August 31, 2009 

The other day, I went to the Department of Motor Vehicles (DMV) to renew my driver’s license.  This was not my first visit as the last three attempts ended in frustration.  Unlike some, I can’t afford to “take a number” and wait four hours for my turn to come up.  Funny thing, I have a business to run so I can pay the taxes that make this inefficient system possible.

It didn’t used to be like that, but my state thought it more important to eliminate DMV offices so they could employ two new ACLU lawyers.  This is big government at work.  And you think, by any stretch of the imagination, that government run health care could ever be successful?

The inept morons, masquerading as government employees, that run the DMV would be running the health care system.  Be prepared to die in line while waiting for healthcare.

Small business employs 70% of America and big government is running at a breakneck pace to destroy the hand that feeds them.  If Cap and Trade and Healthcare “Reform” passes, you will see an exodus of small businesses that either fail or realize that working to subsidize degenerates just isn’t worth it.  Why take the risk of private capital if there are no rewards?  In their attempt to re-distribute wealth, or Marxist leaders are going to equalize the poor and destroy America as we know it.

Our leaders today are nothing more than a pack of ambulance chasing lawyers who have sued their way to positions of power.  They have not created wealth with capital expansion and job creation.  No, they have destroyed wealth with a blizzard of lawsuits attacking every segment of the economy.  They themselves bear the brunt of high health care costs.  Yet they are in charge of the “change” we are supposed to swallow.

As we continue to lose 500,000 jobs per month, where on earth are the “green shoots” in this economy that have propelled the S&P 500 up 50% since the March low at 6,500?  How absurd is this rally when corporations are closing facilities and laying off employees in order to try and hit their REVISED earnings numbers?  Now, we even hear that this will be a “jobless recovery!”  Give me a break.  Seventy-five percent of our GDP is based on consumption.  So tell me how unemployment at 10% and rising can benefit the markets?  You see, if people lose their jobs, they stop consuming, which grinds this economy to a stop.  On the flip side of this equation, these newly unemployed now stand in line for unemployment benefits.  With millions of unemployed drawing benefits from a bankrupt system that has a shrinking cash flow due to a reduction in tax payers, where in the world is the “recovery” going to come from?

Our banks use revisionist accounting practices (AKA:  FRAUD), as do the crooks on Wall Street and in Washington.  They have been so corrupted that they regularly use “fantasy” economic models instead of Generally Accepted Accounting Principles (GAAP).  Where on earth are the SEC and CFTC to regulate this hocus pocus smoke and mirrors show?  One can only assume that they are but one cog in the wheel of corruption.

Going forward, third quarter earnings will be very disappointing.  Business can make only so many cuts to the top line (close factories, lay off workers, reduce inventory) in order to make their bottom line (earnings) look good.  But they are running out of cards to play.  The consumer needs to consume and they are not.  They are either paying down debt, saving, or unemployed.  No recovery, and certainly no growth, is possible in this scenario Comrade Obama.

The Marxist solution to this problem economy is predictable – keep raising taxes on a decreasing tax base until you are bankrupt.  Need an example?  Look no further than California.  How would you like to be paid with and I.O.U. instead of a paycheck?   Sadly, there are a dozen states out there that are facing similar conditions as they confront mounting deficits in their budgets.

We are headed toward a firestorm that will destroy everything in its path.  A soft landing is out of the question at this point.  The Fed knows if they raise interest rates to curb future inflation, they will destroy what is left of our feeble economy.  On the other hand, the lack of confidence in the economy and zero interest rates will guarantee the coming Blitzkrieg of hyper-inflation.  They have put America between a rock and a hard place and we are about to be ground to pieces.

The reality of the situation is this:  As a nation, we are broke.  The dollar is breaking up as the world’s reserve currency.  Nobody wants to finance our socialized utopia anymore.  Like a gathering storm, people are waking up and looking to “real money” – silver and gold – to protect their wealth.

It is vital to your survival to own physical silver and gold.  Personally I am purchasing 100 ounces of silver to every one ounce of gold because the percentage rise in silver will dwarf gold.  A good strategy in your silver holdings is a bag of pre-1965 U.S. silver dimes, quarters, and half dollars.  This will give you smaller denominations of silver for barter in the coming black days.  Also if you shop around, you’ll find these bags of $1,000 face value silver can be purchased at the lowest premiums over spot silver.

Definitely, get started or continue your accumulation of silver and gold.  We are going to see a disconnect of equities and metal when gold goes over $1,000/ounce and silver breaks $20/ounce.  In other words, when the S&P goes down, metals will go up instead of these two markets working in tandem.  This day is in the very near future.  At least 20% of your net worth needs to be in metal.  Play Russian roulette with the other 80%.

August 25, 2009 

Leaders lead by example, dictators rule with an iron hand.  You tell me what is occupying our White House.  Ein Folk, Ein Reich, Ein Fuhrer.  Welcome to Amerika, Comrade!

While the average American is struggling to get by, eating mac ‘n cheese or pork ‘n beans, our glorious Chairman Obama dines on Kobe beef while his wife dines on lobster.  We are told to buy a hybrid car, he drives armored SUV’s.  We order a Domino’s pizza on Saturday night for a special treat.  He flies his favorite pizza maker in from St Louis so he and his Commissars can dine in the White house.  Excuse me while I purge my pizza.

Our government does not have the authority to dictate personal innovation and achievement as a means to subsidize the perennial lazy.  That is, a government as established by our founding fathers, with a Constitution and a Bill of Rights that guarantees the individual’s life, liberty, and property.  Where is that government now?

The American people must realize that they are broke, our banks are insolvent, and our government is bankrupt.  Zero interest rates, liberal credit, and rampant consuming will be the epitaph on our tombstone.  The Fed mixed the concoction but we willingly drank the poison.  Get ready to wake up in a third world country ruled by the elite ruling class of the New World Order.

The FDIC is a myth.  A complete fantasy created to provide us with a false sense of security.  With 77 bank failures under their belts, they are in the RED.  An additional four more banks makes it legitimate. Now they say 200 more banks will fail by year end.  Does anybody get it? This is one big scam.  The MOTHER of all Ponzi schemes.  How can they provide a backstop when they have 1.4 cents in reserve for every dollar they “insure?”  And you think your fiat savings are safe in the bank?

The markets continue to soar as our corrupt media harkens an end to the recession.  What a complete and absolute lie!  Please explain to me, you elitist swine, just how the so-called “recovery” is being sustained?  Tell me how this is possible with dividend yields and P/E’s so poorly valued.  For example, the P/E ratio on the S&P 500 is up to 127 from 20 at the start of the March rally.  More importantly, the dividend yield on the S&P 500 has fallen to 2.13% from 3.5%.  In other words, stock prices have soared while earnings have tanked.  As the S&P 500 has gone straight up, volume has gone straight down.  The big money remains on the sidelines.  Mutual funds, hedge funds, pension funds, and insurance fund managers are NOT committed to stocks.  And without them, there is no fuel.  Without fuel, this dragster comes to a halt.

Don’t let the facts get in the way of a good lie, or in this case, a plethora of lies shoveled higher than a Minnesota snow storm.  Always remember, the market can remain illogical longer than you can remain solvent.  The sheep are about to be sheared again.

Warren Buffet said recently that the current U.S. deficit at 13% of GDP or 1.8 trillion (News Flash:  the Obama White House just raised the number to $2 trillion) puts us officially in “unchartered territory.”  The treasury is still obliged to “find” another $900 billion or $1.2 trillion (might as well be infinity at this point) to finance the remainder of the deficit.  Where is this coming from?

According to my meager understanding of economics, our elite Marxists in Washington have three ways to reduce the deficit:

1. RAISE TAXES

Unless you suffered an open head injury to your brain in youth football, this should be obvious.

2. DECREASE GOVERNMENT SPENDING

This will never be done since our elected “anointed ones” all suffer from lack of brains.  No football injury required, just an Ivy League education.

3. INFLATE OUR CURRENCY

Beam me up Scotty and set the printing presses for warp 10!  With government outlays running 185% of receipts, what do you thing the Fed is going to do?

Looking forward to the rest of 2009, I find the following to be quite possible:

• The FDIC will be “too big to fail” and will become the next AIG money pit.

• Banks will fail en masse.

• There will be runs on the banks and the government will impose “bank holidays.”

• Prime mortgages will implode taking home prices down another 30 to 40%.

• Commercial real estate will dissolve leaving ghost town developments.

• Unemployment will continue past 10% on its way to 11.5%.  Actual, non-corrupted unemployment numbers will be 20% plus.

• Consumer spending will slow to a crawl, shuttering small business across the country.

• Sugar will be the first food shortage with more to follow.

• The S&P 500 will tank to 650 and the DOW will retreat to its March lows.

• Silver and gold will soar in price as world currencies inflate themselves into oblivion.

• China’s “Magical Mystery Tour” will end in the bursting of their credit bubble, which will send shockwaves around the world.

• The hysteria of an H1N1 flu pandemic will be the vehicle used for Martial Law in America.

• Cramer will continue to recommend owning equities with P/E ratios above 100.

• The spin doctors on Wall Street and in Washington will choke on their “fantasy” economics.

• Santa Claus will be grounded due to the passage of Cap and Trade.

My grandparents left Russia to escape the brutality of one Czar.  We now have over 40 “Czars” in America!  Does that bother anyone besides me?  America, the lighthouse of freedom on earth, has had its’ beacon diminished to the point that it is only a candle flickering in a stiff wind.  Welcome to Amerika, Comrade!

The lid is coming off this boiling pot and the vast majority of investors are going to be scalded beyond recognition.  Get out of equities, bonds and treasuries!  They won’t be worth the pile of crap they are stacked upon.  Avoid a bank run by investing in real money . . . silver and gold.  In the coming inflation, they, and only they, will preserve your purchasing power.  When the world wakes up, and moves en masse to protect their assets with silver and gold, the supplies will disappear and prices will go into orbit.  It is vital for you and your family to be protected under the umbrella of real money.

Our experiment with a government corrupted fiat currency is coming to an end.  You can be a survivor or a resident of a FEMA concentration camp.  The choice is yours.

 July 13, 2009