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November Economic Rant -Roger Mason

Some of you are understandably dismayed at silver and gold falling so badly along with their mining stocks. Look at the Big Picture, and not the short term. Silver and gold are the only real money. You can only get silver and gold from silver and gold mines. In 1982 there was a 17 to 1 gold to silver ratio, with $850 gold and $50 silver.  The current gold to silver ratio is an insane 83 to 1, and will soon return to the historical 15 to 1 ratio. In fact, you can expect a 10 to 1 ratio for the first time in history. Why ? Because gold has no real use other than money. Forget jewelry, it’s been money for 3,000 years. Silver is indispensible for technology, as well as being money. You cannot have a technological society without silver, and you cannot replace it. You cannot have a car, phone, internet, stove, refrigerator, oven, lights, computer, air conditioner, microwave, airplane, or anything else electronic without silver. (The only replacements are platinum, gold, rhodium, and palladium.) Silver used to be the currency of most all nations until about 100 years ago. 95% of the gold ever mined is still with us. 95% of the silver ever mined is gone, never to be seen again. Silver is an irreplaceable metal as well as money, and is far more popular than gold for the great majority of people. Only the rich can afford gold. Anyone can afford some silver. Did you know there are actually less ounces of physical silver on earth today even though the price of gold is 83 (eighty-three) times the price of silver? This is going to be explosive! Very explosive. Look at the facts, read all you can at the kitco.com commentaries every week. Remember that in 1982 silver was $50, and there was plenty of silver everywhere. Adjusted for inflation this would be $150 today, and there is no silver available- even in the U.S. Mint and military strategic stockpile.

Right now the HUI (basket of unhedged gold and silver stocks) is about 200, which is was back in 2003 when gold was only $400 and silver only $6. Some of these stocks are selling at less than book value. This is the buy of a lifetime. You can watch the HUI at kitco.com five days a week.

The fake spot, COMEX, “official” silver price fell to eight dollars and change even though people all over the world were begging for silver and couldn’t get any. The real price is what you pay in the real world for physical silver. If you can afford 1,000 oz bars (70 pounds), go to your local coin dealer and buy all you can for only $10 an ounce or less. If you can only afford 100 oz  bars, pay the 50% ($15 with $10 spot) premium and buy all you can. If you can only afford 1 oz coins, pay the same premium, and buy all you can. There are less than one billion ounces of silver on the earth. This year investors bought up 150 millions ounces (one seventh), and wanted to buy a lot, lot more, but couldn’t due to scarcity. This is unprecedented for investors to buy this much. Most all of this silver is held in “strong hands” (like our readers) who are not going to let go of it until it is priced at least twenty times (2,000%) higher.

If you bought silver stocks and are temporarily under water, just realize this is temporary and will soon turn around. Silver and gold stocks are selling at book value or less, and are tremendous bargains. Some are actually selling below cost. Run out and buy all you can! The fundamentals are better than ever. As the lemmings exit the stock market, they will increasingly run to silver, gold, and their stocks. All the gold and silver stocks in the world would only equal the value of Coca Cola. When tens of millions of people buy them the prices will go thru the roof. This is the best time in the world to buy silver stocks. Add to what you have. They are selling for book value or less for God’s sakes! We bought U.S. Silver (USA- Can) at 50 cents. Now, it’s 8 cents. So, we bought some more. Now our average price is 29 cents. These stocks will go to Mars and beyond as silver takes off. The stocks have far more leverage than the bullion. Ideally you want to own both. Never own paper silver like ETFs or let anyone store your silver for you. Soon you will have to hold your stock certificates. There are only about fifty actual silver mines in the entire world. For various reasons about forty of those aren’t worth investing in regardless of how well known they are. Eight that stand out are Quaterra (QTA, Silverstone (SST),  ECU Silver (ECU), First Majestic (FR), Endeavor (EXK), Impact (IPT), Genco (GGC), and U.S. Silver (USA). (Seven of these are Canadian and Endeavor is American.)

You really have no choice. There isn’t one investment on the face of this earth to put your money into. Nothing. Nowhere. Only silver and gold. You can’t even keep currency (from any country) under your mattress due to inflation. Just try to name anything at all to put your savings into other than silver or gold. You can’t. There isn’t anything. Government shill Senile in Omaha Buffet is telling everyone to load up on stocks. Look at his infamous Berkshire Hathaway, and see what a loser he is. His BRK.B fell from 5,000 this year to 3,800 and is still falling by the day. No, this is not “merely” a 24% loss; adjusted for inflation it is over a 40% loss just this year. Senile in Omaha just lost 40% this year, but he wants to tell you to invest in the stock market! That takes real gall.  He sold his soul to the establishment, has no character, and sold out for power and prestige. He’s a has-been, a sickly, senile , foggy minded old man on prescription drugs living off cheeseburgers and cherry cokes. If he was smart he would have bought entire silver and gold mines years ago. Instead, he has junk companies like restaurants and real estate, and is up to his ears in derivatives. Yes, the very derivatives he warns about.

The polls say Marxist Hussein will be our president. I was wrong. McCain will lose. McCain really is the NeoCon ideal, the perfect man for the Powers That Be. The American people have chosen Marxist socialism and poverty, instead of freedom and affluence. It’s the end of America after 232 years. October 24, 2008 is also the 79th anniversery of Black Monday. Why do people prefer slavery, poverty, big government, and socialism- or communism? There is nowhere to go on this planet anymore. America was the last bastion of freedom. Hussein will continue the war in Iraq and Afghanistan, attack Iran, attack Pakistan, attack Syria, and start the military draft. Your son AND daughter will be sent to some backwater you can’t spell to kill and be killed.  Here is an Obama quote, “If (when) we go to war, then all of us go, not just some.” We told you Syria aligned with Russia to avoid U.S. aggression. On October 26 U.S. troops went to Hwijeh, Syria and killed 9 people and injured 14. Syria already aligned itself with Russia for protection, and they will be protected. The last thing you want to do is irritate the resting Russian bear, but this is what we’re doing. Putin is tough and smart, damned tough. You don’t play with tough men, or you get you butt kicked real good. On October 28 Defense Secretary Gates replied to the immoral Syrian attack. He announced that the U.S. will attack anyone, anywhere, anytime, for any reason. That’s what he said in plain words. The Much Greater Depression pales in comparison to World War III, and that is exactly what we’re headed for with arrogance like this.

Every day huge, famous, long time stores are going broke. The famous RiteAid drug stores, one of the three biggest drug chains in the entire world, stock fell from $6 to fifty cents. Starbucks ($38 to $9) finally closed 600 stores- which they should have never built. Just some of the other classic companies failing are American Express, Circuit City, Radio Shack ($34 to $11), General Motors, Ford, Chrysler, RIM (the Media Favorite fab stock that was hyped so much this year $140 to $40), Apple Computer (another Media Favorite fab stock overhyped this year $200 to $95), Standard Pacific, Safeway Foods, Sirius XM Radio, Royal Caribbean Cruises ($46 to $12) Tiffany Jewelry, world famous Disney Studios, Tuesday Morning, Ann Taylor, Eddie Bauer, Cache Clothing, Lane Bryant, Fashion Bug, Catherines, Harley Davidson, MGM Hotels ($96 to $9), Wynn Hotels ($176 to $34), Amazon.Com, Sands Hotels ($149 to $6),  Nintendo, Charter Communications, Talbots, J. Jill, Gap Inc., Foot Locker, Wickes, Levitz, Bombay, Zales Jewelry, Piercing Pagoda, Home Depot, Macy’s, Movie Gallery, Pacific Sunwear, Pep Boys Auto, Sprint Nextel, J.C. Penney, Lowe’s, Office Depot, Ethan Allen, Wilsons Leather, Sharper Image, KB Toys, Dillards, and Gatehouse Newspapers. Let’s not forget General Electric- the fourth largest corporation in the world and (adjusted for inflation) is down terribly. Las Vegas is through, over, done, finished, as the World’s Most Glamor- ous and Exciting City dying by the day. This is proof of the coming Much Greater Depression. Just look at the facts and you can see the depression right around the corner. Just open your eyes and pay attention and you can see it all right in front of your face every day. This is just a short, partial list! George Soros said this is the worst economic crisis since the 1930s.

Fidel Castro personally supports Obama Hussein for president. What more can you say? Vladamir Putin feels the same way. In the Cuban national paper Granma, Fidel says Obama, “is the most progressive candidate for the U.S. presidency.” What an endorsement from one of the foremost Communist dictators in the world, who presides over a destitute, poverty stricken sinkhole that used to be a prosperous, affluent, and very popular tourist destination. Now it is the only island in the Caribbean (besides Haiti) that can’t attract any tourists. Michele Obama said, “The truth is, in order to get things as Universal Health Care and a revamped education system, someone is going to have to give up a piece of the pie so that someone else can have more”. Straight out of the mouth of Karl Marx, the rabbi originator of Communism. Redistribute your wealth. Punish the productive to give to the unproductive; the essence of Marxism.

Another disgraceful government shill is T. Boone Pickens, the owner of BP Petroleum. He’s the moron you see on TV telling you windmills, fuel cells, hydrogen, ethanol, and other asinine things are the answer to diminishing “Peak Oil”. Did you know his Pickens Energy Fund just lost 80%, and he had to close it down? He’s the idiot who said we’d have $150 oil this year, and now it’s $60. Why is an old time oil man shilling for the liberal’s alternative energy fantasy, rather than telling you about our huge U.S. oil reserves and SASOL from coal? Only God and Pickens can answer that question.

Almost every single profession will suffer as the economy worsens. There are almost no exceptions here. Right now professionals like doctors, lawyers, dentists, and accountants are all losing large amounts of business. Want to thrive and get rich during the coming depression? Get a motor scooter, moped, or Smart Car dealership. Or maybe that crappy little plastic Indian imitation car the Tata. No, not real motorcycles (Harley is broke), just motor scooters and mopeds. If you’ve ever been to Europe you see elderly, middle class people in the dead of winter on motor scooters going to work and to stores. The upper middle class can afford a Smart Car. In Denmark (Socialist Central) they’re too poor for motor scooters generally, and just ride their bicycles to the train station. This is your future here in America folks under Marxist Obama. Socialism destroys everything- except government of course. You may well see the American standard of living not merely cut by one third, but actually cut in half. Just imagine your standard of living cut completely in half in the next few years.

For over a year now we have begged you to dump your 401k/IRAs, take the tax bite, and invest in silver and silver stocks. Now your 401k/IRA is almost worthless, with no hope at all of recovering. The Democrats will control Congress completely in 60 days. What are they going to do? THEY ARE GOING TO SEIZE YOUR 401k/IRA and merge it with Social Insecurity. That’s a fact. Social Insecurity was broke decades ago, and the government has been robbing Peter to pay Paul. Well, Peter is broke and can’t be robbed anymore. That’s right, the government is going to seize your 401k/IRA and take it away from you. You are going to see full scale socialism in America, and that includes nationalizing all investment across the board.

The American Rifleman magazine proved beyond any doubt that Hussein is going to take your guns away. He has already supported serious anti-gun legislation. It is a hallmark of socialist and communist  countries to take firearms away from the citizens. The Second Amendment is a very important part of our history, and people have a right to own firearms to defend themselves, their homes, and their families. The NRA (National Rifle Association) was compromised and sold out years ago. GOA (Gun Owners of America) is a much better organization to join. Even if you aren’t a gun owner, you should always support the Constitution.

True inflation is running about 18%. You need to understand that inflation is theft, stealing, taking your money quietly and secretly. I just saw Kraft® mayonnaise for $5 this week! Every day your dollars buy less and less. Every day you get poorer as the Federal Reserve keeps endlessly printing money 24/7. The Federal Reserve isn’t federal and has no reserves by the way. All these bailouts are financed by printing useless, unbacked Monopoly money. M3 (counterfeit money printing) figures are not published anymore, but they are configured very well at websites like www.shadowstats.com. You must make 18% on any investment every year just to break even! If you have a CD, for example, at 3%, you are losing 15% every year. Inflation is ruining your life and destroying your future. The only thing you can do is buy all the silver and gold investments you can.

The housing collapse won’t end until sometime in 2011. Maybe even in 2012. The commercial collapse is following, and will be much worse. The commercial mortgage disaster dwarfs the residential. Since the major savings for most people is in their homes, the entire economy will keep crashing. Our banking system is insolvent as are the banks all over the world. A friend just told me, “Roger, the house down the street is selling for half price from three years ago. What a bargain!” I told him to wait another two and a half years and that same house will be a quarter on the dollar, but there won’t be any buyers. The media is trying to tell you the housing crash is “bottoming” when, in fact, it has over two years to go and the commercial crash is going to be much bigger.

Buy all the silver and silver stocks you can get your hands on at these prices. You really have no choice. Silver and gold are the only real money. The entire world economy is imploding by the day. Just look around you, pay attention, and you can see tomorrow.

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