"States Rights"…Bye, Bye!


Good Morning Americans!  It's Friday…somewhere.

What is the price of gold?  Who cares? As long as those blue days of under 300 an ounce don't return.  Dear heaven forbid.  I'll never forget those days.   Everyday you watched the gold price hoping it would at least climb over 280.  And then one day it might hit 291 and you were ready to celebrate with a bottle of Champaign.

And all during this time you watched exploration, production companies and even fair size companies you never thought would fail…go bankrupt.  Bankruptcy was an every day event.

Am I being pessimistic about the gold price for the coming decade?  Do I not really believe it will continue to rise and go to the moon?  It might yet as far as I know.  But I don't know.  But I do know that with present prices there is a better measure of stability the gold mining community has needed for a long time.  At 250 an ounce mining was just not profitable.  Wasn't economical.

With the healthcare bill signed, the present presidential administration has begun additional efforts to also begin an aggressive push to enact new imposed financial regulatory overhaul before the November elections.  Now that we will be forced to purchase government mandated insurance, hopefully, now we will also be mandated to purchase General Motors cars.

Thank God for sound reasoning and common sense returning to this great land.

Idiot Republican Sen. John McCain of Arizona made the statement that "Once again the administration showed that it had little respect for the time honored constitutional roles and procedures of Congress…" Poor John.  Doesn't he recognize that all legislative power is leaving the states and coming under the providence of the executive branch?  As a people we are not mature enough to govern ourselves.  Must have a sugar daddy out there.

Gold trends really have changed forever.  The financial world has shown itself to be but a house of cards.  A house of cards slowly being managed and run by executive branch appointed czars.  And that's another thing I detest.

Does anyone know what the definition of a "czar" is?

The first "czar was Caesar.  That's where the term czar originally derived from.  How about that?   Remember the thing ancient Rome had going on for 500 years?  Emperors, and many started off as really quite nice guys, but their absolute power eventually turned them into totalitarians. But make no mistake that the definition of czar is one of Emperor Rank with power equivalent to that of a supreme ruler.

And now our executive branch is hiring regional authoritarian powers around the United States with absolute power answering to no one but the executive branch that placed him or her in office?  The people have shown they no longer have the wisdom to enact proper laws via their state legislatures and its time that Papa takes the wheel.

Another idiot, Forrest McDonald, a retired University of Alabama professional academic of states' rights has said that Congress just has no power to make someone buy something.  Forrest probably still picks and chooses his own insurance policy and refuses to drive GM.

Still interested in gold stocks?  The following is a man whose acquaintance you should meet.  Brent Cook is a respected geologist and analyst.  The fellow has true on the job training and spends the majority of his time in mines and breaking up rocks into small pieces and hearing a hundred tales by excited believers who think they have found the mother load of all mother loads.

The gold and precious metals and resource markets are incredibly complicated yet more money is made in these stocks than any other sector.  Brent is good at providing reliable geological and economic evaluations of mineral properties and their economic potential.

Right now there is more gold being pulled from the ground and it is getting harder to find.  And as many new mines with higher than normal risk come into play then it is more important than ever to attain higher profit margins.  The old easily discovered high grade gold reserves are becoming rarer and rarer.  No more easy shooting in the barrel today to turn up a quick gold buck.  Brent knows his stuff.  Check him out.  Learn something new.

Anyone notice lately that state sovereignty seems to be headed north along with migratory birds?  Checked all the byways, coat closets, etc, at the capital and it just can't be found anywhere.  Inevitable it seems.

But seriously folks.

"State sovereignty is a legal principle that US states have the right to prevent the application of programs and regulations of the Federal government."  "The basis is the Ninth and Tenth Amendments to the US Constitution, which reserve to the states respectively, or to the people, all powers and rights not delegated to the Federal government by the Constitution and thereby prohibited to the states…"

"How this principle is applied depends on whether the US can be shown to be applying laws and rules that would contravene these rights…" Via…

"…exceeding the mandate of the Constitution." "In the legal battle over enacting a national health care plan…" What happened to the "…principle of state sovereignty?"

I suppose it's understood now that 1,000 has become the floor for the gold price?  Definitely become more a floor than a ceiling. Central banks continue to add to their gold reserves more than in almost 50 years.   Remember the debate at the beginning of the decade (10 short years ago) that it was speculated that the central banks might then dump all their gold reserves into the sea because of their worthlessness.

Remember those days?  I do.  The financial crash of the past 2 years has proven the worth of fixed hard assets not based on paper.  It is even expected that by the end of 2010 central bankers may even add another couple of hundred tons to their supplies. A respected hedge fund manager predicts gold to continue trending into the foreseeable future becoming the world's second valued reservable currency rivaling the US buck and supplanting the Euro.

And back to state sovereignty?  Mark Rosen, a   Chicago-Kent College of Law Constitution scholar, has said the states do not really have sovereignty and no constitutional leg to stand on.

Mark has been quoted explaining… "Congress has clear authority to pass this type of legislation and under the supremacy clause that makes federal law supreme…."

Thank you Mark for spelling this out.  What's happening in our public school systems?  Aren't our kids being taught these good, liberal principals in kindergarten? Want to hear something really stupid?  Read the following claptrap below.

"Alison L. LaCroix, an assistant professor of law at the University of Chicago Law School, explores the history of the notion in "The Ideological Origins of American Federalism," which has just been published by Harvard University Press."

And what does dear Allison say in her "academic" reasoning?

"The only incorrect vision of federalism is one that assumes that a single correct vision is possible." Allison

Well, dear Alison, is this not what is happening with a single idea mandated by our executive branch dictating that this new national health care system is forced on all  50 states?

What did ole' Hickory have to say about states rights?

"In administering the laws of Congress I shall keep steadily in view the limitations as well as the extent of the Executive power trusting thereby to discharge the functions of my office without transcending its authority….In such measures as I may be called on to pursue in regard to the rights of the separate States I hope to be animated by a proper respect for those sovereign members of our Union, taking care not to confound the powers they have reserved to themselves…" ole' Hickory

And ole' Hickory goes to bat again!

"In the domestic policy of this Government there are two objects which especially deserve the attention of the people and their representatives, and which have been and will continue to be the subjects of my increasing solicitude. They are the preservation of the rights of the several States and the integrity of the Union. These great objects are necessarily connected, and can only be attained by an enlightened exercise of the powers of each within its appropriate sphere in conformity with the public will constitutionally expressed."

Noticed how Andrew stated that laws in question debated between Federalism or states sovereignty must be "constitutionally expressed."

What are "constitutionally expressed [powers]?"

"Expressed powers are those powers directly stated in the Constitution. Most of those powers are found in the first three articles of the Constitution"

"Federalism is a system in which the power to govern is shared between national and central (state) governments" "A bill of rights should be coupled with the constitution to prevent a dictator (then believed to eventually be the president) from exploiting citizens."

Jackson, "…the destruction of our State governments or the annihilation of their control over the local concerns of the people would lead directly to revolution and anarchy, and finally to despotism and military domination."

Benevolent totalitarianism.

Reminds me how past leaders of the governments of Germany, Russia, and ancient Roman Caesars began their reigns.  Many quite good "Bubbas!"  But we know from the pages of history that eventually benevolent absolute power becomes absolute tyranny.

But changing the subject and on to more understandable issues…

Some degree of civility and common sense has returned to this country's culture.  Praise God!  A man stopped to render first aid to a possum hit by a car he found lying in the road. When Pennsylvania Police Trooper Jamie Levier also stopped to render assistance the Good Samaritan was diligently administering mouth to mouth resuscitation to the opossum.  Unfortunately, the opossum was already dead.

Excellent Gold Stocks to Buy

And concerning Gold.  Don't forget that gold represents the most practical way to combat inflation.  And inflation is on its way. Just too much debt being created in massive amounts which equates to worthless paper with absolutely no backing by anything of real value.  Believe me when I tell you there is coming a time when you will wish you had listened a little more carefully to these reflections on gold.  And maybe even reflections on opossums.

David Vaughn

Gold Letter, Inc.

[email protected]

3-30-2010

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