This from Jim Willie's latest yesterday.

http://news.goldseek.com/GoldenJacka...

Gold & The Panic Phase


POLITICIANS REPEAT HISTORICAL ERRORS

The honeymoon is almost over for the new president. His cabinet staff comes from the same crowd within the establishment responsible for the financial collapse. They just wear different colored jackets, coming from the Clinton Camp instead of the Bush Camp. In my view, they are almost all turncoats to the nation. The federal budget for next year has centerpieces of tax increases (up 33% on income, up 100% on capital in the form of dividends), removal of some tax deductions for home mortgages, and a $20.4 billion defense budget increase. Obama even mentions measures that harken protectionism. Some of these main items are in a state of flux, as the errors of their ways are being re-evaluated. One should not increase taxes during a recession. One should not tax capital during a capital liquidation. One should not tax energy production during price instability. One should not discourage home purchase during a housing bear market. One should not increase military spending, when money is desperately needed for domestic purposes. These are classic political errors that will render additional harm to the current economic and financial crisis. The Glass-Steagal Law to prevent collapse of the financial system was removed late in the 1990 decade. Dominos can now fall, as it is joined at the hips from banking, stock brokerage, and insurance. Its scrap was a Pet Project of former Treasury Secretary Robert Rubin, again the Poster Boy of financial failure and fraud (see his gold leasing multi-year project). His was the stolen 1990 decade of prosperity. The damage is therefore certain to run across the primary financial sectors for a long painful sequence in time. The insurance firms are next to fall. Watch Prudential, MetLife, Hartford, and Lincoln.