Please feel free to forward this on to your friends and family so they too may take advantage of what I am about to tell you. Some of the signs that we are seeing are very foretelling but unfortunately, the future doesn’t look very good. Of course, you won’t hear any dismal warnings from the Mainstream Media and certainly not from the District of Criminals in Washington, but you will hear it here at the Gold Specialist Blog.
If you did spend your time listening to the Mainstream Media and those in Washington, it might sound something like this:
“[1930 will be] a splendid employment year.” — U.S. Department of Labor, New Year’s Forecast, December 1929
“I am convinced that through these measures, we have reestablished confidence.” — Herbert Hoover, U.S. President, December 1929.
“While the crash only took place six months ago, I am convinced we have now passed through the worst — and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.” — Herbert Hoover, U.S. President, May 1930.
“This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan ... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years.” — R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929
“The Wall Street crash doesn't mean that there will be any general or serious business depression ... For six years American business has been diverting a substantial part of its attention, its energies and its resources on the speculative game ... Now that irrelevant, alien and hazardous adventure is over. Business has come home again, back to its job, providentially unscathed, sound in wind and limb, financially stronger than ever before.” — BusinessWeek, November 2, 1929
“For the immediate future, at least, the outlook (stocks) is bright.” — Irving Fisher, Ph.D. in Economics, in early 1930
The problem with this thinking is that the depression didn’t end until the 1940’s maybe longer depending on who you talk to. Had you heeded the words of the Mainstream Press, Pundits and Talking Heads, you would have been in for a decade of financial disaster.
The Government Wants Your 401K’s and IRA’s, What’s Next?
Some of our more frequent readers might remember last month’s warning that the Federal Government wants your 401K’s and IRA’s – well this month I can report to you that the Government also wants your pensions. This should send chills down the spine of the supporters of a free and open society. It’s almost an immediate answer to the proverbial question of “what’s next” well what’s next is that the Government is wanting to use your pension funds to prop up the assets of failed banks. Take a minute and give that last sentence a second look, then take the time to read the Bloomberg article entitled “Failed Banks May Get Pension-Fund Backing as FDIC Seeks Cash.”
The Real Story on Inflation
It is becoming increasingly obvious that the reckless spending by Governments around the world will lead to an inflationary crisis, perhaps on a scale never before seen. One example is the price of steel. A recent report put out by MSN money, shows that the price of steel is set to rise by more than 1/3 over the next year, a serious indicator of inflation.
Furthermore, since 1996 the Government has changed the way it calculates CPI nine times. The United State Constitution specifies the importance of using just weights and measures. If the calculation of one of the most important economic indicators available has been changed nine times in fourteen years, does that in any way reflect a system of “just” weights and measures? Of course not. But the reasoning behind the change is simply to fleece the public and cover the truth.
In fact, when a broader index of inflationary indicators like the commodity index are included in the CPI it shows that inflation is SOARING and is nowhere near the benign numbers that the Government is reporting.
Make sure to consider the articles “Inflation Warning Etched in Steel” and “The Coming Inflation Wave.”
“Wake Up Fools” – The Bond Market
Houston, we have a problem. The Budget deficit of the United States just hit a record high; the problem though is the interest on Public Debt is at an all time low. In order to finance our ever-growing Nanny State, the endless bailouts of Wall Street and the takeover of the Medical System, Uncle Sam must be able to easily sell its bonds, but this isn’t the case. In fact the recent selloff in United States Treasury’s have risen Sovereign Debt Fears – translation: What happened in Greece could very well, and most likely will, spread Worldwide. Consider the article entitled “Selloff in Treasuries Raises Sovereign Debt Fears.”
Many of us know that the Dow Jones just busted throughout the 11,000 level for the 3rd time in the last decade, but how many of you know that the bank of International Settlements just put out a report saying that here in the land of the free our Debt to GDP level will exceed 400% by 2040? Friends, a Debt to GDP ratio of 400% equals instant, guaranteed default. With a scenario like this brewing does it make sense to own stocks? Consider the article entitled “Bank Of International Settlements Sees US Debt/GDP At Over 400% By 2040.”
How can this news be good for stocks? It isn’t. Moody’s took note and actually put out a warning regarding the profitability of companies, specifically the financials in the years to come. These details are further verified in the article entitled “Moodys Warns of Pain Ahead For Financials; Profitability Concerns Due to Record Charge Offs.”
Since markets never lie, these facts have led to some interesting revelations the most important of which is that according to the bond market, it is currently safer to lend money to Warren Buffet than it is the United States of America. Yup, you read that right, the market says that lending to the United States is more risky than lending to Warren Buffet meaning lending to the United States is sheer lunacy. How did this happen?
Well, Moody’s just issued another separate report warning what we have been warning for the last 12 months - that the United States could be destined to lose its triple AAA Rating. It says that the United States is heavily leveraged adding that acute challenges lie ahead for the United States and other developed nations. Did you ever think you would see the day when the richest most powerful nation on the face of the planet would be seen as a bigger credit risk than Warren Buffets Berkshire Hathaway? That day has come. With evidence such as this, tell me, what foreigners are stupid enough to keep financing our consumption through buying our bonds? Not many.
For more on the unfolding crisis in the Bond Markets, consider the Articles “Obama Pays More than Buffett as US Risks AAA Rating,” “Kiss AAA Goodbye Says Moodys,” and “As Budget Deficit Hits Record High, Interest On US Public Debt Hits Record Low.”
How Does This Effect the Gold and Silver Markets?
Just to recap what we have learned up to this point – Government Officials and the Mainstream Media are lying to you, they want a portion of your IRA’s, and 401K’s forced into annuities based on bonds and they would like to have your Pension Funds to back up the assets of failed banks, inflation numbers are far off base, and the Bond Markets are signaling a crash ahead. All of these events point to much higher Gold and Silver prices in the future, but there is more. Much more.
We told you last year that Central Banks were buying Gold instead of selling it, this has been further verified in the article entitled “Central Bank Gold Holdings Expand at Fastest Pace Since 1964.” We have also warned you that the issue of “peak” Gold was on the horizon, meaning that the readily available Gold in the World had already been mined and was quickly diminishing, this can be researched further in the article entitled “World Gold Council Sees New World of Opportunity as Peoples Bank of China Expected to Buy Gold as their Mines Become Depleted.”
What does this mean for the Gold Market? Well a very respectable General Counsel for a huge hedge fund – Long Term Capital Management – says that a $5,500 Gold price would be fair value based on the economic conditions that are currently in place. Saying there is “Little Time to Avoid Catastrophe and Almost No Exit.” There are others that say Gold can go much higher than that and in the section below, you will find out just how that might happen.
And, don’t forget Silver. Silver has been soaring of late and it is oftentimes overlooked as the poor man’s Gold. Let me assure you though, the market forces setting up for Silver look to be even stronger than that of Gold. I recently read one of the most important articles on Silver in some time, in it the author unveils an amazing fact:
According to the Act that set up the Gold and Silver Eagle programs in the United States, in order to mint Gold and Silver Eagles the United States Mint MUST buy only Gold and Silver minted in the United States. The problem is that Silver Eagle sales are soaring to near 40 Million Ounces of Silver per year which is exactly the amount produced by U.S. mines each year. Couple that information with the fact that 40% of Silver is used for industrial applications, 30% Jewelry, 20% for Photography, with a small fraction being left over for investment. However, according to U.S. mine production 100% of the Silver mined in the United States is being used strictly to mint Silver Eagles.
I shouldn’t have to tell you that this is a perfect setup for a Silver explosion. During the bull market of the 70’s when Gold leapt by 700% it was Silver that took the cake – it went up 1400%. Take the time to read the article entitled “Silver Sales are Soaring,” you will be glad that you did.
None Dare Call it a Conspiracy
We at the The Gold Specialist blog rarely talk about the concerted effort by Governments around the World and Banks working on their behalf, to suppress the price of Gold and Silver. Although the evidence of this is clear and there are many voices within the industry that have been crying foul for many years, we chose not to cover it because the evidence was technically un-provable. Not anymore. The developments of this conspiracy were the driving force behind this emergency mid month release.
Thanks to the insider “whistleblower” Andrew McGuire, it’s going to be extremely hard to put the Gold and Silver Price Manipulation Conspiracy genie back in the bottle. During a recent hearing into the manipulation that was held by the Governmental Regulating Authority the Commodities Futures Trading Commission, Mr. McGuire confirmed the obvious – that the London Bullion Market Association is a Paper Gold Ponzi Scheme. According to McGuire the LMBA is engaging in fraud that is detrimental to both Gold and Silver Markets, claiming that the London Bullion Association is trading over 100 TIMES the amount of Gold that it actually has to back the trades. Within days of his testimony, Mr. McGuire and his family were involved in a hit and run car crash, which is purely coincidence we are sure. Here is more on the subject from the Gold Anti Trust Action Committee:
“On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.
In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.
On February 3 Maguire gave two days' warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.
It would not be possible to predict such a market move unless the market was manipulated.”
So what did our strong “REGULATORS” do about the absolutely provable manipulation? Nothing. Not yet anyway.
We have been warning for years to stay away from “Paper” gold like the ETF’s GLD, SLV, and other similar “investment vehicles” if you dare call them investment vehicles. With the testimony of Mr. Mcguire we now know that these ETF’s play a critical role in the manipulation scheme. In fact, the numbers are so dubious that if all exchange traded funds that were supposedly storing gold on your behalf were faced with a demand for delivery from their clientele there would be no Gold left anywhere in the World.
This “rigging” of the market is commodity wide dealing with both Gold and Silver. The problem with trying to rig markets is that NOTHING is stronger than the free market and that market manipulation, 100% of the time, without fail, will eventually blow up into the face of the manipulators. Through trying to suppress the metals markets, the manipulators are trying to hold a beach ball underwater, it’s inevitable that beach ball is going to come rocketing out of the water at some point, and at that point, it’s possible that Gold could soar through $10,000/oz according to some analysts. The same results could be said for Silver. Again, the word is out, the genie is out of the bottle, there is no putting it back in.
Furthermore, this isn’t an isolated event. A recent audit of the Canadian Bullion Bank showed that the vaults are practically empty as well. Although they are supposedly the custodians of a very large ETF, and should be flush with Gold, but they aren’t. It even led one of the men that entered the vault to comment - "The game ends when the people who own all these paper obligations say enough and take physical delivery, and that's when the mess will occur."
Consider the Articles “Former Goldman Analyst Confirms LMBA Gold Market is ‘Paper Gold’ Ponzi Scheme,” “Will Fraud Lift Gold Prices to $10,000 Per Ounce, ” “National Inflation Association Says Silver Short Squeeze Immanent” and “The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault is Practically Empty.”
Your Open Invitation to Attend!
Mr. McGuire mentioned that the End Game with Paper Gold is near, and that a “mess” is on the horizon. The problem is that the so called “mess” isn’t on the horizon. It is already here, and it seems to be one of the main drivers of the recent surge in Silver and Gold. This massive fraud unfolding could be the instigator of a BIG run in precious metals and now is the time that you can take advantage of it.
Even absent the abysmal fraud and manipulation scheme, the events covered in the first 2/3 of this report should be enough to send Gold and Silver soaring – combine the two and we have the makings of an event that someday will be looked back upon in history. Judging from the evidence, that event will likely include huge advances in the prices of Gold and Silver. An event that could make $3,000 Gold and $100 Silver seem cheap.
Showing posts with label Gold Specialist Exclusives. Show all posts
Showing posts with label Gold Specialist Exclusives. Show all posts
Wednesday, April 14, 2010
Wednesday, March 3, 2010
Gold Specialist Exclusive Report - March 2010
Gold and Silver have both traded sideways over the last 30-45 days giving you more time to make acquisitions at levels that we consider oversold and undervalued. Although the recent trend has been sideways, we did see a big run up in both metals on Tuesday, March 2nd.
This new run, could push Gold and Silver much higher - many are speculating that Gold will trade in excess of $1350/oz in 2010. Others are calling for severe shortages in the Gold and Silver markets. These shortages are never good, in the height of the financial crisis in 2008, wholesale bids on bullion products like the Silver Eagles were trading for almost 30% over the spot price, and after paying more than 30% over spot, clients had to wait up to 6 weeks to receive their shipment, not a good scenario.
Consider the articles "Brace Yourself for the Coming Gold Shortage" and "Gold to Hit $1350-$1400 by Late Spring".
Debt - The Word of the Month
The current scenario financially, on a worldwide basis, is one of despair. In 2008 we were awestruck at the complete failure of Lehman Brothers et al, in 2010 and onward, we believe that instead of business giants going bust, it will be entire Countries and States that go under. If you think the issues of Lehman and Bear Sterns were bad, wait until the repercussions are felt when entire Countries go bust.
If the word of the month over the last three months has been hyperinflation, the new word of the month that is on the tips of most financial pundits tongues is Sovereign Debt. It is interesting that this is the case since burdensome Sovereign Debt loads are the problem that normally ends in hyperinflation, not the other way around. So in reality, the Sovereign Debt issue that is on everyone's minds, especially pertaining to the financial fiasco in Greece, should have been the first conversation piece, not hyperinflation. Since unsustainable debt is a precursor to hyperinflation, it should be terribly concerning to our readers that the only thing the mainstream media and pundits seem to be talking about these days, is, you guessed it, unsustainable debt. By omission, these mainstream pundits, are telling you that inflation is on the way and to buy all the Gold and Silver that you can, while you can.
The Global Debt Bomb
Over the last 30 days, many of us have heard about the debt crisis in Greece, but how many of us have considered a "Global Debt Bomb"? Forbes Magazine has considered it, and in fact, recently ran a cover story with the same title. In the article, the author points out that these unsustainable debt levels are not limited to just Greece. In fact, in this year alone, Governments around the world will issue an estimated 4.5 TRILLION in debt, an amount that is three times the five year average for industrial countries. Of that 4.5 Trillion, the United States accounts for a whopping 45% of total debt worldwide. According to estimates, the amount of debt issued by Global Governments in 2010 would be enough to buy every ounce of Gold ever mined in the history of the world, all in a single year!
This mammoth accumulation of debt is unprecedented, and there will be consequences. Many are claiming that the debt crisis in Greece will spread to the doorstep of America sooner rather than later. In an article published in one of the most prestigious financial newspapers on the planet, the Financial Times, entitled "A Greek Crisis Headed to America" the author gives the following warning:
"For the world's biggest economy, the US, the day of reckoning still seems reassuringly remote. The worse things get in the EuroZone, the more the US dollar rallies as nervous investors park their cash in the "safe haven" of American government debt. This effect may persist for some months, just as the dollar and Treasuries rallied in the depths of the banking panic in late 2008. Yet even a casual look at the fiscal position of the federal government (not to mention the states) makes a nonsense of the phrase "safe haven". US government debt is a safe haven the way Pearl Harbor was a safe haven in 1941."
Here in the United States of Debt, according to the Congressional Budget Office, the Gross Federal Debt will equal 100% of GDP in just two years time. Not only that, the CBO also stated that the United States will NEVER have another balanced budget. You read that right - NEVER.
The Dam is Breaking
While the Greek Crisis seems to be the epicenter of our most recent financial Earthquake, its aftershocks are being felt around the world. A Major French Bank, Societe Generale, has recently put out a report stating that the collapse of the Euro is inevitable, especially if the EuroZone bails out Greece. You see, in the past, before the ideas of Free Trade Agreements and Globalism were implemented, the natural firewall to crisis like this one were national borders and boundaries. Today, all it takes is one crack in the dam to bring down the whole world economy.
It would be intellectually dishonest to believe that the debt crisis is isolated to the EuroZone and Greece. America has problems of its own that aren't much different from those seen in Greece. This realization has led many to believe that the United States could be in the beginning stages of losing its precious AAA rating on its bonds. It has also led to major banks in the United States, like Bank of America, to issue warnings reported in Bloomberg with the title "Junk Debt 'Wall' to Trigger U.S. Defaults" in it Bank of America issues the following ominous statement:
"A 'wall' of junk debt maturing in the next four years will increase the risk of corporate defaults in the U.S., according to Bank of America Merrill Lynch. Almost 90 percent of loans outstanding mature in the next five years, compared with an average of 36 percent between 2005 and 2009, according to the report."
Statements like those from Bank of America were also echoed more recently by the President of the Kansas City Fed, Thomas Hoenig, who warned that unless the U.S. take difficult steps to reduce spending and increase revenue, (think more taxation) the Federal Reserve might be forced to "fund" the "unsustainable" Federal debt. These buzzwords could be a veiled threat that the Federal Reserve, if it hasn't already, will soon be forced to monetize our debt, an action that is highly inflationary and would likely send Gold and Silver soaring.
China Holds the Ace in the Hole
Question. If we at the Austin Report, along with many of our readers I am sure, are astute enough to pick up the warning signs issued by our major banks and Government Agencies, don't you think the Chinese are smart enough to catch on as well? Of course they are. In fact, not only has the Chinese Government caught on, they have also taken decisive action. China sold a record 34 BILLION in United States Debt in the month of December alone. The Chinese people and state controlled press celebrated the move calling it "commendable".
The movement to abstain from buying United States Debt is gaining in popularity as well. A recent push by Military Leaders in the Peoples Liberation Army of China is also occurring. Chinese Generals just released a report stating that the Chinese Government should "attack by oblique means a nd stealthy feints" to make its point in Washington. Adding "we could sanction them using economic means, such as dumping some U.S. government bonds".
Not if, but when Foreigners stop buying United States Debt, when the "wall" of Debt causes the tsunami of defaults that Bank of America warned us about, when the growing movement to stop buying U.S. debt spreads worldwide, our day of reckoning will come. Don't worry though, Barack Obama and those in his administration have a plan in mind for you. A plan that reminds me of the offer made in the movie the Godfather, an offer that can't be refused.
The Government Wants Your 401K and IRA's
Just in the nick of time, the Government has a plan in store for us. Two aides in the Obama Administration just offered up a plan to "encourage" workers to convert their 401K's and IRA's into annuities. The plan is being sold as a way to prepare for retirement that offers a "guaranteed income stream". The supposed reason for this is because of the recent collapse and complete obliteration of most retirement accounts after the stock market plunge that started in 2008. The plan sounds reasonable but when you dig deeper, the more sinister motives are revealed.
According to many researchers, this plan is more than an "encouragement" of converting IRA's and 401K's into annuities, it could and most likely will, morph into a plan that is mandatory. Even worse, according to our research and others, the annuities will be based on..you guessed it, United States Bonds. The problem with this is that as inflation rises, which seems to be certainty, so will interest rates. As interest rates rise, the value of the bonds will plummet, and the so called safe and guaranteed annual income can and will vanish in the blink of an eye.
So if the foreigners won't buy our bonds, someone will be forced to, and that someone is increasingly looking like me and you. Please consider the article linked below entitled "Retiree Annuities May be Promoted By Obama Aides".
A Plan of Action
In Summary, Sovereign Debt is the likely candidate that will lead us into the next financial nightmare. Many are saying that the crisis in Greece will be coming to America. A wall of junk debt is likely to lead to a wave of defaults here in the United States. The Chinese, who have kept our economy afloat for at least the last decade by buying our debt, have not only stopped buying U.S. debt, they are SELLING U.S. debt. These facts and others have led Federal Officials to put out warnings saying that reductions in spending and more taxation is necessary less the Fed be forced to monetize our debt. In response to this, officials in the Obama administration and others basically want to nationalize a portion of your retirement savings, and force you to put them into annuities that will probably be based on our fragile bond market.
The proverbial writing seems to be on the wall. The warning signs are clear and precise. All of these issues and others point to much higher prices in the precious metals arena. I have included a special offer linked to this report. The offer is for the $20 Liberty Gold Coin. If you like big one ounce coins, if you are worried about the possibility of a Gold confiscation, and if you want a coin that adds leverage with a history of outperforming bullion, then look no further than the $20 Liberty produced from 1850-1907. We feel that coins like the $20 Liberty have a strong chance of outperforming bullion. In fact, in 2009 a 5% move in Gold translated into a 35% move in coins similar to the coin being offered above. Please review this offer and get back to me as soon as possible as supplies are limited.
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.
This new run, could push Gold and Silver much higher - many are speculating that Gold will trade in excess of $1350/oz in 2010. Others are calling for severe shortages in the Gold and Silver markets. These shortages are never good, in the height of the financial crisis in 2008, wholesale bids on bullion products like the Silver Eagles were trading for almost 30% over the spot price, and after paying more than 30% over spot, clients had to wait up to 6 weeks to receive their shipment, not a good scenario.
Consider the articles "Brace Yourself for the Coming Gold Shortage" and "Gold to Hit $1350-$1400 by Late Spring".
Debt - The Word of the Month
The current scenario financially, on a worldwide basis, is one of despair. In 2008 we were awestruck at the complete failure of Lehman Brothers et al, in 2010 and onward, we believe that instead of business giants going bust, it will be entire Countries and States that go under. If you think the issues of Lehman and Bear Sterns were bad, wait until the repercussions are felt when entire Countries go bust.
If the word of the month over the last three months has been hyperinflation, the new word of the month that is on the tips of most financial pundits tongues is Sovereign Debt. It is interesting that this is the case since burdensome Sovereign Debt loads are the problem that normally ends in hyperinflation, not the other way around. So in reality, the Sovereign Debt issue that is on everyone's minds, especially pertaining to the financial fiasco in Greece, should have been the first conversation piece, not hyperinflation. Since unsustainable debt is a precursor to hyperinflation, it should be terribly concerning to our readers that the only thing the mainstream media and pundits seem to be talking about these days, is, you guessed it, unsustainable debt. By omission, these mainstream pundits, are telling you that inflation is on the way and to buy all the Gold and Silver that you can, while you can.
The Global Debt Bomb
Over the last 30 days, many of us have heard about the debt crisis in Greece, but how many of us have considered a "Global Debt Bomb"? Forbes Magazine has considered it, and in fact, recently ran a cover story with the same title. In the article, the author points out that these unsustainable debt levels are not limited to just Greece. In fact, in this year alone, Governments around the world will issue an estimated 4.5 TRILLION in debt, an amount that is three times the five year average for industrial countries. Of that 4.5 Trillion, the United States accounts for a whopping 45% of total debt worldwide. According to estimates, the amount of debt issued by Global Governments in 2010 would be enough to buy every ounce of Gold ever mined in the history of the world, all in a single year!
This mammoth accumulation of debt is unprecedented, and there will be consequences. Many are claiming that the debt crisis in Greece will spread to the doorstep of America sooner rather than later. In an article published in one of the most prestigious financial newspapers on the planet, the Financial Times, entitled "A Greek Crisis Headed to America" the author gives the following warning:
"For the world's biggest economy, the US, the day of reckoning still seems reassuringly remote. The worse things get in the EuroZone, the more the US dollar rallies as nervous investors park their cash in the "safe haven" of American government debt. This effect may persist for some months, just as the dollar and Treasuries rallied in the depths of the banking panic in late 2008. Yet even a casual look at the fiscal position of the federal government (not to mention the states) makes a nonsense of the phrase "safe haven". US government debt is a safe haven the way Pearl Harbor was a safe haven in 1941."
Here in the United States of Debt, according to the Congressional Budget Office, the Gross Federal Debt will equal 100% of GDP in just two years time. Not only that, the CBO also stated that the United States will NEVER have another balanced budget. You read that right - NEVER.
The Dam is Breaking
While the Greek Crisis seems to be the epicenter of our most recent financial Earthquake, its aftershocks are being felt around the world. A Major French Bank, Societe Generale, has recently put out a report stating that the collapse of the Euro is inevitable, especially if the EuroZone bails out Greece. You see, in the past, before the ideas of Free Trade Agreements and Globalism were implemented, the natural firewall to crisis like this one were national borders and boundaries. Today, all it takes is one crack in the dam to bring down the whole world economy.
It would be intellectually dishonest to believe that the debt crisis is isolated to the EuroZone and Greece. America has problems of its own that aren't much different from those seen in Greece. This realization has led many to believe that the United States could be in the beginning stages of losing its precious AAA rating on its bonds. It has also led to major banks in the United States, like Bank of America, to issue warnings reported in Bloomberg with the title "Junk Debt 'Wall' to Trigger U.S. Defaults" in it Bank of America issues the following ominous statement:
"A 'wall' of junk debt maturing in the next four years will increase the risk of corporate defaults in the U.S., according to Bank of America Merrill Lynch. Almost 90 percent of loans outstanding mature in the next five years, compared with an average of 36 percent between 2005 and 2009, according to the report."
Statements like those from Bank of America were also echoed more recently by the President of the Kansas City Fed, Thomas Hoenig, who warned that unless the U.S. take difficult steps to reduce spending and increase revenue, (think more taxation) the Federal Reserve might be forced to "fund" the "unsustainable" Federal debt. These buzzwords could be a veiled threat that the Federal Reserve, if it hasn't already, will soon be forced to monetize our debt, an action that is highly inflationary and would likely send Gold and Silver soaring.
China Holds the Ace in the Hole
Question. If we at the Austin Report, along with many of our readers I am sure, are astute enough to pick up the warning signs issued by our major banks and Government Agencies, don't you think the Chinese are smart enough to catch on as well? Of course they are. In fact, not only has the Chinese Government caught on, they have also taken decisive action. China sold a record 34 BILLION in United States Debt in the month of December alone. The Chinese people and state controlled press celebrated the move calling it "commendable".
The movement to abstain from buying United States Debt is gaining in popularity as well. A recent push by Military Leaders in the Peoples Liberation Army of China is also occurring. Chinese Generals just released a report stating that the Chinese Government should "attack by oblique means a nd stealthy feints" to make its point in Washington. Adding "we could sanction them using economic means, such as dumping some U.S. government bonds".
Not if, but when Foreigners stop buying United States Debt, when the "wall" of Debt causes the tsunami of defaults that Bank of America warned us about, when the growing movement to stop buying U.S. debt spreads worldwide, our day of reckoning will come. Don't worry though, Barack Obama and those in his administration have a plan in mind for you. A plan that reminds me of the offer made in the movie the Godfather, an offer that can't be refused.
The Government Wants Your 401K and IRA's
Just in the nick of time, the Government has a plan in store for us. Two aides in the Obama Administration just offered up a plan to "encourage" workers to convert their 401K's and IRA's into annuities. The plan is being sold as a way to prepare for retirement that offers a "guaranteed income stream". The supposed reason for this is because of the recent collapse and complete obliteration of most retirement accounts after the stock market plunge that started in 2008. The plan sounds reasonable but when you dig deeper, the more sinister motives are revealed.
According to many researchers, this plan is more than an "encouragement" of converting IRA's and 401K's into annuities, it could and most likely will, morph into a plan that is mandatory. Even worse, according to our research and others, the annuities will be based on..you guessed it, United States Bonds. The problem with this is that as inflation rises, which seems to be certainty, so will interest rates. As interest rates rise, the value of the bonds will plummet, and the so called safe and guaranteed annual income can and will vanish in the blink of an eye.
So if the foreigners won't buy our bonds, someone will be forced to, and that someone is increasingly looking like me and you. Please consider the article linked below entitled "Retiree Annuities May be Promoted By Obama Aides".
A Plan of Action
In Summary, Sovereign Debt is the likely candidate that will lead us into the next financial nightmare. Many are saying that the crisis in Greece will be coming to America. A wall of junk debt is likely to lead to a wave of defaults here in the United States. The Chinese, who have kept our economy afloat for at least the last decade by buying our debt, have not only stopped buying U.S. debt, they are SELLING U.S. debt. These facts and others have led Federal Officials to put out warnings saying that reductions in spending and more taxation is necessary less the Fed be forced to monetize our debt. In response to this, officials in the Obama administration and others basically want to nationalize a portion of your retirement savings, and force you to put them into annuities that will probably be based on our fragile bond market.
The proverbial writing seems to be on the wall. The warning signs are clear and precise. All of these issues and others point to much higher prices in the precious metals arena. I have included a special offer linked to this report. The offer is for the $20 Liberty Gold Coin. If you like big one ounce coins, if you are worried about the possibility of a Gold confiscation, and if you want a coin that adds leverage with a history of outperforming bullion, then look no further than the $20 Liberty produced from 1850-1907. We feel that coins like the $20 Liberty have a strong chance of outperforming bullion. In fact, in 2009 a 5% move in Gold translated into a 35% move in coins similar to the coin being offered above. Please review this offer and get back to me as soon as possible as supplies are limited.
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.
Wednesday, February 3, 2010
GoldVestor Report - February 2010
Quote of the Month - “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” Ludwig von Mises
With both Gold and Silver falling throughout the month, January 2010 proved to be a time that was much needed in the metals industry, a month for dealers to catch up with a market that has been raging almost uncontrollably for nearly a decade now. We needed the rest!
Now that January is past us, and precious metals like Gold and Silver seem poised for another run, it is important to take some time before the run up, not after, to see what your investment plan is going to be for 2010 and which portion you plan on allocating to your Gold and Silver purchases.
Buy the Dips!
It’s amazing to us here in the industry how swayed investors are by the daily and/or weekly changes in Gold and Silver. It seems as if that when Gold and Silver are trailblazing to higher levels we hardly have time to answer call ins, but when Gold and Silver fall, it gets really quite, really quickly. In reality, it should be exactly the opposite.
In January Gold corrected about 7% and Silver corrected more than 10%. Its times like these when you should be buying and taking advantage of an asset that is clearly a bargain at current levels. Don’t follow the herd and wait for prices to go back up before you buy, break away from that mentality, and your percentage gained will prove to be much better.
The Evidence is Clear
Below you will find the articles of the month for the month of January 2010. In them you will find that the SEC recently ruled that your legal right to redeem your money market funds can be denied – make sure to read that again – your legal right to redeem your money market funds can be denied!
You will also see that in December of 2009 the United States was within three days of defaulting on its foreign debt and that if Congress had not called a special session to raise the debt limit, it would have been highly likely that the United States credit rating could have been downgraded producing disastrous results. December was round one, many are expecting that Congress will again have to raise the debt limits, possibly as soon as March. We also included two powerful commentaries on Silver that is a must read for anyone who either doesn’t have any Silver, or for someone who wishes to add more.
The collage of articles below also includes what I feel as the most important that I have ever sent out in the ‘Best of the Austin Report’. The article is entitled – A Global Fiasco is brewing in Japan. The article illustrates the ever growing deficits of Japan and the United States, and how, if left unchecked, they could lead to hyperinflation, spelling disaster for the world economy that is already on the brink. The author refers to a historical model called “Monetary Regimes and Inflation” aka “The Bernholz Range” and in it he describes how there have only been 5 times in history that budget deficits compared to government expenditures have reached the levels recently seen in the United States and Japan, and each of the 5 instances that this happened in history – a savings wrecking hyperinflationary period followed. So, to be clear, historically speaking, countries that ran budget deficits comparable to those currently seen in the United States and Japan, 100% of the time, without exception, saw their currencies, livelihoods and savings utterly destroyed through hyperinflation. Why would we be so intellectually lazy to think that this time it’s going to be any different? Grab a cup of coffee, have a seat, and make sure that you read “A Global Fiasco is Brewing in Japan.”
Alarmists or Realists? You be the Judge.
In closing, I want to make one point clear – we at the Austin Report are in the business of selling Gold, so one could almost expect that we would want to harp on issues like inflation and the like. However, the truth is exactly the opposite. I for one do not enjoy talking or writing about hyperinflation. Why? Because it makes us sound like alarmists. In fact, had it not been mentioned in the press by so many prominent economists we probably would have never mentioned the term hyperinflation at all, but I want to leave you with this one thought:
We have a client who is a hedge fund owner and successful billionaire, a client of such importance that he was testifying on Capitol Hill recently in a banking committee hearing. At the first of the year, his Gold Specialist, who happens to be our Chief Operating Officer, sent him an email asking him what his outlook was for 2010. His response was short and to the point – HYPERINFLATION 12-18 MONTHS!
Contrary to the conventional wisdom in Washington, we cannot spend ourselves to prosperity. Do yourselves a favor and prepare for what is and what could be to come – it might be worse than any of us ever imagined. Make sure to call your representatives so that he/she can review your holdings and make a recommendation that fits into your game plan.
And don’t forget the wise words from Ludwig Von Mises - “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
Thanks as always for your business, I look forward to your calls and emails.
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.
With both Gold and Silver falling throughout the month, January 2010 proved to be a time that was much needed in the metals industry, a month for dealers to catch up with a market that has been raging almost uncontrollably for nearly a decade now. We needed the rest!
Now that January is past us, and precious metals like Gold and Silver seem poised for another run, it is important to take some time before the run up, not after, to see what your investment plan is going to be for 2010 and which portion you plan on allocating to your Gold and Silver purchases.
Buy the Dips!
It’s amazing to us here in the industry how swayed investors are by the daily and/or weekly changes in Gold and Silver. It seems as if that when Gold and Silver are trailblazing to higher levels we hardly have time to answer call ins, but when Gold and Silver fall, it gets really quite, really quickly. In reality, it should be exactly the opposite.
In January Gold corrected about 7% and Silver corrected more than 10%. Its times like these when you should be buying and taking advantage of an asset that is clearly a bargain at current levels. Don’t follow the herd and wait for prices to go back up before you buy, break away from that mentality, and your percentage gained will prove to be much better.
The Evidence is Clear
Below you will find the articles of the month for the month of January 2010. In them you will find that the SEC recently ruled that your legal right to redeem your money market funds can be denied – make sure to read that again – your legal right to redeem your money market funds can be denied!
You will also see that in December of 2009 the United States was within three days of defaulting on its foreign debt and that if Congress had not called a special session to raise the debt limit, it would have been highly likely that the United States credit rating could have been downgraded producing disastrous results. December was round one, many are expecting that Congress will again have to raise the debt limits, possibly as soon as March. We also included two powerful commentaries on Silver that is a must read for anyone who either doesn’t have any Silver, or for someone who wishes to add more.
The collage of articles below also includes what I feel as the most important that I have ever sent out in the ‘Best of the Austin Report’. The article is entitled – A Global Fiasco is brewing in Japan. The article illustrates the ever growing deficits of Japan and the United States, and how, if left unchecked, they could lead to hyperinflation, spelling disaster for the world economy that is already on the brink. The author refers to a historical model called “Monetary Regimes and Inflation” aka “The Bernholz Range” and in it he describes how there have only been 5 times in history that budget deficits compared to government expenditures have reached the levels recently seen in the United States and Japan, and each of the 5 instances that this happened in history – a savings wrecking hyperinflationary period followed. So, to be clear, historically speaking, countries that ran budget deficits comparable to those currently seen in the United States and Japan, 100% of the time, without exception, saw their currencies, livelihoods and savings utterly destroyed through hyperinflation. Why would we be so intellectually lazy to think that this time it’s going to be any different? Grab a cup of coffee, have a seat, and make sure that you read “A Global Fiasco is Brewing in Japan.”
Alarmists or Realists? You be the Judge.
In closing, I want to make one point clear – we at the Austin Report are in the business of selling Gold, so one could almost expect that we would want to harp on issues like inflation and the like. However, the truth is exactly the opposite. I for one do not enjoy talking or writing about hyperinflation. Why? Because it makes us sound like alarmists. In fact, had it not been mentioned in the press by so many prominent economists we probably would have never mentioned the term hyperinflation at all, but I want to leave you with this one thought:
We have a client who is a hedge fund owner and successful billionaire, a client of such importance that he was testifying on Capitol Hill recently in a banking committee hearing. At the first of the year, his Gold Specialist, who happens to be our Chief Operating Officer, sent him an email asking him what his outlook was for 2010. His response was short and to the point – HYPERINFLATION 12-18 MONTHS!
Contrary to the conventional wisdom in Washington, we cannot spend ourselves to prosperity. Do yourselves a favor and prepare for what is and what could be to come – it might be worse than any of us ever imagined. Make sure to call your representatives so that he/she can review your holdings and make a recommendation that fits into your game plan.
And don’t forget the wise words from Ludwig Von Mises - “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
Thanks as always for your business, I look forward to your calls and emails.
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.
Sunday, January 3, 2010
GoldVestor Report - January 2010
Hello to all! We hope you had an excellent holiday season! Now that 2009 is behind us with a new decade ahead, it becomes important to reflect on where we have been, where we are, and where we are headed. Over the last decade, Gold and Silver have proven to be the best asset class to own, bar none. Since the year 2000 Gold and Silver have outperformed stocks, bonds, money markets, T-Bills, and most any other asset class on the face of the planet – we have reason to believe that this trend will not only continue, but that it will get stronger.
On Monday, January 3rd 2000, Gold closed at $288/oz. Silver closed at $5.30/oz. on the same day. Fast forward to the year 2010 and you will see that Gold closed at $1118.70 while Silver closed at $17.50. Had you invested $100,000 in Gold on January 3rd, 2000, today its value would be $387,946. Had you done the same with Silver, today’s value of your 100K original investment would be worth $330,188.
As we all know, hindsight is 20/20, but based on our research and others, the amazing gains seen in the precious metals markets during the NEXT decade, could make the 300% gains during the last decade seem negligible at best.
Predictions, Predictions, Predictions
Where do these bold projections come from? Well, where do we begin? Let’s start with Goldman Sachs, Barrick Gold, Morgan Stanley, Business Insiders, Henry Paulson, Central Bankers, Respected Statisticians, and others. Many others.
As reported on the George Washington Blog:
Goldman Sachs is predicting that gold will shoot past $1,400/ounce by 2011
The world's biggest gold producer - Barrick - says that the relatively easy-to-reach gold supplies are gone, and so supplies are getting more and more expensive to locate and extract:
Aaron Regent, president of the Canadian gold giant [Barrick], said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.
"There is a strong case to be made that we are already at 'peak gold'," he told The Daily Telegraph at the RBC's annual gold conference in London.
"Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore," he said.
The Perfect Storm
We started stressing that the supply and demand fundamentals for Gold were stronger than ever in June of 2009. By January 2010 it was announced that for the first time in 20 years that Central Bankers will become net BUYERS of Gold not net sellers. Remember, the two main sources of Gold supply in the world are Gold mines, and Central Banks. Global mining output has fallen by 1 Million ounces per year over the last 10 years, leading many to proclaim that Gold production has peaked and that the mining industry will never return to the levels of productions witnessed in previous years.
On top of this, the financial carnage that we have experienced and have yet to experience, should continue to increase demand far into the next decade, supporting even higher prices for years to come. Remember, less than 1% of the world’s population even owns a single ounce of Gold for investment purposes. Should 1% of the world’s financial assets decide to reallocate their holdings into Gold, it would consume the entire worlds mining production for 75 years! Are you starting to get the picture? Can you see the perfect storm?
Consider the article below: “Central Banks In Rising Nations Bulk Up On Gold, Fueling Prices”
If You Own Stocks – Consider Selling Them ASAP!
Morgan Stanley is reporting that 2010 will be brutal for stocks, pointing out that tight monetary policies and other cycles that bode ill for stocks are right around the corner. Morgan Stanley isn’t alone in this assumption as recent insider seller to buyer ratio spiked to 82:1, meaning that for every 82 shares of stock sold by insiders, there was only 1 buyer. In dollar terms, insiders sold over $950 MILLION worth of stocks, while only buying 11.6 million dollars worth. Does Morgan Stanley and other insiders know something that you don’t? Now is the time to prepare for the inevitable, if 2010 is going to be disastrous for stocks, odds are, it will be fantastic for Precious Metals.
Morgan Stanley and Business Insiders aren’t the only ones warning you. John Williams, a respected statistician who runs the popular website shadowstats.com, portrays an even bleaker picture for 2010 and beyond:
“The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.”
John Williams may sound like an alarmist, but he speaks from experience. John has been tracking the manipulation of Government Data and reports dealing with Unemployment Figures, Inflation Figures, GDP, and other falsified data released by the Government since the 1970’s. You see, John Williams believes in the inevitable, that the U.S. will eventually face a currency crisis rivaling that of Zimbabwe and the Weimar Republic. The key to this story though, is that his prognosis has changed. He originally forecasted that the coming currency collapse would happen by 2018, his revised outlook though, says that we are headed for Hyperinflation as soon as next year. He goes on to warn:
“The intensifying economic and solvency crises, and the responses to both by the U.S. government and the Federal Reserve in the last two years, have exacerbated the government's solvency issues and moved forward my timing estimation for the hyperinflation to the next five years, from the 2010 to 2018 timing range estimated in the prior report. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, gross mismanagement, and a deliberate and ongoing effort to debase the U.S. currency. Accordingly, risks are particularly high of the hyperinflation crisis breaking within the next year.” Adding that – “The U.S. has no way of avoiding a financial Armageddon.”
Whether or not “financial Armageddon” comes this year, next year, or in 10 years, this eventuality seems to be a certainty. Why? Because not a single fiat currency, which describes a currency backed by absolutely nothing except the faith of a Government to pay it back (think U.S. Dollar), has ever survived for more than 50 years. The United States went totally fiat in 1971 under President Nixon, and since then the value of the dollar has precipitously fallen. Consider Gold and Silver as your protection against a devaluing dollar. To steal a quote from James Grant who runs the website interest rate observer - "Gold is a speculation. But it is a speculation on a certainty: the debasement of the currency."
Now is the time to protect yourself from these eventualities. We would urge you to reconsider your holdings and consider selling stocks, bonds and other assets so that you can convert it into Gold and/or Silver. Heed the warnings from John Williams, Morgan Stanley, Barrick Gold and Billionaire Hank Paulson, and take the necessary steps to prepare yourself for what is to come.
What is your investment game plan for 2010 and beyond? We would like to know. Take some time out of your busy schedules to review your investment portfolios and give us a call. You will be glad that you did. I have included a great way to get your investment plans for 2010 started. Attached to this email is the promotional flyer for one of the hottest products for 2009 - European Gold Coins. In fact, I think it is safe to say that we sold more Euro Gold in 2009 than we did in the 5 years from 2000-2005. Review the attached offer and let me know where you fit in. Don’t see anything you like? Give us a call to discuss your situation and together we can come up with a game plan that works best for you. Also, don’t forget Silver. Silver outperformed Gold in 2009, we believe it can do so in 2010 as well.
Thanks as always for your business. I look forward to all of your calls and emails!
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.
On Monday, January 3rd 2000, Gold closed at $288/oz. Silver closed at $5.30/oz. on the same day. Fast forward to the year 2010 and you will see that Gold closed at $1118.70 while Silver closed at $17.50. Had you invested $100,000 in Gold on January 3rd, 2000, today its value would be $387,946. Had you done the same with Silver, today’s value of your 100K original investment would be worth $330,188.
As we all know, hindsight is 20/20, but based on our research and others, the amazing gains seen in the precious metals markets during the NEXT decade, could make the 300% gains during the last decade seem negligible at best.
Predictions, Predictions, Predictions
Where do these bold projections come from? Well, where do we begin? Let’s start with Goldman Sachs, Barrick Gold, Morgan Stanley, Business Insiders, Henry Paulson, Central Bankers, Respected Statisticians, and others. Many others.
As reported on the George Washington Blog:
Goldman Sachs is predicting that gold will shoot past $1,400/ounce by 2011
The world's biggest gold producer - Barrick - says that the relatively easy-to-reach gold supplies are gone, and so supplies are getting more and more expensive to locate and extract:
Aaron Regent, president of the Canadian gold giant [Barrick], said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.
"There is a strong case to be made that we are already at 'peak gold'," he told The Daily Telegraph at the RBC's annual gold conference in London.
"Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore," he said.
The Perfect Storm
We started stressing that the supply and demand fundamentals for Gold were stronger than ever in June of 2009. By January 2010 it was announced that for the first time in 20 years that Central Bankers will become net BUYERS of Gold not net sellers. Remember, the two main sources of Gold supply in the world are Gold mines, and Central Banks. Global mining output has fallen by 1 Million ounces per year over the last 10 years, leading many to proclaim that Gold production has peaked and that the mining industry will never return to the levels of productions witnessed in previous years.
On top of this, the financial carnage that we have experienced and have yet to experience, should continue to increase demand far into the next decade, supporting even higher prices for years to come. Remember, less than 1% of the world’s population even owns a single ounce of Gold for investment purposes. Should 1% of the world’s financial assets decide to reallocate their holdings into Gold, it would consume the entire worlds mining production for 75 years! Are you starting to get the picture? Can you see the perfect storm?
Consider the article below: “Central Banks In Rising Nations Bulk Up On Gold, Fueling Prices”
If You Own Stocks – Consider Selling Them ASAP!
Morgan Stanley is reporting that 2010 will be brutal for stocks, pointing out that tight monetary policies and other cycles that bode ill for stocks are right around the corner. Morgan Stanley isn’t alone in this assumption as recent insider seller to buyer ratio spiked to 82:1, meaning that for every 82 shares of stock sold by insiders, there was only 1 buyer. In dollar terms, insiders sold over $950 MILLION worth of stocks, while only buying 11.6 million dollars worth. Does Morgan Stanley and other insiders know something that you don’t? Now is the time to prepare for the inevitable, if 2010 is going to be disastrous for stocks, odds are, it will be fantastic for Precious Metals.
Morgan Stanley and Business Insiders aren’t the only ones warning you. John Williams, a respected statistician who runs the popular website shadowstats.com, portrays an even bleaker picture for 2010 and beyond:
“The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, a collapse in the normal stream of U.S. commercial and economic activity, a collapse in the U.S. financial system as we know it, and a likely realignment of the U.S. political environment. The current U.S. financial markets, financial system and economy remain highly unstable and vulnerable to unexpected shocks. The Federal Reserve is dedicated to preventing deflation, to debasing the U.S. dollar. The results of those efforts are being seen in tentative selling pressures against the U.S. currency and in the rallying price of gold.”
John Williams may sound like an alarmist, but he speaks from experience. John has been tracking the manipulation of Government Data and reports dealing with Unemployment Figures, Inflation Figures, GDP, and other falsified data released by the Government since the 1970’s. You see, John Williams believes in the inevitable, that the U.S. will eventually face a currency crisis rivaling that of Zimbabwe and the Weimar Republic. The key to this story though, is that his prognosis has changed. He originally forecasted that the coming currency collapse would happen by 2018, his revised outlook though, says that we are headed for Hyperinflation as soon as next year. He goes on to warn:
“The intensifying economic and solvency crises, and the responses to both by the U.S. government and the Federal Reserve in the last two years, have exacerbated the government's solvency issues and moved forward my timing estimation for the hyperinflation to the next five years, from the 2010 to 2018 timing range estimated in the prior report. The U.S. government and Federal Reserve already have committed the system to this course through the easy politics of a bottomless pocketbook, the servicing of big-moneyed special interests, gross mismanagement, and a deliberate and ongoing effort to debase the U.S. currency. Accordingly, risks are particularly high of the hyperinflation crisis breaking within the next year.” Adding that – “The U.S. has no way of avoiding a financial Armageddon.”
Whether or not “financial Armageddon” comes this year, next year, or in 10 years, this eventuality seems to be a certainty. Why? Because not a single fiat currency, which describes a currency backed by absolutely nothing except the faith of a Government to pay it back (think U.S. Dollar), has ever survived for more than 50 years. The United States went totally fiat in 1971 under President Nixon, and since then the value of the dollar has precipitously fallen. Consider Gold and Silver as your protection against a devaluing dollar. To steal a quote from James Grant who runs the website interest rate observer - "Gold is a speculation. But it is a speculation on a certainty: the debasement of the currency."
Now is the time to protect yourself from these eventualities. We would urge you to reconsider your holdings and consider selling stocks, bonds and other assets so that you can convert it into Gold and/or Silver. Heed the warnings from John Williams, Morgan Stanley, Barrick Gold and Billionaire Hank Paulson, and take the necessary steps to prepare yourself for what is to come.
What is your investment game plan for 2010 and beyond? We would like to know. Take some time out of your busy schedules to review your investment portfolios and give us a call. You will be glad that you did. I have included a great way to get your investment plans for 2010 started. Attached to this email is the promotional flyer for one of the hottest products for 2009 - European Gold Coins. In fact, I think it is safe to say that we sold more Euro Gold in 2009 than we did in the 5 years from 2000-2005. Review the attached offer and let me know where you fit in. Don’t see anything you like? Give us a call to discuss your situation and together we can come up with a game plan that works best for you. Also, don’t forget Silver. Silver outperformed Gold in 2009, we believe it can do so in 2010 as well.
Thanks as always for your business. I look forward to all of your calls and emails!
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. This sites content shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author.