Welcome to Roger's Economic Rant
Late February Economic Rant -Roger Mason
It is vital you understand that the future price of silver is CHEAPER than the spot price. This is called "backwardization". This has never happened in the history of the COMEX. Never. This means silver is so valuable people will pay MORE for it today than years down the road. Soon gold will also be in backwardization. What does this mean for you? It means we are out of physical silver, and people are paying a premium to get it today. It means silver is going to Mars to gas up for the trip to Pluto. That's what it means. If you pay $30.70 for silver today, you only pay $30.30 for silver futures in 2015. This is crazy! But it's crazy in our favor folks. Silver and gold are the only real money, and they are ALWAYS more expensive in the future. This has never happened before, and it is vital you know this.
This is your last chance to buy silver! The wheels come off the train this year. The chickens come home to roost. The piper gets paid. The games are over. The feces hits the fan. Silver and gold have bottomed. Silver is going to $50 this year, and maybe a lot higher. We're out of silver basically. The COMEX and London are both empty. The government has none. Mine supply can't even begin to keep up with industrial demand, much less consumer demand. Soon, silver will be rationed to industrial users, and consumers won't get any. The dollar is a worthless relic, like the Chinese president said. Ft. Knox has been empty for 50 years, and no audit has been done. The stock market is in Financial Disneyland at the 12,000 level. Residential and commercial real estate will keep falling, and falling, and falling.... Another 150 banks will close this year, just like 2009 and 2010. Businesses will keep closing, especially restaurants and food businesses. Food inflation is going to be a terrible problem. No more eating like royalty for 10% of your income. This will be 20%, and then 30%. True unemployment is really about 23%, and will keep climbing towards 40%. It was "only" 30% during the Great Depression. The federal, state, city, and local governments are all broke. These insane socialistic and Marxist welfare programs simply cannot be paid for. Social Insecurity has been broke for decades. Medicare and Medicaid are broke. Nobama's Health Care just cannot be funded. Private and government pensions are all broke. Unemployment benefits are all drained, and have been. The party is over folks. The punch bowl is empty, and the drunks are finally waking up. It's not going to be nice. That's why we have FEMA camps. America has 5% of the world population, but 25% of the world's prison inmates. Never forget that. One in four world prison inmates is in an American jail, land of the free, home of the brave.
These insane wars of aggression in the Mideast are going to end because we're out of money. This may be the reason we gave up on attacking Iran. That would have been the worst mistake the U.S. ever made! We spend half the world military budget! Yes, that includes China, Russia and North Korea. Why is 5% of the world population spending 50% of the entire world military budget? America will degenerate into a Third World banana republic without any bananas.
Do you still have a 401k or IRA? Do you want to starve in the street with your moron friends? Then just hold onto it until "your" government seizes it and turns it into worthless Treasury annuities. If you don't want to starve, then sell your IRA or 401k, take the penalty, and buy silver bullion now. The most likely scenario would be for the Powers That Be to run the DOW up to around 14,000, suck in all the sheeple, and then crash it. Then tell the sheeple they are getting Treasury Toilet Paper for their "own good, safety, and protection". The sheeple will lap it up.
Look at this three month chart of McDonalds. The biggest restaurant chain in the entire world with 34,000 outlets. $81 to $74 in less than 90 days. At this rate it would be ZERO in only two years. This was one of the very best stocks in the world for the last ten years. It went up an incredible 400% in 10 years ($20 to $80). Yet, they are opening 1,100 new restaurants this year. This WAS one of the strongest stocks in the world. Food inflation is killing them. You will see thousands of McDonalds around the world close their doors forever, as food prices go to Mars and beyond. This is a good stock to short. The Dollar Menu will disappear this year. So will the Wendy's and Taco Bell Dollar Menus.
Now look at this ten year chart of General Electric (GE). $50 to $20 in ten years? One of the very largest of the largest corporation in the entire world. Adjusted for inflation, this stock should be more like $75 at least, rather than a mere $20. Instead of $75, it is only $20. The writing is on the wall for anyone who wants to see it. When GE fails, the rest of the world fails with it. That's a fact.
Look at the chart below for Senile in Omaha Buffett's infamous, overrated Berkshire Hathaway stock (BRKA). He has lost money in the last three years. He has only made a mere pitiful 70% in ten years. That is only 7% a year. Anyone who bought silver 10 years ago has a 600% profit. This is 60% a year, rather than 7% with Warren. If he can't make money in the stock market, who can? Why is he on TV every week telling you to buy stocks and ignore gold and silver?
Malcolm Berko (real name Berkowitz) has a "financial advice" column in almost 200 newspapers around the country. To say his advice is "bad" would be a compliment. He is another government disinformation agent. He hates gold and silver, of course, and always recommends terrible stocks. He recently told a man to keep his 401k rather than sell it, and convert it to silver. He said silver is "not an investment", and is for a "ship of fools". I've keep his columns over the years, and his stock recos consistently break even at best, or just lose money. He has missed the run up of gold from $300 to $1,400 and silver from $5 to $30. All the financial ad-visors out there (like Jim Cramer, Howard Clark, etc.) are just disinformation agents folks.
In the last rant we told you Mubarak is going to flee to the safety of Israel when he gets runs out of office. The Israeli government secretly helped him with expensive anti-riot equipment so he could keep his job. Israel wants the water in the Nile River. In his speech the first of February he said, "nothing was more important that strong relations to Israel". Netanyahu then made the very same speech. The Egyptian people deserve to elect their own president and their own government, instead of an American puppet we placed there 30 years ago. Egypt suffered under a 30 year continual state of emergency under Mubarak. Everyone deserves the right to vote for who they want, and their own self determination. Now they have a military dictatorship, no constitution, and even more hopeless poverty. Ex-secret police military thug Omar Suleiman is now the new dictator.
Why does the U.S. want to be the World Policeman? Now we're the World Bully, and people around the world hate us more and more every day. People used to look up to America Now they look down on us- and with good reason. Did you know 70% of employees in Egypt work for the government!!! Can you believe that? How is it even possible for 7 out of 10 to work for the government? Just like Cuba. Now you don't need to wonder why the average yearly salary is $2,700. How would you like to live on $52 a week? Egypt is a hopeless cesspool we should avoid like the plague. Why on God's earth are we sending them billions of dollars a year? For the protection of Israel, that's why. No other reason. The new military dictatorship has promised to honor the peace treaty with Israel of course.
The Federal Reserve is not federal and has no reserves. It is a private bank owned by a dozen different Zionist banks; Schiff, Warburg, Lazard, Solomon, Loeb, Lehman, and Kuhn among them. This is a matter of record. Since 1913, when the Fed was illegally formed, the dollar has lost 95% of its value. Think about that. The Fed stole 95% of our money. All paper money before 1913 was convertible into gold or silver. Now it's not. In 1913, if you took $1,000 in paper money and put it under your mattress, you would have $1,000 today. Actually you probably could not take that down to the Treasury department and still get $1,000 cash. If you had taken it to the bank in 1913, and turned the paper in for 48 oz of gold ($20.67) an ounce) you would now have over $64,000. Isn't that interesting? $1,000 or $64,000. Which would you rather have? The Fed should not merely be audited (it never has been). It should be abolished. This was the biggest economic con job in history. Again, Ft. Knox is empty. It hasn't been audited in over 50 years now, despite a federal law requiring one every ten years. There is no silver in the COMEX, nor in the London Bullion Metals Exchange. The U.S. military has no silver in the Strategic Stockpile. China's net imports of silver were 112 million ounces last year. In 2005, they were net exporters of 100 million ounces. That's a 200 million ounce shift in an 800 million ounce annual market. The supply of silver does not grow, because production hardly ever goes up. One fourth of the annual silver supply just disappeared. Now are you starting to see why it will go to $400 an ounce?
Want to hear something scary? Mexico will NOT accept U.S. dollars anywhere now (except Cozumel and Cancun it seems). It is getting almost impossible to convert dollars to pesos and the Casa de Cambios cartels. There are very few of there, it is a monopoly, and their rates are terrible. You can't use credit cards for small purchases reasonably. This means you convert your money BEFORE you go!!! No store in Mexico is allowed by law to accept a U.S. dollar under any circumstances. Mexico Is tired of having their economy ruined by our collapsing dollar. Because of the crime, tourism to Mexico has almost stopped. Some people say the peso will be 1 to 1 with the dollar in the near future, like the Australian dollar and Swiss franc and Canadian dollar. Wouldn't that be something! Don't think it won't happen. Their economy is doing a lot better than ours. Mexico just started registering every citizen for their National ID Card. Imagine the impossibility trying to register millions of poor rural people who have never had a driver's license or any other identification. Poor peasants who don't even have a physical address. We're next folks. First the government will turn your driver's license into a National ID Card. Then you'll be forced to get a biometric National ID Card.
Egypt is the warning for riots and turmoil all over the Mideast. This will then spread to Europe, and then the U.S. Egypt is the largest of all Arab countries with a population of 80 million but a per capita income of only $2,700. Imagine trying to live on $52 a week. Now try to imagine raising a family on a salary like that. They have a right to a government of their choice, instead of an American installed puppet like Mubarak. Netanyahu was singing the praises of good old Mubarak, while Mubarak was singing the praises of their "friendship" with Israel! What a crock! Israel and Egypt get ONE THIRD of our entire foreign aid every year. The Egyptian people have a right to their own destiny without U.S. interference. What happens within Egypt, or any other country, is NONE OF OUR BUSINESS. All foreign aid should end today. No country on earth should get one dollar or our tax money. Every single tax dollar should remain in the U.S. If you want to support a certain country, then send them YOUR money to a private charity that won't waste it. The canal workers went on strike and the soldiers are operating it. If the Suez Canal closes there won't be a lot of oil. Diesel, and gasoline and prices will take off. Keep your tank full, and put some five gallon fuel containers away safely. Gasoline breaks down after a year, so change your containers every six months. Don't use fuel stabilizer. as it can clog your carburetor. Always be prepared, not surprised. Just like the Boy Scouts have said for 100 years now, be prepared.
Want to hear something funny. You can waltz thru TSA or U.S. customs with 100 Krugerrands valued at $140,000 with no questions asked. You can leave and enter the country and not fill out any financial forms. Now try to get thru TSA, Customs, or enter or leave the country with $140,000 in green toilet paper. Or even $14,000 in green toilet paper. You will be stopped, detained, questioned by the police, a complete written report on you filed, and your money may be confiscated- even if you are wealthy and your taxes are paid. Customs has an official policy that gold (and silver) are "not money". Is that funny or what? Take advantage of it. DECLARE ANY GOLD OR SILVER whenever leaving or returning to the country though.
There are supposedly 42 million ounces of available (registered) silver on the COMEX. Why are they settling in cash when people demand delivery? Because the COMEX is out of silver, that's why! London Bullion is also out of silver, and settling in cash. They're out of silver, too. The whole world is almost completely out of silver. Mine supply can't even begin to keep up with demand. It takes years to open up new mines, and there are only a handful of actual silver mines on this earth. BUY IT NOW WHILE YOU CAN. We may well run out of physical silver this year.
Residential and commercial real estate will keep falling like a rock for years to come. It's hilarious to see Liar Larry Kudlow on CNBC tell us home prices have bottomed and are recovering. Farms, on the other hand, will continue to rise in value. Did you know over 70% of homes in Las Vegas are now underwater, and worth less than the mortgage? Did you know 30% of American homes are underwater? This is WORSE than the Great Depression. By the end of this year HALF of American homes will be underwater. Did you know 11% of homes in the U.S. are empty now? 1 in 9. Banks will soon become rental agents for the many tens of millions of unsaleable houses, apartments, and condominiums they own.
The silver and gold stocks have been miserable for ten years now. The HUI is a mere 540, while gold is $1400 and silver is $30. This should be the year they finally take off. Buy bullion and not stocks. When the stocks finally take off, you may well want to sell them and buy bullion. Why? Because nearly all our silver stocks are in Mexico, and it has degenerated into anarchy run by drug cartels. The only ones you should be holding are First Majestic FR, Great Panther GPR, Impact IPT, Sabina SBB, and Endeavor EXK. Since 1920 the precious metal stocks have never done this badly for so long. This will end, and it should end this year finally Bullion is the place to be. All the SLV funds are unbacked frauds.
44 out of 52 of the official Tea Party Republican Caucus voted to RENEW the Patriot Act provisions this week. 44 out of 52 "Tea Party Conservatives" voted for more police state laws. This is how totally and completely phony the Tea Party and Princess Palin are.
During a recent speech, a reporter Denise Maerker on Televisa asked Hillary Clinton about drug legalization. Denise suggested all the cartels and violence could be ended today by simply legalizing all drugs for adults. This is not to approve of drug use at all, but merely to end all the criminal activity. Hillary spoke before thinking, and said, "There is far too much money in this to legalize them". She got no criticism for this incomprehensible stupidity. So, all this money should
go to gangs, criminals, terrorists, and murderers? Is that the answer? Hillary doesn't want to take the profits away from scumbags? It is only because of the laws that the gangs even exist. Ex-Mexican President Fox came out in favor of full legalization due to the extreme murder rate. Current President Calderon legalized personal possession, and called for a "debate" on legalization. We're told you a year ago she is dying of a female cancer, and that is why she can't run for president. She is grossly overweight, eats endless junk food, her legs are grotesquely swollen, and she is under extreme stress. She is surely secretly getting the usual surgery/radiation/chemo treatments. These only make you worse, not better. Soon, she'll be forced to admit this. She may or may not make it thru the next 22 months as Secretary of State. No one else in the world tells you these things.
Let's say it again. The U.S. Labor and Treasury Departments got together to enact the Lifetime Income Options for Retirement Plans (LIORP) law. This will CONFISCATE your IRA/401k, and you'll get worthless Treasury annuities in return. Your entire life savings will be taken literally at gun point, and turned into toilet paper. For your own good, protection, and safety of course. This is why you have to sell your IRA/401k, take the penalty, and buy silver bullion. You will starve in the street with your stupid friends if you don't. You'll deserve to starve in the street if you don't. Five other countries have already done this in the last few months. The government is out of money, and can reap TRILLIONS of dollars by stealing the life savings of every citizen. This is a matter of when, not if. Sell your IRA/401k now while the stock market is still in Disneyland. The DOW certainly could go to 14,000 before it crashes, or it could crash today.The only thing you need to know about the stock market is to be out of it.
Hyperinflation is your future. Look at what has happened just in the last year under Nobama. Basic foods like wheat, corn, soybeans, oats, beef, pork sugar, orange juice, coffee, cacao, and rice have gone to the moon. Food inflation is going to be the worst problem around the world in 2011. Look at the prices in any supermarket and you'll get heart failure. I saw tangelos this week for $1.29 each. It's getting more ridiculous every day. Every food is expensive now! Worldwide food inflation is going to be the worst problem of all. You have to eat and you have to eat every day.
Silver is in backwardization for the first time in history. Get every penny you can and buy silver bullion. Hold it yourself. This is your last chance at $30.
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