Welcome to Roger's Economic Rant
February Economic Rant -Roger Mason
On January 20 we got the silver correction that was expected. This is NOT a disappointment at all- it is a buying opportunity. Buy and hold and add on dips. Silver went from $18 to $31 with no significant correction. This is called a "weak market". This correction made it a strong market. On Friday the 28th silver went up $1.40! This strength indicates a bottom. The Dow Jones simply cannot hold an 11,900 level. This is Financial Disneyland folks. The DJT and DJI confirm this pseudo bull market (Dow Theory), so it could keep going for a while. Or not. The insiders are selling huge amounts of stocks, and buying NOTHING. That's right; the insiders are not buying anything, because they know a collapse is coming any time.
As Bill Gates famously said, "The world today has 6.8 billion people... that's headed up to about 9 billion.
Now if we do a really great job on new vaccines, health care,
reproductive health services, we could lower that by perhaps 10 or 15
Just go to this link:
You can also just go to www.naturalnews.tv and look for the Bill Gates video. Watch this video to see him actually say he wants to kill one billion people with his vaccines. It takes all of two minutes to see the reality. He is putting 10 billion of his own money into vaccines for poor people. He wants to kill off the poor. See him say this in his own words.
Look at the above Wal-Mart chart (WMT). This is the largest retailer in the world. They have lost 10% of their business. They have downsized 10% of their products. Adjusted for inflation this is really a disaster. From $63 to $56 in three years is bad enough, but when you factor in inflation, it should be about $83 with 10% inflation a year. People flock to Wal-Mart during bad times due to their low prices, yet they are hemorrhaging. The writing is on the all folks. The largest retailer in the world is failing. At this rate their stock will only be about $50 by 2014 in three more years. The Much Greater Depression is just around the corner.
Nobama has hired Jeff Immelt, the CEO of General Electric, as a major advisor. Jeff ran GE into the ground, their stock is pitiful, and they lost over 30,000 employees during his tenure. GE stock has fallen from $40 to $20 in just three years under Immelt. That's right, one of the largest corporations in the entire world lost half its value in the last three years. The writing is on the wall for anyone who wants to read it. The Much Greater Depression started decades ago.
The U.S. Post Office is closing thousands of post offices this year. They may well close half-16,000- of the least profitable locations. That's right; they want to close half of the 32,000 post offices, because they are hemorrhaging. This is what you always get with any government services...failure. Government takes a dollar and gives you ten cents back in services. Always remember that. McDonalds at least gives you 95 cents back on your dollar, and keep a nickel for profit. Free markets work; government never works.
McDonald's was one of the finest stocks you could buy for the last ten years. They have 32,400 restaurants in 100 countries, and are the largest restaurant chain in the world. McDonald's went from $10 to $80 in less than eight years!!!! No more. They are failing, and will continue to fail. Look at the MCD chart below and see for yourself. MCD peaked at $80, and will just go down from here as food prices rise relentlessly. The cost of food is going to double and then triple. People only eat at McDonald's because it is cheap. They are doing their best to hold down prices, but they're losing money doing it. To show how stupid they are, they are going to open 1,100 new stores this year alone!!! That's right, instead of closing 1,100 of the worst performing stores; they are going to open 1,100 new ones. When Starbucks did this a few years ago, they almost went under. Starbucks is a total failure, but has been the "darling" of stock investors for years. They have 16,850 stores in 40 countries, but have LOST money in the last 5 years. Adjusted for inflation they have seriously lost money. You are going to see restaurants close everywhere in the country and around the world. The "dollar menus" will be the two dollar menus.
Go to www.nofoodtaxes.com and support them if you can. They want an end to all food taxes. If you haven't gone to www.repealitnow.org to sign the petition please do. They want to repeal Obamacare. Do not send Huckabee any money; just sign the petition. He's just another pseudo-conservative. A much better website is www.werefuse.com. Send them money if you can. State by state nullification of all these insane laws is the only way to retain any freedom. That includes gun laws, health care, or any other federal abominations. This country was founded on states rights, not central government.
We're going to keep saying this over and over, even though we've covered it repeatedly. If you bought 100% silver in 2000, you would now have about 600% profit. If you bought 100% gold, you would have about 450% profit. Warren buffet has made only 70% profit in the last ten years with his legendary Berkshire Hathaway. He has LOST money with BRKA in the last three years. Hell, you could throw darts at a stock list and do better than that. The "wisest investor" in the world has only made 7% a year. If Warren can't make money in the stock market, how can you? How can anyone? You can't. Senile in Omaha is on CNBC every week telling the sheeple to "buy stocks", and invest for the long term in the stock market. The stock markets are going to collapse, and the sheeple are going to be sheared. Listen to CNBC and do exactly the OPPOSITE of what they tell you to do. They are telling you gold is a "bubble" that is bursting. They almost never even mention silver. Liar Larry Kudlow tells you the "worst is behind us", the "dollar is strong", real estate is "on the way up now", the "economy is strong", and every other lie he can think of.
(Thanks to quotemedia.com for both these fine charts)
Folks your poor old author was wrong about the cost of the replacement batteries for the Chevy Volt, Nissan Leaf, and other electric cars. They will cost a whopping $8,000 to replace, and not just $5,000. Now where is your savings? Eight grand just for the battery alone, instead of $100. Electric cars are just overpriced glorified golf carts for God's sake! The Volt costs over $40,000 and only get 35 mph. $40,000 for a damned golf cart? A $50,000 Corvette has 400 horsepower, goes 170 miles per hour, and gets 25 mpg. Heck, I'll take a hot Corvette over a sissy Volt any day for an extra ten grand- and get that back the first time I DON'T have to replace the eight grand battery. Again, we get half our electricity from coal. If just 10% of drivers bought an electric car, our national electrical grid would collapse overnight. Coal is a wonderful energy source, and we have over a 1,000 year supply right here in the U.S. That's right; we have a ten century supply of coal right here in America. Where is the "energy crisis"? What energy crisis? You can make $2 a gallon gasoline from coal with the SASOL process. "Your" government won't allow one SASOL plant. Why? The politicians WANT an energy crisis. Nobama and the liberals hate coal, and have publicly vowed to do away with it as much as possible. Where are we going to get our electricity? From windmills? They're a proven failure. From solar cells? There is just no wattage at all in sunlight? From ethanol? It takes more energy to make ethanol than you get back. Even neocon Senator McCain said ethanol was a bad joke. We have enough proven oil reserves in America for the next 100 years. Never forget that. We don't need a drop of Mideast or any other oil, and never have. Peak Oil is a lie.
Residential and commercial real estate will keep collapsing for years. Farm land is going up in value though. Only 1% of our GDP, and 2% of our employment, comes from farming. House and office values will keep falling and falling. You'll see the median U.S. home sell for $120,000 (maybe even $100,000), instead of $170,000. You'll be able to buy the median home for a mere 300 ounces of silver!!! Think about that for a minute. You can buy 300 ounces of silver today for less than $9,000. Wouldn't you like to have a nice house five years from now for $9,000 today? New home sales reached a 47 year low with a mere 321,000 sold. That's right, the lowest number in a half century. When you consider that there were only 189 million people in the U.S in 1963, this is much, much worse. You should be selling 160% more houses with 310 million people rather than 189 million. There is a huge "shadow inventory" of unsold homes as well. Banks are not reporting the true number of houses they have foreclosed on. Soon the banks will all become big time rental agents for these millions and millions of unsold homes. They should be rental agents today instead of letting all those millions and millions of empty homes just sit there and rot. All those countless empty houses, condominiums, and apartments sitting empty for no good reason at all.
Food inflation is going to be the big disaster in 2011, along with all our other serious problems like severe unemployment, a falling dollar, and hyperinflation heating up. Food prices have gone up tremendously, and will keep going up. You'll see food prices double and then triple. You'll see countless restaurants close and never reopen. Fast food chains will keep closing more and more outlets. You will spend a full 30% of your income, instead of 10%, on food, and you won't eat like royalty anymore. America had the cheapest and most plentiful food in the world, but all that is over.
Your poor old author is still massively short dollar futures, and it just keeps falling and falling. Soon the dollar will no longer be the world reserve currency. "Quantatative easing" is simply printing green toilet paper. "Monetizing the debt" is just one section of government selling debt to another section of the government!!! These people are all nuts folks, and 99% of the American sheeple voted for them (or voted for the people who appointed them). Monetizing the debt is like a man selling his wife all his debt, and then telling the creditors they are paid off now!!! We will have Quantative Easing three and then four. By that time you'll see hyperinflation that will give you nightmares. Only gold and silver will protect you, and silver is four times better than gold. There is no third choice.
Here it is folks. The real National Debt is about $200 trillion. The entire GNP is only $12 trillion. Divide $200 trillion by 300 million people in America. You get $666,000 per man, woman and child. Do you know a couple with two children and an extra $2.4 million? Tunisia and Egypt are in flames. Now Saudi Arabia has demonstrations. Libya is in an emergency state of lockdown. Al Jazeera was shut down. Why should you care? Because the Mideast is the tinderbox of World War 3, and Israel is the spark. That's why. Why should you care about a poverty stricken, dirty, illiterate (30%) cesspool like Egypt? Well, we give the most foreign aid to Israel, and the second most to Egypt. One third of all our wasted foreign aid goes to these two countries. We should have ZERO foreign aid! Every tax dollar should stay right here in the U.S. Why should we support anyone else for any reason? If you want to support a country or a cause, then write them a personal check. Billions and billions of dollars of your hard earned tax money to countries all over the world. Another reason is Egypt controls the Suez Canal. This is one of the seven most important oil channels in the world. If the Suez Canal is closed, good luck getting oil. We installed our puppet president Mubarak 30 years ago. Egyptians are prohibited from having guns, so their revolution is a joke. They are at the mercy of the government. Slaves can't own guns. Why should we choose who leads other countries, and decide their agendas? Nothing good is happening in the Mideast, and it affects us very much. This is all about Israel and nothing else. Mubarak was installed by the CIA 30 years ago. We pay Egypt extravagant amounts of money to leave Israel alone. Israel has no friends in the Mideast. Mubarak is going to flee to Israel any day. Fill your gas tanks, and be sure to have some five gallon approved containers filled with gas. The Suez Canal may or may not be shut down any day. Always err on the side of caution. Oil certainly isn't going down in price.
If you don't think this is End Times, just remind yourself that we have no freedom on earth for the first time since man appeared on this planet. Just stop and think about that for a minute. There is no freedom in any country on earth today. Every single country is a socialist heaven, Marxist paradise, communist, our outright dictatorship. And you doubt this is End Times? No, Jesus isn't coming back to save us. He wouldn't bother, he wouldn't waste his time. There has always been freedom. There has always been a free country to go to. For 235 years America was the epitome of freedom, even with all its faults, socialist programs, and wars of aggression. All democratic societies collapse after 200 years, and we are no exception. The U.S. is 235 years old. This has been going on very clearly ever since Roosevelt and his New Deal appeared eighty years ago. This is nothing new certainly.
Buy silver bullion and hold it yourself. Look around your house, and load up on everything you need every day. Store all the whole grains (no flour) and dried beans you can. Be prepared. Sell your IRA/401k, take the penalty, and buy silver bullion. If you hold on to your IRA/401k, you deserve to starve in the street with your braid dead buddies. Do not buy paper silver or silver stocks. The only stocks you should be holding are Endeavor, Great Panther, First Majestic, Impact, and Sabina. The gold and silver stocks have performed miserably over the years. The HUI just fell from 600 to 500. When the stocks improve, it would be prudent to sell them and convert to 100% bullion. Silver is the best investment on earth. The COMEX is empty. Silver is going to $400 an ounce in the next few years. Put every penny you have into silver. Every currency on earth is going to hell, including the worthless Swiss franc. You don't have a choice. Don't even think you have a choice. There is no other choice.
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