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March Economic Rant -Roger Mason

The housing collapse is just warming up folks. Commercial real estate is crashing as well. You will see houses sell for a quarter on the dollar based on summer 2005 peak prices. Moody’s says 1 in 10 households are “under water” and will lose their homes. This will take down the stock market. 2008 is going to be bad, but 2009 and 2010 are going to be even worse. This spells the end of The American Dream after 232 years.

The U.S. economic situation continues to deteriorate badly, and even Bernanke publically admitted this. We are in a recession and have been.   Everything that can go wrong is going wrong. Interest rates will be lowered to 2% which is the exact opposite of what should be done. The U.S. Dollar Index is 75 cents and used to be $1.45. It’s going to 50 cents. Consumer confidence is at an all time low. Consumer spending keeps falling. January retail sales were the worst in 40 years! Car and truck repos are at an all time high. Credit card debt is over $10,000 per household, and people have maxed their cards out. They aren’t paying their bills either. The tax refund is a farce. The proposed subprime bailout is a bigger farce. The housing collapse is just getting start- ed, and  commercial real estate is falling apart as well. Homes in California and Florida are already commonly selling at auctions for 50% off. The one year backlog of unsold homes does not include the millions of foreclosed homes. Moody’s says 1 in 10 households are under water and will lose their homes. The Dow Jones and Philadelphia (this is a national index) housing indexes are pitiful. This will take down the stock markets. The Dow cannot hold 12,000 and is headed for 5,000. Dow Theory works, and the DJT and DJU are hopeless. Belwether stocks such as Walmart, Target, Lowes, and Home Depot are failing badly. No one is buying $4 Starbucks coffee. The budget deficit has been totally out of control, and only gets worse. The trade deficit cannot be sustained. Bush will invade Iran, and McCain will invade Pakistan, Syria, and God-knows who else. The draft is coming to take your son AND daughter off to be killed somewhere on the other side of the earth.

McCain has already been chosen by the Powers-That-Be as your next president. The election is a farce for the great unwashed masses. You don’t choose the president; the election is circus for the hoi polloi. He will continue his, “100 Year War on Iraq”. He will grant illegal aliens amnesty and allow them to continue to flood into our country. Whites, blacks, Asians, and legal Latinos do not want any illegal immigration. Nobody wants illegal immigration, but Bush and McCain will keep the borders open. Why isn’t the media telling you about the NAFTA Highway and the new Amero currency? Go to www.ronpaul.com and donate. Why? So you can do the right thing and have a clear conscience. So you’ll know you didn’t contribute to the New World Order Police State. Do not vote for the lesser evil. Soon, Ron will have a march on Washington. 10% of the American public wants him for president. More on that later.

Silver is still the best investment on the planet and has been. In 1982 silver was $50, and silver surplus abounded everywhere. This is now about $140 in today’s dollars, and we are almost completely out of silver. Half of the COMEX (the largest stash) is owned by radicals like your author. The silver in India (the largest horde) is all impure jewelry and religious ornaments. Only about 20% of silver comes from silver mines, and the rest is byproduct. There are only about 50 real silver mines, but only about a dozen worth investing in. You cannot have a modern society without silver. You cannot replace silver. Silver is going to $200 an ounce, and maybe a lot higher. Rhodium just went from $400 an ounce to $8,000 an ounce, so these things really do happen. You must physically possess any silver bullion. Do not buy any kind of paper silver, ETFs, or have someone store it. Again, you must personally and physically hold any bullion you buy. 100 oz bars are about $2,000 now and the size of two packs of cigarettes. Silverstone, Quaterra, ECU, First Majestic, U.S. Silver, Silver Wheaton, Impact, Endeavor, and Fury are all good silver mines. Use a discount broker, and not your bank brokerage due to excessive fees on “penny stocks” under $5.

Sell your IRA/401k before you go broke. You’ve already lost a fortune on this farce, so dump it and take the 40% tax hit. Your fund manager won’t let you choose silver stocks. Put the 60% in silver and watch it go up ten times in the next five years. With 16% (it’s up from 15%)  true inflation the stock market would have to go from 12,000 to 13,800 this year just to break even. After taxes on your illusory “profits” you would lose badly. Look for a 10,000 Dow this year. If you want to stand in the soup line with your deaf, dumb, and blind friends just keep holding your IRA/401k and you will.

All the foreign governments have finally stopped buying our T-Bonds and T-Bills. They eventu- ally figured out a 5% return with 15% inflation was a net loss of 10%. We must sell government paper to keep going. All world currencies are useless Monopoly money. All real estate is falling. Most businesses are failing. Retail sales are in the pits. Manufacturing used to be the bedrock of America, but now only 1 in 10 jobs make anything of value. We have a lousy 14 million manu- facturing jobs now. All world stock markets are weak. Oil is already $100. There is simply NOTHING ELSE to put your savings into other than silver and gold. You don’t have a choice. Silver is by far the better investment, and is headed back to the historical 15:1 ratio (e.g. $3,000 gold and $200 silver). It has already fallen to 51:1. You just don’t have a choice folks. Silver and gold are the ONLY real investments now. The U.S. Constitution says the only real money is silver and gold. Period. End of discussion. Whatever you invest in must go up 16% this year just to break even with 16% true inflation.  After paying taxes on your illusory “profits” you will lose substantially. There are only two things in this world today that you can profit from- silver and gold. Silver is, by far, the better investment. Right now silver (and gold) stocks are severely undervalued vis a vis the metals. These ALWAYS reconcile, so buy all the silver stocks you can before they explode. Not long ago the stocks were higher than the metals. They always reconcile.

Northern Rock bank had 100 billion in bad mortgages, so the U.K. government nationalized it at taxpayer expense. They should have let it fail for stupidity and greed. Countrywide was the largest mortgage broker in the U.S. and they are bankrupt.  These are just portents of what is happening worldwide. Five banks alone hold 160 trillion (with a “T”) in derivatives. Those derivatives are coming apart by the day. This means 160 trillion dollars down the toilet. The U.S. banks are broke folks, including Paulson’t personal bank Goldman Sachs. Just look at charts of major bank stock prices for the last year. The only time American banks went broke was in the 1929 Great Depression. They’re hopelessly broke for giving mortgages to anyone who could sign the application. The Fed will probably lower interest rates to 2% while they are printing Monopoly money at a 16% true inflation rate. This is insanity, and will end in disaster.

We live in a left wing socialist welfare police state folks. McCain and his wolverine faced harpy of a wife are going to lead this country further down the road to Hell. Why won’t the media admit McCain is dying of inoperable face cancer? Isn’t it pretty obvious? He looks like he has a gold ball in his mouth. With no black senators there is no chance of a black president- even one eighth black. Once the “Patriot Act” was passed, the Constitution and Bill of Rights were officially gutted. It will only get worse from here. The Much Greater Depression is around the corner. Have you noticed the militarization of the police? More and more we have military police, which is a hallmark of any fascist state. We have more people locked up per capita than Russia, China, North Korea or Cuba. Now you can’t get on trains, buses or cruise ships without being randomly searched. Russians and Chinese don’t have to go thru the indignities we do to go on an airplane. If you never read Orwell’s 1984 or Huxley’s Brave New World please do. The great unwashed masses prefer slavery to freedom and always have. The vast majority of Americans prefer socialism and government control of their lives over freedom. Look at the sheep in Europe, especially the Scandinavian countries of Sweden, Denmark, Iceland, and Norway. The government has total cradle to grave control over their lives. Their standard of living is a fraction of what ours is. Sheeple, not people.  They do nothing but drink, fornicate, commit suicide, and take anti-depressants. America is 232 years old (1776) and is self-destructing like all free societies do after 200 years.

Silver is your financial salvation. Go out and buy all you can.