Davidson: Obama White House Is Lying to You

[acidhead]

Monday, 18 Jan 2010 10:30 AM

Click on LINK for VIDEO: http://www.newsmax.com/video/?bcpid=36344180001&bclid=22770166001&bctid=61628096001

Author, investor and longtime Wall Street observer James Dale Davidson says our government is lying to us: There is no genuine economic recovery happening.

“I think what we have seen ... is a simulated recovery which has been generated by the government faking it in a lot of different ways," putting out what he calls statistical falsehoods on economic numbers "to make it seem that the economy is stronger than it is,” Davidson told Newsmax.

For example, calculations for the recently released unemployment figures released failed to include the fact that the Bureau of Labor Statistics had undercounted the number of unemployed people in 2009 by 824,000 persons.

“They’re supposed to be doing a benchmark adjustment ... and if they do, the unemployment rate will shoot up even higher,” Davidson says.

"A lot of the supposed improvements have been faked by the government," Davidson says.

Davidson believes the government secretly used quantitative easing as an excuse to funnel money into U.S. capital markets.

“It’s not a coincidence that the market started to rally in March at the same time they announced they were going to do the quantitative easing,” he observes.

“In my view, it’s all created by the government as a hoax.”

The whole administration is based on one lie after another, he says.

As revealed in recently uncovered e-mail correspondence with AIG, Treasury Secretary Timothy Geithner effectively told the huge insurer to violate U.S. securities laws.

“I think the way he (Geithner) handled the AIG bonuses last year is a very telling story,” Davidson notes, referring to the media uproar over the bonuses that distracted the public’s attention from the billions of dollars that were being poured into AIG.

The uproar over those bonuses kept people from getting excited over the real issue, Davidson notes. Investors can get excited about only so many AIG-related scandals at once, he says.

At some point, Davidson believes that AIG’s having violated practically every securities law there is will be revealed.

“They’ve done everything they can to create a false impression of stability and strength in a rebounding economy, and I can understand that from the point of view of public policy they want people to think the economy is strong," he says.

"But if you hoax people into going out and spending money on false assumptions … a lot of people are going to lose a lot of money,” he points out.

Davidson believes all investors should hold some gold in their portfolios because the dollar is on its way out as the world’s reserve currency.

“The dollar is cooked,” he says.

“Our ratios are much worse than Brazil was 15 years ago when they had hyperinflation. When you have this kind of spending out of an empty pocket, there’s never anything good as a result. You can’t go on forever spending money you don’t have.”

“It has to stop, and when it does, you’ll be glad you have some gold.”

The heart of the matter, Davidson points out, is that there are huge, gaping holes in everyone’s balance sheets.

“We’ve lost a couple of decades of demand in the U.S. economy because of the de-leveraging that’s happened,” he says.

Americans’ debt loads are still high, and government encouragement to consumers to spend more now is a major misdirection.

As far as other investments go, Davidson feels there’s a strong case to be made for small, special situation companies.

"There’s one company called interCLICK that I like a lot,” he says, “and I’m also invested in Brazil.”

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[Caesar]

YOU don't need James Dale Davidson to tell you that. look at unemployment, inflation and foreclosures.

[UltraThunderMan]

I wouldn't doubt it. With all thats gone on in the past few years and all that happening now, how is anyone supposed to trust the government?

[xCrimsonx]

Politically correct are the words they think we want to hear, and if they do a good job at It they'll be voted for. They tell their so called joint decisions like a viscious debate. Its not as if the people really have a voice anyway! Spend more, middle class will pay later.,. with their homes, loans and health.

[theGhost_and_theDarkness]

OMG! Our government lying to us? No way!

You mean they're doing what they've always done? I would have never suspected. . .

[ninjadude]

YOU don't need James Dale Davidson to tell you that. look at unemployment, inflation and foreclosures.

WHAT INFLATION???!!

[ninjadude]

The OP is from newsmax a right wing rag unreliable source. The opinion is of an investor. Someone who screwed us over in the first place. And he has the gaul to whine about what the governments doing.

[SilverCougar]

The OP is from newsmax a right wing rag unreliable source. The opinion is of an investor. Someone who screwed us over in the first place. And he has the gaul to whine about what the governments doing.

Shhhh! Don't bring that up!

[Caesar]

WHAT INFLATION???!!

Look at oil and gold prices

[Siara]

The OP is from newsmax a right wing rag unreliable source.

Unfortunately, the alternative is a left wing rag unreliable source. The United States has really lost it. I keep telling myself I don't care.

Look at oil and gold prices

Gold is expensive because Bush's economic policies bankrupted the country and the dollar isn't worth anything any more.

.

Edited January 19, 2010 by Siara

[Caesar]

Gold is expensive because Bush's economic policies bankrupted the country and the dollar isn't worth anything any more.

That your opinion, gold is up because of the printing, borrowing and creating more and more money for things we cant afford, yes its true Bush has his hands in some of it, but the facts are Obama is on a pace that will past any other president in terms of printing, borrowing and creating money.

[ninjadude]

Look at oil and gold prices

you're not serious. Inflation refers to a broad range of prices. Not some problem that rich fat cats have buying gold as a result of depressed prices. That's just funny.

[Caesar]

you're not serious. Inflation refers to a broad range of prices. Not some problem that rich fat cats have buying gold as a result of depressed prices. That's just funny.

OK then look at the price of all metals from copper to silver! "depressed prices" they are at all time highs for 6 months now and they still go up. look at the value of the dollar vs other currencies.

Open your eyes!

[acidhead]

http://www.youtube.com/watch?v=kp9Nz14viJY

[Jack_of_Blades]

OMG! Our government lying to us? No way!

I was just as shocked!!

I guess tradition is important.

[preacherman76]

you're not serious. Inflation refers to a broad range of prices. Not some problem that rich fat cats have buying gold as a result of depressed prices. That's just funny.

Anyone who has taken basic economic's knows the next thing to happen is inflation. Government BS always loses to reality.

[Caesar]

Anyone who has taken basic economic's knows the next thing to happen is inflation. Government BS always loses to reality.

You have been seeing some of it now. just take a look at metal, oil, the dollar value and CPI. low rates, the printing of more money always creates what seems to be a growing economy but once all those dollars come back into the economy thats when you will really see it, since there are more dollars chasing few goods. you will never have a good recovery with unemployment around 10%.

[ninjadude]

OK then look at the price of all metals from copper to silver! "depressed prices" they are at all time highs for 6 months now and they still go up.

Inflation refers to a great many prices from bread to refrigerators. Not a single component of the economy.

[ninjadude]

Anyone who has taken basic economic's knows the next thing to happen is inflation.

Maybe but it hasn't happened yet.