Today’s Links: Obama drops Biden, BNY panics, and thoughts on gold

Here’s what I was reading and thinking about when I was working late into the night:

2012 – Things that will happen – I’ve read and re-read Bruce Krasting’s latest piece here, a fascinating look at the year ahead with lots of suprise predictions. My favorites include: “-Obama will drop Joe Biden from the ticket. Obama will want a Veep that has a chance to be a viable presidential candidate. He will chose Hilary Clinton.” And “-Europe’s economic problems will not be solved. Every effort will be made to kick the can down the road. Neither the can nor the road will collapse; that will happen in 2013. EU GDP will struggle to hold zero.” And “-As the US’s presence in Afghanistan winds down, the Taliban will retake the country. The chaotic US exit will be compared with the end of the Viet Nam war.” And “-Goldman Sachs will go private. There will be many layoffs. The Squid will end up stronger than ever.”

2011 Financial Report of the US Government – David Merkel rips apart the latest financial report from the guys running the country with some insightful analysis including tidbits like this: “As it is the report gives credit to Obamacare for lowering the costs of Medicare, as if a stroke of the law could reduce the medical needs of the elderly.” And he concludes: “So just be aware that something has to change, either taxes have to rise, or Medicare benefit levels have to fall.” I always like to remind people that decades ago, corporations used to contribute nearly 40% of the US tax haul each year and that they now, thanks to endless taxbreaks, subsidies and corporate handouts, they contribute less than 10% each year. Taxes don’t have to rise, we just have to get corporate America off of welfare and contributing to the tax take as much as you and I do.

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BNY Mellon Documents Show Panic – I’ve been saying that BNY is in big trouble and it’s been a short in my Revolution Investing model portfolio for much more than the reasons these documents got these guys panicked.

Gold further below $1,600 – What did Bruce say about gold in his predictions for 2012 article again? Oh yeah: “Gold will be very volatile. It will fall to below $1400 at one point. It will end the year above $2000.” Hmm. I remain a gold bear and I do think I might finally become an actual gold short on rallies, as I think gold might have broken and might drop more than even most bears are looking for.