Welcome to Roger's Latest Monthly Economic Rant
| - 2007
Late October 2014 Economic Rant - Roger Mason
It is difficult to free fools from the chains they revere-
This is not a course in commodities futures contracts. We just want to make one simple point here. Look at the blue line. That is how many silver contracts are held now. It is called the “open interest”. There are about 170,000 contracts at 5,000 ounces of silver per contract. This is an astounding and irrational 850 million ounces of paper silver. Notice the word "paper". This is many times the amount of silver sold for investment each year. This is also 33:1 leverage. This is how the Big Banks manipulate the price of silver and gold. Now look at the red price line. There has never been a divergence like this in the history of trading silver. Something huge is happening. Silver is either going to collapse, or soon take off like a rocket ship. The cost of production is about $25; so what do you think silver is going to do? The extreme open interest with a collapsing price is completely irrational and makes no sense. Something massive is going on behind the scenes.
The COT report is the weekly positions of futures traders. The claim as of October 3 is that the Big Banks are only 17,000 net short silver and 61,000 net short gold. On October 10 they slightly (supposedly) added short positions. Remember the COT report is not audited, and cannot be relied on. It may well be purposeful disinformation.
On October 9 the COMEX lowered margin requirements again. Nearly every time they do this the prices fall. Expect lower prices in silver and gold. Yes, we could easily see $1,000 gold and $15 silver. Remember the cost of production for silver worldwide, on the average, is about $25. This is a no-lose situation. The way to get rich is to buy things when they are cheap, and sell them when they are expensive. Today, October 15 silver fell 60 cents from $17.60 to $17.00 in hours, then recovered.
Here is Bibi Netanyahu showing how 9/11 really happened. This was just too funny not to publish again. Thermite explosives were put in the buildings by Mossad and the CIA. Kerosene (jet fuel) will not even begin to melt steel. Building 7 (the "third building") was not hit by any airplane. How can a building fall that wasn't hit? No airplane hit the Pentagon either. Leave it to the government to screw up a fake disaster. The CIA and Mossad killed those people in order to pass the Patriot Act.
The fourth fake beheading was just reported. Alan Henning was not executed. All this ISIS/ISIL hoax is just an excuse to attack Syria. The neocons are flirting with WWIII.
WE HAVE 50 TIMES MORE FAKE MONEY THAN 100 YEARS AGO
This chart is very upsetting. in 1900 we only had 97 million people in America. There was only $113 in REAL gold and silver backed money per person. Now there are 317 million people, and an incomprehensible $54,366 in green toilet paper per person. That is FIFTY times more counterfeit money. None of this is backed by gold or silver. Ft. Knox has been empty for over 50 years, and we have no silver at all. (Thanks to Incrementum).
Half of all American households receive a monthly government check. the other half supports them. So, half of Americans are working to support the other half, who sit at home with their thumbs up their rear ends. Yes, some of this is Social Insecurity. You can say, "I paid for my Social Insecurity". Well, that fund was completely bankrupt over 40 years ago (that Magic 1970 time when America went down the road to Hell). Therefore, the working half is still supporting all of the non-working half. This is the tipping point folks. The fact that half of Americans get a monthly gummint check is just more proof this is End Times. We should have never had Social Insecurity, unemployment benefits, Medicare, Medicaid, food stamps, or any of the other socialist programs. "Our" government was broke almost a half century ago ( again, the Magic 1970 area we keep referring to). They have been robbing Peter to pay Paul, but Peter is out of money. When all these government checks stop, you're going to see half of Americans starve to death in the streets. You're going to see anarchy, martial law, and FEMA camps. Actually, the physical checks won't stop. They will be inflated so badly, they won't purchase or deliver any value. Social Insecurity has already been inflated so severely the check will only buy HALF of what it bought just 20 years ago.
This is where you're going to seeing riots in the streets, demands the government "do something", martial law, and anarchy. Isn't that funny? The sheeple will beg the government to help them, when the government caused all this. They'll get the same "help" they got with Hurricane Katrina. This is why we keep begging you to PREP and keep prepping in every way you can. Be prepared, be ready, get it together.
Remember Menachem Begin, the Prime Minister of Israel during the Carter years? Here is what he said before the Israeli Knesset (Congress) as reported in the New Statesman June 25, 1982:
"Our race is the Master Race. We are divine gods on this planet. We are as different from the inferior races as they are from insects. In fact, compared to our race, other races are beasts and animals, cattle at best. Other races are considered as human excrement. Our destiny is to rule over the inferior races. Our earthly kingdom will be ruled by our leader with a staff of iron. The masses will lick our feet and serve us as our slaves."
The Israeli plan is to take over the entire area from the Nile to the Euphrates rivers, and from the Red Sea to southern Turkey. They are using America and our allies to do this.
Israel is the reason we attacked Iraq, Libya, Pakistan, Syria and the other countries. This isn't about "oil", the "petrodollars" or any other such nonsense. It is about Israeli imperialism. Notice there are never any Israeli soldiers involved.
Look at the above chart from Morgan Stanley. America has become a nation of low wage, unskilled, uneducated workers. You know, like all Third World countries. This trend will just continue until we're just another banana republic without any bananas. About the only jobs you see available now are the minimum wage ones. People with college degrees usually are hired for them. How many college graduates do you know that are living with their parents and working a minimum wage job?
Ebola is a hoax created by the CIA. This was not a problem until America set up Red Cross, Doctors without Borders, Shepherd's Purse, and other "clinics" in countries like Liberia. Once the clinics arrived with their vaccines, the virus multiplied overnight. What is the point? To scare the hell out of Americans, declare martial law, take away your civil rights, incarcerate people without due process, and get over 90% of our citizens vaccinated with toxic, poisonous vaccines that don't work. That's the point. The brain dead will line up like the sheep they are, and get the government vaccine. Google "Ebola Hoax 2014" and you will come up with a wealth of information. You can also go to www.nomorefakenews.com or www.commonsenseshow.com for lots of information about epidemic hoaxes. CNN and the N.Y. Times have already been caught using crisis actors in Liberia to make fake videos of the "epidemic". Want an example of what is really going on? Connecticut on October 9 enacted martial law and quarantine for Ebola, even though they haven't seen one case. If you even visit the People's Republic of Connecticut you can be quarantined, and held without any due process at all if you look sick, act sick, or have a higher than normal temperature. This kind of totalitarian government action will soon spread to other states for your own "safety and security". The sheeple will do anything for safety and security. Look for more media fear mongering to get the sheeple vaccinated. Zionist Mark Zuckerberg just donated $25 million to the CDC to "fight Ebola". That tells you everything you need to know.
ALL REAL ESTATE IS COLLAPSING!
Both residential and commercial real estate are collapsing. You are going to see the median home in America fall from the $225,000 peak in 2005 to $100,000. Look at the above two charts. The top one shows how building permits and housing starts bottomed
in 2010, but then took off. This is NOT a good thing, as you can see by the bottom chart. No one is buying houses. The big builders are up to their ears in unsellable inventory. They have so many unsellable homes they are lost in red ink. Yet, they keep building more. No one is renting commercial space. This is prima facie insanity, and can only result in all of them collapsing and going bankrupt. The bottom chart proves no one is buying a house. You can't give away a new or used home. Sales are in the toilet.
The largest American home builders (in order) are D.R. Horton, Pulte, Lennar, NVR, KB, Hovnavian, Ryland, Beazer, and Meritage. How are they doing?
Here is KB Homes (KB) for example. Would you buy this stock?
Lennar (LEN) isn't doing any better:
Meritage (MTH) is about to go under:
Beazer (BZH) is also about to go under:
Ryland (RYL) is pitiful:
Pulte (PHM) has no hope at all:
Who in their right mind would invest in Hovnavian (HOV)?
The point is clearly made. The average person has the vast majority of their life savings in their home. Home prices are collapsing. There goes the life savings of every home owner in America. Now many homes are underwater. If your home is underwater, give it back to the bank. Let them pay the deficit, not you. We went from a nation of home owners to a nation of renters. That situation is going to get much, much worse as the banks become rental agents for all the homes they take back. Now the banks list these as assets. They are detriments.
The American Dream is over after 238 years.
The entire stock market is ready to crash.
Sears Roebuck (now Sears Holding Corp.- SHLD) has been a pillar of America for over 120 years now. It is about to go bankrupt. You will no longer see Sears at every shopping mall in America. Sears does not make a profit on sales. They only make a profit on their Sears credit card charges. This has been going on for years now. That is obviously bound to fail. Look at this chart...
If that didn't unnerve you, here is a hopeless five year chart of J.C. Penney:
JCP was founded over 112 years ago, and is also in every mall in America. Soon, you won't see them there anymore. This has also been a staple of American life for over a century. You will see the malls close down year after year. Most every shopping mall we go to is now failing badly. The empty stores are decorated to hide them, or rented at discount to companies that would normally never be in a mall.
Harley Davidson (HOG) makes the most prestigious and desired motorcycles in the entire world. It was founded 111 years ago, and is an American tradition. They are going broke, and may soon go under. The famous Harley Hogs may be a distant memory. Another of America's pillars disappearing.
This is a ten month chart of the Baltic Dry Index (BDI). This shows the amount of international shipping. The higher the better. What is the "Baltic Dry Index"? It is not limited to the Baltic Sea at all, but is a worldwide weekly report of shipping basic, vital raw materials by sea over 23 ocean routes. This is a very important and basic indicator of the world economy. The BDI is collapsing obviously. This is proof the entire world economy is collapsing with it.
On October 9 the COMEX lowered the margins for gold and silver. Whenever they do this the prices nearly always collapse. Lower margins allow the Big Banks to manipulate the precious metals prices more effectively. Predicting the short term is suicide, but here goes the Economic Rant prediction: $15 silver and $1,000 gold for The Bottom in November. Then a dramatic takeoff this Fall. You cannot lose buying $17 silver when the cost of production is $25. If we get $15 or $16 silver it really won't make any difference. What will you care when it skyrockets to $400 an ounce and higher?
See you in November. On Monday October 20 there will be a bank failure exercise. That could mean anything or nothing. Be prepared. Get ready. It's only common sense.
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