scratch-mark

The Best National Defense

There has never been a doubt in my mind that the best national defense is to make sure that everyone else — friends and potential enemies — have an important financial stake in your stability, success, and prosperity.

When I learned of that purchase of a 5% stake in Citigroup for $7.5 billion the other day, I didn’t for a second buy the rhetoric that it was a "bailout." Yea, Citi can use the cash, but it would have squeaked by anyway. If Citi was in no-shit trouble, shares would be trading under $5 and not in the 30s. Make no mistake: this was a fabulous investment and this chart has "buy; it’s on sale" written all over it.

Anything can happen, but I gotta call this a smart move with a very attractive risk/return profile. They’re going to get 11% on the money, dividends, and should the stock make it back to the $55 level, a near doubling of their capital.

Am I concerned with middle easterners of the Islamic faith owning huge stakes in American companies? Quite the contrary. I think it’s no mystery that Great Britan, since the American Revolution, has been America’s closest supporter. They own more of America (more than 25% of all foreign investment) than any other country. I believe the Dutch and Japan come in next, and Europe combined is at around 60% of all. Asia is right up there, China will be huge, and the middle east is stepping it up. It’s good for business and it’s good for peace.

I am purposely making no distinction between "private capital" and "sovereign wealth funds." At that level of capital, controlled by people with global political connections and influence, there’s just no important distinction to make. If there was any such thing as "private capital," I’d be happy to make a distinction.

Richard Nikoley

I'm Richard Nikoley. Free The Animal began in 2003 and as of 2021, contains 5,000 posts. I blog what I wish...from health, diet, and food to travel and lifestyle; to politics, social antagonism, expat-living location and time independent—while you sleep—income. I celebrate the audacity and hubris to live by your own exclusive authority and take your own chances. Read More

1 Comment

  1. Marty on November 29, 2007 at 14:01

    Check this out for a leap to liberty and hot markets. I've given the maximum allowed and I'm trying to drum up more……Marty

    November 29, 2007

    Thanks to your continued support, we are closing in on three important fundraising milestones for the fourth quarter:

    During the third quarter, Fred Thompson raised $9,750,821 to be used during the primary election cycle.
    Not counting money that he loaned to his own campaign, Mitt Romney raised $9,896,719.
    Rudy Giuliani finished with $10,258,019.
    Ron Paul is currently at $9,708,791 for the fourth quarter.

    We are within reach of passing Fred Thompson today! Will you help us storm past these fundraising totals over a month sooner than they did?

    Please make your most generous donation:

    And don't forget to watch the live counter on our website as we meet these marks! http://www.ronpaul2008.com

Leave a Comment





Pinterest118k
YouTube798
YouTube
Follow by Email8k
RSS780