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Late November Economic Rant -Roger Mason

Every day the economic situation in America- and the world- gets worse. Look at the prices you pay for everything go up each time you go to the store. This is going to be the worst Christmas in history. The U.S. Dollar is in freefall. There are no good currencies in the world, only less worse than us. The dollar is now worth 4 cents compared to when the ďFederalĒ (it isnít federal folks) Reserve opened in 1913. In 1916 President Wilson publically admitted it was a horrible mistake. The dollar is no longer the world reserve currency.

We ARE already in a recession headed for a depression. The housing crash is going To take down the stock market. That will take down America. No one is buying our T-Bills and T-Bonds anymore. We canít live without selling Treasury paper. Your Social Insecurity was gone decades ago, and the politicians have been robbing Peter to pay Paul for over 30 years. It takes three full time workers to support one seasoned citizen and soon it will be only two. The Baby Boomers will start collecting by the tens of millions any day and the game will be over. You are already losing over 13% a year with 2.3% cost of living increases. Itís always been a Ponzi scheme.

The only real money on earth is silver and gold. Silver is traditionally about a 15 to 1 ratio with gold. It is now about 57 to 1, so silver is going to vasty outperform gold. Silver is going to $100 an ounce and keep going. $50 silver in 1982 is now about $130 silver adjusted for inflation. $200 silver sounds impossible, but that is the probability within ten years. Silver stocks will do much better due to leverage. Do NOT buy any paper silver like the ETFs or let anyone store it for you. Do not put it in safe deposit boxes in the U.S. either. Bush already made the worst mistake in U.S. history by invading Iraq illegally without congressional approval based on lies and disinformation. He has 13 months To invade Iran and he will. The military draft is coming and your sons AND daughters will be sent to the Mid East to be killed. Thatís right, like Israel, weíre going to draft women now. Is this a great country or what?

There are only about 50 real silver mines in the world and half of them are no good. Many are small, and some are not actual producers yet. This leaves only about two dozen good unhedged mines who are not in someplace like South America or China. You cannot possibly supply the world with silver out of this small handful of mines. Quaterra, Silverstone, ECU, Impact, First Majestic, and Endeavor are six of the best. Old Roger is not an investment advisor and this is not investment advice. We are merely discussing the world financial situation.

If you have an IRA/401K you must see if you can put this 100% into American traded silver stocks. If not, sell it and take the 40% tax bite. Thatís right- dump your IRA/401K and get rid of it before it goes to nothing. Thatís life. Better you put the 60% into silver stocks and watch them go up 1,000%, than watch 100% go in the toilet.

The Dow is ready to tank even further. Again, inflation is eating up 16% of your normal stocks. The stock market would have to go up 20% every year just to break even after taxes. Thatís never going to happen. If you are making, say, 5%, on a CD that means you are really losing 11% a year. Wake up!

We havenít spoken of the derivatives neutron bomb. Large banks and major corporations hold more derivatives than the Gross National Product. This is insane on its face. These derivatives are going to have a nuclear meltdown. The largest banks are already going bankrupt from the bad loans they made. Not just ďsubprimeĒ at all. Forget subprime-most mortgages in the last five years have not been justified. Bank of America, Citibank, J.P. Morgan Chase, and their buddies are all going under as you read this.

Interest rates will be lowered again. This is the worst thing the Fed can do. You cannot inflate wildly on one hand and lower interest rates on the other. That defies reality. Remember that great events cast their shadows before them. You CAN see tomorrow if you just look closely at today. Tomorrow is no secret at all if you just take a hard look at what is happening right now in front of your face. Go to www.kitco.com and read the commentaries every week. Go to www.lemetropolecafe.com and get a free two week trial ($199 a year).

Folks, oil should be about $1.50. There is no energy crisis. We have plenty of known Oil reserves for the next 50 years. We have enough natural gas for hundreds of years. We have enough coal for a thousand years. We have an almost endless supply of nuclear energy. You can make liquid fuel out of coal cheaply using the SASOL process the Germans developed over 60 years ago. The energy crisis is a hoax. Put every dollar you have into silver bullion or good silver stocks. Silver is the best investment in the world and has been for years now.


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