Thursday, February 23, 2012

What's Up More In the Last 30 Days, The DJIA, Oil, Gold or Silver?

The answer is silver. About 7.5%. A percentage point better than oil.

The problem with 3.50 and 4.00 gas is that it affects everyone. The only way you can hedge your losses at the pump is by using a strategy of investment and executing it.

American citizens are getting their asses kicked on so many fronts right now- it's almost hard to fathom. Competition is all but non existent. Monopolies exist in the drug manufacturers, the cell phone carriers, the oil companies, utilities. Government is manipulating CPI and inflation numbers while they counterfeit currency and hide debt-

This year, for the third year in a row, my state retirement fund handed out a whopping 1% cost of living adjustment. This is deplorable. They are not even trying to match the manipulated 2.5% CPI numbers. Shadow stats has real inflation near 11%. So my buying power continues to shrink away. Rapidly.

Taxes are increasing everywhere. Not odd that taxes are never accounted for by your government manipulated CPI.

I even suspended the insurance on my truck and parked it. I simply can't afford to put gas in it or insure it.

I had this weird feeling that we were passing through the eye of a giant economic hurricane during the last few months. Things seemed pretty calm, prices were too stable. It was almost eery. If you do not have a plan or some excess cash to invest in hard commodities- you are not going to weather the economic storm that is shaping up in 2012. I use a little formula of my own- and I believe it will take about 10 or 12k worth of investment in gold and silver to make 2k this year. I will use the 2k I will make this year to offset the rampant inflation everywhere. I will buy back in at the dips never risking principal or my underlying hoard. Rinse and repeat in 2013. 

Excellent support for my gold/silver theory here. http://www.zerohedge.com/news/marginal-utility-central-bank-intervention-rapidly-diminishing

The government and the bankers are just praying you buy stocks at these sucker top levels. They are waiting to dump their shares. The stock market has become a very sick investment. It has no predictive value, it certainly offers no guarantee (perhaps on the downside) and quite honestly- it's rise simply reflects the added liquidity as the central bank counterfeits currency and the money supply chases stocks higher. This is no job or consumer lead rally. This is a zombie stock market.

I won't be making any money on investments. I am just hoping to tread water and break even with inflation. Wealth preservation. For those folks with no plan, they will find themselves 2000 dollars poorer this year. That's how it is in stagflation nation. I just hope it doesn't get much worse. Like war and 5 dollar gas.

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