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Subject: Richard Nixon

Richard Milhous Nixon (January 9, 1913 – April 22, 1994) was the 37th President of the United States from 1969–1974 and was also the 36th Vice President of the United States (1953–1961). Nixon was the only President to resign the office and also the only person to be elected twice to both the Presidency and the Vice Presidency.
Nixon was born in Yorba Linda, California. After completing his undergraduate work at Whittier College, he graduated from Duke University School of Law in 1937 and returned to California to practice law in La Habra. Following the attack on Pearl Harbor, he joined the United States Navy, serving in the Pacific theater, and rose to the rank of Lieutenant Commander during World War II. He was elected in 1946 as a Republican to the House of Representatives representing California’s 12th Congressional district, and in 1950 to the United States Senate. He was selected to be the running mate of Dwight D. Eisenhower, the Republican Party nominee, in the 1952 Presidential election, becoming one of the youngest Vice Presidents in history. He waged an unsuccessful presidential campaign in 1960, narrowly losing to John F. Kennedy, and an unsuccessful campaign for Governor of California in 1962; following these losses, Nixon announced his withdrawal from political life. In 1968, however, he ran again for president of the United States and was elected.
The most immediate task facing President Nixon was a resolution of the Vietnam War. He initially escalated the conflict, overseeing incursions into neighboring countries, though American military personnel were gradually withdrawn and he successfully negotiated a ceasefire with North Vietnam in 1973, effectively ending American involvement in the war. His foreign policy initiatives were largely successful: his groundbreaking visit to the People’s Republic of China in 1972 opened diplomatic relations between the two nations, and he initiated détente and the Anti-Ballistic Missile Treaty with the Soviet Union. On the domestic front, he implemented new economic policies which called for wage and price control and the abolition of the gold standard. He was reelected by a landslide in 1972. In his second term, the nation was afflicted with economic difficulties. In the face of likely impeachment for his role in the Watergate scandal, Nixon resigned on August 9, 1974. He was later pardoned by his successor, Gerald Ford, for any federal crimes he may have committed while in office.
In his retirement, Nixon became a prolific author and undertook many foreign trips. His work as an elder statesman helped to rehabilitate his public image. He suffered a debilitating stroke on April 18, 1994, and died four days later at the age of 81. (Wikipedia Feb 2010)

Smooth sailing unlikely

Inefficient market portends bumpy recovery

Inefficient markets have consequences that may be prickly for incautious investors.

Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences.

Stagflation watch

When will inflation kick in?

Forecasting when inflation will kick in is impossible, because the political situation is so uncertain and conflicted.

The lack of fiscal restraint of President Obama on the healthcare issue, the ’stimulus bill’, and other ‘progressive’ legislation in the pipeline, combined with the jobs-firsts-inflation-last attitude of Fed Chairman Bernanke — leave little room to doubt that sooner or later the United States is likely to enter the realm of double-digit inflation.

Inflation is likely be the final and deadliest blow to the retirement dreams of many Baby Boomers. When the stock market crashes, one can hope for a recovery some day. With inflation, the losses are permanent and final.

The coming storm:

Will gold protect you against inflation?

Will Obama's exit crash gold?

In 35 of the last 50 years, gold prices have fallen relative to inflation. On four occasions, gold has fallen 50% or more. Gold does not track inflation, but rather anticipation of hyper-inflation or war.

In 2010, gold prices were soaring, reflecting fear of inflation from fiscal excesses of the Obama administration and continuation of war in Iraq and Afghanistan. If Obama is a one-termer, gold prices could fall.

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2010-11-11 16:03