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December Economic Rant -Roger Mason

Every month the world economic situation just gets worse. The biggest banks such as Merrill Lynch, Citibank, and Bank of America are closer to going under from the bad mortgages they wrote. Citigroup owes more than they are worth! The CEOs of all these banks sold their stock long ago. Fanny Mae and Freddy Mac are bankrupt- at your taxpayer expense. Freddy and Fanny do over half of all mortgages, and YOU will pay for their losses. The government should have never been in the mortgage business anyway. The auto manufacturers are all broke. Christmas sales this year will be the worst since 1929. Home sales in Nevada alone are down 35% annually.  Every month the housing collapse gets worse. You will see houses selling for a quarter on the dollar within about five years (based on 2005 peak prices). The housing collapse will take down the stock market. That will take down America. Go see the Dow Jones Transport chart at or look at $DJT on your stock screen. DJT must confirm DJI or it’s a house of cards. The DJT is hopelessly in freefall and proves the DJI is tanking. The derivatives time bomb will destroy huge corporations such as General Electric. The corporate pension funds are broke and have been for years. The state governments are broke and cannot collect taxes from people who have no more money. The U.S. Government is broke and printing Monopoly money to paper it over. Inflation is running about 16% based on configured M3 figures. M3 is no longer printed in a vain attempt to hide the real figures. The U.S. dollar is now worth a mere 75 cents in the international currency basket. Social Insecurity is broke and has been for years. It is headed towards 40 cents. By giving a 2.3% cost of living increase with 16% inflation they will only have to pay off half the money in less than six years. Neat trick, huh? In six years all the old folks will be starving. People are now living off their credit cards in desperation. The U.S. dollar is useless. All world currencies are useless including the Swiss franc. The only legal money is silver and gold as authorized by the U.S. Constitution. Ft. Knox has not been audited in decades and we have no silver. The trade deficit is terrible as is the budget deficit. Unemployment is much worse than official figures. Also, many people are working at jobs they are overqualified for just to get a paycheck.

American moves by truck. Please remember that. As gasoline and diesel fuel head towards six and eight dollars every single item you buy will go up in price due to fuel costs. That’s on top of the hyperinflation. There is no energy crisis. We have enough known oil reserves for over 50 years. The U.S. military has huge reserves in Alaska. 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- whether you like nuclear energy or not. The energy “crisis” is a hoax. Ethanol is a total scam at your taxpayer expense. We have no refineries folks. The EPA has shut down all our refineries. No matter how much oil you have you must REFINE it. Every state should have a refineries to match their population. Why don’t we even have oil refineries?  We’re already in a recession, so don’t wait for one. We’re in a recession today. We’re headed for the Greater Depression. Did you think depressions were somehow outlawed after almost 80 years? They weren’t. The next one is just around the corner.

Instead of voting for the lesser of two evils next November please vote for Ron Paul.  He is running as a Republican, but he’s really a Libertarian. A Libertarian believes in the Constitution and Bill of Rights, and the limited government we had in 1776. Vote for Ron Paul and don’t waste your vote. Send him money at  Do you want a Marxist lesbian as your president and a hardcore socialist government?

Put every dollar you can put your hands on into silver bullion and silver stocks. Silver has much more potential than gold, and will return to the historical 15:1 ratio. That would mean, for example, $3,000 gold and $200 silver. We have no silver. The military has no Strategic Stockpile. The Mint has no silver. Half of the COMEX silver is owned by fanatics like your author. You can’t mine silver directly except for about 50 silver mines on the face of the earth. Half of them are no good (Apex, Coeur d’Alene, Pan American, Silver Standard, Hecla, etc.). That leaves about two dozen, and half of them are very small. 90% of silver comes from by-product mining such as lead, copper, zinc, and gold. There’s just  no silver available, nor can you mine enough.

Ask if you can put your IRA/401K money into American silver stocks or bullion and see how hard your portfolio manager laughs. Sell the damned thing, take your 40% tax bite, and put the 60% into silver.  Your life savings are disappearing at 16% a year while you’re reading this. When the stock market tanks your life savings will go right down the toilet. Put all your money in to silver bullion and silver stocks. No paper silver like SLV or ETF electronic funds. You’ve got Quaterra, Silverstone, ECU, First Majestic, Impact, Endeavor, Fury, Arian, Great Panther, Mexican Silver, Sabina, and SNS among others. Use a discount broker like Scottrade that trades Canadian and “penny stocks” (under $5) professionally at low commissions. Silver futures are only for those with futures experience; use 20% or higher margin.

Look at the NAHB/Wells Fargo, Dow Jones, and Philadelphia Housing Indexes to prove that the housing crash is terrible and only going to get worse. The housing crash will take down the stock market. We now have a full year backlog of unsold homes. Lovely new homes are selling at auction for 50 cents on the dollar all over the country. You will see more and more auctions every month. Take a look at the stock charts of the ten biggest homebuilders such as Pulte, Beazer, Horton, Centex, Lennar, Ryland, NVR, M.D.C, Hovnavian, and KB to see how hopeless they are. Soon they will all be bankrupt in Chapter 11 and will help take down the stock market.

Look at the “DJI Darlings” Google (GOOG), Apple (AAPL), Baidu (BIDU), and Research in Motion (RIMM). The Fab Four have topped and are tanking. On November 20 they are down about 20% on the average in just TWO weeks. These are the four stocks the lemmings and media worship. The stock market topped at 14,000 and now can’t even hold 13,000. It is headed for 10,000. The DJI is headed for 10,000 in 2008. Adjusted for inflation, it has been falling for the last ten years. Realize that- adjusted for inflation it hasn’t been going up at all. It has only been an illusion in inflated dollars.

On November 23 silver is about $14.50. This is called a BUYING OPPORTUNITY. Silver is the best investment in the world. Put every dollar you have into silver even if you have to dump your IRA/401K and take the 40% tax bite. Silver and gold are the only real, legal money. (Platinum is overpriced.) You cannot use a phone, computer, radio, refrigerator, car, airplane, or anything else electronic without silver. There is no silver left. It is all being held by “hoarders” who are not selling. You can’t replace it except with much more expensive metals such as palladium, gold, and platinum. $50 silver in 1982 is about $130 silver today adjusted for inflation. There was an endless supply of silver then, but we are plumb out of it now. This is why you want to invest in silver mines, as you can make much more than silver bullion. Silver closed for November at $13.98- a great buying opportunity.

The entire economy is coming apart at the seams folks. Stephen Roach, chief economist at Morgan Stanley, said, “the U.S. consumer is toast.” Don’t kid yourself, don’t deny it, and don’t rationalize it. You can see tomorrow if you can just see the events of today clearly. Great events cast their shadows before them. Silver is what’s happening. 

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