On May 1st, join the Sound Money Campaign and let our monetary charlatans know that we understand what they’re doing, and we’re not going to play their games any more.
Bill Rice Jr. of Silver Seek responds to those who ask – ‘Should I buy silver on May 1st?’
Twelve reasons I say, âdang straight!â
Now, whatâs the best that could happen if this effort DOES go viral? Off the top of my head, Iâve come up with 12 possible outcomes and I like all of them.
1. The run on physical silver and gold that has been taking place since April 12th and 15th goes bionic …Â parabolic. Even the NYT and CNBC will be unable to ignore that âsomething bigâ is happening in the worldâs precious metals (physical) market.
This “something” is that Joe Smoeâs on Main Street are voting in mass for silver and gold.
And against: The Fed, fiat money, U.S. Treasuries, bloated government, deficit spending, unlimited money printing, Too Big To Fail (or Jail) banks, crony finance, etc.
2. It will become even more likely that the ârealâ price for gold and silver will be determined by the physical market, not the âpaperâ market so many of us believe is rigged and controlled by The Usual Suspects.
3. The effort will generate headlines that might cause others who have never considered investing in silver or gold to say, âHey, whatâs the fuss?â and look into precious metals to protect their own futures.
4. It will make JP Morgan brass, Ben Bernanke, Treasury Department honchos, the president and politicians who depend on money-printing to fund their playground …Â squirm, cuss, panic?
5. It will make those who predictedÂ the gold and silver bubble had burst reconsider their predictions and, well, look stupid … again.
6. It will make those who likely orchestrated the recent âsmash downâÂ of gold and silver prices – in an effort to kill investor sentiment toward precious metals (to protect the dollar as the ultimate âsafe havenâ) – rue the day they signed off on this gambit.
7. It will illustrate again how “ingenious” central planning can sometimesÂ backfire and confirm again âthe Law of Unintended Consequences.â
8. It will perhaps make more people aware that the statistics and âtalking pointsâ that are being disseminated about the economy are not to be trusted. Nor are the journalists who are supposed to report on it.
9. If May 1 sales are significant enough, this will (one would assume) increase the price of silver. This makes the silver you have already purchased more valuable. That is, your net worth could increase.
10. If the effort reinforces notion that there actually is a run on physical silver and gold taking place (one that is clearly not abating), it will motivate others to buy into the market, which will further increase prices and enhance your net worth and protect your wealth.
11. It will reinforce Ron Paulâs notion that silver and gold are âreal moneyâ and perhaps move us closer to the day where the majority of Americans favor a return to some form of gold standard.
Finally, if you buy some silver coins, rounds or bars, you will have a store of value you can save as long as you prefer. Maybe the price will go down the next day or for a period of weeks, but you should know that, at some point, the prices are going to go back up, maybe even to the sky.
In other words, a lot of good can happen by supporting the âBuy Physical Silverâ effort on May 1st, and certainly no obvious âbad.”Â (I’m sure others can come up with even more reasons to jump on board this effort).
I say letâs all do ourÂ part, send a message from the Peons, and cast a âvoteâ about status-quo insanity by buying (physical) silver on May 1st; and then …
12. … See what happens. It might be quite fun to watch to boot.
In the last couple of months both gold and silver have seen a massive price decline. While some claim that this is the gold bubble bursting, others who have advocated holding precious metals during times of uncertainty suggest this may be a great time to stock up on more precious metals before the next market panic hits and monetary expansion furtherÂ depreciatesÂ the US dollar.
One of the issues many buyers of precious metals are running into is the high premiums following the drop in price, with some dealers charging at high as $6 over the market spot price for silver.
But according to Daniel Ameduri ofFuture Money Trends there are still ways to buy silver at or near spot, without paying the insane commissions to brokers.
“I have personally, never in my life … and I have been buying silver for seven or eight years now… I have never in any circumstance paid more than a buck fifty over spot.”
Watch to learn Daniel’s strategies and tips for acquiring precious metals at fair prices, sometimes much lower than the advertised premiums.
With the global economy, financial markets and political sentiment seemingly on the brink of a major paradigm shift, concern about how to protect wealth is growing exponentially. Billions of dollars are being transferred out of bank accounts across the world by people who are looking for safety assets where they can secure their life savings and get out of the cross-hairs of governments bent on destroying private business, accumulating unimaginable levels of debt, and impoverishing the middle class.
There are few investments that will remain safe once the masses realize they’ve been conned by their respective leaders and financial authorities.
Whether your strategy involves holding physical assets to preserve some level of value and wealth when the next bubble pops, or if your aim is to reallocate investment capital from existing retirement funds or savings accounts and grow that capital over the long-term, the following interview from Future Money Trends is one you don’t want to miss.
Amir Adnani, chairman of Â gold mining company Brazil Resources, and David Morgan, of Silver-Investor.com, share a wealth of knowledge and insights about gold fundamentals, investment strategies, effects of monetary policy, managing a successful business, avoiding government nationalization of key industries, and the broader economic outlook going forward.
What excites me the most about the long-term, if we want to look five or ten years out, is that the supply-demand fundamentals, which is the only that I can try to use as a long-term guide of how things are going to go, are really on the side of higher natural resource prices and commodities.
When you look at the population trends in the world, when you look at the sovereign debt issues in the world, when you look at the organization themes of emerging markets… these themes are very long-term trends. These are not going away.
…I think supply-demand fundamentals over the next five or ten years definitely favor higher prices for commodities…
Despite the inevitable disaster to come, there are strategies that can help you to not only preserve wealth, but grow it during a time that will see the majority of the world’s population further impoverished.
If one of your primary objectives is to protect your assets during times of uncertainty, then consider some of the analysis from one of the world’s top junior mining CEO’s.
The fundamentals for gold:
The fundamentals for gold have never been as good as they are right now, because from the physical side of things the mining industry and the majors keep spending more money every year on an accumulative basis on exploration, and each year they keep finding less gold than the year before or ten years ago. And so it’s becoming tougher and tougher to find economic gold projects… So clearly, just on the pure mining side of it, the pure supply expansion side of it, it’s more costly to find gold. They’re finding less gold, and mining costs to get it out of the ground are rising.
Meanwhile, we continue to achieve record levels of debt in the Western world, so that continues to drive the monetary aspects of it and further underlines that end of the argument as to why the fundamentals for gold are strong.
Look at the latest issues in Europe. Look at the latest issues in Cyprus. The sovereign debt issues are not going away. Everyone is racing to try to devalue their currency throughout the world.Â
How can we not look at this picture and say to ourselves that the fundamentals have never been better… the numbers are quite profound.
When developing a strategy for asset diversification, consider your individual needs, existing capital, and your specific goals (preservation vs. wealth creation):
Â Is just owning physical a good idea or a bad idea? Â I think the real answer to that is the individual…
I think there’s more opportunity in the mining sector to build wealth than just owning the physical.
I think that it’s an individual choice. I’m not against it. I understand the reasoning. These people believe that all paper markets are going to crumble at some point and the only left standing will be physical.
I don’t hold that view. Personally, at my age, I think that about a 50-50 mix is about right. I feel very comfortable with 50% spread out between top-tier, mid-tier and up-and-comers, and the other 50% in the physical realm.
Just to be clear, I don’t advocate 100% of your assets invested in the precious metals sector. I have recommended 20%, but again that’s an individual choice.
When it hits the fan, don’t say we didn’t warn you. Mac Slavo is the editor of SHTFplan.com, a resource hub for alternative news, contrarian commentary and strategies that you can take to protect yourself from the coming global paradigm shift.
Could the same thing that happened in Cyprus happen in America? Judge Napolitano says yes. “The people who have more than $100,000 in the bank are targets for any government that’s looking for money to shore up its own inability to manage its finances.”
In the 1930′s, when President Roosevelt seized physical gold from Americans, gold mining companies remained untouched by the draconian move. And, while stocks in the United States dropped precipitously and remained depressed for a decade, companies whose primary business was the exploration and mining of gold and silver rose to new highs. Homestake mining, a gold mining firm operating during FDR’s Presidency, was one such company that saw its shares skyrocket over 500%.
A similar effect occurred in the 1970′s, after the US dollar was taken off the gold standard. By the early 1980′s gold had once again reached new highs – highs that were not surpassed until the debt crisis of 2008 took hold, nearly thirty years later.
This crisis, like the deflationary depression of the 1930′s and the inflationary recession of the 1970′s, won’t be much different, as panicked investors hoping to protect their wealth will once again turn to the tried and true hard asset of choice during times of crisis: gold.
Watch as one of the most respected contrarian resource analysts, Marin Katusa of Casey Research, discusses gold as sound money:
If you take all the gold that’s ever been mined and that’s currently being mined… you can fit that into Dallas Cowboys stadium. Just to put that in perspective.
Gold is a very rare thing because the economic deposits of gold are very rare. It is a precious metal.
If you invest in one of those companies that finds and proves up an economic gold deposit, you can make anywhere from ten to a hundreds time your money.
We always start with people. That’s the most important thing when you invest… who are the guys running this company that I am going to invest in.
One deal that Rick Rule, Doug Casey and I are very large shareholders in because we absolutely respect the management team and we believe they’re going to bring significant returns and profits for us is a company called Brazil Resources, which already has gold in the ground. They’ve got millions of ounces of gold…their exploration projects are fantastic…. but more importantly, the management is top tier.
In North America we’ve had such a good time that we can’t imagine what it would be like if there was true chaos. But when it happens, they’ll call the people who invested in gold and had actual physical gold, they’ll call them ‘lucky.’ But the true definition of lucky is being prepared when the opportunity arises.
Indeed, should the worst happen in America, those who prepare will be few and far between, and those who failed to foresee the coming calamity will view them as “lucky” for having spent the time, effort and sweat to position themselves appropriately.
The Fed keeps printing money. The “free money” party never ends for politicians and bankers. Meanwhile the rest of us are dealing with the aftereffects of rising food prices, “pay nothing” savings accounts, and higher taxes.
The Dow is at a record high and so are corporate profits – so why does it feel like most of the country is deeply suffering right now?Â Real household income is the lowest that it has been in a decade, poverty is absolutely soaring,Â 47 million AmericansÂ are on food stamps andÂ the middle classÂ is being systematically destroyed.Â How can big corporations be doing so well while most American families are having such a hard time?Â Isn’t their wealth supposed to “trickle down” to the rest of us?Â Unfortunately, that is not how the real world works.Â Today, most big corporations are trying to minimize the number of “expensive” American workers on their payrolls as much as they can.Â If the big corporation that is employing you can figure out a way to replace you withÂ a worker in ChinaÂ or withÂ a robot, it will probably do it.Â Corporations are in existence to maximize wealth for their shareholders, and most of the time the largest corporations are dominated by the monopoly men of the global elite.Â Over the decades, the politicians that have their campaigns funded by these monopoly men have rigged the game so that the big corporations are able to easily dominate everything.Â But this was never what those that founded this country intended.Â America was supposed to be a place where the power of collectivist institutions would be greatly limited, and individuals and small businesses would be free to compete in a capitalist system that would reward anyone that had a good idea and that was willing to work hard.Â But today, our economy is completely and totally dominated by a massively bloated federal government and by absolutely gigantic predator corporations that are greatly favored by our massively bloated federal government.Â Our founders tried to warn us about the dangers of allowing government, banks and corporations to accumulate too much power, but we didn’t listen.Â Now they dominate everything, and the rest of us are fighting for table scraps.
In early America, most statesÂ had strict lawsÂ governing the size and scope of corporations.Â Individuals and small businesses thrived in such an environment, and the United States experienced a period of explosive economic growth.Â We showed the rest of the world that capitalism really works, and we eventually built the largest middle class that the world had ever seen.
But now we have replaced capitalism with something that I like to call “corporatism”.Â In many ways, it shares a lot of characteristics with communism, and that is why nations such as communist China have embraced it so readily.Â Under “corporatism”, monolithic predator corporations run around sucking up as much wealth and economic power as they possibly can.Â Most individuals and small businesses cannot compete and end up getting absorbed by the corporations.Â These mammoth collectivist institutions are in private hands rather than in government hands (as would be the case under a pure form of communism), but the results are pretty much the same either way.Â A tiny elite at the top gets almost all of the economic rewards.
There are some out there that would suggest that the answer to our problems is to move more in the direction of “socialism”, but to be honest that wouldn’t be the solution to anything.Â It would just change how the table scraps that the rest of us are getting are distributed.
If we truly wanted a return to prosperity, we need to dramatically shift the rules of the game so that they are tilted back in favor of individuals and small businesses.Â A much more pure form of capitalism would mean more wealth, less poverty and a more equitable distribution of the economic rewards in this country.
But it will never happen.Â Most of our politicians are married to the big corporations and the wealthy elitists that fund their campaigns.Â And most Americans are so uneducated that they believe that what we actually have today is “capitalism” and that the only alternative is to go “to the left” toward socialism.
Very few people out there are suggesting that we need to greatly reduce the power of the federal governmentÂ andÂ greatly reduce the power of the big corporations, but that is exactly what we need to do.Â We need to give individuals and small businesses room to breathe once again.
With each passing year, things get even worse.Â In fact, the founder of Subway Restaurants recently said that the environment for small businesses is so toxic in America today that heÂ never would have been able to start SubwayÂ if he had to do it today.
What I want to do now is to discuss some of the results that “corporatism” is producing in America.
First of all, we continue to see incomes go down even though we live in an inflationary economy.
AsÂ Time MagazineÂ recently reported, personal incomes took a huge nosedive during the month of January…
Data released by the Commerce Department last week showed thatÂ personal income fell 3.6% in January,Â the biggest decline in 20 years. The drop was even bigger when taxes and inflation are taken into account. Real personal disposable income fell by 4%, the biggest monthly drop in half a century.
Real median US household income — that’s “real,” as in “adjusted for inflation” — was $50,054 in 2011, the most recent data available from the US Census Bureau. That’s 8% lower than the 2007 peak of $54,489.
Meanwhile, big corporations are absolutely raking in the cash.Â The following is from a recentÂ New York Times article…
âSo far in this recovery, corporations have captured an unusually high share of the income gains,â said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. âThe U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.â
The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.
Today, corporate profits as a percentage of U.S. GDP are at anÂ all-time high, but wages as a percentage of U.S. GDP are near anÂ all-time low.
Just check out the following chart.Â Corporate profits have absolutely exploded over the past decade…
Meanwhile, wages as a percentage of GDP continue to fall rapidly…
Most of the jobs being created in America today are “low wage” jobs.Â Tens of millions of Americans are working as hard as they can only to find that they can barely put food on the table and provide a roof over the heads of their children.Â The ranks of the “working poor” are exploding and the middle class continues to shrink.
Many of you that are reading this article are members of the working poor.Â You know what it is like to stare up at your ceiling at night wondering how you are going to pay the bills next month.
Today, most Americans are living very close to the edge financially.Â A recent articleÂ by NBC News staff writer Allison LinnÂ shared some of their stories.Â The following is one example…
Crystal Dupont knows what itâs like to try to live on the federal minimum wage.
Dupont has no health insurance, so she hasnât seen a doctor in two years. Sheâs behind on her car payments and has taken out pawn shop and payday loans to cover other monthly expenses. She eats beans and oatmeal when her food budget gets low.
When she got her tax refund recently, she used the money to get ahead on her light bill.
âI try to live within my means, but sometimes you just canât,â said Dupont, 25. The Houston resident works 30 to 40 hours a week taking customer service calls, earning between $7.25 and $8 an hour. That came to about $15,000 last year.
Itâs a wage sheâs lived on for a while now, but just barely.
Sadly, the number of Americans that are “just barely” surviving continues to grow.
But if corporate profits are soaring to unprecedented heights, then who is getting all of those rewards?
The monopoly men of the global elite are.
Just check outÂ the following videoÂ which does a great job of illustrating how corporatism has systematically funneled all of the economic rewards in our system to the very top…
Once again, I want to make it very clear that I am not advocating socialism as the answer in any way, shape or form.Â Socialism takes away the incentive to create wealth and it almost always results in almost all of the economic rewards going to a very tiny elite anyway.
As I said earlier, what we need is a return to a much more pure form of capitalism, but this is so foreign to the way that most people think that most people will not be able to grasp this.
It certainly would be possible to greatly reduce the power of the federal governmentÂ andÂ greatly reduce the power of the big corporations at the same time, but this is so “outside the box” for most people that they cannot even conceive of doing such a thing.
We need to create an environment where individuals and small businesses can thrive once again.Â But instead, most of us are content to continue “playing the game” and getting enslaved in even more debt.
For example, accordingÂ to CNBC, auto loans just continue to get larger and continue to get stretched out for longer periods of time…
American car buyers, attracted by new models and cheap financing, are taking out bigger auto loans and stretching out the terms of those loans to a new record length.
New analysis from Experian Automotive shows the average new car loan in the fourth quarter of last year was $26,691 and stretched out over an average of 65 months. The length of the average loan is one month longer than the previous record set in the third quarter of last year.
What will they think of next?
Will we eventually have auto loans that get paid off over 10 years?
By the way, that is another way that the monopoly men of the global elite get all of our money.Â TheyÂ enslave us to debt, and we spend year after year of our lives slaving away to make them even wealthier.
They are very smart.Â There is a reason why they haveÂ 32 TRILLION dollarsÂ stashed away in offshore tax havens.Â They know how to play the game, and they are very happy that most of the rest of us are asleep.
Fortunately, it appears that an increasing number of Americans are waking up.
In the past year, I’ve been slowly but surely waking up to the nonsense happening around me. There’s so many things I need to simply get off my chest, so excuse the length of this post. Recently in the past two years, I’ve gotten married and have been medically discharged from the Marines after being injured in Afghanistan. Being 23 years old and married, my goal is secure a secure a future for my family, but with the way things are going, I’m not exactly sure how much of a future we’re going to have in 50 years. I can’t explain it, but I’ve felt this need to change my attitude and motivations lately.
I started by turning off the garbage music, television and other mindless entertainment that seems to plague my generation. It was easier than it looked – I don’t miss most of it really. The next order of business was to educate myself on world news, so that’s what I did. Every day, like clockwork, I check all major mainstream news feeds (NBC, Fox, Abc, CNN, Reuters, BBC, etc.) as well as not-so-mainstream news sites – yours being one of them. It’s incredible how fast our world changes and the manner in which it changes. The local 10 o’clock doesn’t show anything but local news, sports, weather, lottery #’s and whatever else they decide to throw in. It’s a night and day difference once you start to actually research and see what’s happening all over the world. Look at the number of comments about a news story on the economy and then look at a celebrity story on the “news”….People are so blind, it truly amazes me. My friends, family and classmates at college seem to be under a spell of some sort. They’re distracted – and it’s contagious. Nobody I know gives a damn about global affairs/economics. They’re more interested in the newest iPhone, cars, shows, movies, and just about anything else you can think of. I’m not saying there’s anything wrong with these things, but my friends/family/peers are CONSUMED by these distractions. When the election was taking place in 2012, every Tom, Dick and Harry on Facebook had an opinion and rant. After the circus ended however, everyone simply went back to posting about parties, kittens, Farmville etc. It’s a huge joke. For me, it’s little terrifying and exciting to see history unfolding in front of our eyes. This country of ours is going through big changes now that will most certainly affect our future, so I strive to adapt and prepare myself and my family. I’m looking at buying my first home this summer. Right now I live in an apartment right outside Philly and spend more money on rent than most pay for a mortgage. I need a house with a little land to raise chickens, grow fruits/vegetables, store canned food – and to be as independent from the system as I can. For my job, I wanted a skill/trade that people would always need, so I picked the funeral business. On the side, I work in construction and have been learning everything there is to know about building with my own two hands. I feel as though these old forgotten skills are going to be handy in a short while.
Hopefully we can get a lot more people to wake up and start breaking out of “the matrix” of control that is all around us.
Right now, the system is designed to continually funnel more money and more power to the very top of the pyramid.Â The global elite are becoming more dominant with each passing day.Â Unless something dramatic happens, at some point the American people will become so powerless that they won’t be able to do anything about it even if they wanted to.
The idea of a very tiny elite completely dominating all the rest of us goes against everything that America is supposed to stand for.Â In the end, it will result in absolute tyranny if it is not stopped.
Whether you have limited means directed at specific collapse-proof assets, or youâre an investor with capital in personal savings or stock portfolios, there exist a number of strategies that can help you to not only mitigate a worst-case scenario crisis, but to come out ahead should it come to pass.
Rick Rule is the Chairman and Founder of Sprott Global Resource Investments Ltd., and one of the worldâs foremost experts on non-traditional investments during times of uncertainty. The company manages some $10 billion in investments for clients. Sprott is one of the few firms that has been highly recommended by contrarian investors, as they not only talk the talk, but walk the walk, having created a massive store of physical gold and silver to back some of their leading investment funds. With currencies being devalued to the tune of billions of dollars monthly and government debt skyrocketing at an unprecedented pace, getting into the mind of someone whoâs seen and prospered from cataclysmic market events over the last 40 years can help us to identify opportunities where none seem to exist.
From how to trade stocks inÂ erraticÂ markets to investment strategies that target long-term global trends like dwindling resources and economies on the brink of disaster, the following interview with Rick Rule fromÂ Future Money TrendsÂ covers numerous topics that include how he thrived during geo-political calamity, his past stock investment mistakes, the outlook for precious metals, how cold hard cash will play a role when markets collapse, and preparing for a world where even our most precious global asset â fresh water â becomes almost impossible to acquire.
When looking for the best way to allocate your hard earned money, start with one of the key rules Rick follows:
Â âYou want to own things the enemy canât print.â
I believe, if pushed, that the best form of bullion in terms of price appreciation for the next one or two years, is platinum and palladium.
I donât believe itâs because of the monetary aspects of it. I believe it because the industry does not earn its cost of capital at this price point.
I believe it because on the supply side thereâs no above ground inventory. All the platinum and palladium thatâs ever been mined has gone out a tail pipe, itâs gone up a smokestack or itâs gotten turned into jewelry.
On why you should have some dollars in your reserves:
I think you have to own some dollars.
I think you have toÂ acquaintÂ yourself with the fact that liquidity is a tool in turbulent markets. You have to have some dollars knowing youâre going to lose 2% or 3% compounded. Because, as turbulence increases, cash will give you the means and the courage to take advantage of the mistakes that other people will make in a 2008 style market.
The first thing is you have to choke down the fact that youâre losing money in the real sense and have some cash.
Ugly lesson, but we have to do it.
The second thing is that some of that cash ought to be bullion. Some of that cash ought to be a store of value thatâs a medium of exchange.
I canât tell the individual speculator if they should be long gold or silver or platinum.
If somebody asked me that question I would say âyes,â as opposed to making a choice.
On dwindling Western water resources:
We havenât had a situation where weâve had to ration it by price before.
Water is allocated in the west politically, itâs not allocated by the marketâŚ
âŚWe do things as a consequence of that like growing rice in the desert.
We do someÂ phenomenallyÂ stupid things with our water, but itâs protected by law.
And the law is protected by guns.Â
In a real market you wouldnât have any problem like this. We have theseÂ adjudicatedÂ rights to water.
As a consequence weâve subsidized peopleâs water consumption to the point where it isnât enough to say that weâre vulnerable to a drought.
You have to say that if there is a drought thereâs going to be massive dislocation.Â
Part of me would like to see nature and the market triumphâŚ
You may be an average American struggling to make ends meet, aÂ retireeÂ with aÂ sizableÂ savings account, or an investor with capital at the ready. Whatever your means, Rick Ruleâs ideas can apply to your situation.
Consider a scenario where financial markets and the economy collapse similar to 2008, but more severe. As counter-intuitive as holding US dollars may sound, if prices in commodities like food or precious metals collapse during the initial panic selling, or farmland drops to 20 cents on the dollar like it did during the Great Depression, youâll want to have cash on hand to quickly accumulate whatever you can.
At the same time, perhaps the US dollar melts down in an overnight âwaterfallâ event, leaving much of your cash worthless â if you donât have some medium of exchange like gold, silver or platinum, then youâll have no way of engaging in trade.
Likewise, while Rick Rule focuses on water in this interview, there is a broader trend surrounding the allocation of resources through political means, and it affects not just water, but energy and food as well. Should we have a crisis in one of these sectors, it could cause significantÂ dislocationÂ in the others.
Diversification and assuming that multiple events of varying degrees and effects can play out is critical to any complete SHTF plan.
If youâre caught unprepared with none of these âhard assetsâ in your personal inventory, how will you manage?
If you focus on the things the enemy canât print or manipulate, primarily hard assets that will always be necessary for day-to-day human functioning and survival, youâll come out much better off than most when the system descends into crisis.
When it hits the fan, don’t say we didn’t warn you. Mac Slavo is the editor of SHTFplan.com, a resource hub for alternative news, contrarian commentary and strategies that you can take to protect yourself from the coming global paradigm shift.
Investment analyst Jay Taylor joins the Sound Money Campaign to discuss the US dollar and ways to preserve wealth as the Federal ReserveÂ relentlesslyÂ debases our nation’s currency.
…the debasing of currency is relentless.
The Federal Reserve is expanding its balance sheets, itâs creating money out of nothing, itâs devaluing the savings of individuals through the debasement of the currency and through zero interest policies.
Theyâre just trying to keep people off balance so they donât bet in one direction in favor of inflation hedges.
They want to keep people believing [inflation] is not going to be a problem.
They need to do that in order to keep people believing in the dollar, which they create out of nothing.
So, itâs a giant con game.
In the end, Pinocchioâs nose will be exposed and [free] markets win out.
Watch as Mr. Taylor explains his thoughts on markets going forward, why it’s important to hold gold and silver as a backstop for out of control inflation, the differences between gold and silver, and several ways of investing to help you stay out of the jurisdiction of the US government:
WhileÂ headline storiesÂ about averting the dangers of an international âcurrency warâ dominated news coverage of the recently concluded G20 meeting in Moscow, the real unreported story is that the global gathering of central bankers and finance ministers is pushing forward with their plan forÂ âsupersizingâÂ the International Monetary Fund.
The end goal is to transform the IMF into a global Federal Reserve, with the ability to flood the world with huge new volumes of loans and currency. It would also wield vast financial regulatory powers.
The IMFâs unit of account, or âcurrency,â known as a Special Drawing Right (SDR), is being readied for eventual adoption as the replacement for the U.S. dollar in international transactions, to lead the way toward eventual adoption of the SDR or some other designated unit as the global currency, much in the same way that the euro was foisted upon the people of Europe as a replacement of their national currencies.
The mainstream media seem intent on keeping the public fixated on the latest Kardashian frolics, sportsmania, and Dremocrat-Republican political mudwrestling, while coverage of the G7, G20, and IMF confabs that are determining the economic fate of the world receive short shrift.
And the little reporting of these events that does leak out usually amounts to little more than regurgitation of the pre-scripted talking points of the conference principals.
Over the past four years,Â The New AmericanÂ has published numerous articles detailing the radical plans currently underway for the total destruction of the dollar and the plans for supersizing the IMF into a global Fed. (See the linked stories at the bottom of this article).
Virtually unreported was IMF Managing DirectorÂ Christine Lagardeâs commentsÂ at the close of the G20 Moscow summit on February 16 that she expected the IMF members to come through soon with the remaining funds necessary to double the IMFâs funds.
Unknown to most voters and taxpayers the world over is the fact that their governmentsâ finance ministers agreed at theG20âs Korea meeting in 2010Â to increase the âquotasâ (contributions) of each member to the IMF, effectively doubling the IMFâs SDR assets to aboutÂ $US 750 billion.
The IMF has also benefited immensely from another set of recent innovations that have received almost zero news coverage: the New Arrangements to Borrow (NAB) and the General Arrangements to Borrow (GAB).
Once activated, theÂ IMF reports,Â the NAB âcan provide supplementary resources of up to SDR 370.0 billion (about $567 billion) to the IMF.â
âThe potential amount of credit available to the IMF under the GAB totals SDR 17 billion (about $26 billion),â says the same IMF web page.
With our national budget now being measured inÂ trillionsÂ of dollars, theÂ merehundreds of billions of dollars the IMF is bandying about may no longer seem as impressive as it once might have.
However, the IMF has much grander visions; this is just the start. As weÂ reported previously,Â the IMFâs Christine Lagrande in February 2012 called for a trillion dollar âfirewall,â including a European Stability Mechanism (ESM) for Â bailing out the collapsing economies of Europeâs socialist regimes.
Finance ministers, including then U.S. Treasury Secretary Timothy Geithner, all took to chatting up the supposed necessity of the emergency âfirewall.â As we reported at the time, acceding to these calls would be the equivalent of âgiving even more matches and gasoline to the arsonists who have already burned through trillions of dollars in âquantitative easingâ and âstimulusâ funds.â
Following the Fedâs Example
Federal Reserve Chairman Ben Bernanke (shown above) told the Moscow G20 conference that the Fed would continue its inflationary policy of creating colossal sums of new digital dollars out of thin air, otherwise known as âquantitative easing.â
The Fed under Bernanke has expanded assets to a record exceeding $3 trillion and pushed down the benchmark interest rate close to zeroâŚ.
The Fed last month affirmed a plan to buy $85 billion per month in bonds, seeking to foster growth and reduce a 7.9 percent jobless rate.
âWe believe that by strengthening the U.S. economy we are helping to strengthen the global economy as well,â Bernanke told the G20 ministers, according to Bloomberg. âThe Federal Reserve continues to provide accommodative monetary policy in our effort to foster maximum employment and price stability,â Bernanke said.
We believe that the world has reached a turning point as the corporate funded and controlled mainline media has become obsolete as humans are now seeking the truth. Intellihub.comâ˘ strives and will continue to uphold itâs duties to inform humanity of what is really taking place in the world around them. Sometimes truth is stranger than fiction.
Is the U.S. economy about to experience a major downturn?Â Unfortunately, there are a whole bunch of signs that economic activity in the United States is really slowing down right now.Â Freight volumes and freight expenditures are way down, consumer confidence has declined sharply, major retail chains all over America are closing hundreds of stores, and the “sequester” threatens to give the American people their first significant opportunity to experience what “austerity” tastes like.Â Gas prices are going up rapidly, corporate insiders are dumping massive amounts of stock and there are high profile corporate bankruptcies in the news almost every single day now.Â In many ways, what we are going through right now feels very similar to 2008 before the crash happened.Â Back then the warning signs of economic trouble were very obvious, but our politicians and the mainstream media insisted that everything was just fine, and the stock market was very much detached from reality.Â When the stock market did finally catch up with reality, it happened very, very rapidly.Â Sadly, most people do not appear to have learned any lessons from the crisis of 2008.Â Americans continue to rack upÂ staggering amounts of debt, and Wall Street isÂ more reckless than ever.Â As a society, we seem to have concluded that 2008 was just a temporary malfunction rather than an indication that our entire system was fundamentally flawed.Â In the end, we will pay a great price for our overconfidence and our recklessness.
So what will the rest of 2013 bring?
Hopefully the economy will remain stable for as long as possible, but right now things do not look particularly promising.
The following are 20 signs that the U.S. economy is heading for big trouble in the months ahead…
#1Â Freight shipment volumes have hit their lowest levelÂ in two years, and freight expendituresÂ have gone negativeÂ for the first time since the last recession.
#2Â The average price of a gallon of gasoline has risenÂ by more than 50 centsÂ over the past two months.Â This is making things tougher on our economy, because nearly every form of economic activity involves moving people or goods around.
#4Â Atlantic City’s newest casino, Revel,Â has just filed for bankruptcy.Â It had been hoped that Revel would help lead a turnaround for Atlantic City.
#5Â A state-appointed review board has determined that there is “no satisfactory plan” to solve Detroit’s financial emergency, and many believe that bankruptcy is imminent.Â If Detroit does declare bankruptcy, it will be the largest municipal bankruptcy in U.S. history.
#6Â David Gallagher, the CEO of Town Sports International,Â recently saidÂ that his company is struggling right now because consumers simply do not have as much disposable income anymore…
“As we moved into January membership trends were tracking to expectations in the first half of the month, but fell off track and did not meet our expectations in the second half of the month.Â We believe the driver of this was the rapid decline in consumer sentiment that has been reported and is connected to the reduction in net pay consumers earn given the changes in tax rates that went into effect in January.“
#7Â According to the Conference Board, consumer confidence in the U.S. has hit its lowest levelÂ in more than a year.
#8Â Sales of the Apple iPhone have been slower than projected, and as a result Chinese manufacturing giant FoxConn has instituted a hiring freeze.Â The following is from aÂ CNET reportÂ that was posted on Wednesday…
The Financial Times noted that it was the first time since a 2009 downturn that the company opted to halt hiring in all of its facilities across the country. The publication talked to multiple recruiters.
The actions taken by Foxconn fuel the concern over the perceived weakened demand for the iPhone 5 and slumping sentiment around Apple in general, with production activity a leading indicator of interest in the product.
#9Â In 2012, global cell phone sales postedÂ their first declineÂ since the end of the last recession.
#10Â We appear to be in the midst of a “retail apocalypse“.Â It is being projected that Sears, J.C. Penney, Best Buy and RadioShack will also closehundreds of storesÂ by the end of 2013.
#11Â An internal memo authored by a Wal-Mart executive that was recentlyÂ leaked to the pressÂ said that February sales were a “total disaster” and that the beginning of February was the “worst start to a month I have seen in my ~7 years with the company.”
#12Â If Congress does not do anything and “sequestration” goes into effect on March 1st, the Pentagon says that approximatelyÂ 800,000 civilian employeesÂ will be facing mandatory furloughs.
#13Â Barack Obama is admitting that the “sequester” could have a crippling impact on the U.S. economy.Â The following is from a recentÂ CNBC article…
Obama cautioned that if the $85 billion in immediate cuts — known as the sequester — occur, the full range of government would feel the effects. Among those he listed: furloughed FBI agents, reductions in spending for communities to pay police and fire personnel and teachers, and decreased ability to respond to threats around the world.
He said the consequences would be felt across the economy.
“People will lose their jobs,” he said. “The unemployment rate might tick up again.”
#14Â If the “sequester” is allowed to go into effect, the CBO is projecting that it will cause U.S. GDP growth to go down by at least 0.6 percent and that it will “reduce job growth by 750,000 jobs“.
#15Â According to a recent Gallup survey,Â 65 percentÂ of all Americans believe that 2013 will be a year of “economic difficulty“, andÂ 50 percentÂ of all Americans believe that the “best days” of America are now in the past.
#16Â U.S. GDP actually contractedÂ at an annual rate of 0.1 percentÂ during the fourth quarter of 2012.Â This was the first GDP contraction that the official numbers have shown in more than three years.
#17Â For the entire year of 2012, U.S. GDP growth was only about 1.5 percent.Â According toÂ Art Cashin, every time GDP growth has fallen this low for an entire year, the U.S. economy hasÂ alwaysÂ ended up going into a recession.
The world’s richest countries saw their economies contract for the first time in almost four years during the final three months of 2012, the Organisation for Economic Co-operation and Development said.
The Paris-based thinktank said gross domestic product across its 34 member states fell by 0.2% â breaking a period of rising activity stretching back to a 2.3% slump in output in the first quarter of 2009.
All the major economies of the OECD â the US, Japan, Germany, France, Italy and the UK â have already reported falls in output at the end of 2012, with the thinktank noting that the steepest declines had been seen in the European Union, where GDP fell by 0.5%. Canada is the only member of the G7Â currently on course to register an increase in national output.
#20Â Even some of the biggest names on Wall Street are warning that we are heading for an economic collapse.Â For example, Seth Klarman, one of the most respected investors on Wall Street, said in his year-end letter that the collapse of the U.S. financial systemÂ could happen at any time…
“Investing today may well be harder than it has been at any time in our three decades of existence,” writes Seth Klarman in his year-end letter. The Fed’s “relentless interventions and manipulations” have left few purchase targets for Baupost, he laments. “(The) underpinnings of our economy and financial system are so precarious that the un-abating risks of collapse dwarf all other factors.”
So what do you think is going to happen to theÂ U.S. economyÂ in the months ahead?
Please feel free to express your opinion by leaving a comment below…
The new House and Senate voted on Friday to recess for the President’s Day week. That means that when they return they have a mere 4 days to deal with the $85bn sequester that is due on March 1st.
If it comes into effect it would mean that huge across the board cuts will take place across Federal government with no real control over what can or can’t be cut. These cuts are so massive there is a distinct possibility they could force the US back into recession, most likely carrying the rest of the world along with it.
A raft of economists have warned that pulling that much money out of effective circulation will have grave economic consequences. The President has warned that job losses will be high and that Americans will feel the impact in many aspects of their lives.
To add to the problems the government will once again run out of money at the end of march, forcing another negotiation on raising the debt ceiling.
Cutting Federal staffing levels will impact the public in most areas of their lives. Air traffic control and airport security cuts Â could according to some observers cause delays of several hours at airports. There are worries that the food supply chain could be hit if port inspectors and administration staff find themselves out of a job.
This seems a very odd time for lawmakers to take a holiday when such major issues are looming. Just another example of the them and us attitude displayed by the leaders of this country. Â Nowhere other than in government can you find displays of such crass and wanton disregard for the ‘workers’ as you can find in the seats of power around the globe.
Typhoid,typhus,and cholera are three distinct diseases that make themselves known when sanitary conditions are poor. They care not why the sanitary conditions are poor but their opportunistic nature allows them to take advantage of communities where sanitation, running water and homelessness are common.
Each day more and more Americans are losing their homes, living in their cars, or in tents cities that are springing up across the nation. The government has to take the blame for much of the human misery that has been caused over the last few years and that look sets to continue for some time to come.
Jefferson CountyÂ in Alabama is the state’s most populous county and also its poorest. One of the poorest of those poor areas is Birmingham, Jefferson County’s largest city. Here water and sewerage bills have quadrupled in the last 15 years and with combined sewerage and water bills coming in at around $300 a month, this leaves the same amount out of the average social security cheque of $600 a month to cover everything else, food, clothing, and all other utilities. Low paid workers, of which there are many fare no better.
Many people have opted to buy drums of water from petrol stations rather than pay their ever increasing bills. They use these drums of water for drinking, washing and in their portable toilets which can be seen dotting back yards across the area, the modern version of the outhouse. They pay a fee to a sanitation company to remove the waste. It’s cheaper than letting the city take care of it.
Jefferson County is in this position because planned work on the sewerage system was estimated to cost $300m but this bill soared to $3.1bn due to construction problems and a series of bond and derivative deals that went bad in the financial turmoil of 2008. The fact that six officials have been found guilty of corruption is no comfort to the residents there who have no running water or mains sewage. To add insult to injury their bills are set to rise 25% a year for the next three years to ensure the project is completed.
” When you look at the amount of debt, and you look at the revenue that is produced from the rate payers, there is no way it is going to come down ”
Tony Petelos, Jefferson County Manager
Depriving an ever increasing number of residents of water in a large urban area is literally inviting diseases to take hold there. As food prices continue to rise, and are projected to rise even further, the residents of areas such as this face a stark choice regarding how to spend their money. According to community leaders such as Sheila Tyson people are being pushed to the very limit.
The day is coming when they wont have the $14 to have a company come and empty their porta-potty, when that day comes where will this human waste go? It has to go somewhere and faced with a choice of paying for sanitation or feeding their children many will opt for the latter. It’s a stark choice, removing either from the equation will lead to ill health.
Each year some 400 people in the US are treated for typhoid fever, most have contracted it whilst travelling to the developing world.Â Although a severely debilitating disease, deaths listing typhoid as the cause are rare in the United States. Most will survive due to good nutrition, a return to clean drinking water and prompt medical attention. Remove any of these things and typhoid could quite easily get a foothold in the southern states. It is highly contagious and easily passed from person to person. Typhoid is only one of many diseases that are spread due to unsanitary conditions including the inability to wash clothing and bedding on a regular basis as is the case with typhus.
The implications for a reduction in the amount of people who have adequate supplies of clean drinking water and reliable sewerage systems extends way beyond a city where corrupt officials and bad planning has forced this onto the people living there.
Each day more and more people are becoming homeless, living in their cars, under bridges or moving to tent communities outside of city areas. All of these people are finding themselves in the same situation as the people of Jefferson County. Like the residents of Jefferson County they are in this situation because the government chooses to ignore the fact that people can no longer afford to live their lives with the basic necessity of clean water. They are there because the government chose to support the bankers instead of the people. These people see their foreclosed homes decaying in front of their eyes, nobody is living in them, no money has been made by the banks selling them on. Whole families forced out for what? So their homes crumble, get demolished and the government takes the land? Who knows ?
What is known is that living in such conditions is an open invitation for disease. Lots of disease. Typhoid has been used as an example, but that is just one of many diseases that routinely surfaces during economic down turns, after natural disasters and in times of war. History is full of such events. Typhoid, typhus, cholera, dysentery, intestinal worms, hepatitis, gastroenteritis and many, many more all arise from contaminated water and/or lack of adequate sewerage.
Its hard to believe that this is happening in the First World in the twenty-first century but it is. It needs to stop and it needs to stop now before many lives are lost to conditions that are rarely seen outside of the developing nations.
Those responsible for the unholy mess that is insidiously enveloping the United States, Europe and the UK should hang their heads in shame, and those officials responsible for so many residents of Jefferson County not having access to running water and sewerage should not only be charged with corruption but with reckless endangerment. The bankers foreclosing on homes that now stand decaying are in the long term going to be partly responsible for the increase in suicides being noted amongst the homeless and those who are pre-empting foreclosure, taking their own lives rather than watch all they have worked for be taken from them.
It’s a sad indication at how woefully inadequate our so called leaders are. How far removed they are from the plight of ordinary families trying to live their lives is blatant. The provision of clean, safe drinking water and adequate sewerage should not be for the wealthy alone. The same men and women who are sending billions in aid to developing nations to help ensure that the people have clean safe water are allowing their own people to live without it.
When typhoid, typhus, cholera, hepatitis and the rest are running rampant we will all know who to blame.
Lizzie Bennett retired from her job as a senior operating department practitioner in the UK earlier this year. Her field was trauma and accident and emergency and she has served on major catastrophe teams around the UK. Lizzie publishes Medically Speaking on the topic of preparedness.
The Congressional Budget Office is reporting that at some point during the next 24 months Obama AND Congress may well Â raid Social Security funds to the tune of hundreds of billions of dollars, possible topping a trillion dollars in the next 15 years.
The Old Age and Survivors Insurance (OASI), and Disability Insurance (DI) both have their own trust funds. The OSAI fund is big, and there’s enough in the pot for benefits to be paid out for at least the next decade or two. The DI pot however looks as if it will be gone within the next couple of years.
As the law stands once the DI is gone, literally on the day it runs out, DI benefits will be cut by 30% leaving millions of disabled Americans with a massive drop in income. The CBO have not commented on how they think this could be avoided.
Is the financial system of Europe on the verge of a meltdown?Â I have always maintained that the next wave of the economic crisis would begin in Europe, and right now the situation in Europe is unraveling at a frightening pace.Â On Monday, European stocks had their worst dayÂ in over six months, and over the past four days we have seen the EUR/USD decline by the most that it hasÂ in nearly seven months.Â Meanwhile, scandals are erupting all over the continent.Â A political scandal in Spain, a derivatives scandal in Italy andÂ banking scandals all over the eurozoneÂ are seriously shaking confidence in the system.Â If things move much farther in a negative direction, we could be facing a full-blown financial crisis in Europe very rapidly.Â So watch the financial markets in Europe very carefully.Â Yes, most Americans tend to ignore Europe because they are convinced that the U.S. is “the center of the universe”, but the truth is that Europe actually has a bigger population than we do, they have a bigger economy then we do, and they have a much larger banking system than we do.Â The global financial system is more integrated today than it ever has been before, and if there is a major stock market crash in Europe it is going to deeply affect the United States and the rest of the globe as well.Â So pay close attention to what is going on in Europe, because events over there could spark a chain reaction that would have very serious implications for every man, woman and child on the planet.
EuroStoxx (Europe’s Dow) closed today -1% for 2013. France, Germany, and Spain are all lower on the year now. Italy, following ENI’s CEO fraud, collapsed almost 3% from the US day-session open, leaving it up less than 1% for the year. Just as we argued, credit markets have been warning that all is not well and today’s afternoon free-fall begins the catch-down.
In addition, the euro has been dropping like a rock all of a sudden.Â Just check outÂ this chartÂ which shows what happened to the euro on Thursday.Â It is very rare to see the euro move that dramatically.
So what is causing all of this?
Well, we already know that the economic fundamentals in EuropeÂ are absolutely horrible.Â Unemployment in the eurozone is at a record high, and the unemployment rates in both Greece and Spain are over 26 percent.Â Those are depression-level numbers.
But up until now there had still been a tremendous amount of confidence in the European financial system.Â But now that confidence is being shaken by a whole host of scandals.
In recent days, a number ofÂ major banking scandals have begun to emerge all over Europe.Â Just check outÂ this articleÂ which summarizes many of them.
One of the worst banking scandals is in Italy.Â A horrible derivatives scandal has pushed the third largest bank in ItalyÂ to the verge of collapse…
Monte dei Paschi di Siena (BMPS.MI), Italy’s third biggest lender, said on Wednesday losses linked to three problematic derivative trades totaled 730 million euros ($988.3 million) as it sought to draw a line under a scandal over risky financial transactions.
There is that word “derivative” that I keep telling people to watch for.Â Of course this is not the big “derivatives panic” that I have been talking about, but it is an example of how these toxic financial instruments can bring down even the biggest banks.Â Monte dei Paschi is the oldest bank in the world, and now the only way it is able to survive is with government bailouts.
Another big scandal that is shaking up Europe right now is happening over in Spain.Â It is being alleged that Spanish Prime Minister Mariano Rajoy and other members of his party have been receiving illegal cash payments.Â The following summary of the scandal comes from a recentÂ Bloomberg article…
On Jan. 31, the Spanish newspaper El Pais published copies of what it said were ledgers from secret accounts held by Luis Barcenas, the former treasurer of the ruling Peopleâs Party, which revealed the existence of a party slush fund. The newspaper said 7.5 million euros in corporate donations were channeled into the fund and allegedly doled out from 1997 to 2009 to senior party members, including Rajoy.
That doesn’t sound good at all.
So what is the truth?
Could Rajoy actually be innocent?
Well, at this point most of the population of Spain does not believe that is the case.Â Just check out the following poll numbers from the Bloomberg article quoted above…
According to the Metroscopia poll, 76 percent of Spaniards donât believe the Peopleâs Partyâs denials of the slush-fund allegations. Even more damning, 58 percent of the partyâs supporters think itâs lying. All of the Spanish businessmen with whom I discussed the latest scandal expect it to get worse before it gets better. Their assumption that there are more skeletons in the governmentâs closet indicates what little trust they have in their leaders.
Meanwhile, the underlying economic fundamentals in Europe just continue to get worse.Â One of the biggest concerns right now is France.Â Just check out this excerpt from a recent reportÂ by Phoenix Capital Research…
The house of cards that is Europe is close to collapsing as those widely held responsible for solving the Crisis (Prime Ministers, Treasurers and ECB head Mario Draghi) have all been recently implicated in corruption scandals.
Those EU leaders who have yet to be implicated in scandals are not faring much better than their more corrupt counterparts. In France, socialist Prime Minister Francois Hollande, has proven yet again that socialism doesnât work by chasing after the wealthy and trying to grow Franceâs public sectorâŚ when the public sector already accounts for 56% of French employment.
France was already suffering from a lack of competitiveness. Now that wealthy business people are fleeing the country (meaning investment will dry up), the economy has begun to positivelyÂ implode.
As the report goes on to mention, over the past few months the economic numbers coming out of France have beenÂ absolutely frightful…
Auto sales for 2012 fell 13% from those of 2011. Sales of existing homes outside of Paris fell 20% year over year for the third quarter of 2012. New home sales fell 25%. Even the high-end real estate markets are collapsing with sales for apartments in Paris that cost over âŹ2 million collapsing an incredible 42% in 2012.
Today, the jobless rate in France is atÂ a 15-year high, and industrial productionÂ is headed into the toilet.Â The wealthy are fleeing France in droves because of the recent tax increases, and the nation is absolutely drowning in debt.Â Even the French jobs ministerÂ recently admittedÂ that France is essentially “bankrupt” at this point…
France’s government was plunged into an embarrassing row yesterday after a minister said the country was âtotally bankruptâ.
Employment secretary Michel Sapin said cuts were needed to put the damaged economy back on track.
âThere is a state but it is a totally bankrupt state,â he said.
So what does all of this mean?
It means that the crisis in Europe is just beginning.Â Things are going to be getting a lot worse.
For example, Blackstone’s Byron WienÂ told CNBCÂ the other day that he expects the S&P 500 to drop by 200 points during the first half of 2013.
Seabreeze Partners portfolio manager Doug KassÂ recently told CNBCÂ that what is happening right now in the financial markets very much reminds him of the stock market crash of 1987…
“I’m getting the ‘summer of 1987 feeling’ in the U.S. equity market,” Kass told CNBC, “which means we’re headed for a sharp fall.”
Toward the end of 2012 and at the very beginning of 2013 we saw markets both in the U.S. and in Europe move up steadily even though the underlying economic fundamentals did not justify such a move.
In many ways, that move up reminded me of the “head fakes” that we have seen prior to many of the largest “market corrections” of the past.Â Often financial markets are at their most “euphoric” just before a crash hits.
So get ready.
Even if you don’t have a penny in the financial markets, now is the timeÂ to prepareÂ for what is ahead.
We all need to learn from what Europe is going through right now.Â In Greece, formerly middle class citizens are nowÂ trampling one another for food.Â We all need to prepare financially, mentally, emotionally, spiritually and physically so that we can weather the economic storm that is coming.
Most Americans are accustomed to living paycheck to paycheck and being constantly up to their eyeballs inÂ debt, but that is incredibly foolish.Â Even in the animal kingdom, animals work hard during the warm months to prepare for the winter months.Â Even so, we should all be working very hard to prepare during prosperous times so that we will have something stored up for the lean years that are coming.
Unfortunately, if events in Europe are any indication, we may be rapidly running out of time.
Kyle Bass, who knows a thing or two about economics and finance, recently spoke to a senior member of the Obama administration about their planned solutions for fixing the U.S. economy and trade deficit.
The answer shouldn’t surprise you.
When I asked a senior member of the Obama administration last week, ‘How are we going to grow exports if we won’t allow nominal wage deflation?’
Jamie Dimon in Davos Switzerland today explaining why people donât need to know whatâs going on in the banking world. Itâs too âcomplex.â Just know that their fee comes from managing this ball of financial confusion. And thatâs all you need to know.
There, donât you feel better? I mean itâs not like the world bailed out the whole banking system or anything. We should have faith.
It may seem counter-intuitive,Â as there is less availability of gold in any given mine than there is silver, but considering that silver is used in everything from electronics to medical technology, it may not be out of the question to suggest that silver is actually becoming more rare than gold.
In 1950 there were 10 billion ounces of above-ground available silver. By 1980 it shrank to 3.5 billion ounces. And, in 2012 it is estimated that above-ground available silver supply is 1 billion ounces.
To put this into perspective, total above ground available gold in 1950 was about 1 billion ounces and today it’s estimated to be around 6 billion ounces.
Watch:Â The Fundamentals for Owning Silver in 2013
Last week the US Mint ran out ofÂ silver coinsÂ and suspended sales, citing record-breaking sales of physical silver in the first month of 2013.
The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins. As a result, sales are suspended until we can build up an inventory of these coins. Sales will resume on or about the week of January 28, 2013, via the allocation process. — Treasury Department statement, Jan 17th, 2013. (Source)
The video below explains why the physical silver market is exploding: