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January Economic Rant -Roger Mason

The economic situation in the U.S. and the rest of the entire world continues to deteriorate by the day. You certainly won’t hear this on TV, radio, newspapers or magazines though.  Always look at the Big Picture and never the short term. Anything can and will happen in the short term. Buy more silver whenever the price falls.

The housing crash continues and will take down the stock market. Look for a 10,000 DJI in 2008. Look at the Dow Jones Transportation (DJT) to see it is hopeless. Dow Theory works and has always worked. The NAHB (National Association of Home Builders) Housing Index is at the lowest level since it started in 1985. The housing collapse and foreclosures are just getting warmed up. Look at the charts of the biggest home builders in the country to prove this to yourself- Horton (DHI), Pulte (PHM), Beazer (BZH), Centex (CTX), Lennar (LEN), Ryland (RYL), NVR (NVR), MDC (MDC), Hovnanian (HOV), and KB (KBH). They are all disasters, and all will be bankrupt soon. Go to www.investmenttools.com and look at the Dow Jones Housing Index and Philadelphia Housing Index. Hopeless, completely hopeless. The housing crash will take down the stock markets and this will take down this entire country. You will see houses sell for a quarter on the dollar based on 2005 peak prices. We are headed for the Greater Depression, which will make the last depression look like fun. Do you think depressions have somehow been outlawed, or regulated out of existence after all these centuries? Booms follow busts, and busts follow booms. History is cyclical, always has been, and always will be.

The state governments are all broke but won’t admit it yet. The Governator in California will declare a “fiscal emergency” this month and admit they’re broke. The governor or Arizona admitted they’re broke, too. The other 48 will have to admit it too; soon you’ll hear other states confess to bankruptcy. Why? Too much socialism and not enough extortionate taxes to pay for all the government socialist programs. This is what American voters have chosen since Franklin Roosevelt- socialism and more socialism. In ten months you might have the Mother of Marxism as your president and commander in chief. What a horrifying thought! John Edwards has been exposed by the National Enquirer as fathering the baby of Rielle Hunter while his wife was dying of cancer.  The U.S. dollar is hopeless with 15% true inflation- not the 3% you’re told. Do you see 3% inflation in the grocery store or at the gas pump? Or anywhere? The dollar is hopeless as are all the paper currencies in the world. The “Amero” currency is coming soon to replace the U.S. Dollar. This is not some conspiracy fantasy- just google “Amero” and see for yourself it’s real. The NAFTA highway from Mexico to Canada is another reality. Just google “NAFTA highway” to prove this is real. Powerful people like Clinton, Kennedy, Schumer, and Feinstein really believe a New World Order Government is the answer. They don’t make any secret of it either. Any pension you may have is not increasing at the true 15% inflation rate. This means it is disappearing before your face. Social Insecurity is disappearing at a 3% cost of living increase. Does your salary go up 15% every year? Of course not. Sell your IRA or 401k if you can’t invest 100% in silver and/or silver stocks of your choice. Take the 40% hit and put the 60% you have left in silver.

The three largest silver producers in the world are Peru, Mexico, and China. Peru is about to go communist and the mines nationalized. Do not invest in any company who has a  mine anywhere in South America. Peruivan silver production fell badly in 2007. Mexico silver production also fell badly last year. China keeps all the silver they mine, and buys more. Never invest in any stock that is connected to China (or any other communist country) in any way. We are almost out of silver, cannot mine the silver we need, and cannot do without it. The big mines that produce byproduct silver, like Rio Tinto and BHP, are not worth investing in as silver is a very small part of their business. There are only about a dozen silver mines out of the fifty that exist on the face of the earth that are worth investing in. Quaterra, Silverstone, Impact, Endeavor, First Majestic, ECU, Endeavor, and Silver Wheaton are eight of the best. Silver prices can only go higher. Look for $200 silver in the next 5-10 years as silver returns to the historical 15:1 ratio with gold (it is now 56:1). Silver is the best investment in the world and has been for years now. Gold is a fine buy, but does not have the potential of silver. Silver and gold are the only real money authorized by our Constitution. (Platinum is very expensive at $1,500). Evil Goldman Sachs said gold will fall in 2008. This is absolute proof it is going to $1,000 and higher. Gold was up 31% for 2007.

The budget deficit is so out of control it is no longer comprehensible. The human mind simply cannot fathom that many trillions of dollars in hopeless debt. The trade deficit is equally unfathomable. We used to have a healthy budget, trade, and economy. The war in Iraq will not end unless Ron Paul is elected. Bush will invade Iran to please Israel and the Neocons. The draft is coming folks, and this time they are going to take both your sons and your daughters.  Ford, GM, and Chrysler are all broke and Chrysler just admitted so.  Consumer spending is collapsing as people are broke. Christmas sales were miserable.  People have now maxed out their credit cards and refuse to pay the bill. The suicide rate is up to the highest point in a quarter century.

The proposed bailout of stupid people who bought houses they couldn’t afford with money they didn’t have is insane of course. You never reward stupidity.  This is not merely about “subprime” mortgages at all- it is about most all the mortgages especially the variable rate ones.

Folks, the U.S. government is broke, the state governments are all broke, Social Insecurity is broke, Medicaid and Medicare are all broke, the banks are all broke, your pension funds are broke. Citibank is down 50%. Walmart and Target are down badly. Office Depot has collapsed. Even Starbucks is down 50% adjusted for inflation. We’re already in a recession headed directly for the Greater Depression after almost 80 years. The good news is that you can profit from the calamity. Just put your entire savings into silver (or even some gold) and you’ll get rich while everyone else starves. 2008 can be the most profitable year you’ve ever had if all your money is in silver bullion and the best silver stocks. Every month it is going to get worse, and every month the media is going to try and cover it all up even more.

Go to www.kitco.com and read the contributed commentaries every week. Keep up on what is really happening in the world.

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