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April Economic Rant -Roger Mason

The entire world economy is coming apart at the seams. The Much Greater Depression looms closer every day. Only 1 in 10 U.S. jobs manufacture anything. We’ve been in a recession for a long time now. 70% of Americans know this, but 60% say it can’t go to a depression. The T-Bill yield is at 50 year lows. The international banking system is collapsing as you read this. The banks are not only broke, but in debt with negative equity. The Fed lowered the interest rate again which just makes things worse. Bear Stearns was the fifth largest bank in the U.S., and was just sold to J.P. Morgan Bank for 2 cents on the dollar- with YOUR tax money. What do you care if the banks are broke? YOU will pay the bills, that’s why. This will destroy your standard of living. The U.S. government just bailed them out by providing your tax dollars to J.P. Morgan. Bear Sterns stock was $165, then $100, but they were bought out for $2 per share. All bailouts are outright socialism and Marxism. Lehman Brothers is going to go bankrupt along with Citibank, J.P. Morgan, Bank of America, Morgan Stanley, Wells Fargo, and the rest. (Goldman Sachs is Paulson’s alma mater and is exempted.) You are witnessing the beginning of a total worldwide banking collapse. Alan Greenspan admitted publically the current economic situation is the worst in sixty years. He should know- he helped cause it.

The head of Fannie Mae said the housing collapse has TWO THIRDS to go! Both Fannie Mae and Freddie Mac are bankrupt as well. Now we have top government officials admitting the housing crash is just getting warmed up. Moody’s said 1 in 10 American families will lose their homes. That means ten million out of about one hundred million households will be out in the street. The housing crash is just getting started folks. You will see houses sell for a quarter on the dollar, and they’re already selling for 50 cents on the dollar at California auctions. Real inflation is now 17% (as proven by configured M3 statistics.) The stock market must go up 17% a year just to break even. Instead it is falling like a rock. It is a house of cards artificially-and very temporarily-  propped up by “our” government. It couldn’t hold 14,000, couldn’t hold 13,000, and can’t hold 12,000. It is headed for 10,000 this year, and eventually about 5,000. If you have an IRA/401k you must sell it and tax the tax loss. Put your money into silver bullion and the silver stocks we discuss. If you don’t, you deserve exactly what you get in the next five years- starvation and poverty. No stock market in the world is worth investing in. This is going to be a worldwide collapse.

Inflation is soon going to 20%. We are already in hyperinflation. Look at the prices you pay for everything you buy. The government figure of 5% is ridiculous. The only way to protect yourself is to put your Monopoly Money into silver (gold is a distant second). No currency on earth has any value including the Euro or Swiss franc. Buy 100 ounce silver bars for about $2,000. They are the size of two packs of cigarettes and can easily be hidden. Do not buy any kind of silver ETF, or other paper silver, or let anyone store your silver for any reason. You must physically possess your silver. Get creative. You must physically hold your silver. Silver is going to $200 folks, and may go a lot higher than that. You can PLAN on $200. In 1982 it was $50, which equates to at least $150 in today’s inflated dollars.  There was plenty of silver then, but we are out of silver now. The Dow ratio to silver has varied from 18:1 to 2,500:1. (This is not a misprint.) It is now about 600:1. A 5,000 Dow and $200 silver would be 25:1. You cannot have a technological society without silver, and you cannot substitute for it. Mining cannot possibly keep up with demand. There is already a severe shortage of bullion for sale. There are only about 50 silver mines in the world, and only about 12 are worth investing in. You can’t buy mines in South America, China, Russia and other such places. There are only about a dozen mines you should invest in. There are different reasons for not buying the other 38. Take a good look at Quaterra, Silverstone, First Majestic, ECU, Fury, Endeavor, Impact, Genco, and U.S. Silver. The stocks have far more leverage than the bullion. Buy equal-dollar amounts of each and get a basket of stocks. You should own far more silver stocks than bullion.

True unemployment is at least 14%, and not 5% as the government tells you. The big problem is having a job of ANY KIND during the coming depression. People will stand in line to work at minimum wage jobs just to get some type of income.

With Admiral Fallon out of the way, Bush will invade Iran any day. Watch the media to hear why we “need” to attack Iran. The Iraq war was the worst mistake this country ever made, and 70% of Americans want out today. There are at least one billion Muslims on this earth, and they’re damned tired of all this. One day you’ll wake up and Washington, DC will be vaporized by a neutron bomb. Or you’ll wake up to find out an unstoppable smallpox plague decimating the entire country. How come you can’t get smallpox vaccine by the way?

There is no energy crisis. Read The Bottomless Well to prove that. Ethanol is a scam. Ethanol was a scam with $3 corn, and it’s a Super Scam with $6 corn. Soon oil will go to $200 a barrel, gasoline will go to $6 a gallon, and then it will go to $10 a gallon like they do in Europe now. Can you say, “$10 a gallon”? Well, you better learn how to say it! We have plenty of energy. We have a thousand years of coal.  You can make fuel from coal for $4 a gallon with the SASOL process from World War II. We have hundreds of years of natural gas. We have endless uranium for nuclear energy. We have unused hydroelectric. Global Warming is a hoax. If the earth warmed up one degree life would be wonderful! We would have more living area, more crops, use less energy, and have less ice covered deserts. The earth would flourish with a little more warmth. Mankind couldn’t warm the earth if we spent all our time and money trying to warm it. Global Warming is a scam by the One Worlders to create a One World government. Just look at the proponents of  Global Warming if you have any doubts about this… Algore, Billary, and the entire drunken, depraved, drug addicted Hollywood entertainment crowd.

John McCain is your next president. He will continue to let millions of illegal immigrants into the  country. Nearly every American of every race (including legal Latino immigrants) is against illegal immigration. The NAFTA highway and Amero currencies will become realities as America becomes Northern Mexico. The election is a farce. The chances of a lesbian or a “black” (he’s 7/8ths white) president are slim and none. Obama will be the Democratic choice, but have you noticed the endless attacks on him and his minister? McCain and his evil faced bitch-of-a-wife will create a nightmare of a police state. We will attack every country we can with every man AND woman we can draft. Yes, the draft is coming soon, and they will take both your son and daughter somewhere far off to kill and be killed. The Real ID Act will force you to carry a national ID card by 2011 or go to jail. National ID cards are a hallmark of any police state. “Where are your papers?” Well, now you’ll just have to produce a convenient plastic card encoded with your biomarkets, or be arrested on the spot. We have far more people incarcerated per capita than any country on earth including such crapholes as Cuba, Russia, China, and North Korea. The land of the free is really Prison Paradise.

The bad news is that there is no where to go. The entire world has gone socialist, and is headed for the New World Disorder. Strangely enough people do NOT want freedom; they prefer slavery. They call it, “safety” and “security”, but these are code words for slavery. America was the last bastion of freedom, but 232 years after it’s creation it is The World Policeman, The World Police State, The World Bully. The rest of the world hates us now- and they should.  We’ve earned their hate with out arrogance, hubris, and unbridled aggression.

Silver has fallen $4 from $21 to $17. THIS IS GREAT! A correction like this makes for a much stronger market after such a dramatic runup. The precious metal stocks have fallen badly and are an excellent buy. Always remember to buy and hold for the long term. Forget the short term volatility. You’re in this for the next five years probably. There is an extreme shortage of silver right now and it is very hard to buy bullion. The major suppliers of the world like Scotia Mocatta, Tulving, Perth, etc. are simply out of silver. Silver bars are selling on e-bay for $23 an ounce when the spot price is only $17.

The rants are getting longer because the world economic situation worsens by the day. The biggest problem of all are DERIVATIVES. Buffett said the derivatives neutron bomb is going to destroy the entire world economy, and is a “disaster waiting to happen”. There are probably about 600 trillion dollars in derivatives worldwide. What is 600 trillion dollars? The entire GNP of the U.S. is a mere 15 trillion. The entire U.S. money supply is also about 15 trillion. 600 trillion is TWELVE TIMES THE ENTIRE GNP OF THE WHOLE WORLD!!!! The entire world GNP is only about 50 trillion. The real estate of the entire world is about 75 trillion. The world stock and bond markets only about $100 trillion. It would take the GNP of one dozen earths to equal the derivatives. The big banks alone own about $140 trillion in derivatives. We can’t even define what a derivative is. They have never existed before. They are unregulated, not traded on any public exchange, without standards, dealt with by private agreement, not trans- parent,  have no open bid/ask market, are unguaranteed,  have no clearing house, and are just not really tangible. These are unraveling as you read this. Bear Stearns had about $13 trillion in derivatives and is bankrupt. When they unravel the entire world economy will collapse. This will make the housing and stock market collapses look incidental. Silver and gold will go to the moon as these derivatives come unglued, because they are the only real money as defined by the U.S. Constitution.

You see the media pushing those little plastic toy pretend cars like the Indian “Tata” and the Smart Car? Well, that’s what the average American will be reduced to driving in a few years. America moves by truck, and truckers are broke and ready to strike to suspend all diesel taxes.

The American Way of Life is over, finished, kaput, done. Alan Greenspan said we face the worst economic crisis in sixty years (he should know; he helped cause it). We’ll be a Third World banana republic without bananas. You see this happening every day with a lower standard of living. The first mania was stocks, the second mania was housing, and the third mania will be precious metals. You and I will sell silver when Jim Cramer, CNBC, and the media is telling you to buy it. Put every penny you have into silver today.

“The best argument against democracy is a five minute conversation with the average voter.”

- Winston Churchill

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