Welcome to Roger's Economic Rant
May Economic Rant -Roger Mason
Welcome to the United Socialist States of America, the U.S.S.A. Chains you can believe in. Obama wrote a book, The Audacity of Hope. Hope is for dopes. Hope is the last refuge of fools. Faith will move mountains, but hope just wastes your time.
The media wants you to believe that the rich pay almost no taxes. The media wants you to think that the rich have “loopholes”, tax breaks, offshore accounts, and other tricks to not pay taxes. This is ridiculous. Here are the facts regarding federal taxes:
The top 1% of Americans pay 40% of the taxes.
The top 5% of Americans pay 60% of the taxes.
The top 10% of Americans pay 71% of the taxes.
The bottom 90% only pay 29% of the taxes. That’s all- 29%.
Let’s repeat that. The top 1% pay 40% of the taxes, while the bottom 90% pay only 29%. The rich are already paying most all the taxes. Taxing the rich even more is just not going to accomplish anything. No one should be paying more taxes. We should lower taxes on EVERYONE by ending government programs, and having less government. Less gov-ernment control, less government interference in our lives, less government period! That is the only way to lower taxes on everyone.
Did you know that mortgage holders only have an average of 20% equity in their homes? That is the same as nothing. Nearly all of them are underwater already. If you hold a mortgage, and you are already underwater with little equity, just walk away. The Case-Shiller median home value is still $160,000 and falling. This will fall to $120,000 or even worse. Do not hold on to a home that is worth less than the mortgage you’re paying (unless you have a lot of equity tied up.) Just walk away. Give it back to the bank. That was the agreement. You are going to see homes sell for a quarter on the dollar ad-justed for inflation and based on peak 2005 prices. Home values are falling despite the media telling you they have “bottomed”. We have two more years of collapsing home prices. Most of the “sales” are merely bank auctions on foreclosed homes, not real sales. Home prices haven’t even begun to bottom. Economist Meredith Whitney says we have another 50% collapse to go. The really sick part is we have a million unsold homes, an-other half million unsold homes the banks are not reporting, and the moron homebuilders are still building 700,000 news ones this year. On April 10 U.S.A. Today re-ported that 9 out of 10 housing units is empty. This is very hard to comprehend. The housing collapse is the key to the entire economy falling apart. We have another two years or more of falling home prices. Now the commercial real estate is collapsing with a vengeance. Notice all those store closings in your town? All those empty mall stores. General Growth is the second largest mall owner in the world. They just went bankrupt! The second largest mall owner in the world just went under! This is just the beginning folks. You’ll keep seeing stores close in your town never to reopen.
The largest cache of silver in the world is the COMEX. There are only 63 million avail-able ounces (the rest are owned and stored). Do you know what that means? It means there is only TWO DIMES worth of silver for every American. That’s right- two lousy silver dimes for everyone in this country- and none for anyone else. We are only 5% of the world population so that means there is no silver for six billion people (that would come to one tenth of one silver dime!) We use up more silver than is mined every year (very little is recylcled), and mine production has fallen badly. With a mere fifty real silver mines, you cannot ramp up production. Silver may be $12 in April 2009, but it is going to skyrocket to $200 and then even higher. There will be a panic for silver and gold when the lemmings finally figure out paper money is just that- paper. Paper with no value, no backing, no worth, no buying power. Just paper. Unimaginable hyperinflation is going to destroy this country.
Buy actual bullion and NEVER papere silver. Never buy and ETF or have someone store it for you. Good silver mines include ECU Silver (ECU), Endeavor (EXK), Impact (IPT), Great Panther (GPR), U.S. Silver (USA), First Majestic (FM), and Genco (GGC).
“Your” Congress is going to hit you with an Internet tax for everything you buy online. This is much, much worse than you think. The tax is minor compared to how badly this will hurt every company that sells online. Every business will have to get a tax number from the 50 states, each possession (e.g. Puerto Rico), and Washington, DC. Then you will have to collect and compile taxes for all of them and submit them every 90 days. This will require a new employee just to figure state taxes and extensive computer pro-grams to figure taxes for each state. People who order will have to be told what their state tax is and have it added to their order. This is going to hurt small and large busi-nesses very much. Government intervention always does. You’ve noticed that all socialist systems make it hard for businesses to start, profit and survive. Now the U.S. is becoming more and more business unfriendly. This is the bedrock of our affluence.
Bank stress tests were run and the results were disasterous. The media did not want to release these figures, as the lemmings would be more upset. Turner Radio Network did release them. The top 19 banks are totally and completely insolvent and cannot survive.
This includes the Biggest of the Biggest such as Goldman Sachs, Bank of America, Wells Fargo, etc. There were another 1,800 banks that are ready to go under. Each month those figures will just get larger and larger. Get your money out of banks and out of “safe” deposit boxes. Just keep a minimal checking account to pay bills. Keep some Monopoly money in your house. Bank holidays are coming, and you won’t be able to get cash, use your credit cards, or write checks. This just happened in Iceland so don’t say it won’t happen here. It can, it did, and it will.
The entire world Gross National Product (GNP) is only $54 trillion dollars. The U.S. economy is $14 trillion. Obama has already run up over $10 trillion in debt and is just getting warmed up. America produces ONE QUARTER of the entire world production of goods. One quarter. There are $1,000 trillion (one quadrillion) in derivatives. That is almost TWENTY times the entire world GNP. These derivatives are coming apart as you read this. We have never had derivatives in the world. We can’t even define a derivative. It’s kind of like financial smoke and mirrors. As these derivatives come unglued the en-tire world economy will collapse. The major banks own most of these derivatives. Many of the major corporations like General Electric (the fifth largest in the world) own mass-ive amounts of derivatives. Senile in Omaha Buffet owns huge amounts of derivatives. Stevie Wonder can see the Much Greater Depression coming by Christmas.
General Motors closed 200 dealerships and will close 1,700 more in the next 60 days. Almost 2,000 dealerships closed down and many more to come. They can do nothing with all those unsold cars and trucks. Pontiac is finished. “As goes General Motors so goes the nation.” This is just one of many major corporations going under.
Are you happy with $2 gas and $50 oil? You should be. Don’t expect that to last. The oil price is POLITICAL and not really determined by supply and demand as it should be. We have 200 years of oil right here in America. We have another 200 years of natural gas right here in America. We have 1,000 years of coal right here in America. You can make SASOL gasoline from coal for $2 a gallon, but the government won’t allow even one single SASOL plant. Congress is going to pass HUGE taxes on all energy. The EPA calls carbon dioxide a “pollutant” now and it has to be “controlled”. Every person and every animal on earth produces carbon dioxide. It is a vital part of the atmosphere and life cycle. You are going to see the price of all energy go to the Moon. No, don’t write your Republicrat crook senator or congressman that you elected.l He doesn’t care if you live or die. They don’t care what you think or feel. There isn’t a nickels worth of difference between Democrats and Republicans. They are all just big government “Republicrats”. Only 2% voted for a Libertarian President, so the 98% got exactly what they deserved- a hardcore Marxist president who thinks the government should micromanage your life from cradle to grave. Like in Scanadanavia.
Congress wants you to be poor. That’s right, you can rule poor people very easily, but not affluent people. Look at Castro. People weren’t poor under Batista. Cuba thrived a half century ago, tourism flourished, agriculture was abundant. Castro has purposely kept them so poor they can’t even eat. He has ruled them effortlessly now for fifty years by keeping them poor. Congress wants you to be poor. They’re not stupid folks; they’re evil. And you elected them. People get the government they damn well deserve. The vast majority of Americans want something for nothing, and that’s what they’re been electing now since Roosevelt and the New Deal. We’ve robbed Peter to pay Paul, but Peter is broke. The party is over, the punch bowl is empty, and the drunks are now waking up. They aren’t happy! Soon they’ll be cold, hungry, and desperate and look to the govern-ment to feed them. The government was broke a long time ago. Social Insecurity is broke. Your pension and retirement plan is broke. Even the government pensions will be destroyed by inflation. People on welfare will riot when their welfare check simply won’t buy anything when prices double, triple, and quadruple. Martial law is coming folks.
This whole swine flu “pandemic” is a scam. There is no pandemic. There is no National Emergency. Martial law means no Internet, no cell phones, controlled TV and radio, restricted movement, no Constitution or Bill of Rights. (not that there is any left), food shortages, a whole list of things you aren’t going to like at all. 9/11 was an inside job. Arabs with box cutters didn’t do anything. There will be another, and even worse, contrived “disaster” so martial law can be declared. There are so many Executive Orders now we have no rights. Martial law can be declared with the stroke of a pen for any reason or no reason at all. Presiential Directive 51 allows Saviour Obama to declare martial law for any reason, or not reason at all without any approval by Congress.
What can you do?: Go out and buy all the physical silver you can. Yes, pay the lousy $2 per ounce premium. 1,000 ounce bars are still at spot. Go to www.silverseek.com to buy 100 oz. bars from Jason Hommell if you can’t find a good coin dealer. J.P. Morgan Chase is manipulating the silver price with their 28,000 short COMEX contracts. This comes to an astounding 140 million ounces!!!! Over twice the available silver in the COMEX. If every person in the U.S. went out and tried to buy one single silver dollar all this would end today. After one fifth of them bought a silver dollar there wouldn’t be any silver left. The rest of the world would have nothing. That’s right, if just one fifth of Americans bought one single ounce of silver this price manipulation would end today. This is a tiny market. Many people out there own 200,000 ounces they bought for a million dollars a few years back when silver was only $5. A very tiny market and it’s going to explode like rhodium exploded from $450 to $10,000 an ounce a few years ago. Silver is going to do much better than that. That’s right, $450 to $10,000.
America may well break up into republics just like Russia did. That would be great! Don’t say it can’t happen here. It just happened in Russia. Texas has already threatened to secede. The Confederacy would return after 200 years. That may sound shocking, but separate republics would be a blessing. People would then have a choice. The Northeast could choose socialism and the Northwest freedom from government for example.
Our soldiers routinely torture people. The entire world hates us now. We have replaced Russia as the World Bully and Evil Empire. Do you know what George Washington said about torture in 1775? He was very clear about the subject: “Should any American solider be so base and infamous as to injure any prisoner…I do most earn-estly enjoin you to bring him to such severe and exemplary punishment as the enormity of the crime may require. Should it extend to death itself, it will be be not be disproportional to its guilt at such a time and in such a cause….for by such conduct they bring shame, disgrace, and ruin to them-selves and their country.” Now torture is routine and accepted.
70% of the brain dead American public thinks that the economy will stay the same or improve this year. Only 30% realize the economy will keep falling, there is no bottoming, and no Road to Recovery. Actually, it is surprising that 30% of the hoi polloi can actually see much of anything.
America has far more people locked up per capita than any other country on Earth. We make Red China, Cuba, and Russia look like bastions of freedom. One in thirty-one adults is locked up or on supervised release! 756 out of every 100,000 men, women, babies, and childen are in a cell or supervised. 2.3 million Americans are actually locked up. We have 5% of the world population, but 25% of the prisoners! We lock up FIVE TIMES as many people as the world average. Most of these people are non-violent, and one third of them are in for drugs. Half of all drug arrests are merely for marijuana. Our prisons are a disgrace, and now resemble those of Third World countries. We could turn our prisons into free market factories where the inmates would pay for their own incarceration and produce valuable goods (not license plates or other government make work programs). Why should we pay an average of $35,000 to keep someone locked up under disgraceful inhumane conditions? For $35,000 prisoners could live in luxury rather than be tortured. Another example of how you get a dime back for every dollar you give the government. Legalize all drugs for adults like we did in this country until 1914. Drug dealers, drug cartels, and most gangs would be out of business overnight. Anyone committing a crime while on drugs would get a enhanced sentence. The War on Drugs has been the biggest scam in history after the Federal Reserve Act. This phony war has destroyed the Constitution and Bill of Rights- as it was designed to do. It was purposeful, not some accident.
Go to www.kitco.com at least once a week and read the contributed commentaries. Keep up on things. Laugh at CNN and CNBC. Expect the Much Greater Depression by Christmas.
Depression by Christmas.
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