metals/commodities.

OK… This is flowing pretty well this morning, so I can go a little longer here… In the South Pacific overnight Australia saw a nice strong printing of their fourth quarter GDP, which grew twice as fast as the economists forecast! GDP grew 1% in the fourth quarter… This announcement has snapped the five-day losing streak the Aussie dollar had been experiencing. I think that with the normalization going on in the markets, it won’t be long before Aussie dollars are cooking with gas once again.

Time to book this journal and head for the airport! I’ll be writing from the road tomorrow and Friday, and you know how much I delight in that! NOT!

Currencies today: A$ .7790, kiwi .6855, C$ .8510, euro 1.3130, sterling 1.9310, Swiss .8180, ISK 67.65, rand 7.4125, krone 6.20, SEK 7.06, forint 192.70, zloty 2.97, koruna 21.45, yen 116.40, baht 32.75, sing 1.5280, HKD 7.8160, INR 44.52, China 7.74, pesos 11.14, dollar index 84.02, Silver $12.96, and Gold… $647.30

That’s it for today… Off to Orlando and a company function, back Friday night, and I’ll collapse in a heap of exhaustion on Saturday! Chris is attending this function with me, so maybe a good time will be in store! Great stuff this weekend with the Big Boys playing in the Basketball Conference Tournaments, and then the announcement of the brackets for the NCAA Tournament. The next few weeks are very exciting for college basketball fans, of which… I’m one! Have a great Wednesday.

Chuck Butler — March 07, 2007

The Daily Reckoning