Welcome to Roger's Latest Monthly Economic Rant
| - 2007
Late March 2015 Economic Rant - Roger Mason
"Political language is designed to make lies sound truthful and murder respectable, and to give the appearance of solidity to pure wind." ... George Orwell
Only 1 million out of 320 million people have enrolled in Obamacare. Isn't that pitiful. No matter what the government does, they cannot get people to sign up for government health care. We paid our penalty, but each year the penalty will go up and up and up until it is unpayable. Then no one will be able to opt out.
"Let's name her Monica." The Clintons have the Bill, Hillary and Chelsea Foundation with over $2 billion dollars!!! Hard to believe. She gets massive donations from entire countries. Notice how the liberal media is turning on her. It's becoming well known she isn't running in 2016. They are turning on her, and the publicity is constantly negative now. This was going to be the first woman president, and the second communist president. She is too sick to run, has various diseases, and more than one type of cancer. The stress of being a hardcore psychopath is taking it's toll. Stress will kill you faster than eating at McDonalds all the time. Why did she form that high end election committed though? Good question, and time will tell.
$46 oil is not cheap! It is the free market price.
Stop thinking this is "cheap oil". $100 oil is insane with the massive worldwide supplies we have. Look at the chart below to see that oil should be in the $40 area. The oil price is politically determined more so than market forces. Citibank officially said oil prices could fall to $20. We are out of oil storage space. The tankers are backed up and cannot unload. Saudi Arabia and other countries are constantly pumping all they can 24/7. Remember, $40 to $50 oil is not cheap- it is the free market price of oil. It is only in the last few years the oil price has been artificially been pushed up. Shale oil is a scam, and costs about $75 a barrel just to pump it. We don't need shale oil, since we have a glut of oil in America, and import so much of it. The idea of an "energy crisis" is ludicrous. Solar, wind, and biofuels are all ridiculous scams by liberals.They have failed miserably everywhere they were tried. We have endless coal, natural gas, oil and hydroelectric power for 1,000 years or more. We could have $2 a gallon gasoline, jet fuel, and diesel with a SASOL plant in every state. Finally one is being built in Louisiana. We have enough known uranium reserves for thousands of years. We have unused hydroelectric. The real problem is that we have too many people on earth. We should have about a half billion, rather than seven billion. No one is advocating genocide at all, but six and a half billion have to go. Enforced birth control worked in China, and it can work anywhere. As a libertarian it is tough to suggest that, but sometimes that has to be done.
Warren Buffett and his embarrassing Berkshire Hathaway (BRKA) portfolio are doing so badly he has to lie about it in his annual stock report. He refuses to admit his book value has been falling for years. He simply won't mention it, as if it will disappear if he ignores it. That's right, Senile in Omaha lies about his book value. Starting in 2000 the wheels came off of BRKA. Between 2000 and 2010, their annualized return was 6.6%. And, after never recording an annual decrease in book value, Buffett lost money twice in the 10-year period (2001 and 2008). In 2011 and beyond the same dismal profits and falling book value. He's 84, has Alzheimer's, is on various medications, and will soon be bedridden, and then dead.
Ray Dalio is also one of the richest people on earth. His All Weather Portfolio is a joke. He wants you to buy 30% stocks, 15% 7-10 year T-Bonds, 40% 20-25 year T-Bonds, 7.5% gold, and 7.5% "commodities". What a loser!!! Yessir, 55% in gummint bonds, what deal that is. What is "commodities"? Are you supposed to buy futures contracts? Store 1,000 barrels of oil in your back yard? What? No silver of course. 7.5% gold is irrelevant. You see you cannot listen to the superrich for financial advice, anymore than you can listen to CNBC, CNN, and the rest of the media whores.
The Rothschilds are the richest family on earth, and have been. How did they get that way? Buying when there is blood in the streets. Right now the Rothschilds and the other mega-rich families are loading up on silver and gold. Buying when the great unwashed masses were selling. That's how. Well, there is almost four years of precious metals blood in the streets. The great unwashed masses have no interest in gold or silver. Silver is the most undervalued asset on earth, and gold second. The worldwide cost of production for silver is about $23 an ounce. Demand goes up every year, but supply doesn't. There are no more silver reserves anywhere. The military no longer has a strategic stockpile. London Bullion (LBMA) is empty, and will soon close down after more than 28 years. (The history of LBMA actually goes back over 300 years.) The COMEX is empty (except for owned silver). The U.S. Mint has none. Shanghai will be the only real repository of silver and gold. Yes, the Chinese will run the whole show from now on. You simply cannot go wrong buying at $16. This is a no-brainer. Be like the Rothschilds and buy when there is blood in the street. Buy what the sheeple don't want. Be a contrarian since the masses are always wrong in the end. Look at the fundamentals. The dollar is about to collapse. The stock markets are about to collapse. Housing will continue to collapse. Only gold and silver have real value, and silver is five times better than gold. You really have no choice here if you are paying attention. Yes, the short term is bearish. Fine! Great opportunity to buy cheap silver in April 2015. Use that opportunity. Silver is the most undervalued asset on earth. Be a silver stacker.
Friday the 6th was a disaster for the precious metals. Also, on the 6th the COMEX commercial net short gold positions fell 12,000 to 140,000. Silver net shorts fell 2,000 to 40,000. These numbers are still too high. On the 13th the Big Banks dropped an amazing 34,000 gold shorts and are down to only 89,000 net short. They dropped 6,000 silver shorts and are down to 33,000 net short. This is still a high number though. We want silver to get down to under 10,000 net shorts by the commercials.
Well, the news is reporting the trial of the Boston Bomber, when there was no bomb and no one was injured. No one "lost their leg" or any other such foolishness. It was all DHS actors and Hollywood pyrotechnic smoke bombs. Just Google "Boston Bombing Hoax" or any similar phrase and see the endless list of facts proving it never happened. We are overdue for another fake tragedy like this by the way.
Look at this 7 year chart right from the government BLS. 80% of Americans are going broker every year. Now throw in real inflation and we're talking REALLY broker. The quality of life in America has been falling for decades now. It will keep falling until we are a third world banana republic without the bananas. Remember, Argentina was the fourth largest economy in the world. Now it is a Third World cesspool. Less than 100 years ago England "ruled" the waves, and was THE strongest military power in the world, not the U.S. Now it is another Third World cesspool.
The government tells you unemployment is 5.5%, when it is really about 23%.During the Great Depression it was 25%. Do you really believe 295,000 jobs were created in February? Government doesn't create jobs- the private sector is the only way to create a real job. Realize though that many people have given up on finding a job and are not counted. Realize many people have taken a job they are overqualified for just to pay the rent. This makes it much worse than "merely" 23%. So, we're already in a depression in many ways. We now have electronic soup kitchens- 1 in 5 people are on food stamps! It wasn't that bad at all during the Great Depression. The government was only feeding a small fraction of the people, not 20%. When 1 in 5 depend on the government to eat every day you know it's End Times, it's over, finished, through, done. After 239 years America has collapsed. 2,000 years of history proves all democratic societies collapse after 200 years or less. Rome was the epitome of this, but America will far, far outdo Rome in the end. We'll make the fall of Rome look like a minor event.
"There will be, in the next generation or so, a pharmacological method ofmaking people love their servitude, and producing dictatorship without tears, so to speak, producing a kind of painless concentration camp for entire societies, so that people will in fact have their liberties taken away from them, but will rather enjoy it, because they will be distracted from any desire to rebel by propaganda or brainwashing, or brainwashing enhanced by pharmacological methods. And this seems to be the final revolution." -Aldous Huxley
If you never read Brave New World you really should do that.
"The men the American people admire most extravagantly are the greatest liars; the men they detest most violently are those who try to tell them the truth."
If you read popularity polls you see that the worst psychopaths on earth are the most admired. The Clintons personify this perfectly. The great unwashed masses really love Bill and Hillary. Hillary is the "most admired woman in the world". Chelsea has already joined the CFR like a good little neocon. Other psychopaths include Michele Obama, Bill Gates, Angelina Jolie (seriously!), Laura Bush, Donald Trump, and Bibi Netanyahu.
Jimmy Carter summed it up, “Oppose the Jewish Lobby and you commit political suicide.”
"The great ideal of Judaism is that the whole world shall be imbued with Jewish teaching and that in a Universal Brotherhood of Nations -- a greater Judaism in fact -- all the separate races and religions shall disappear."
Notice that is 132 years ago. The ideal is very close to coming to pass.
The Chinese are going to make their renmimbi the World Currency. These billboards are all over Asia now They know the dollar is finished, and they are going to take over. They don't have a federal reserve, which isn't federal and has no reserves. The New Choice World Currency.
The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobglobins, all of them imaginary. - HL Mencken
You've seen how the media always has a new crisis with no basis whatsoever. Whether it is terrorist in the Mideast or the campus epidemic rape plague the crises never end. The answer, of course, is always more government up your rear end, more laws, more rules, and more regulations. Did you know, for example, that the Good Manufacturing Practices (GMPs) laws by the FDA do nothing at all to make your vitamin supplements safer or better? They just make them more expensive. Yet, the sheeple clap and cheer every time a new ominous government solution is passed. Actually, we have no idea at all what bills are being passed in Congress every week, or what new executive orders are given. Americans are completely in the dark about all this.
This is a very important illustration. Please take a few minutes to see the world economic picture. There are $1,000 trillion (1 quadrillion) in worldwide derivatives that will implode. The total GNP of all countries is merely 78 trillion, so this is crazy. There are 13 times more derivatives that productive output of the entire planet every year. When, not if, these derivatives implode the entire world economy implodes with them.
There are $300 trillion in real assets.
There is $116 trillion in stocks and bonds.
There is $57 trillion in government debt.
There is $50 trillion in bank deposits.
There is $29 in world paper currency.
There is only $6 trillion in gold
There is a mere 0.024 trillion in silver.
O.K, now just stop and think about that. There is only enough silver to give each person on earth about ONE SILVER PAPER CLIP. Seriously, that's all. So, when a silver stacker puts away a cache that makes it even less. Most families don't even have a real sterling silver place setting anymore. They sold it on eBay to pay the rent. Buy all the silver you can. Sell your IRA/401k before 1) the stock market collapses, and 2) the government seizes it and gives you worthless Treasury annuities. For your own safety and security of course.
Dow Theory works. There are six points to Dow Theory. The most important is that the three averages move together to validate a trend. The second is these movements correlate with trading volume. You can trust in Dow Theory. This historically proven diagnostic tool shows that the DJI, DJT, and DJU must move up (or down) together to confirm a real market direction. Well, the DJI is falling now. The DJT is also falling. The DJU has fallen badly. This proves the stock markets are not in a real bull market at all. Get out of all stock markets and not just the Dows. Here is a the 3 month DJU chart:
The S&P 500 now has an average P/E ratio of 20 to 1. That means investors are willing to pay $28 for every $1 of yearly earnings. That means it would take them 28 years to break even with no inflation. With inflation it means they would lose money to infinity. The DJI has an average P/E of 17, which is far too high. It's up to 371, so call your broker and short this today.
Want a good stock to short? Try amazon.com. (AMZN). They have no P/E, as they lose money every year. Sure, it's fun to shop on Amazon, but they have always lost money. Their new motto is, “We lose money on every sale – but we make up for it in volume”. Seriously, this is what CEO Jeff Bezos is telling the world. We lose money on every sale, but we'll make that up in volume. Is everyone in the world nuts? 2,300 investment funds hold this loser. You're going to see the price COLLAPSE to zero on this loser. It's up to 371, so call your broker and short this disaster today.
Tens of thousands of Israelis have taken to the streets in Tel Aviv to protest against Prime Minister Benjamin Netanyahu’s policies, calling on him to step down ahead of the upcoming parliamentary elections. Note- tens of thousands.According to media reports, over 40,000 protesters gathered in Rabin Square in Tel Aviv on Saturday evening, slamming Netanyahu’s warmongering policies and calling for change. The protesters held banners reading “Israel wants a change" and chanted the slogan "Bibi, you’ve failed, go home”. “We have a leader who fights only one campaign — the campaign for his own political survival", said Meir Dagan, the former head of Israel’s Mossad spy agency, who addressed the demonstrators as the keynote speaker.That's right, the former head of Mossad asked Satanyahu to step down and go home. Did you hear any of this in the American media? Of course you didn't. It was heavily covered in the Israeli press though. He is losing in the election polls, and March 16 is the election. Even the Israelis have no use for him anymore.
Communist Neocon Senator Diane Feinstein said his speech was, "humiliating, embarrassing, and arrogant". This is amazing that one of the tribe would criticize him so harshly. All the "conservative" Tea Party Republicans attended, and clapped loudly like the good little Zionist sock puppets they are. The Republicans now are the Socialist Party, and the Democrats the Communist Party. Is America a great country or what? Here is the unbiased reporting by the world media on the Palestinians. Why is it all right for the Israelis to murder innocent men, women, children, the elderly, and handicapped?
Iran has no nuclear weapons, and is a member of the Nuclear Non-Proliferation Treaty. Israel, on the other hand, has the largest stockpile of nuclear weapons in the Mideast (paid for by the U.S. taxpayer), and will never sign the Treaty. Look how we have surrounded Iran with our military bases. Iran hasn't started a war in hundreds of years. They should be left alone. We should trade freely with them. We are doing all this for Israel. Not one Israeli soldier is involved in any of these Mideast wars.
The world has gone totally insane, as you can see here in a one year U.S. Dollar chart. The "Fed" prints trillions of dollars every year in counterfeit "money", yet the dollar goes up, up, and away! There is no gold in Ft. Knox and hasn't been for over 50 years. This is going to end very badly very soon- the same way the U.S. stock markets are going to end very badly very soon. A chart like this is called a "blowoff top", a mania that ends badly.
The media widely reported a General Social Survey that supposedly showed guns sales are up, but actual households that own guns are down. Does this mean guns are concentrated in less and less homes? That would be a very bad thing. Every home should be protected by a firearm. PEOPLE ARE GOING TO LIE ON ANY GUN SURVEY in this political climate. Who in their right mind is going to tell some census taker there are guns in their house??? Half of Republican homes had guns, but only a quarter of Democratic homes had guns. In 1974 supposedly 48% of homes were gun owners, but now the figure is claimed to be a mere 32%. Or 16% are lying because they fear the BATF beating down their door the day after the census taker came. If you want to believe only 20% of blacks and Latinos own guns, go right ahead. They have more reason than anyone to lie about this. Poor people have more reason to own them due to the neighborhoods they live in. Gun laws are racist because they take guns out of the hands of minorities so they cannot defend their families in their own homes.
We keep talking about the Tesla-S $106,000 electric golf cart for good reasons. It's a crony capitalist conjob, and Elon Musk is the modern P.T. Barnum That's the base price. Peons can buy the lesser 376 hp model for $86,000. Again, that's the base price. It went from a $2.5 billion to $35 billion market cap in 33 months. That defines mania. The share price jumped from $25 to $280 in three years despite pitiful sales. They lose massive amounts of money every year. They got a half billion taxpayer bailout. Then the got another half billion in $10,000 per vehicle federal tax credits. ONE BILLION IN YOUR TAX MONEY SUPPORTS THEM. You can buy a stunning 450 hp Corvette Stingray for $66,000, and have $40,000 left over as a down payment on a new house. Tesla lies about the heat and A/C, because they both need humongous wattage to operate, and batteries can't begin to do that. It has 691 hp in electric motors, and goes 0 to 60 in 3.2 seconds. Is that stupid or what? The golf cart weighs 4,600 pounds (the Corvette 3,300). No, it doesn't even begin to go 250 miles on a charge (without any heat or A/C at all). More like 180 miles. In cold weather one third of this is lost. It takes 12 hours to recharge. There is no backup engine. Every 5 years you need a $12,000 new battery. No one talks about this of course. CNBC and other media whores push this overpriced golf cart. Every year they lose hundreds of millions of dollars and you have already paid over a billion dollars to keep them going. You're still paying and will pay until they go bankrupt.
You know that Obama couldn't get Congress to ban AR-15 bullets (.223s), so he did it by executive order. He banned the regular old green tip ammo and claimed they were "armor piercing". Ridiculous!!! Armor piercing are jacketed with copper or steel. Green tips have been around for decades. Well, there was so much outrage that the BATF backed off banning them- for now anyway. You see the ammo is going to go first.Guns without bullets are useless obviously. Load up on ammo now. You can buy boxes of 1,000 round for only $250 for .223s, 39 X 7.62, 9 mm, etc. The .22s are still overpriced but you can find them for 7 cents if you look- that's $70 per thousand. It may take years until we get cheap .22s again. Bullets don't go bad if stored safely. Viet Nam ammo is still perfectly shoot-able. The only thing standing between what little freedom we have left and a totalitarian Marxist police state is one half of the American homes with firearms. The real reason to own guns is to protect yourself from an encroaching government, not merely to protect your home and family, go deer hunting, shoot at beer cans, or anything else. This is what Thomas Jefferson said:
The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government."
Be sure to prep in every way you can. Yes, we're going to keep talking about this and talking about this. Brown rice, whole grains and dried beans. Some canned goods. Pet food. Baby food. Guns and ammo, lots of ammo. Some U.S. currency (green toilet paper) when the banks shut down. (Your local Piggly Wiggly won't comprehend silver at first.) Soap, dish soap, detergent. Toilet paper and paper towels. Feminine hygiene. Light bulbs. A generator and a propane tank. (You can buy a propane converter for $200). Everything you use every day. Just be prepared. It makes good common sense to be prepared. Part of Mormon teachings is to have six months of preparation as a normal course of life. "Be prepared" has been the motto of the Boy and Girl Scouts for over 100 years now because it works. That's right, this is the official motto of both the Boy Scouts and the Girl Scouts. The average sheeple has less than 3 days of food and less than $100 in cash to get them by in an emergency. Screw them. Remember, they'll come for what you have when the SHTF. When people are hungry and cold all morality and civility goes out the window. They revert to cave people.
See you in April. This horrible winter we predicted is finally over. This was a record breaker in many ways. The 2015/2016 winter should be much milder. Anyone with an I.Q. over 50 should be able to see Global Warming is ludicrous, and the planet is actually getting colder.
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