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Welcome to Roger's Economic Rant

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Late October Economic Rant -Roger Mason

The most important thing to know right now is that the U.S. Dollar is hopelessly in freefall.  The dollar is useless and everything denominated in dollars is equally useless. We now have 14.7% actual inflation as proven by configured  M3 money printing statistics (M3 is no longer printed in order to hide real inflation). You are going to see price inflation far worse than we had in the 1970s.

The Dow Jones Industrials (DJI) just collapsed 367 points. It would have to go from 13,600 to 15,600 in 2008 just to break even. After taxes you would lose money. In 2009 it would have to go to almost 18,000- and you would lose money after capital gains.  Do you have an IRA/401K? If so, you must either convert this to U.S. silver (or gold) stocks or cash it in and take the 40% penalty. If your IRA/401K rules allow you to own NYSE, NASDAQ or AMEX stocks then convert them all to the silver stocks recommended here or the gold stocks of your choice. If you can’t you must cash it in and take the 60% you have left and buy silver stocks and silver bullion. Cash it in and take the 40% loss? That’s right. When the DJI is 5,000 you’ll be broke. You must take care of this immediately and not wait.  The DJI is a house of cards that is about to crash. This is proven by Dow Theory that shows the DJI and the DJT (Dow Transports) have to move up together for there to be a true bull market. The DJU (Dow Utilities) should join in this. History proves Dow Theory works. If you look at charts of the DJT and DJI you’ll see they are in bad shape and have not “confirmed” the DJI at all. To see charts of these please go to www.investmenttools.com. You can also see the Dow Jones Housing Index and the Philadelphia Housing Index. Take a look at the major home builders charts (Beazer, Toll, Hovnavian, etc.) as well. Many major builders are almost bankrupt.
 
Since 2004 your poor old author has been ranting and raving about the worst housing crash in the history of the world. In the summer of 2005 housing prices peaked. Within 5 to 10 years you will see houses sell for a quarter on the dollar based on these peak prices. Every month this will get worse and worse.
Our budget deficit is completely out of control and we are spending eight hundred billion dollars a year on this insane war in Iraq. This is the worst mistake America has ever made, and the world hates us for this. We’ll soon attack Iran and then Syria. We’ll pay for this more than you can ever dream. The next terrorist attack will make 9/11 look like a picnic. The trade deficit is also completely out of control. You cannot keep on importing far  more than you are exporting or foreigners will end up owning everything in this country.  Unemployment is much higher than the official figures. Many people are working jobs they are overqualified for just so they can pay the bills. This makes even the real figures much worse. The average family is now using credit cards to pay their bills which just puts them deeper and deeper in debt while they waste the Little money they have on interest. The average American family now owes almost $10,000 in credit card debt and pays almost $1,500 in interest.
 
The only real money is silver and gold (platinum is very overpriced). Silver will go to Mars while gold goes to the Moon. Silver is and has been the best investment on earth for years now. Silver is going to $100 an ounce and then will keep going. Gold will go to $3,000 an ounce minimum. Federal law requires Ft. Knox be audited on a regular basis, but no audit has been done in over 50 years. That’s right- most of our gold is gone. Even the Treasury now includes “gold swaps” (whatever that means) as stored gold. There is no gold backing the U.S. dollar folks- it’s just green paper. Basically the world is out of silver. The U.S. Mint has no silver and the military has no strategic silver. Half of the COMEX silver (the largest in the world) is owned. You basically cannot mine much silver at all by itself. 90% of silver is byproduct mining from lead, copper, gold and other mines.
 
You cannot operate cars, computers, phones, Internet, refrigerators, washing machines, air conditioners, or much of anything else without silver, nor can you replace it except with even more expensive metals like gold. No technological society can function without silver. Silver will go to $100 an ounce and keep going. In addition to the previously mentioned silver stocks you can consider Arian, Genco, Great Panther, Sabina, SNS,  and Mexican Silver. Of course we own most all the stocks mentioned.
 
With actual  inflation at 14.7% we’re in real trouble. For people on Social Insecurity the government is only increasing their checks. 2.3%. That means every year people on Social Insecurity lose 12.4% of their money. In five years these checks will be next to useless. Tens of millions of helpless old people will be homeless and hungry. When this socialistic, Marxist pyramid scheme started there were 44 workers to support every retired person. Now it is THREE. Please read that again- three workers now support every retired person. The Baby Boomers are now retiring and soon it will be only TWO workers supporting every retired person. All pyramid schemes come to a nasty end and Social Insecurity was broke decades ago.

Oil is $90  and headed for $100. What are we going to do when gasoline is $5 a gallon? Or $8. America literally moves by truck, so every item you buy will cost much more due to transportation costs.

Educate yourself. Go to www.kitco.com every week and read the many commentaries. Join GATA at www.lemetropolecafe.com or get a two week free trial. Read what Ted Butler says at www.butlerresearch.com. Get a free subscription to the Daily Reckoning, Rude Awakening, or Whiskey & Gunpowder. Do exactly the opposite of what you see on TV, hear on the radio, and read in the magazines and newspapers. If Jim Cramer buys it, you sell it. If Jim sells it, you buy it.  Please stop voting for the lesser of two evils and join the Libertarian Party. Vote for Ron Paul for president. No, he won’t win, but you won’t waste your vote on the lesser of two evils. The fact a Marxist lesbian may be our next commander in chief shows there is no hope whatsoever for this country. Edwards just got caught committing adultery while his wife was dying of cancer so he won’t be running. The Republicans aren’t offering any better. The housing crash will take down the stock market. That will put an end to America as we knew it. Hyperinflation will make things even worse. Your civil rights erode every day and we now live in a police state. The Constitution and Bill of Rights are history.  The best you can do is profit from all this while everyone else goes without. Health is real wealth, so take good care of yourself.



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