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November Economic Rant -Roger Mason

Things only get worse every week in this country. New problems keep arising. The U.S. Dollar is in freefall. You simply cannot hold assets denominated in dollars. The government claims we have less than 3% inflation when it is almost 15%- and may be going up. The M3 (money being printed) figures are no longer published in order to hide this, but other information allows M3 to be configured accurately. The government omits food and fuel when calculating inflation!!! Can you believe that? Other nations no longer buy T-Bills and T-Bonds because they are losing money. This is a disaster in itself. The dollar is no longer the World Reserve Currency. International oil is now priced in other currencies for the first time in history.

The housing bust gets worse all the time. We now have over 2 million unsold homes, or almost a one year supply. Many of them are vacant and thus getting no rent. Always remember that all debts get paid either by the buyer or by the seller. Someone is going to pay for this collapse whether it is home owners or the banks. You will see homes selling for a quarter on the dollar based on 2005 peak prices, but no buyers for them. Beautiful new homes are already selling at auction all over the country for fifty cents on the dollar.

The created jobs numbers are a fantasy, as are the unemployment figures. Many people are working at jobs they are overqualified for just to get a paycheck. Families are now living off their credit cards in desperation, but this can only last a very short time. Bankruptcies are at an all time high even with the new restrictive bankruptcy laws.

Social Insecurity is a pyramid scheme that was broke decades ago. Originally you had 44 people working to support one retired person. Now you have only 3; soon you will have 2. You will never see a Social Insecurity check- or at least one that will buy anything. The Social Insecurity cost of living increase was a mere 2.3% when true inflation is 14.7%. This means in five years these checks will buy next to nothing. The Baby Boomers are retiring now and will not get paid after putting money into the fund for over four decades. The government should have never been in the retirement business in the first place. It has always been a Ponzi scheme.

Gold and silver are the only real money. Why not buy gold and gold stocks? You certainly can buy gold if you want to take out of the country. Just buy 250 Krugerrands (about 20 pounds) for $200,000 , fill out the U.S. Customs money transfer form, and fly to Europe or wherever. Once you get there you dont need to report it, and no one but you knows about it. Silver has much more potential and will make you far more money. The traditional ratio of gold to silver is only about 16 to 1. Now it is about 58 to 1. Silver is going to soon take off for $20. Right now it takes almost 1,000 ounces of silver to buy the Dow. Within five years it will take less than 50 ounces of silver to buy the Dow. Yes, that would mean (for example) a 5,000 Dow and $100 silver. Remember you read that here first. Fifty to one Dow to silver. Again, good silver stocks would include Quaterra, Silverstone, ECU, First Majestic, Fury, Endeavor, Impact, Silver Wheaton, Arian, Great Panther, Mexican Silver, Sabina, and SNS. Do not buy majors such as Silver Standard, Hecla, Coeur'da Alene, Pan American, Apex, and others for a lot of reasons. Nothing in China or Russia such as Silver Dragon and Asian Dragon. Nothing with a mine in South America as communism is taking over the entire continent. This is not investment advice, but just my humble opinion on them. Of course we own almost all the above listed stocks.

Lets review silver: the world is out of silver. The U.S. military and Mint have no silver; no strategic stockpile. The largest depository is the COMEX and half of that is owned by hoarders like your poor old author. 90% of silver is from by-product mining of copper, lead, zinc, etc. There are only about 50 silver mines in the world and half of them are no good. You cannot have technology without silver and you cannot replace it economically. We are out of silver and smart people are holding it. They're not going to sell until it reaches at least $100.

Educate yourself. Read the commentaries on www.kitco.com every week. All democratic countries self destruct after about 200 or so years. We've been going 250 now and we're done being The World Leader. Remember that in 1900 England, ruled the waves, and was the most powerful military force in the world. Now it is a pitiful, bankrupt socialist welfare state. We're now a socialist, left wing, welfare police state. The Constitution and Bill of Rights were gutted long ago. Admit it and dont kid yourselves. A openly Marxist, terminally neurotic lesbian may well be our next president and Commander In Chief. Our Founding Fathers are crying in their graves. People dont want freedom or they would vote for Ron Paul. Why do the vast majority prefer slavery and poverty to freedom and affluence? Go visit any Scandanavian country if you dont believe they do. Intelligent, educated Europeans gave up their freedom long ago.

You have to get out of the stock market. Look at two almost 400 point falls in the last few weeks. Look at the divergence of the Dow Transports (Dow Theory works). If your 401K or IRA allows you to invest in American silver stocks then do so. If not, sell your 401K or IRA and take the 40% loss; put what is left into silver stocks. If you dont, youll watch inflation and the market crash reduce it to zero. You can probably increase the 60% you have left by a factor of ten in the coming years. Maybe even more. Silver will easily go up eight times and the stocks are much more leveraged. Silver stocks increasing 1,600% would be reasonable.

The Fed has cut interest rates twice, which is the worst thing they could do. Theyll probably keep doing it while massively inflating on the other hand. This is prima facie insanity. Were ALREADY in a recession heading for a real depression. The last depression was almost 80 years ago. Depressions have not been repealed after 2,000 years of recorded history and will never be repealed.

This is a wonderful time for you to get rich and retire in style while those around you struggle to survive. Take advantage of it.


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