"We are apt to shut our eyes against a painful truth. For my part, I am willing to know the whole truth, to know the worst, and to prepare for it." -Patrick Henry
Welcome to the USSA, the United Socialist States of America. We have a hardcore Marxist president and a socialist congress. We are soon going to nationalize the banks, and then whole lots of other things like the power and utility companies. The government will end up running everything into the ground. The economy is collapsing by the day, and the Dow headed for 5,000 eventually.Dow Theory works and the DJI, DJT and DJU are all hopeless. We told you this a year and a half ago. For the first time in history the S&P is showing a total quarterly loss. At it's height the S&P 500 made $85 a share. Last quarter 2008 showed a $7.65 per share loss. You may not understand the significance of this, so please just realize this means the entire U.S. economy has already fallen apart at the seams. Not in the future, but today, now. Be sure and read Mogambo, Willie, Weigand, and others every week at www.kitco.com to keep up on events like this. When the entire S&P actually loses money that means the economy is hopelessly down the toilet. Some people are saying we are already in a depression that will just keep getting worse. More and more they have a good argument for that outlook. We're still calling for the Much Greater Depression next year in 2010 when tens of millions of people are cold and hungry. Now, that's what you call a real depression! 1929 will look like a picnic compared to this one.Don'tbe in denial. We have a hardcore Marxist president.
Americans have gone beyond mere socialism to outright Marxism. If you have any doubts about this just Google, "Obama + Marxism" and you'll get a mountain of accurate, factual information. Saviour Obama is going to attempt to bail out 9 million morons who bought homes they couldn't afford with money they didn't have. AT YOUR EXPENSE. That's right- you are going to pay the bill for jerks who are trying to live beyond their means. The essence of Marxism (and socialism) is to reward failure and stupidity, and punish success and intelligence. History proves only free markets work, not government. Obama's approval rating has already fallen to less than 60% in just six weeks. It will keep falling to 40 and then 20 when even black voters give up on him. The entire banking system will increasingly become nationalized until it is totally under federal control. You know, just like those wonderful countries Russia and China. There goes any thought of privacy.
Saviour Obama told the lemmings he would, "bring the troops home", because that's what they wanted to hear. He lied to them and told them what they wanted to hear. Six weeks into the presidency he is sending MORE troops than ever to Afghanistan.They'll simply to transferred from Iraq. Why the hell are we in Afghanistan anyway? Why did we invade Iraq? Why are we going to invade Pakistan? Why are we threatening to invade Iran and Syria? What business do we have in any of those countries? Why do we have almost eight hundred military bases in over 150 countries? Why don't we just mind out own business? There is no reason to have a one single military base outside of the U.S. Think of the money we could save!
On the CNBC "On the Money Show (Feb. 18) someone called in and said their mortgage was upside down and they owed far more than the house was worth. Even worse, the price was falling every month. He asked if he should just walk away and give the house back to the bank. The On the Money panel told him "NO!". They actually told him to keep his worthless house, and keep paying the crooked bank! They actually said this folks. This wasn't The Twilight Zone; it was a CNBC financial show. If your mortgage is upside down you have no choice but to give it back to the bank and walk away. It is only get to get worse and worse and worse for at least the next two or three years. 40% of mortgage holders are now underwater owing more than their house is worth. The ONLY thing to do is walk away and give the house back to the bank. None of these people should have tried to buy homes in the first place. Many people just rent and have no mortgage, so it is much worse actually. Stupid people bought houses they couldn't afford with money they didn't have. Now Obama and the Congress you elected are going to steal your money to bail them out. Only in America folks. Only in America! Land of the free and home of the brave. The median U.S. home price is down to $170,000 and falling. The average U.S.home could be worth a mere $120,000 in the next two years. Bargain city!
On February 23 on CNBC they actually said the Dow could fall to the 5,000 level and we would be no longer in a recession, but an outright DEPRESSION. They actually said this ion CNBC folks! Office Max (OMX) is another pillar of America. They lost almost a half billion with a "B") in fourth quarter 2008. Wowee zowee, that's almost two billion a year at that rate. Their stock has completely fallen apart from 24 to only 4 dollars. It's only going to get worse for them every month. Why don't they just close half their stores today so at least they'll have a chance? Why didn't they close half their stores about five years ago? Smithfield Foods is the largest pork processor in America. They're going under and their stock (SFD) has fallen 32 to 7 in eight months. People can't even afford to eat meat anymore. Target (TGT) is second only to Walmart as an American pillar, and their stock has been cut in half in the last few months. Ritz Camera went under after 91 years of being an American standard of quality. Senile in Omaha Buffett's worthless Berkshire Hathaway stock has fallen from $140 to $78. It is LOADED with derivatives and may simply go bankrupt. He is still telling people to put their life savings into a stock market which is headed for 5,000. He does the Devil's work certainly. General Electric (GE) is the fifth largest corporation in the world. Their stock has fallen from $38 to $8 this year and they may just go completely bankrupt and out of business. We can no longer list the corporations and companies that are going broke because it would take a whole book every two weeks just to name that many. This entire country is falling apart at the seams, yet almost two thirds of Americans think, "it will get better this year". Boy, are they in for a surprise! The surprise of their lives actually.
There are one quadrillion dollars in toxic imploding derivatives worldwide. These are detonating every day. What does "one quadrillion" even mean? It is one thousand trillion dollars. The entire U.S. Gross National Product in only 14 trillion so this is SEVENTY YEARS of the entire American production. As these worthless derivatives (which no one yet can even define) vaporize the entire world economy will vaporize with it. Derivatives have never existed before in the history of the world. The scam is falling apart folks.
You can see by the above chart that silver is doing just fine. Silver is going to go to $200 an ounce in the next three years. Silver bullion is hard to find and you have to pay a stiff premium for 1 oz, 10 oz, and 100 oz bars You can still get 1,000 oz bars for about $15,000 ($14 silver) but that is going to end any day. There are only about fifty real silver mines in the world, but
the current DJI to silver ratio is 510 (7400 DJI and 14.50 silver). This will go to about 12 to 1. That's right, you'll see a 5,000 DJI and $400 silver. In 1982 this was 16 to 1 (800 DJI and $50 silver). There was plenty of silver in 1982, but we're basically out right now. This is why it is so hard to purchase. The U.S. Mint by law is supposed to provide silver and gold coins, but aren't doing it because they can't get the bullion. Nearly all the silver is owned by private individuals and simply not available. The COMEX is the largest store in the world, but is running out and most of it is owned (eligible), not available (registered). The COMEX silver is disappearing by the day as smart people haul off 1,000 oz bars at spot price. This will end soon.
Most of the 50 real worldwide silver stocks are not worth investing in for various reasons. Seven good mines include First Majestic (FR), ECU Silver (ECU), Endeavor (EXK), Impact (IPT), Silverstone (SST), Genco (GGC), and U.S. Silver (USA). Quaterra (QTA) was sold. The prices of these mines fell very much in 2008 and they are wonderful buys. Add to what you have and average down. They are all Canadian except EXK.
Saviour Obama actually said, "Unions are the solution", and "I'm a union man." The trillion dollar "stimulus package" is purposely directed at unions rather than private and home businesses. This is just the start folks. This will end up as ten trillion in stimulus money very soon and the dollar will be worthless. This funding comes from printing Monopoly Money 24 hours a day. It is stolen from YOU and every American by insidious inflation. Inflation steals quietly and unseen. Inflation has only one cause, and that is unbacked money printing. The Stimulus Bill was over 1,000 pages and NONE of the senators or representatives even read the damned thing. It included funding for Marxist and communist associations such as ACORN. That's right, YOUR tax money went to support hardcore socialist and outright communist groups. The government cannot create jobs. Only the free market can create jobs. The government cannot stimulate the economy. Government is never the answer; GOVERNMENT IS THE PROBLEM. The more government "help" you get the worse off you are.
Please read this carefully so you'll really understand the Dow Jones is not at 7,200 at all adjusted for inflation. Look at the actual Dow price adjusted for a mere 8% inflation since 1997 when it was also at 7,200. This would mean the Dow would have to be over 20,000 just to break even (7,400, 8,000, 8,600, 9,300, 10,000, 10,800, 13,100, 13,900, 15,000, 16,200, 17,500, 18,900 and 20,400). Investing in the stock market over the last 12 years would have been an unmitigated disaster.
Look at the bank chart below (courtesy of www.stockcharts.com).
Endless bailouts haven't even begun to save them. We have about 8,000 banks in this country and the very biggest have been bankrupt for a long time now. The Bank Index has gone from over 120 to less than 20. This is worse than the Great Depression 80 Years ago. Keep a minimum checking account and no savings account at all. Close your "safe" deposit box. Expect a bank holiday anytime The government cannot possibly insure your account since they are broke. Do not keep money in the bank except for a minimal checking about. Very minimal. You are going to wake up one morning to find a bank holiday, closed ATM machines, and unusable credit cards. Keep some cash in your house. It just happened in Iceland, so please stop saying, "it can't happen here". It happened 80 years ago and will happen again, only much worse this time.
This is a chart of General Electric. It has fallen from $38 to $8 in less than a year. This is the fifth largest corporation in the world and may cease to exist soon. Failing corporations like this mean the situation is actually worse than the Great Depression of 1929. Every day the entire world economy falls apart at the
seams. (Courtesy of BigCharts)
"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."... Dr. Adrian Rogers
You cannot multiply wealth by dividing it. That's a fact. Why have Americans chosen Marxism and socialism after 232 years of freedom and affluence? America will soon be just another Third World backwater with a poor standard of living and a very small middle class. Look at England if you don't believe that. 100 years ago England was the most powerful country in the world. Now it's a pitiful European banana republic.
"Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful. This is especially true if they were told there was an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government." Henry Kissinger, Speaking at the 1992 Bilderberg meeting.
Henry Kissinger was never once elected to any post of any kind. He has enjoyed immense power for decades. He and his friends want a One World Order, a One World Government. Here he is freely bragging about it. It's not some secret conspiracy fantasy from "right wing fanatics". It's a reality and they are getting what they want. Every day we come closer and closer to the One World Order. America was the last impediment to that plan and now America has fallen. There is not one square mile of freedom left on this earth. There is not one single place to go to find freedom. Books like 1984, Animal Farm, and Brave New World predicted this decades ago.The great unwashed masses will gladly trade their freedom and affluence to what they think will be security and safety. They will get neither. Marxism and socialism (Marxism with a Smiley Face) have never worked and never will work. Only the free market works. Look what happened to the Scananavian countries like Sweden, Denmark, Iceland, Finland, and Norway. The highest suicide and alcoholism rates in the world. They lost their souls when they chose to let the government micromanage their lives.
The billionaire George Soros on February 20 said, "The world financial system has effectively disintegrated. There is yet no prospect of a near term resolution to the crisis. There's no sign that we are anywhere near a bottom." George is no friend of ours, but at least he's telling the truth.
Obama is going to destroy your entire energy supply. Energy prices are going through the roof. He is going to heavily tax all carbon emissions, and has promised to put the entire coal industry out of business. He will not drill our own oil and gas. He promotes frauds like windmills, solar energy, and ethanol. 1) Windmills are a fraud, and have proven to be so in every country they've been tried in. No one ever discusses the batteries when the wind isn't blowing. The batteries are impossibly expensive and an ecological nightmare. 2) There is simply no wattage in sunshine. Solar panels are impossibly expensive and produce almost no watts at all.
Again no one ever discusses the batteries needed. 3) Ethanol is a scam and causes more hunger and starvation in the world. It takes more energy to make a gallon of ethanol than you get back. It's a net loss of energy! All this talk about electric cars is asinine. Where are you going to get the electricity to run them? We'd have to double the power plants in the U.S.- which are mostly coal run. He's going to close down the coal plants. Again, no one discusses the batteries for these cars. The Chevy Volt for example has an 800 pound battery that would cost thousands of dollars to replace (life of about five years) and is an ecological nightmare. The battery would literally be world more than the five year old car! Al Gore promised to outlaw internal combustion engines (he really did) and Obama is going to try to help him.
We're sending out a special four minute video by the black politician Alan Keyes who exposes Obama as a Communist and a non-citizen who cannot legally be president. It will be difficult to call Alan a "racist". If you don't get it please go to www.realclearpolitics.com and look for the Alan Keyes video "Obama is a Communist".
(Yes, this has been a six page rant. The situation worsens every day. Prepare for it.)