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Late June Economic Rant -Roger Mason

“The average man does not want to be free. He simply wants to be safe.”

H.L. Mencken 

The most important event of all is the continuing housing crash in this country.  The housing crash is just warming up, and has a long, long way to go. We have a full year backlog of unsold homes, and home sales fall every month. Did you know the Peoples Republic of California has a full 4.25 year backlog of unsold homes? Home sales there fall every month as well. The median price for a southern California home was over $480,000!!! This was prima facie insanity to pay almost a half million dollars for something that was really worth more like $150,000. Prices have fallen over 25% in seven months. “As goes California, so goes the nation.” You’ll see houses in the U.S. sell for a quarter on the dollar- in real dollars. The housing crash is taking down the stock market, and will take down the entire American economy. That’s a fact, it is happening now, and you better prepare for it. The Case Shiller Housing Index (the gold standard) found housing is now falling at 26% a year. At that rate houses would be almost worthless in three years. The Fed must raise interest rates, but can’t raise interest rates. Either choice is doom.

The most important event for the masses is the price of gasoline and diesel.  We have $4+ gasoline because of YOUR GOVERNMENT. We have $130+ oil because of YOUR GOVERNMENT. We are down to 149 old and failing refineries because of YOUR GOVERNMENT. There hasn’t been a new refinery built since 1976! We are not using the 200  years of oil and 200 years of natural gas we have right here in the U.S. because of YOUR GOVERNMENT. We have no SASOL plants to make $2 a gallon clear fuel out of coal because of YOUR GOVERNMENT. We have 1,000 years of known coal reserves right here in America. The Chinese are building huge SASOL plants because they’re smart. The Arabs and Big Oil would both love to see refineries built and upgraded for their own benefit, but YOUR GOVERNMENT stops this. Stop blaming the Arabs and Big Oil for what your politicians are doing. Did you know the major American oil corporations only control 6% of the world oil? SIX PER CENT! If you voted Democratic or Republican you voted these crooks into office. Did you know 40% of the oil we import is refined because we only have 149 refineries left? YOUR GOVERNMENT closed them all, won’t allow new ones to be built, and won’t allow upgrades of the ones we have. Oil without refineries is useless. If you haven’t signed the “Drill Here, Drill Now” petition at www.americansolutions.com please do so. Send them some money if you want. Almost 1 million have signed. We have 200 years of oil, and 200 years of natural gas, and 1,000 years of coal right here on our own soil. The gold to oil ratio is down to a mere 6.7 to 1 and has only been this low once in history. Gold (and silver) are going to the Moon and  Mars, and this ratio will skyrocket towards 30 to 1.

Silver and silver stocks are your financial salvation. Silver bullion is only $17, but there is no silver available. For the first time in history the world is out of silver. No, we cannot just open new mines, or run current mines 24 hours a day to get more silver. The silver (and gold) stocks are terribly undervalued. Rothchild said, “buy when blood is in the streets”. He was talking about situations like this. Go buy all the silver stocks you can afford. SST (Silverstone), QTA (Quaterra), ECU (ECU), FR (First Majestic), FUR (Fury), EXK (Excellon), IPT (Impact), GGC (Genco) and USA (U.S.) are the best nine choices. (These are all Canadian but EXK.) There are only about 50 real silver mines in the world. 90% of silver comes from byproduct mining. Cash in your IRA/401k if you can’t convert it to American silver stocks. (stocks like QTA do also trade on U.S. exchanges (as QMM). Why not gold? Silver has far, far more potential than gold, and cannot be confiscated. FDR declared gold illegal from 1933 until 1974- 41 years- and it will soon be illegal again. The Government will claim, “terrorists are using gold to transfer money”. Federal law, 31 USC 5112 requires that the U.S. Mint, “must meet the public demand”, for 1 oz. silver coins. They’re out of silver. They can’t meet any demand. Even the military has no Strategic Stockpile. They are required by law to have silver for defense. You don’t have a choice. There is no choice. Buy all the silver stocks you can. Hold on for the long term, for years. You can go to Mexico and get Mexican silver dollars for $3 over spot. There’s a deal. (That’s a joke folks.) Silver (and gold) stocks have been severely depressed since November. Buy all you can with all the money you have. The stocks will soon take off along with price of silver. Patience, you need patience holding for the long term.

There is no energy crisis! There is no Peak Oil! We have 200 years of oil, and another 200 years of natural gas right here in the U.S. We have 1,000 years of known coal reserves. We have endless uranium for electricity. We could have $2 gasoline this year if your government would stop blocking SASOL plants. SASOL is no pipe dream; South Africa has been using it for decades. The Germans developed this during World War II. Want proof the government is your enemy? The Senate just failed to pass both the Warner-Boxer-Lieberman S3036 Carbon Tax bill and the Windfall Profits bill to tax the oil companies. These would have doubled the price of fuel and electricity. They didn’t pass, but next year they will be reintroduced under other names. They would have cost you trillions in new taxes, and greatly expanded the power of government over your life. They had nothing to do with improving the planet,  but everything to do with Big Government. The “Climate Security” bill was anything but. Other Marxists like Algore and Hillary were staunchly behind it of course.

$1,000 trillion (that’s a quadrillion) in derivates are coming unravled as you read this. Recently this was “only” $700 trillion, but now it’s 1,0000 trillion. This is SIXTY-SEVEN times the entire U.S. Gross National Product! This collapse will destroy the entire worldwide economy. Ecclesiastes says there is nothing new under the sun, but derivatives are new. We can’t even define them, much less explain them. Even “Senile in Omaha” Warren Buffet is up to his eyeballs in derivates, while warning the world they are the neutron bomb that will take down the international economy. This took down Bear Stearns, will take down Lehman Brothers, and then the entire American banking system. The entire American banking system is coming apart as you read this. The Bank Stock Index (BKX) has fallen 50% in a year. Fannie Mae and Freddie Mac have both falled from 70 to 20 in a year. Next is the entire world economy. $1,000 trillion is derivatives is not comprehensible. This is far, far more than the GNP of the entire planet for God’s sake! The derivatives collapse will collapse the world economy.

McCain is your next president, and will turn the U.S. into a total left wing, welfare, socialistic, police state. Barack Obama is an avowed hardcore Marxist. His race is completely irrelevant here. He’s an avowed Communist for God’s sake! He was mentored by Communist Party member Frank Davis in his youth. His office in Houston proudly boasts a large Che Guevara flag on the wall. This was shown on Fox TV. Google “Obama + Marxism”, and you’ll be amazed at the documentation here. The official newspaper of the Communist Party People’s Weekly World fully supports Obama for president. They know he fully represents their ideals. The Democratic Party had two openly Marxist candidates. This is prima facie proof America is finished after 232 years. We have degenerated into a left wing, socialistic, Marxist, welfare police state banana republic, complete with over 40% Third World immigrants. In 50 years the U.S. will be Northern Mexico. The media will pretend this is a “close race”. It’s all a farce, and McCain has already been chosen by the Powers-That-Be as your next president. Vote for Libertarian Bob Barr if your state “allows” you to. Obama will not chose Billary as his running mate(s), as he knows Bill will have him killed, just as he did Vince Foster and dozens of others. Bush should invade Iran in the next  six months. McCain will if he doesn’t. Prime Minister Ehud Elmert said an Israeli attack on Iran is “unavoidable” in the Yedioth Abronath newspaper. Old Ehud is being indicted on corruption charges, and the Israeli voters and demanded he step down now. Why are we involved in the problems of other countries? Why do we give Israel $10 billion in cash every year? Can’t they support themselves? Why give welfare to a strong, prosperous, productive educated nation? We’re not the world policeman. Our founding fathers said, “friendships with all, entanglements with none.” All foreign aid should be stopped. All American troops should be brought home.

The stock market is a house of cards. The stock market couldn’t hold 13,000 as we told you all along. The DJI now has 200, 300, and 400 point down days commonly. The banks are going broke due to the bad mortgages they wrote. The housing crash is just getting warmed up, and millions of people are going to walk away from their homes. Their mortgage will be worth much more than the actual value. Lehman Brothers (LEH) is the fourth largest in the U.S., and will be next to go. Bear Stearns was just the beginning. You’re going to see a wave of bank failures. Doesn’t this remind you of 1929? Only much worse. The automakers are broke. The airlines are broke, and you’ll see half the planes flying, and half the employees in 2009. The homebuilders are broke.The cruise lines are totally broke with Carnival (the largest) and Royal Caribbean (second largest) both  falling 30% in just a few months. Hotels are going broke along with the restaurants.  
 
Major, famous, long known chains go broke by the day. You’ll see gas stations close, as less and less gas and diesel are sold. Exxon just announced they are closing all 800 stations. The trucking industry is going broke, and AMERICA MOVES BY TRUCK. Never forget that- American moves by truck. Gasoline Is already $10 a gallon in much of Europe, and will soon be here. Unemployment is far higher than the ridiculous 5% statistics. True inflation is still about 18% based on real M3 money printing. It won’t get better. The worst is ahead of us, not behind us as CNBC tells you.

Only in America! Egotist, narcissistic, shallow, vain, nobody, ex-carnival barker Ed “Publishers Clearing House” McMahon lost his $6.25 million six bedroom, five bathroom Beverly Hills home. The 85 year old fart has been unemployed for years, and owes $5 million on his mortgage. He and his (third!) wife need a massive palace when he has two feet in the grave? Only in America folks, nowhere else. How on god’s earth is a senile 85 year old goat going to pay a $5 million dollar mortage? The really ironic thing is he recently used to be worth over $200 million. That’s right, he used to be worth over $200 million just a few years ago, but lost it all due to senility. Now he’ll be homeless. This kind of insanity doesn’t happen in other countries. Only in America is ONE THIRD of our corn wasted on ethanol. More energy is lost than gained making ethanol. Even more corn will be used next year. Meanwhile people are starving all over the world, and corn is over $7.00 a bushel! Can’t drill our own oil and gas, can’t open SASOL plants, can’t have any refineries, but we can waste our corn crop for no reason. Only in America do we give a half million tons of food to North Korea, our sworn Communist enemy, who has the nuclear missiles aimed to devastate us. Don’t want your son to be killed in Iraq? Just send him to Canada. Their parliament just approved amnesty for any American man who is avoiding this insane illegal war. Only in America can Bush (and then McCain) declare himself dictator with the stroke of a pen due to any “catastrophe”. The National Security and Homeland Security Presidential Directive makes this possible from May 9, 2007. The media didn’t tell you that, did they? Bush can declare himself dictator for any event he feels is “catastrophic”. Is this a wonderful country or what?

July 12 Ron Paul Revolution March. Please go to www.revolutionmarch.com. If you can possibly come to Washington, DC please do so on Saturday July 12. Beef and pork will be unaffordable by the end of the year.

Do you want to do something about high gas prices? Go to www.americansolutions.com and sign the Drill Here, Drill Now petition. Almost one million Americans have signed it. This is not about Democrats or Republicans at all- it is about citizens who want $2 a gallon gasoline, and an end to dependence on foreign oil. We have 200 years of oil, and another 200 years of natural gas right here in the U.S. Meanwhile China is exploring for oil 50 miles off the coast of Florida! That’s a fact. China can have our oil, but we can’t.  Tell your friends to sign the petition. Send them some money. $5 diesel has killed the trucking industry- and American moves by truck. Almost every item you buy has been delivered by truck. We can have $2 a gallon gasoline and you can help.

Meanwhile buy all the silver stocks you can at these prices and hold them.


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