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December Economic Rant -Roger Mason

Every day the economy worsens, not just the U.S. economic situation, but the entire world. Ray Charles can see a worldwide depression is around the corner, and we’ve been in a worsening recession for a long time. This will make the Great Depression look like Club Med. The America standard of living will be cut in half. The current 14% REAL unemployment rate will more than double to 30%. The fortunate will work at fast food restaurants, car washes, and bag groceries in grocery stores.

You can still buy $1,000 oz silver bars from big coin dealers at spot price basically ($10,000 at $10 spot). Soon First Majestic Silver will soon sell silver directly from their mine from 1 oz to 1 kg. Right now they are only selling 1 oz proofs for $15. More mines should be doing this to make more money and help out people who want silver directly at lower prices. Just go to www.firstmajestic.com.

If you go to www.butlerresearch.com and read Ted’s article “A Sure Thing?” you’ll be very reassured about the fundamentals for silver. This only takes about two or three minutes to read, and is very informative and factual (just hit “Archives”).

Both gold and silver prices have been manipulated for a long time. This is why we now have a fake paper price. and a much higher real world price. The manipulation is ending, and gold and silver will soon take off. The fake COMEX price is forced down by the big banks and their never-seen-before massive short positions. The commercials had 359,000 gold shorts, but now have only 168,000. The same thing with the commercial silver shorts. Read Ted Butler to learn more about this. The manipulation is almost over. In 1982 there was a 17 to 1 gold to silver ratio ($850 to $50). Yet, when gold was over $1,000 this year, silver was only $21 (instead of $60), which is a 49 to 1 ratio. Silver is going to explode and you may well see a 10 to 1 ratio- $5,000 gold and $500 silver. You will see gold equal the Dow Jones. That’s right, it happened in 1982 (850 for each), and will happen again. For example you might see $5,000 gold and a 5,000 Dow. Silver could go well over $200. Well, then why is silver under $10 today? Because it is still being manipulated and we haven’t quite run out of it yet. We have almost run out of physical silver and will soon be completely out. “The cure for low prices is low prices.” Very true. At these prices we are getting very little byproduct mining of silver, and silver mines are shutting down. People all over the world are scrambling to buy all the silver they can afford, cannot find enough, and are paying extreme premiums. The fundamentals are better than ever, yet the silver price and the silver mine prices are down badly. Low prices will cure all this sooner than you think. The cure for low prices is low prices.

And speaking of low prices Lindsey Williams says you will see $50 oil for only another six months. Under Obama and the democrats (please remember we’re libertarians and dislike all Republicrats) you will see oil go to $200 a barrel while we’re sitting on an ocean of 200 years of domestic oil and another 200 years of natural gas. $2 gasoline is going to quickly disappear.  Remember we have 1,000 years of domestic coal which can be turned into $2 a gallon SASOL fuel. We also have an endless supply of uranium for electricity production. The “energy shortage” is a scam like Global Warming.

Notice you’re seeing more plastic, pretend, junk Smart Cars every day? Soon you’ll see pretend Tata’s from India and pretend Chevy Volts and other plastic crap. This is your future folks. The standard of living will be cut in half in the next five years. With 30% real unemployment anyone with a job will be envied. You’ll see a lot of motor scooters and mopeds (no, not real motorcycles) even in the dead of winter, too. Just like in socialist Europe. Bicycles will be a necessity, and bike lanes will be built just so people can get to work and back. Just like in Communist China and Denmark. You’re not going to like it either. The United States will be just another third world country after 232 years. Don’t believe it? England “ruled the waves” 100 years ago. Now it’s a socialist sinkhole. The majority of brain dead Americans chose an openly Marxist president who promised slavery and poverty under an extreme socialist dictatorship. 98% of Americans are deaf, dumb, and blind. They deserve what they get, but intelligent people don’t deserve any of it. Only 2% choose freedom and prosperity with Bob Barr (Libertarian) or Chuck Baldwin (Constitutionalist).  Obama is appointing a cabinet of far left radicals. One example is extreme leftist Eric Holder as Attorney General. Holder is on record as calling for censorship of the Internet! There goes free speech.

Senile in Omaha Warren Buffet is still losing money faster than water is going over Niagra Falls. His infamous Berkshire Hathaway stock is down 55% just in a year unad- justed for inflation. In REAL terms this means Buffet is down over 70% just in the last year. BRK.A went from 152,000 to 84,000 just in 2008. On November 19 he lost an un-believable 12% in one day. That’s right, Berkshire Hathaway fell a full 12% on the 19th. Look it up yourself and see. The media trots the old goat out to tell you to invest in a worthless stock market so you can be a loser with him. It doesn’t matter whether the stock market does because it is hopeless. It just doesn’t matter whether it goes up or down as it is going to eventually fall to 5,000- or less. Seventeen ounces of silver will equal the stock market in the next few years, just like it did in 1982. General Electric (GE) is the fourth largest corporation in the world, and is down 42 to 14 in the last year. That’s a drop of two thirds in a year unadjusted for inflation. Adjusted for the REAL price means GE fell three fourths in the last year! McDonalds was one of the strongest stocks on the planet until September, and is now down 15% in two months. That is 90% a year. Kohl’s was on of the most success-ful clothing chains in America. They are down two thirds (77 to 26) in just a year unadjusted. In REAL terms that is almost a 50% drop in 12 months. Walmart is the biggest retailer in the world. As goes Walmart so goes America. They were down a full one third in only 2 months (64 to 42), and have only slightly recovered. At that rate they would be down 120% a year. Pseudo-conservative Rush (Dope Addict) Limbaugh is telling the world how “profitable” Walmart is! How can it be profitable when it is down one third in only sixty days? We could go on all day with real companies like this.

The media is trying to tell you the housing crash has bottomed, and it’s a great time to buy a home. Baloney! The housing crash will go to at least 2011 and maybe 2012. The media claimed there are ten “hot home markets” where values are going up (Elmira, Niagra Falls, Charleston [WV], NOLA, Trenton, Amarillo, Tulsa, Wichita, Boomington, and Decatur).  What a lie! The truth is values went up about 8% for the year with 18% inflation which means a REAL loss of about 10% in all of these “hot cities”.

We have about 700 overseas military bases and we need none, zero. There should not be one single military base outside of this country anywhere for any reason. Every single military dollar should be spent on domestic defense, and the best defense in the world.

The war in Iraq has almost bankrupted us. This will not end under Obama, no matter what lies he told to be elected. The wars will continue in Afghanistan and spread to Iran, Pakistan (what would we attack Pakistan?), and other countries. We better leave Syria alone, or Russia is going to strike back viciously. Obama will draft your son AND daughter, since the military cannot even begin to meet their recruitment goals. Obama will have a domestic paramilitary force in order to have a proper police state. Buy all the guns and ammunition you can now before they are banned. With a Marxist president and Democratic Congress all the gun bills will pass effortlessly now. The Second Amend- ment is history along with the rest of the Constitution and Bill of Rights. Please consider joining the Gun Owners of America (www.gunowners.org), and NOT the National Rifle Association. The NRA was compromised many years ago and is not effective anymore. If you’re Jewish also join the Jews for the Preservation of  Firearms Ownership (JPFO). If you’re not a gun owner you should sincerely consider owning firearms for personal pro- tection of your home and family. Remember the Bible clearly supports defense of your home and family even if it means taking a life.

The entire banking system is broke, busted, bankrupt, through, finished. They are so loaded with toxic derivatives and worthless houses and commercial property it is hopeless. Massive Citibank fell 60% this week alone! Bank of America is next. The trillion dollars given to the banks would give every one of the 138 million taxpayers in America about $7,000 each in cash- no tax. The current promised bailout is almost 8 trillion. That means every taxpayer would get about $55,000 in cash to pay their bills, settle their mortgage, and stimulate the economy. $55,000 is being stolen from every taxpayer for these insane bailouts- and they aren’t over. Empty any savings accounts. Keep a minimum checking account. Keep no valuables in safe deposit boxes. Keep some cash at home even though you’ll get no interest. Never forget that the entire country of Iceland just collapsed because of the banking system. Iceland was a stable, happy, safe, comfortable (but socialist) country until the banks destroyed it. Their credit cards and ATMs were cancelled overnight, and they bank accounts evaporated. The same thing is going to happen here with a “bank holiday”, and it could happen any time. Be ready for it. Iceland is your warning. This was one of the top countries in the world per capita. 

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   Look at this 100 year chart of the Dow to gold ratio. You see there are three clear super- cycles where you buy gold and silver and sell the stock market.  In 2000 we began another supercycle.  Get out of the stock market and buy silver and silver stocks. The eight most promising are Quaterra (QTA), Silverstone (SST), ECU Silver (ECU), U.S. Silver (USA), Impact (IPT), First Majestic (FR), Genco (GGC), and Endeavor (EXK). (All are Canadian except Endeavor.)

Now look at the chart below of Fed Credit. WE HAVE HYPERINFLATION THAT IS ONLY GOING TO GET WORSE. The printing presses are running 24/7 making counterfeit money. Inflation is theft. You will lose the value of everything but silver and gold. There are no alternative investments. Inflation steals everything you have. You’ll see prices of everything you buy go to the moon! You cannot hold any form of cash or regular investments as they are all evaporating as you read this from inflation.

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Do you doubt there will be an Amero currency? Just go to www.amerocurrency.com and read the articles and decide for yourself. Also just google “Amero” and see the endless tons of information you’ll get. The dollar is worthless, yet it is 86 cents in the international currency basket (USDX). It’s going to crash any day.

It is easy to feel that Thomas Jefferson was a psychic, a seer, a prophet. “To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical. The democracy will cease to exist when you take money away from those who are willing to work and give it to those who will not. It is incumbent on every generation to pay its own debts as it goes. A principle, which if acted on, would save one-half the wars of the world. I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the guise of taking care of them. My reading of history convinces me that most bad government results from too much government. No free man shall ever be debarred the use of arms.  The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.” He said all this over 200 years ago.

About the banking system he said, “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency [The Federal Reserve in 1913 is what he was warning about], first by inflation, then by deflation, they banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”

Read the contributed commentaries at www.kitco.com at least once a week. Educate yourself and prepare for what’s coming. You can prosper during the bad times.

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