Welcome to Roger's Economic Rant
Late December Economic Rant -Roger Mason
expect the Americans to jump from capitalism to communism, but we can
assist their elected leaders in giving Americans small doses of
socialism until they suddenly awake to find they have communism.” –Nikita Kruschev, Premier of Russia
Don’t kid yourselves, we have gone from a socialist, left wing welfare, police state to an outright Marxist system. Please don’t pretend this is some kind of smiley face benign socialism. There is nothing benign about socialism anyway; it always leads to poverty, and loss of freedom, as the government runs your life from cradle to grave. Did you know 1 in 10 Americans is on Food Stamps? That’s right, 31.5 million people cannot feed themselves without government help. People can’t live off their credit card anymore, as they’re maxed out, or had their card cancelled. The National Bureau of Economic Re-search finally admitted we have been in a recession for a whole year now since December 2007. This newsletter has been telling you that for 15 months now. We had the worst jobs lost numbers report in 34 years. The Much Greater Depression is only about two years away! Ray Charles can see that much. Thanksgiving was all sizzle and no steak. People got up early to buy their Door Buster Special, walked around the mall, and then went home. You’re going to see the worst Christmas since Eisenhower was president. The bailouts have just started. All of these will just make the economy worse at your expense. It’s your money being wasted on companies too stupid and incompetent to survive. The sheeple voted 94% of the incumbents back into office, the same crooks and liars who got us into this disaster.
What could we do about our problems? First of all, get government out of the way. Government is the problem, not the solution. Let’s stop all foreign aid today. Let’s close every single military base not on U.S. soil. Let’s disband Homeland Security, and repeal the misnamed Patriot Act. Let’s send all illegal aliens home and jail them at hard labor if they ever return. Let’s eliminate ethanol fuel, drill American oil, and build SASOL plants to make clear gasoline out of coal.
Are you bothered by the fact Obama will not release any of his records, especially a real birth certificate? No hospital in Hawaii records his birth despite his fake (unem-bossed) Hawaiian certificate. If you are, please go to www.wnd.com and sign the petition demanding his real birth certificate. Over 100,000 people have so far. Read the truth about this. Only American born people are legally eligible to be president. You’ll also find news you won’t find anywhere else at World News Daily. Even Obama says the economy will get much worse. His Marxist answer, of course, is to use every tool of government to make it worse at YOUR expense. The government is always the problem, and never the answer. Every time the government does something we’re one step closer to the Much Greater Depression.
Inflation is your big problem. Inflation steals your wealth while you sleep. Senile in Omaha Buffet said, “Inflation is a far more devastating tax than anything that has been enacted by our legislature.” The government is running the printing presses 24/7 printing counterfeit Monopoly money. This quietly robs you of your life savings every second. This is only going to get worse as we go into hyperinflation. See www.shadowstats.com for facts about how much money is being counterfeited. Any investment must currently produce about 18% just to break even. If you make, say, 3% on your money market funds, you have really lost 15%. The stock market has to go from, say, 9,000, to 10,600 in a year just to break even. If you bury your money you’ll just lose 18% annually. You must understand this. Only silver (and gold) will preserve your wealth. Forget the stock market, it’s hopeless. It may go up or down in the short term, but it’s absolutely hopeless.
Pilgrim’s Pride was the largest chicken producer in the world, but is now bankrupt. You’re going to see huge, long term, famous companies like this go under all the time now. Retail sales are dismal, and getting more dismal. You think people are buying cheap gasoline at $1.65? No, they aren’t. Gas sales are down along with everything else. Remember our economy now runs on consumer spending, rather than producing things people want and need. New York City was the least worst, but now is falling apart economically. Iceland is your warning. This is the most educated, peaceful, intelligent, law abiding, stable country on earth. They are now suffering a 75% inflation rate and are rioting in the streets for the first time since the country began 1,000 years ago.
The housing collapse is at the center of this. CNN admitted 1 in 10 homeowners is delinquent or in foreclosure. This is just the beginning. This collapse has another two or three years to go. You’ll see houses sell for a quarter on the dollar adjusted for inflation from peak 2005 prices. This is what destroyed the entire banking industry. The usual money to lending ratio is about 10 to 1, but they gave out 60 dollars for every dollar they had! The bankers gave money to morons without jobs to buy houses they couldn’t afford. Normally this is great for the banks, as they just take the houses and pocket the payments. House prices collapsed, so the banks couldn’t take the houses back. Now people are “under water” with a mortgage far larger than what their house is worth. They just walk away and give the house back to the bank. You’ll see a lot more walkaways in 2009. Now there is a glut of about one million unsold houses no one wants.
The commercial real estate market is now catching up with a vengeance. This was about three years behind the residential market. Commercial sales were $467 billion, but are now only $142 billion and falling. You see every strip mall filled with vacant stores. You see long time businesses closing every day. Simon Property Group is the largest mall owner in the word and are going bankrupt.
We have true 15% unemployment, going to 30% in the next three years or less. The government figure of 6.5% is ridiculous. It’s actually much worse as some people have taken jobs they are overqualified for. Others have just quit looking for jobs. This is the worst jobs report in 34 years, and they are lying about how bad it is. It’s actually worse than the official figures. Are you desperate for a job? Join the Border Patrol. Seriously, it’s one of the only jobs available today. California is the eighth largest economy in the world. That’s right, one state is larger than about 162 countries around the world. They’re broke, bankrupt, out of money. The California Pension Fund (CALPERS) is the largest retirement fund in the world, and it is broke as well. The Governator has publically admitted they are hopelessly bankrupt and under water. He has declared an official fiscal emergency, and is giving out vouchers for paychecks. Vouchers! Third World countries do better than this folks. At least they still pay in cash.
Let’s go over silver basics again. In 1982 silver was $50 an ounce, and everyone had an abundance of silver. That is about $150 in today’s inflated dollars, and no one has any silver including the U.S. Mint and military Strategic Stockpile. There are only about fifty (50) real silver mines in the world. 80% of silver comes from byproduct mining. The most promising mines are Quaterra (QTA), Silverstone (SST), Impact (IPT), First Majestic (FR), U.S. Silver (USA), Genco (GGC), ECU Silver (ECU), and Endeavor (EXK). (All are Canadian but Endeavor.) Do not buy paper silver like ETFs, and do not have anyone store it for you. You cannot do without silver, and you cannot replace it with anything. It is absolutely indispensable in a technological society, and is in all electronics. There is now a fake paper price and a real world price about 50% higher. You can still get 1,000 bars (70 pounds) from a large coin dealer for $11,000 ($10.50 spot), but this will end by Christmas. Silver is going to $200 an ounce, and probably a lot higher in the next three years when industrial users run out. The silver to gold ratio is now 80 to 1 and is traditionally about 17 to 1. You’ll see it probably go to 10 to 1 this time. $5,000 gold and $500 silver is possible. Silver is a much, much better investment than gold. Gold will be confiscated like it was in 1932 by Roosevelt. The silver price has been manip-ulated for years on the COMEX from shorting by 8 major banks. Now all the manipulat-ion is being done by J.P. Morgan Chase. This manipulation is ending, and the price will explode as it does. J.P. Morgan Chase has shorted more available silver than exists on the face of the earth. This is insane and not true of any other commodity.
The largest storage of available silver in the world is on the COMEX with 78 million ounces and falling quickly. Smart people are buying 1,000 oz COMEX bars at the spot fake paper price as fast as they can. This is only about a quarter ounce ($2.50 worth) for everyone in America. America has 5% of the world population, so this means only a half gram of silver for every one in the world. (That is a half of a paper clip.) If you buy 10,000 ounces ($100,000) you will own the silver for an U.S. entire town of 40,000 people. That would equal a world city of 800,000 people. Let’s repeat that: for $100,000 you can own the silver of 800,000 people on this planet. All the mine production from the 50 silver mines goes to industry only, and they can’t keep up with the demand. The 80% from byproduct mining has been cut back severely due to low lead, copper, zinc, and other metal prices. Now, can you see how small the silver market is? Yes, it can and will go to $200 an ounce and probably a lot higher. Silver is the best investment on earth, has been, and will be. The bottom is in for both silver and gold as of last month. The dollar broke 85 on the 10th and you are going to see it collapse now towards 40 cents in the next two years. Hyperinflation is your biggest concern now as your wealth silently evaporates.
Thanksgiving sales were all sizzle and no steak. People were 1) entertaining themselves while broke, and 2) only buying bargains the store wasn’t making any money on. Christ-mas is going to be dismal, the worst since World War II. January and February will be intolerable, and you’ll really see stores go bankrupt. Consumer spending accounts for 70% of gross national product and is falling by the day. Illuminati George Soros spilled the beans and said, “this will be the worst economic crisis since the 1930’s.” Donald Trump echoed the same sentiments. Everyone took an economic bath in 2008, and that means everyone. Senile in Omaha Buffet lost over half his entire wealth in 2008.
Obama and his cadre
of Marxists will completely destroy all energy in this country. He has
already promised to put an end to the entire coal industry. 52% of our
electricity comes from coal. How are you going to run those cheap
plastic pretend cars like those junky little Chevy Volts? This is just
a stinking golf cart with windows! They run on electricity. We cannot do without coal. We
should be making SASOL fuel from coal at $2 a gallon and drilling our
own oil and natural gas. We would be 100% energy independent in 2009
for the next 1,000 years. Bicycles are your future!
Look at the above chart. The dollar has been in a hopeless collapse since 2001, and is headed for about 40 cents, after rising to over $1.60 in 1985. It is no longer the reserve currency of the world. The dollar is hopeless on the internation basket of currencies (USDX). It just broke support at 85 and now you’re really going to see it collapse.The Communist Chinese are the largest holders of U.S. securities, and are tired of losing money on them. When (not if) they sell these, and refuse to buy more, the dollar will collapse. The Fed is probably going to lower interest rates to 1% while they print money as fast as they can. This can only end in disaster.
The more the government “helps” the worse it gets. The current bailout talk is already up to over 8 trillion dollars and climbing every week. Who knows when it will end. The Big Three auto makers want to be rewarded for incompetence, stupidity, and greed. What does 8 trillion dollars mean in the real world? It means every one of the 140 million American taxpayers just coughed up FIFTY THOUSAND DOLLARS each for this insane, socialist bailout. Can you comprehend 8 trillion dollars? The entire Gross Domestic Product of the U.S. is only 13 trillion a year, so how can we come up with $8 trillion in bailouts? Simple, just keep printing counterfeit money, the citizens will pay for, as inflation ruins their lives, their retirement and their savings.
Watch CNN, Faux News, and especially CNBC, to learn exactly what NOT to do. You know they’re lying if their lips are moving. On the 8th Faux News was telling the world McDonalds sales were thru the roof, and they were thriving. Look at their stock (MCD) and you’ll see they have lost a quarter of their entire worth in the last 90 days. At that rate Ronald McDonald won’t exist in 9 more months. This was one of the only strong stocks. Avoid the stock market. It doesn’t matter if it goes up or down or sideways, as
eventually it is going to crash down to 5,000 or lower. Let Senile Buffet lead the lemmings into financial hell while you invest in the only real money on earth- silver, gold and the mines that produce them. Mark Twain said, “If you don’t read the news-paper you are uninformed. If you do read the newspaper you are misinformed.” Add CNBC to that. Watch CNBC to learn exactly what NOT to do. Do exactly the opposite of whatever they suggest.
The Gold Miners
Index (GDX) chart below is very important, and applies equally to
silver stocks. We saw the bottom in precious metals stocks in October,
and it’s all up from here. You are going to see dramatic strength in
2009, especially for silver stocks. Add to your positions, and buy new
positions. There are good reasons the approximately 42 world silver
mines you don’t see listed are not mentioned. This would
include Silver Standard, Silver Wheaton, Penoles, Apex, Hecla, Coeur
d’Alene, Pan American, and Silver Eagle. They have mines in communist
countries, mines in unstable Central or South American countries, have
poor management, have a history of hedging (betting on lower silver
prices), are not producing mines, and other such reasons. There are
some borderline mines that just cannot be recommended in good faith.
Jason Hommel (www.silverseek.com) has a good newsletter. He says he will sell you silver cheaply at www.seekbullion.com if you want quantity. He is an honest man, but his silver stock selections are less than excellent.
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