If one thinks that prosperity can be created out of thin air
by a central bank (the Fed), the reader is mistaken. For the last three years,
*my basic conclusion* is that our money is going to be destroyed.
Another basic conclusion has been and still is that most
Americans have absolutely no clue as to what is going on. If they did, they all
would be trying to protect what they had by accumulating precious metals, no
matter what they beat the price down to, no matter what the ignorant media
says.
I always like to talk about reality. Especially about
financial reality. The reality is, in my opinion, that there is no way out of
our *ultimate demise* financially as long as Obama is in the White House. In my
opinion, his goal is to *bring this country down*, through over spending, over
immigration, over taxing, and over regulations.
That is his goal and my proof is in the pudding. What he has done
already.
These are historic times, and I believe the fate of FIAT
MONEY will soon face reality.
I try to bring out the fact *that no FIAT money* has ever
survived. There are so many cases that I could give the reader of this fact.
From the so called "greenbacks" of the U.S. Civil War to the present, the history of all
FIAT currency has been the same.
During this civil war, starting in the 1700's the South
issued its own currency called The Continental which led to the expression,
" Not worth a Continental" So many paper currencies of so many
countries have been exchanged or devalued or revalued that it would take an
entire page to
list them. On the other hand, silver and gold have retained
their purchasing power for 6000 years. Currency, which retains its purchasing
power by FIAT, has always faced the same fate and eventually becomes worthless.
When I mention the words financial and economic collapse, I
can always get answers like," your government always has found ways to
avoid or postpone the*inevitable*" Or, " you have been talking about
a currency crisis for at least three years now, and it has not happened".
And these comments are right. What I see coming, has not
happened yet.
I have always believed that the more knowledge one has, the
better off you will be to handle the coming financial collapse. And there will
be one, because no country is immune to the basic laws of economics and
finance. You can kick the can down the road just so many times. You can
lie to the public just so many times.
When I went to NYU graduate school of finance (Stern
College) there was no such thing as the PPT. The Plunge Protection Team, the
selling of precious metals nakedly short, The Federal Reserve buying up all the
US
Treasuries, the printing of trillions of dollars in a short
time
span...the goosing of the stock market by buying up stock
futures, the almost total control of the media so that mostly everyone does not
have any idea what is taking place, and so on. The application of QE1,2,3,4
which is the printing of money to raise stock prices., a form of government
survival. The bringing of interest rates down to practically zero. None of
these items have worked because your government and also that of most other
countries, have got to keep resorting to more QE's. QE 5 will be coming out
soon.
The outright corruption in everything financial and that is
not an exaggeration. Outside of the precious metals as a store of value, there
is nothing safe or sacrosanct anymore. And even the metals are shackled
illegally. Practically everyone in Washington is on the take at some time or
another, and that also is not an exaggeration. Slowly, nothing will be private
anymore. But I have not been wrong for these past three years. Only a bit
early. The financial collapse will come to pass, because it always has. To
repeat: Economic mother nature will not be altered.
To repeat to you, the reader, over and over again. The
people in power in this country must go after the*Internet* and they must
*confiscate the guns*. The media is about 90% controlled now. This is easily
provable because the same stories, or falsehoods are repeated in practically
all the newspapers and TV across the nation every day. One
can look at the LA Times and the NY Times, and the stories (nationally)
are the same. The opinions are the same. It is easy to put forth a lie, if all
the media carries the same lie.
However, little by little, you are watching the collapse of
government and the entire socialist agenda. Governments are incapable of
managing the economy because they are inherently *corrupt* and they cannot (do
not) function for the benefit of the people. This is especially true when it
comes to funding their life style vs that of the people.. I could give you a
whole page of examples, but just a few. Congress is
exempt from the latest health care law, the Social Security
law, and gets all kinds of retirements benefits, and raises each and every year
are passed, quietly. But this is not something new. It I want to be honest,
just look at history and the Public vs the Private battle has waged since the
first King was proclaimed. In our case, we do not have a king, but the new
makings of a semi-dictator. One who intentionally
circumvents Congress.
"It is easier to fool all of the people than to
convince them they all have been fooled" - Mark Twain. You, dear reader, are being fooled on a
regular basis, day in and day out.
I do not regret growing older (81 now), it is a privilege
denied to many.
Our deficits, our spending, our total welfare are now 50% of
everyone living in this country and is growing faster than our economy and our
ability to repay this debt. In order to keep paying those that are on the dole,
your government must constantly increase taxes and regulations. That, in turn,
means a strangulation of small business which employs 70% of all wage earners.
That, in turn, means an eventual collapse of this economy.
FACTOIDS: American dollars are worth 80% less than when
Nixon first closed the gold window and took the U.S.currency off the gold
standard in 1971. Since this date, gold has increased in value over 3000%. Even
with them knocking it down from $1900 artificially.
The printing of money has increased by 2000%. If one
invested in bonds since 1971, their inflation adjusted profit
value has gone down by a full 50%. Bonds now are the
*biggest bubble in history*. Several countries (Switzerland) and entities just
issued some bonds with a minus interest rate. I have never heard of something
so *outright stupid.* One could deduce that people want the return of their
principal and do not care about the interest. If that is the
case, then buy a gold or silver coin, not a piece of paper from any government
that could disappear. The Swiss government just lost 40% (so far) of their
entire GDP in one day-in one hour, by removing the peg to the Euro. So I
should buy a paper bond from them with a minus interest
rate.???? Should I have my head examined ?
"Stupid is as stupid does". I never argue with
stupid people, or stupid remarks. Being
stupid will drag you down to their level and beat you down with their
experience." Mark Twain.
The Russel 2000 now has a PE (Price earnings ratio) of 90 (
past averages have been a PE of 10 to 15)
The NASDAQ had a PE of 150 in 2000. Subsequently, this NASDAQ
fell by 80%.
In the past three Remarks, I have indicated that this
President, this Congress, this Government lies to you, the public on a steady
continuing basis. And I have filled pages listing the lies that are told, or
promises never fulfilled. Now the head of Iran, the Ayatollah comes out and
states before a huge rally that " our president Obama, and our Secretary
of State, Kerry, are outright liars". They tell Iran and promise Iran one
thing, but relate lies to the American public as to
what is agreed upon in their nuclear negotiations. And that
has been the SOP, standard operating procedure for this administration and much
of the George Bush administration.
When was the last time you heard a head of a country calling
an American president a liar.?
How low have we sunk.
Where is our country right now?
"We currently reward the lazy and call it welfare. The
biggest welfare system this country have ever had under any President.
We neglect the discipline of our children and we call it
building self esteem.
We abuse power, especially this President, and then call it
politics.
We consistently ridicule the
time honored values of our founding fathers and call it enlightenment.
Can we ever be called again "One Nation Under
God" ( Paraphrased from speech by
Billy Graham) ?
*Politicians and diapers need to be changed, often for the
same reason.*
*This government has printed more money in the last two
years than in all the previous years combined. Can anyone comprehend this
statement?*
*There is no recovery and there will be no recovery for some
time to come. Only the economy going down. What is so hard to figure out about this statement? If I tell
the reader in the last three Remarks that there is no recovery, has been no
recovery, and will be no recovery as long as Obama is in power, what is so hard
to understand??*
1/2 of all U.S. citizens receive entitlements. It is all but
impossible to cut these entitlements, or you will have riots in every city.
Thus, the only way to raise money for your government is to raise taxes or more
money printing.
The more aggressive that your government becomes, the more
rules and stifling regulations, the steeper will be our economic fall. Obama is
focused on raising taxes as high as he can*. Cant' the reader understand
this???*
A hand full of Sociopaths (I call them that) control our
collective fate and each decision that comes down. The President is currently
surrounded by people who cannot think their way out of a paper bag. Who also
cannot
formulate any coherent foreign or even domestic policy*.
Most are people out of University process who are incompetents in business.*
To repeat this to the reader in another way, there is not a
chance of any horrifying trends reversing themselves. Especially not while this
current president is in charge. (my opinion*).*
The longer a politician is in office, the more corrupt he
becomes. This is a generality. There are a few decent politicians, but the
longer they stay in power, they are gotten to by the lobbyists and bribed*.
Politicians are not in office to protect you (or society)
but they are there to simply acquire more for themselves.*
Kids go to college which may cost them between $40-50,000
for a piece of paper. The result is 65% of these graduates end up working in a
field they never studied, if they can get a job at all. Obama's job reports, the
greatest piece of manipulated lying that I have ever seen, eliminated all the
oil field workers that are now being laid off .I have seen lying by many
presidents, but with every speech, with every utterance, he lies.
We will be approaching the end of socialism and it is not
going to be pretty. Politicians have literally screwed the youth with student
loan debt that they have made non-dischargeable to help the bankers, followed
by lowered interest rates, to "stimulate" the economy which has only
lowered their own cost of funding. The youth are burdened
with huge debts paying 7% on average, making bankers rich, yet this group has
been living with their parents well into their 30's for the most part. This
debt will prevent the youth from becoming home owners. Becoming a lawyer or a
doctor is no longer a top career prospect. By the time they
graduate and enter the workforce with a low base salary,
their prospects of becoming rich as they once expected look grim.
Student loans are the greatest crisis we will see in the
years ahead. The kids are fed bullshit about getting degrees, yet, to repeat, a
full 65% cannot find jobs in the field they studied in school. Most of these
students voted for Obama. What a pity.
For the elderly, home ownership means nothing more than
rising real estate taxes. Society is being pushed to the extreme and there will
be no hope without major economic reform.
Little by little, we are watching the collapse of government
and the entire Socialist agenda. Why? Because governments are incapable of
managing the economy because they are inherently corrupt and thus, they
cannot function for the benefit of the people, especially
when it always becomes a question between funding their lifestyle vs. that of
the people.
*OBAMA* "He is
anti-American, pro-Islam, pro-Iranian, pro- Muslim Brotherhood".
This is a direct quote from Retired Admiral James Lynn and
was said on national TV.
HE IS A MUSLIM and has admitted so before the United
Nations. ( See YouTube on his address to U.N.)
All of his records have been sealed since day one. No other President
has had that benefit. I said ALL of his records.
HOW STRONG A STATEMENT DOES A PERSON NEED TO UNDERSTAND
THE SEVERITY OF WHAT IS TAKING PLACE??? We are going down
for the count.
I do not know exactly when, but at some point, even the
dumbest person is going to realize this.
The systematic wipe out of our pension funds and the
elderly. You who read this make no mistake about what is taking place. Zero
interest rates and soon even negative interest rates do not allow *Pensions* to
earn any kind of a decent return to fund themselves. . No interest at all in
any kind of a savings in a bank also does not allow the*elderly*
to earn anything on their savings. The reader soon will
begin to realize this which will probably affect everyone except the 1% very
wealthy.
When the media talks about Quantitative Easing or when you see a headline in the Wall Street
Journal," Europe Central Bank bets big on a stimulus", all it means
is that they are *printing money to survive.*
That they pay past bills with the printing of money. There
is no longer any other way out. At some point, there will be a "new basket
of currencies" as backing for some for a new exchange mechanism. To do
this, GOLD MUST BE REVALUED to perhaps $5000 an ounce. (That is my opinion)
That all currencies are becoming more and more worthless
because of the endless printing of money. Thus it is easy for me to state that
all currencies including the strong US dollar are going to become worthless,
and not in the *too distant future.* The U.S. debt, under President Obama is
increasing at the rater of 7% per year.
We are currently spending more than 1.5 trillion per year
over the money that your government takes in. The budget deficit is totally now
on Mars.
Sure, any country can keep on spending and running up its
debt, but at some point, other countries will not accept that currency as
payment for debts. They will demand something more tangible. I cannot tell you
exactly when that will happen, but not in the *too distant future.*
That is why anyone must own gold and silver or platinum no
matter what they (your government) knocks the price down to. It's all a
manipulation to keep the masses in check, to keep them from going to a
tangible, or something of value. I ask myself," What does it take to make
people see this?"
As I write this Remarks, one of the larger banks in Austria
has just gone belly up.
What does this mean potentially for us.? Austria is so far
refusing to bail out this bank, but will let it go under. That means that all
the people and institutions who own these bonds will lose the total value of
these bonds. One such entity is the Austrian province of Corinthia, which ,as I
read it, owns $10 billion Euros in these
bonds. It will possibly go under. No one knows how many derivatives are written
on
these bonds. So we will have to wait and see.
DEFLATION
*Right now, this country is in a deflation.*I say that even
though the cost of meat in the grocery store has *doubled.. in one year
alone.* How much worse will this
deflation get? In my opinion, *much* *worse.* I base these feelings on the Commodity
Index (CRB) If one can interpret mathematical models, this index is and has
been heading down to its last
support levels, which implies another steep 35% decline for
the entire commodity sector.
The Baltic Dry Index (mentioned in a previous letter) keeps
going down to new lows each month. The lowest that it has been in 26 years.
To me that means another big downside move and that means a
big move in deflation in many sectors. You can have inflation in some sectors,
and deflation in others. So health care, food, all medical, insurance etc. can
be going up big time, and the commodity area can be declining big time.
California is in the biggest drought since the Dust Bowl of
the
1920's.(NO WATER) You would think that they would have had
some desalination plants . AS I see it, one is being built near San Diego, by
an Israeli Company. What does the reader think this is going to have on food
prices.???
The easiest way this is obvious is in crude oil, which has
been the main topic of most people's analysis. At this writing, it has fallen
below the $50 dollar level a barrel. Although this chart has shown a recent
bounce, I see this as a dead cat bounce and I believe we are going to see this
price going down to a shocking $30 a barrel before it bottoms.
To me that means that another deflation is about to hit us.
The whole commodity sector is crumbling.
One can also look at the grain markets, which also have had
a bounce on the charts. This sector also is going to go much lower. At least
that is according to charts. I am talking about corn, wheat, coffee,, sugar,
coca,--all with lower prices ahead..
The problem is just too much debt-as mentioned at the top of
this letter. Money printing to keep this country afloat. DEBT UP TO YOUR EYE
BALLS> If one looks at GLOBAL DEBT since 2007, it has increased 57 trillion.
*That is trillion.* We seldom use the word billions any more. A trillion is
1000 billion. But total Government debt
has also increased a whopping 9.3% since 2007. And all this debt is now more
than many countries Gross Domestic Product.
The European answer is to impose austerity measures which
are crushing all the peripheral economies like Greece. The Greek debt to GDP
now stands at 175% compared to about 107% before the crisis. My feeling, Greece
should get out of the Euro. Default on all of its Euro obligations, re issue
the Greek Drachma and go its own way. It will anyway. There is just no hope of
ever repaying its debt of 350 billion
Euros.
Almost all of Europe is in a depression that I believe will
get only worse. Even Germany is now on the verge of a deep recession, as is
France. In other words, almost most of Europe is in a mess. Greece simply
cannot make any payment on what they have borrowed from the West. BROKE is
BROKE. One cannot make a payment on a credit card with another credit card.
Greece owes about $350 billion, most of which is spread among the world's many
banks. But this $350 billion may expand to possibly 10 times this amount ( $3.5
trillion) when considering the insurance written on this debt ( called derivatives) How is this going to be
paid or handled???
In addition, the Ukraine is also very near default (about
one billion) and the derivative insurance may be one trillion. (I am guessing
at this amount)
Now we have Pfandbriefbank Osterich AG will probable be the
next criasis ( Austria) They will not be able to make a payment on their 600
million Euros owed, much of which is held by the Austrian province of
Carinthea. This debt was formerly rated Triple A. Not any more and all in the
space of one week. The question thus becomes: how many times can all these
entities be bailed out by other sovereigns ? Can everyone be bailed out by
others??
*What is the definition of Insanity?*
A deranged state of mind usually occurring as a specific
disorder or such an unsoundness of mind or lack of understanding which prevents
one from having the mental capacity required by law to enter into a particular
relationship status. This low mental capacity removes one from criminal or civil
responsibility.
I mention the above because we have a government that does
things that make no sense at all, circumvents the constitution, that violates
long standing laws, and that is plain corrupt.
When I mention the word corrupt, I am talking about the
greatest corruption and lying of any administration in American history. That
is the legacy of this Administration. One out of every five people is on food
stamps. How can there be any talk of
recovery with almost 49 million people on food stamps. Our total debt under
this president grows by 7-8% every year. More than all the other previous
Presidents combined.
This President has pledged total transparency on more than
one occasion, and yet he is the least transparent, and the most frequent liar
of any previous president. In fact, this White House has just signed an
executive order exempting itself from the Freedom of Information Act. Years of
financial manipulation, and outright destruction have destroyed the
truthfulness of any financial market. From
what I can add up, the 2014 total budget deficit was 5 trillion.
The total outstanding credit in the world today is now past
$200 trillion. And I know that these numbers are hard to comprehend. And I also
know that I have been writing about a conflagration (an extensive fire that
destroys everything) in the financial markets ( as I do so in this letter)..
People often tell me I have been saying this for so long that they are
beginning to yawn.
And so I tell you, the reader again, there are going to be
enormous losses and cascading effects. There is a huge amount of dislocation on
the way and it is going to be devastating in its scope and intensity.
Concentrating on preserving your money. There is going to be
a *great reprising of all kinds of financial instruments, stocks and bonds. It
has already happened to Commodities and one quadrillion in derivatives is
waiting in line. And that is where the carnage is going to occurr.*
A Summary of Sorts (Potpourri)
Said many times," broke is broke" and this
situation cannot be solved with more liquidity, which will ultimately need to
be paid back. This is the broad systemic problem, liquidity cannot (and never
could) fix a solvency problem. More liquidity (printing money) only creates
more debt and only buys some time while making the overall problem larger and
larger. At some point
in time, the money either gets paid back or "bankruptcy" is admitted
to.
Our government is run by lawyers and not by financial
experts. In studying graphs on all kinds of financial performance, one comes to
the conclusion that there is a *financial collapse* brewing sometime this fall.
I am talking about the period from October to December 2015.. I realize that I
have talked about a financial collapse before, and
certainly one in Europe. All the governments have printed
money to keep this coming collapse at bay. To put it off to some time in the
future. But the cycles are calling for this to finally happen soon. Our budget
deficit is so far out of balance, that we now spend ( budget wise) $1.5
*trillion dollars* more each year than we take in. And this is the
"known" factor here.
Many more trillions
in expense are now off budget.. To put it to the reader very plainly, we have
never been in a bigger bubble. The biggest bubble ever. Where will you be
financially when this bubble bursts?? Probably up the creek because you think I
cry wolf too often.
What kind of a financial collapse,. what kind of a Black
Swan event? I do not know. There are so many things that could happen, so many
financial items out of whack, that it could come from anywhere.. Our government
is the major user of high frequency algorithms,the user of the most
derivatives. Our government is borrowing with no intent of EVER paying anything
back. Derivatives out there amount to
one quadrillion. To repeat myself, that is 1000 Trillion. The major five big
banks in this country have approximately $77 trillion each in derivatives.
Taxes reduce economic growth which is initially
deflationary. The elderly are now forced to work because any savings that they
have does not earn any income. Our government is corrupt on both sides of the
aisle. Your government is BROKE and thus will keep coming after your money time
and time again. So I am also telling the reader that the total globe is also corrupt.
All the business indicators, *are dropping off the charts*.
The utility output has dropped the most in nine years. We are in a GOLBAL
COLLAPSE.
We have now had six straight months of declining manufacturing.
There U.S. industrial production has dropped the most in nine years. When do
people wake up.
All of the oil sector is laying off thousands of workers.
Schlumberger will lay off 11000 more workers. The Baltic Dry index is simply a
disaster, and is mentioned in a previous Remarks. The lowest in 20 years Retain
sales are down 5%. New construction is down 31%. When do people
wake up.??
Global Banking, Domestic Banking is now like running a
violent hedge fund. And so far, all
losses in the banking industry have been made up by the US government. Under a
new bill just passed as part of the Dodge Bill, that is going to change. The
depositors are going to be fleeced now. The bankers now worry when will the
little stupid guy start to
figure this all out. Fully one half of the total stock
market rise is from companies buying back their own stock. The price of meat
has doubled this year and the drought in California will do the same to
everything they produce for our markets.
You government desperately tries to control the price of
every item, every financial report, and all the media. There is simply a record
demand for gold by the few across the entire world. Yet the price does not rise
because of heavy manipulation. Indeed, to cover myself, the price of gold may
go down to $1000 before is goes up to the sky.
The price of gold and silver and platinum are all below the
cost of production. Thus many mines will simply close down or merge to survive.
The supply of these metals will soon dry up. However, the supply/demand ratio
always wins out. At some point, most likely by the end of this year, these
precious metal price will break out of their chains and make
up for all the time they were illegally suppressed. HSBC is
closing all its gold vaults.
Austria, as I read it, is now planning a far-reaching reform
of its deposit insurance--default. You pay taxes all your life and you are told
that government is there to protect you. Austria demonstrates the future of all
nations will face for they now propose a bill which provides that "savers
deposits in Austria no longer will be guaranteed by government.
The banks should be responsible for the safety of savings,
not the government. Your taxes are just for the banks' and government benefit,
not to protect the people. Taken from a Viennese newspaper. Of course, this has
just happened in the U.S. via the Dodd-Frank bill.
Government self interests vs the people. Part of the problem
with pensions and the elderly getting "screwed" is all about your
government trying to keep interest rates low firstly to help the bankers,
secondly to keep the interest rates low and lower. This is a direct conflict of
interest which hurts the pensions and especially the elderly.
At this writing, Greece is very near defaulting. Plain and
simple, it can never pay back the some $400 billion it owes to the European
Central Bank. Russia advances Greece $5 billion for a pipe line to go through
Greece, but this is just a pittance. It is, in my opinion, the early start of a
liquidity squeeze for many countries. Can Spain, Portugal, Italy be far
behind.?
So all of this comes down to taking care of yourself.
Whether the people believe the propaganda or the market manipulation-- does not
affect me one iota. I do what is best for me and my family., To repeat, there
are very few people who realize what is going on. How bad this government
is. We have the weakest administration in the history of our
country. (my opinion). We are going down, and it is nothing more than a Socialist
Obama has promised for this country.
Silver, at this price, and maybe going a little lower, is
perhaps the biggest value in years.
It is used in 1000 applications and a large shortage will
develop. Platinum is now below the price of gold gold 1200, platinum 1138) Yet Platinum is 20
times rarer than. gold.
Platinum used to be
always twice the price of gold for years and years. Another bargain going
begging. Dollar average, take advantage,squirrel away.
Conditions will be and are changing at breakneck speed . We have lost untold industry. More than
40,000 factories have moved to China. With lost industry goes lost income and lost ethics to conduct work and to add
value. Instead the U.S. nation has turned to asset bubbles in a lazy manner,
*and to fraud on a grand scale*. Since urged and applauded, even justified by
Wall Street Banks, they have controlled this major national destruction. To give you a great example, in 2013 the U.S.
had a $319 billion trade deficit for one year with China.. This was the largest
trade deficit that one nation has had with another nation in the history of the
world. This fact has not attracted much attention, but to me it is an emblem of
FAILURE. Never does a strong nation give away its industry and legitimate
income unless it is being sabotaged ( my opinion). Till Later.
No comments:
Post a Comment