Tags: davidson | obama | lying | white house

Davidson: Obama White House Is Lying to You

Monday, 18 Jan 2010 10:30 AM

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.

Video — Davidson: Obama White House Is Lying to You

“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.”


Video — Davidson: Obama White House Is Lying to You

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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...
davidson,obama,lying,white house
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2010-30-18
Monday, 18 Jan 2010 10:30 AM
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