Friday, April 29, 2011

What the End Game Will Look Like

I have had a very difficult time convincing my friends and family what the future in the United States is going to look like from an economic standpoint. The people in my life- those with a little wealth or money (currency) are about to get hurt badly. The people who convert worthless currency to silver and gold are going to see the other side and avoid this pain. In fact, they or their children may actually prosper. This outcome, the end game, is unavoidable.

My biggest problem is credibility. When you are telling folks something they don't want to hear or something that hasn't happened before- you already have a credibility problem. If the issue is beyond your perceived expertise; and/or the credentialed investment type people in their lives are telling them the opposite thing because they are biased and compromised by their work- your credibility will be suspect. That is the place I find myself in. 

In life, sometimes doing nothing (like standing frozen in the headlights) will kill you. So what I thought I'd do today is explain why the United States is headed for an economic collapse and what it most likely will look like.

I am going to try and break down a very complex issue into a few paragraphs. You may think what I am saying is a silly wild ass guess *Swag- but you are watching it unfold. It is happening now. My thoughts are a compilation of observations and existing fact. I am not some chicken little type- in fact I am quite the opposite. If I am buying gold- you had better damn sure bet I did my homework because I am simply not a doomsday type. Here then are the facts.

All debts must be paid. They are either paid by the debtor or they are suffered and paid by the lender. However, there is a third way to distribute debt. Debts can be socialized away. Money printed and inflated away. An example here. When borrowers couldn't pay their mortgages or debts in 2007 they walked away from their mortgages (strategic defaults)- and they left those debts to the issuers. Did the issuers (banks) pay the debt? Nope, they couldn't. In fact, they didn't have the money. The debts were then socialized by Hank Paulson, Congress, and the FED. The elite and their paid for politicians socialized those losses and spread them over the entire US tax base. Everyone is going to pay. And that's why those of us who didn't participate as borrowers nor did we issue liars loans- are pissed. We didn't reap any fruits of unsustainable borrowing and our savings are being diluted. Too Big To Fail Banks and our government have truly fucked the financially responsible people of this country. That is a fact that you must accept- and seeing the end game while protecting yourself- is precisely why silver and gold will rise.

The dollar will most certainly collapse. It has to. Runaway inflation, I mean a very real hyper inflation, has to occur. There is simply no way to pay off the trillions of debt we owe. Remember- all debt must be paid. Unless of course you really think we can each pay 1 million dollars- the amount owed at the bottom of the debt clock. Bottom right: http://www.usdebtclock.org/ That's just the transparent debt and the entitlements we are counting- not the unaccounted for debt (Fannie, Freddie, Sallie) that has been unrealized. Paying over 100 trillion dollars in debt and entitlements is laughable, incomprehensible. If you think social security or medicare can withstand this onslaught you are completely insane. Social security and medicare in their present forms will not exist in as little as 5 years from now.

We are bankrupt. The sooner you realize this and invest in gold, the better off you'll be. 

If you are caught holding US dollars, you are going to be financially destroyed. When is this going to happen? I believe hyperinflation could begin as soon as this year or next and if you think gold is expensive at 1530, try buying it at 5 or 6 thousand. I want to let you in on another little secret. The government and the elite will get their hands on inflated dollars first. Their standard of living will not deteriorate as quickly as yours will. They'll be buying gold and driving the price up ahead of you.  They are doing that now. Just because an event hasn't happened yet, doesn't mean it can't or won't.  

The only item of value, the one item that the uber wealthy have hoarded through out history and time, is gold. It is the only store of wealth (along with art, jewels, and real estate) that has stood the test of time. When cash is completely worthless and is universally refused- the government will have to step in. I'm not expecting Armageddon. But I'd damn sure rather be holding gold than any other form of money.

In three months time, the value of my silver has shot up 70% and gold is up 15%. That isn't an aberration. Price appreciation in metals markets will continue to rise until the US dollar reaches it's intrinsic value of zero and a new form of currency is issued.

That's what the end game is going to look like. You can ignore it and become a victim or you can take steps now to preserve what wealth that you still have. Because like it or not, your government and the FED are stealing your money. They are inflating away their debt, and devaluing your savings and buying power. It's a very sneaky way of doing business but that's what makes it so effective. People simply won't see it until it's too late.

http://www.zerohedge.com/article/things-make-you-go-hmmm-my-name-grant-williams-and-i%E2%80%99m-precious-metals-bug?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

5 comments:

HB said...

Brian,
Thanks for the prediction.

rawmuse said...

In simple terms, cash will become a liability in that the longer you hang on to it, the less it buys. People will rush to convert cash to any other thing of value, the prices of which will be going only one direction, upward. History is replete with similar stories.

Brian said...

Perfect.

conservativesonfire said...

I have to hope you are wrong on the timing. When you live on Social Security, hope is all you have.

Rick said...

conservativesonfire...imho you must start immediately to purchase silver at what ever rate you can. Each oz. is an oz. you won't have if you don't start. visit tfmetalsreport.com and you will find a comunity of good folks who will help you prepare. Also accepting the free gift of Jesus will also bring great comfort.