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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: 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.

Thursday, April 28, 2011

One Million Job Applicants at McDonald's

Your chances of getting hired? Not less than one in twenty.

This is the big recovery they've been talking about. God help us.

The Defenders

When I was a kid, we often played some sort of "cops and robbers" type of game. With real BB guns and ski goggles. We never really cared which side we were on, I think we just enjoyed shooting at each other. One other thing. Getting hit in the forehead with a BB hurts. I remember it well.

When I was 11 or 12, I witnessed a murder. A drunken little weasel of a man with a knife. In a bar called the Helsinki Club. We were just kids and the first thing that bartender did that night- was to kick us out of the bar. The police station was one block away. I'd like to think that I chose to be a cop. But I think it chose me instead. It took me about 35 years to figure that out.

There are three types of people in the world. There are sheep, wolves, and sheep dogs. Here are the roles that they play.

The vast majority of people are sheep. They are prey animals. They are honest, hard working people. They go about their business of making a living. They don't gouge, cheat, or steal. They are not greedy. Very often they are completely unaware that the wolves are after their wool and sometimes- their flesh.

The second largest group of people are the wolves. They are completely self absorbed and committed to their desires above all else. They think nothing of fleecing the sheep as long as they can get away with it, legally or illegally. They are very cagey. Wolves always try to act friendly to gain the confidence of the sheep whom they prey upon. They never disclose their agenda which is always the same. They win- you lose. The criminal Wall Street banking class are wolves.  I believe President Obama, without question, is a wolf.

The smallest group are the sheepdogs. They understand that the wolves exist to prey on the sheep although the sheep are often unaware. The sheep dogs' role is to protect the sheep from the wolves. The sheep dog asks for nothing and receives nothing for his vigilance and protection. Sheepdogs do not prey on wolves or sheep. Sometimes sheepdogs grow to dislike, perhaps even hate, the wolves.

In life, that's how it shakes out. It is always best to know who you are dealing with. Is this a sheep, wolf, or sheepdog? Is this guy a wolf masquerading as a sheepdog? There is always one sure fire way to identify a wolf. Do they act selflessly? Do others benefit from their actions? Or do they always seem to have an agenda that benefits them while damaging others?

Sheep sometimes become wolves or sheepdogs. Wolves never become sheep. Sheepdogs can never become sheep or wolves. The roles are defined.

To this day, nothing bothers me more than seeing the sheep get fleeced by the wolves. To watch as millions of hard working and tax paying citizens were literally robbed in broad daylight by a cabal of bankers and politicians still infuriates me. That the wolves have tried to cover their tracks for three years now with talk of bullshit recoveries, gerrymandered numbers, and lies- simply defies belief. How much longer can this charade last? Not much longer.

I view websites like Zerohedge as the Mother Ship of Defenders. A place where the sheepdogs congregate to formulate a defense against the wolves. We know who the wolves are. We know how the wolves operate and we know what they are after. This country is in serious need of some sheepdogs, some more defenders. We've got plenty of the other two kinds.

Wednesday, April 27, 2011

Huge News Day!

So President Obama, after three years of hiding his long form birth certificate, finally produces it. That he did this today, of all days, makes me scratch my head.

I mean what was the big mystery? Does it take Donald Trump to make Obama do what he should have done years ago? And why today? The very same day that FED Chairman Bernanke is making the first ever televised press conference with government approved reporters asking softball questions? Weird.

I am listening to Ben now. I will say this. He is full of shit but at least he communicates that bullshit and misdirection clearly- unlike Alan Greenspan.

Transitory inflation. Bernanke says it will go away on it's own. The Bernank had nothing to say about our weak dollar other than saying a strong dollar is good. That's the kind of deep insight one would expect from an MIT grad.

Bernank also said that the FED would keep low interest rates and that they are going to end QE2 on June 30 without tapering it down. He believes financial markets will come to the rescue. That is where Ben gets delusional. That's the shit I can't wait to see. Who's gonna buy our debt when the entire purchasing world is broke and we have no plan to pay off our debt? I wanna see what kind of idiots are going to accept a 4% yield for treasuries issued by an essentially bankrupt country.

I can't wait to see that. The three biggest holders of our debt are China, Japan, and England. Two of those countries are broke or crippled and the third wants to usurp the United States' status. I just don't see China investing heavily in the U.S. At any level. Including dumping two trillion federal reserve notes.

The Bernank did state one truthful thing. He said they can't do anything about high oil prices. He said that... despite Turbotax Timmy Geithner's statement a few months ago... that the FED has a great deal of experience dealing with high oil prices. The inference of course, was that the FED has some magic bullet they can fire to bring oil prices down. More BS from the Treasury Secretary.

Gold and silver making huge upside moves. All in all, this has been a very interesting day. Still evaluating and mining the blogosphere for additional information.

Tuesday, April 26, 2011

Cyber Bullying Bill...How Did We Ever Survive Without That?

Bullying is not a new thing. In Oregon, a lawmaker was reading about two isolated cases of cyber bullying that purportedly resulted in suicide. Her solution? There should be a law against such abhorrent behavior. It is happening now.

This is the kind of mindless law making that I absolutely detest.

The knee jerk reaction for all Moonbats when they find something distasteful is to pass a law against it. Imagine my shock when I saw the (D) behind this legislators' name. The reason they do this has far more to do with self seeking behavior than any of them care to admit. At first blush, a bill like this seems relatively harmless. It seems almost reasonable. The bill's sponsor, perhaps a victim of bullying herself, decides to right an old wrong. Champion a law which won't accomplish one positive thing- including preventing cyber bullying. In fact, it will rest like thousands of other worthless laws in each state that go largely unenforced until some odd set of circumstances finds the narrow wording of the law precisely right for some future case. 

In our new lawyer driven Moonbat culture, when we find something distasteful- we immediately call the police, sue, or pass laws. We assume there is no other solution. We will never have enough laws, enough law enforcers, or enough jail space to make our society happy. In the end there must always be revenge, cloaked as justice.

This year, millions of people will commit suicide. Nobody will give a shit about any of them other than their immediate families. There will be no investigations, nobody will get angry reading the paper (because Lord knows we can no longer mention the truth, or the cause of death in an obituary) and there will be no knee jerk reactions or laws passed that will save any of those millions. Because we don't know how to treat people in this country. We can't even tell the symptoms from the disease. We treat symptoms like they are the cause. The best solution we have- is to pass another law. That is kind of sad and pathetic.

To hell with free speech. To hell with educating our children and teaching them how to behave. To hell with teaching our children not to take bullying personally. To hell with trying to communicate with the offenders' parents and find an amicable solution. Let's pass some more laws and put some more kids in jail. Let's demand more from an overburdened criminal justice system that is already leaking oil everywhere.

The cyber bullying law. Gee, I can't wait. Hell, maybe that Oregon lawmaker will charge me with violating that law with this blog. What was her name again?

Quite Suddenly, The Silver "Experts" Materialize To Warn Us About Bubbles

The experts now warning about a silver "bubble."

I find it absolutely fascinating that so many people are now talking about bubbles in the price of gold and silver. These good Samaritans are trying to help us avoid disaster. Trying to warn us that silver is greatly over priced- as though the worthless fiat currency that we use to purchase silver- is somehow of far greater value. Wow.

First of all two disclaimers. I am no "expert." Secondly, I own gold and silver. Physical.

Historically speaking, gold and silver have ALWAYS been money. When fiat currency is on a "gold standard" it is worth something. When fiat is not on a gold or silver standard, it is just paper. It is backed by nothing of value and guys like Bernanke can simply counterfeit it. Print it. That is where we are today. The world's reserve currency is just fancy paper. Ass wipe. It is not backed by anything precious and the debt that we issue- is simply our promise to pay you. That's it. We issue no collateral other than the future taxes of currently non existent jobs with non existent workers. Our promise. And we print this worthless fiat currency and give it to you for your oil. And you take it. Perhaps just for a little while longer.

I have always loved walking into the silver and gold bullion dealers and saying, "Are you guys still trading precious metals- or real money- for this worthless paper?"

I can't ignore the fact that gold and silver are commodities. I understand that the physical price of these commodities are driven by paper speculators in futures markets. I get that. I also understand that gold and silver have doubled and tripled in price. I get that also. The price of pork bellies, soybeans, oil, wheat, cotton, Apple stock, Ford pickups, and health care have also doubled and tripled over the years. Were all of these things in bubbles? Or are we just talking about time?

Of course we are. When homes appreciate 3% per year- we think that's normal. Sustainable. The price appreciation is slow. However, when silver and gold shoot thru the roof- after 30 years of no price appreciation and do so quickly...we say they are in a "bubble." Yet how many people own physical silver and gold? Less than 1%. More people own guns than gold and silver. Are guns in a bubble?

So what bothers people isn't really the price appreciation- it's just that gold and silver have appreciated too fast. Unsustainable. Like loose credit driven housing in 2006. If gold and silver had appreciated 3% every year for 30 years- people or "experts" might have thought that was acceptable. Like house prices.

Is silver due for a correction? Probably. Yet if it didn't correct here, I wouldn't be surprised. I have seen stocks literally go straight up, day after day. I've seen oil do that also. At some point, all things of value stop appreciating. They run out of buyers or price themselves out of buyers. At least for awhile. That's normal. At what price point will silver stop appreciating? I'm not sure. And I am not stupid enough to try and predict that. 

The reason gold and silver are appreciating so quickly is because the worlds currencies are being devalued so quickly. An inverse relationship. There's that time thing again. That and there is significant evidence that there is no available supply of silver. So people are investing in real money (precious metals) and that has created a near term shortage which will get filled over time. The correction will occur when silver demand is met and brought back into balance with supply. Bubbles? No. Right now there are too many worthless dollars chasing a very limited supply of precious metals. This is just price discovery.

In the end, I might be able to live without a pork belly. Maybe I can even avoid using oil. But the one thing I can't live without- is real money.

Monday, April 25, 2011

Get Your Evacuation Papers Fast!

Now thinking I am a genius for having obtained my evacuation papers last month. Now the government is going to make it very difficult to get a passport.

I hope every tax paying, non-deadbeat citizen gets a passport. The government needs your assets to pay their 14.3 trillion debt. They are going to want to keep you and your earning capacity stateside.

Sunday, April 24, 2011

California Taxpayers Buying Cigarettes and Booze for Deadbeats

Left Coast Rebel had this post up about lawmakers in Communist California now allowing deadbeats to buy booze and cigs with food stamps. You really can't make this shit up.

Happy Easter!

Please have a wonderful day. We will resume watching the nut jobs that masquerade around as our leaders tomorrow. Today, should be reserved for far more important things.