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February Economic Rant -Roger Mason

Inflation will be they key in 2008. Currently we have 15% true inflation, while the Fed lowers interest rates to 3%. This is insane of course. You cannot print counterfeit money while lowering interest rates. This makes everything worse in the end. Even George Soros and Warren Buffet said the U.S. dollar is history. All paper currencies are worthless. Every time you go to the grocery store the prices will be higher, but your paycheck won’t be higher. Christmas sales were horrible, and the media refused to print the numbers. Retail sales are falling, people have maxed out their credit cards, and refused to pay their bills. Retail sales will go to hell in 2008. Shopping mall vacancies are at an all time high, and will get much worse. The U.S. standard of  living has been falling for a long time, and will keep falling. Unemployment rises every month and the official stats are totally bogus. People take substandard jobs just to get a paycheck. More and more we are becoming a third world banana republic without the bananas. The middle class, the heart of America, is disappearing.

The housing crash is just getting warmed up, and 2008 will be the worst year for houses since the Great Depression. This includes commercial real estate. Office vacancies run over 20%, and new offices are built every day. How many empty stores do you see as you drive around? The home builders will finally be forced to stop building with a one year backlog of unsold homes and falling prices. Merrill Lynch said home prices should fall 30% in the next three years. The housing crash will take down the stock market. The Dow cannot hold 13,000. Look for a 10,000 Dow in 2008. Any rallies will be very temporary. If you have an IRA/401k bite the bullet and sell it. Take the 40% tax bite, and put your money into silver or you’ll be in the soup line eventually.

The banks are broke folks. Citibank, Bank of America, Merrill Lynch, Bear Stearns, all made trillions of dollars of bad mortgage loans (not just “subprime”), and now they’re paying the price. The banks are broke, bankrupt, out of money. They just haven’t publicly admitted it. You’ll see desperate attempts (like the current flood of inflation due to money printing and 3% interest rates) to keep them afloat. None of them will work, of course. Lowering interest rates causes MORE problems, not less. Cutting rates to 3% was the worst thing the Fed could do. This will just cause more bubbles.

There is no energy crisis. We are not even close to running out of oil. We have enough natural gas to last for hundreds of years. We have enough coal to last for thousands of year. Coal can be cheaply converted to liquid fuel with the SASOL process. We have almost no refineries to make fuels from crude oil. We refuse to build any refineries. Oil without refineries is useless. We have an endless supply of uranium for atomic power, whether you like atomic energy or not. There is no energy crisis or global warming. Meanwhile, your tax dollar subsidizes that fraud ethanol. Ethanol is a complete hoax at your expense. People are starving, and our corn crop gets wasted. This is proof  the liberals really hate the poor. $3 gasoline will look good in a year or two, as it heads towards $10 a gallon.

Bush has 10 months to invade Iran and he’ll figure out a way to do it. Then we’ll invade Pakistan for no reason at all. Don’t forget Afghanistan and Syria. The powers that be want McCain for president, and the media is going to shove him down your throats until he is president. You do not choose the President; the MEDIA chooses the President for you. He’ll be worse than Bush- if that’s possible. Even most women hate Hillary. We don’t even have a black (he’s actually 7/8ths white) senator, so a “black” president is out of the question. Romney is not popular. Huckabee has no chance. People can’t stand Guiliani. The media won’t admit Ron Paul exists. Please go to www.ronpaul2008.com and donate. Don’t support the Lesser Evil. This is the worst lineup of candidates in the history of this country! This is proof the U.S. is a hopeless basket case. They are all abominable. The neocons want McCain as their puppet so he can, “continue the war for 100 years” as he brags.

Gold and silver are the only real money and always have been. There is supposed to be 250 million ounces of gold in Ft. Knox. A thorough audit is required by law every 10 years, but none have been done in 50 years. The gold is long gone folks. The U.S. dollar is backed by smoke and mirrors. Silver has much more potential than gold, and will return to the historical traditional ratio of 15 to 1, instead of the current 56 to 1.

Silver is, and has been, the best investment on the planet for years now. You must own silver bullion IN YOUR POSSESSION, or good silver stocks, not ETFs, paper silver of any kind, or not physically holding your silver. The ETFs (electronic trading funds) do not have physical silver to back them up. Futures contracts (COMEX) are for professionals. Silverstone, Quaterra, ECU, First Majestic, Impact, Endeavor, and Silver Wheaton are all good mines. Fury is a good higher risk investment. The precious metal stock prices are down, which makes this a great buying opportunity.

The U.S Comptroller General David Walker just said we have $53 trillion in unfunded liabilities such as Social Insecurity, Medicaid, Unemployement, and other socialist pyramid schemes. This is growing rapidly every day! It comes to $455,000 for every U.S. household. Does your family have $455,000 to give the government? The U.S. is completely bankrupt folks, and has been for decades now. All bills get paid by one side or the other. YOU are going to pay this bill.

Dow Theory works and always has. The DJT collapsed 5500 to 4000. The DJU is collapsing. The DJI cannot even hold 13,000 and collapsed over 500 points on the 22nd of January. There are $450 trillion dollars in derivatives that are unraveling worldwide. This is more money than the GNP of every country on earth! Fannie Mae and Freddie Mac are going to take a $16 billion writeoff. Buffett warned the derivatives neutron bomb is going to take down the world economy.

Your IRA/401k is vaporizing as you read this. Change it to U.S. silver stocks, or dump it and take the 40% tax and invest in silver. Otherwise you’ll be in the welfare line in 10 years or less. Go to www.kitco.com every week and read the contributed commentaries and keep up on the real news the media won’t tell you. This country is now 232 years old, and is disintegrating like every country has in thousands of years of recorded history.

Silver is your salvation moreso than gold. We’re out of silver. We can’t have technology without silver. You can’t replace silver. 90% of silver is from byproduct mining. There are only about 50 real silver mines in the world, and half of them are not worth investing in. Half of the rest are too small to invest in. South America, a main source, is unstable and going to Communism (like Peru). Silver has to go to $140 in inflated dollars just to match the $50 price in 1980- when there was plenty of silver. Put every dime you have into silver bullion and silver stocks and keep them in your possession. Silver is at a 28 year high. It’s going to the Moon folks, and then to Mars.

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