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Late June Economic Rant -Roger Mason

Of all the contrivances devised for cheating the laboring classes of mankind, none has been more effective than that which deludes him with paper money"… Daniel Webster 

The house is trying to pass HR 2454 The American Clean Energy and Safety (ACES) Act. This would further destroy our economy using the hoax of global warming to limit carbon emissions. It will pass, and it will be a disaster. Energy prices will go thru the roof. Global warming is hoax. The energy crisis is a hoax. The earth isn’t warming due to manmade conditions, and we have plenty of energy for hundreds of years. 

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Take a look at the above Standard & Poors 500 chart. In 75 years earnings went from $10 to almost $90, but have collapsed over 90% in the last 20 months. S&P 500 earnings have fallen over 90% in 20 months! All the stock markets are hopeless. You must sell your IRA or 401k and any regular stocks you own. The recent rallies are bear traps and the markets will soon collapse. Take your money out of any stock market and put it into silver bullion and silver stocks.   

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The average price to earnings ratio for the S&P has been about 12 to 1 historically. The P/E ratio is now in the Twilight Zone at 120. A P/E ratio is 120 is crazy! This is completely irrational and unsustainable, especially when paired with the 90% fall in earnings. This means the S&P 500 is completely and totally overpriced. The same is true for the Dow Industrial, Dow Transports, Dow Utilities, Russell 2000, and the rest of the stock indexes. The S&P was 1,400 a year ago, and is now 943. It will collapse to 400 just like the Dow will collapse to 4,000. Trust in Dow Theory. This says the Dow Industrials (DJI) rise or fall together with the Dow Transports (DJT) and Dow Utilities (DJU) to a lesser degree. The DJT and DJU are hopeless. The DJT was 5,200 a year ago and is now 3,400. Dow Theory works folks. (Your poor, old author is short DJI futures.)

Homebuilders were building 1.7 million homes every year. Now they are building about 425,000. They shouldn’t be building any at all, since we have a million unsold, and an-other half million unsold off the books. The banks do not want to admit how many foreclosed homes they actually have. Soon the builders will be lucky to be building a mere 150,000 a year in a country of over 300 million people. The housing crash has another 2-3 years to go. The median home price will fall to $120,000 and maybe lower.

The commercial real estate crash is catching up with a vengeance.  There are endless of-fices and buildings for rent that no one wants. Malls are emptying. Many strip malls are all but empty. This will just get worse and worse for the next 2-3 year. Keep remem-bering you will be able to buy the median U.S. home by 2012 for 600 silver dollars. When I was a kid a silver dollar would get you three gallons of gasoline.The same basic thing is true with office space and buildings. Realtors will be giving them away. 

The USDA says 1 in 9 Americans are on food stamps. Over half of Americans are on some kind of welfare or government dole. What kind of country lives on welfare? Over 33 million Americans can’t, or won’t, buy their groceries without government help. There should be no food stamp program whatsoever. There should be no welfare at all, no medicare at all, no government assistance in any way, shape or form.  The government is not supposed to be in the welfare business. This is very clear if you read the Con-stitution. Now people can’t even feed themselves without government help. There is no hope for this country folks. It will soon be just another third world banana republic, but we won’t even have the luxury of the bananas.

Jim Rogers is one of the wealthiest investors in the world. They are not going to have him on CNBC anymore because he tells people we’re headed for a depression. He said on June 4 (on CNBC) the Fed is printing money 24/7, the dollar is hopeless, massive inflat-ion is ahead, and silver beats gold. He says China will certainly unload their dollar holdings by simply buying up hard assets all over the world. The dollar is collapsing as they do just that. They have been doing this for over a year now. The Chinese actually laughed at Tim Geithner when he went over to aassure them about dollar stability. They laughed right in his face. Who can blame them?

Let’s talk about Sotomayor. Obama chose a fat, ugly, female, Latino, bisexual, fellow Marxist to be On the Supreme Court. We now have an avowed Marxist on the Supreme Court. She has nothing but contempt for the Constitution, and believes it her job to re-write it. She believes in special rights for people of color. No one should have special rights. She is on record as saying gun ownership is not a right. She was chosen because of her gender and her race, despite a complete lack of experience and qualifications for the job. This is one more giant step to the United Socialist Statess of America folks. A Marxist on the Supreme Court.

It is June 2009 and silver is still only about $14. Why? One reason is there is a huge commercial short COMEX position n both gold and silver. This is how both have been manipulated for years. All manipulations are temporary and end exactly the opposite of their intention. Silver (and gold) may even fall further very temporarily. If silver is the best investment on earth, even better than gold, why is it so cheap? There are three basic reasons: 1) the COMEX doesn’t have 64 million dealer (available) ounces. The COMEX will default or change to a paper-only exchange (if that’s possible) when they have to admit this. 2) The phony ETF silver funds also do not have the silver they claim. Stupid people invest in paper silver rather than real silver and depress the price. These ETFs now claim to have almost as much silver as is actually mined every year!!! This is obviously ridiculous and totally impossible. One of these ETFs is going to implode any time and silver will skyrocket. The COMEX could also implode and silver will skyrocket. Bet n the ETFs self-destructing first. 3) The sheeple still are in denial about the economy. They still hold stocks and haven’t bought silver or gold yet. They will, and this will be the next Big Lemming Mania like stocks and housing. Meanwhile buy bullion, buy all you can. Buy one ounce rounds, 100 ounce bars, or 1,000 oz bars. Load up. Go to and buy from Jason Hommel. There is an argument to buy 100% bullion and no silver mine stocks. The stocks are far more leveraged and offer far more potential, but also more risk. A 50/50 purchase is sensible. The seven mines we currently own are ECU, Endeavor, Impact, Great Panther, U.S. Silver, First Majestic, and Genco. Genco has performed very poorly and is no longer suggested as a buy. Low prices do not neces-sarily mean bargain. If you own it hold it. There are only about 50 real silver mines in the world. There are very good reasons not to buy about 40 of them. Silver Wheaton, for example, has a mine in Peru. Silver Standard has a mine in China. Pan American Silver invested in Russia, and almost went under. Excellon has a history of hedging. Hecla has poor management, as does Apex and Coeur D’Alene. Many mines are mere explorers and not producers. Only buy proven producing mines.

True unemployment is about 20% and going to 30%. We are losing over a half million jobs every month. This will continue until disaster strikes. The true jobs loss in May was 540,00, not the 350,000 the government claims. June will be the same or worse. The unemployment and jobs loss numbers are all spun with the fake “Birth Death Model”. All the government figures and statistics are fantasies.

The U.S. dollar is history. It is headed towards 50 cents in the international basket of currencies, and is currently 80 cents (your poor, old author is short dollar futures). The IMF just admitted they are considering an international global currency to replace the dollar as the reserve currency of the world. They know the dollar is history. Just remem-ber 100 years ago the British Pound Sterling was backed by silver. The Swiss sold their gold and their franc is useless. All currencies are worthless paper. You must hold silver and gold.

While we’re at it, the banks are mostly all broke. Keep a minimum checking account.

Just take any extra money out of the bank. Buy silver with any spare money. Keep some Monopoly Money at home for emergencies, but not much. Any bank that got federal aid, gave mortgages to people without good credit, is invested in commercial real estate, or is currently writing low interest fixed rate mortgages is going to go broke. We will have a bank holiday. That means no bank account, no checks no ATMS, and no credit cards for you. No unsafe deposit boxes either for anything. Keep important papers at home.

Socialism requires endless taxes on everything. You are going to see increased taxes, more taxes, and taxes on taxes. The taxes will never end and will put this country into poverty. Taking from the productive and giving to the unproductive is prima facie insanity anyway. Just like Europe we are going to be taxed into oblivion.

Here come mandatory flu vaccines and forced quarantine. The World Health Organ-ization has just declared swine flu a world pandemic. Over a quarter million people die of regular flu every year, but this is not declared a pandemic. Over a million babies in America alone are aborted and killed every year, but this is not declared a pandemic. Swine flu is not a problem, but it is an excuse for mandatory vaccines and quarantine.

Martial law can be declared with a stroke of Saviour Obama’s pen now, and no longer needs any silly Congressional approval. Martial law is coming to America folks. Another fake 9/11 disaster is coming as well. If you don’t know by now that 9/11 was an inside job just google it and you’ll find a world of factual information.

Silver may well fall in price very dramatically and very temporarily in the second half of June. It has already fallen two dollars as this goes out on June 15. There is a huge con-centrated commercial short COMEX position that could well cause this. If it falls then see it is a buying opportunity. You have no choice. Silver and gold are the only real money and always have been.

“The major monetary metal in history is silver, not gold.” – Noble Laureate Milton Friedman.

“To 250 million persons in 51 countries the word for money is the same as the word for silver and silver literally means money.” Silver Profits in the 80’s, by Jerome F. Smith.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Money and Wealth in the New Millennium, by Norm Franz.

Watch California folks. As goes California, so goes the nation. The state is hopelessly bankrupt. The two things that destroyed it are socialism and immigation. California is now just Northern Mexico. The Governator is going to end all welfare because there is no choice. This will cause the worst civil unrest and violence this country has ever seen. CalPERS (California Personnel) is the largest pension fund in the world, and they’re broke. If you have a pension or retirement fund it is broke as well. Social Insecurity was broke decades ago. California is one of the top ten economies in the entire world and it is bankrupt. This one state had (not has) a larger economy that 170 other countries on this earth and it’s all over.

Everywhere you look this country is going straight to hell. The lemmings are clueless, and only care about such trivia as “Jon and Kate”. Jon and Kate are a biracial pair of dimwits whose only ability is to overbreed, yet they have been elevated to the status of national heroes somehow. Residential and commercial property are both collapsing. The dollar is history. Unemployment is going up by the day. The trade deficit is terrible. The GNP is falling every month. The national debt is incomprehensible. Inflation is stealing your life savings. All the stock markets are ready to collapse. Businesses are going under very day. Marxism is replacing free enterprise. The government grows by the second while the Constitution and  Bill of Rights evaporates.Yet the American public is only concerned with the silliest stupidity  such as Jon and Kate.

You can profit while your clueless friends stand in very long soup lines. 

"Our safety, our liberty, depends upon preserving the Constitution of the United States as our fathers made it inviolate. The people of the United States are the rightful masters of both Congress and the courts - not to overthrow the Constitution, but to overthrow the men who pervert the Constitution." 
-- Abraham Lincoln

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