The Obama Administration is desperate for another couple of billion dollars added to the Cash-for-Clunkers coffer. Miners like North American Palladium (AMEX:PAL) want the money even more.

If you fire enough bullets, eventually one of them is bound to hit the bull’s eye. After spending a trillion dollars on an array of stimulus packages, the Obama administration is scrambling to “enhance” a billion-dollar program that actually hit its mark.

By now, we have all heard of the popularity of Washington’s Cash-for-Clunkers initiative. Drive, push or tow any old gas hog into a local dealer and Uncle Sam will give you a check for $3,500 or even $4,500 if you buy a new car.

In the short-term, the plan appears to be nothing but success. Car dealers actually have a reason to turn on the lights each day. Thanks to the program, inventories are no longer measured by months of supplies, but days or even hours.

For now, we are going to overlook the long-term detrimental ramifications of free money, including inflation and disruptions throughout the nation’s auto market. Prices could be brutally different in six months, even less, if the free markets still exist by then.

But, as of this writing, there is at least a semblance of capitalism in America and that means somebody is getting rich.

Is it you? It should be.

In an article yesterday, I wrote about some of the more obvious investment possibilities created by the Cash-for-Clunkers plan. Today, it is an even better, much less talked about chance to make some money.

Thanks to the weakening American dollar and Obama’s free money for new wheels, the nation’s platinum sector has had a fantastic week. Yes, platinum.

Like usual, a strong equities market weakens the greenback and increases demand for precious metals like gold, silver and platinum. The latter of the three is critical in the auto manufacturing industry as it plays a key role in exhaust gas management.

This single piece of legislation is a double-whammy for the sector.

With nearly 250,000 cars sold through Cash-for-Clunkers, savvy investors realize manufacturers are going to have to increase their production in order to replace the inventory.

That means platinum demand is on the rise.

It also means shares of companies like North American Palladium (AMEX:PAL) and Polymet Mining (AMEX:PLC) are increasing in value.

In just the last five days, shares of these miners surged by as much as 40% and 25%, respectively.

Even better, one of my favorite mining stocks – if you are a TFN Strategic Trader subscriber, it is already in your portfolio – is leading the charge.

While I am not about to anger my loyal paying customers by giving away the stock for free, I will tell you it is the month’s top performer, with gains of over 24%.

Of course, thanks to the leverage of options, our gains are significantly larger than that.

Thanks Obama!

As an American, I cannot possibly give my support for reckless subsidy spending, like Cash-for-Clunkers. It is unfair to taxpayers and the countless other individuals and companies that could benefit from similar handouts.

But as an investor, hey, you can’t beat free money. We are making plenty of that.

Source: Mining Stocks: The Surprising Cash-for-Clunker Winners