Welcome to Roger's Latest Monthly Economic Rant
| - 2007
Late January 2015 Economic Rant - Roger Mason
"A tax supported, compulsory educational system is the complete model of the totalitarian state."~~ Isabel Paterson ~~
"Children who know how to think for themselves spoil the harmony of the collective society which is coming where everyone is interdependent."~~ John Dewey ~~
From 1917 it took the German mark six years to go to zero. The first four years were bearable, but the last two were horrific. The German citizens merely had to hold silver, gold, German coins, or any other paper currency like Czech, Hungarian, or Polish.
That simple. Well, the same thing is happening in America. People are too blind to see the green toilet paper in their wallets has no value at all. Today, however, you cannot put your savings into any other currency. All paper money on earth is worthless for the first time in the history of the earth. Even our coins are worthless. This has never happened before. More proof of End Times folks. Anyone can go to a local coin shop, or online, and buy silver bullion, but only about 1% have actually done that. Look at this chart, because the U.S. dollar is doing the same thing. When Nixon closed the gold window in 1971 that was the end of our dollar.
There is nothing cheap about $50 oil. Just six years ago it was $40. We have oceans of oil on this planet and falling demand. Demand is falling because the economy is collapsing worldwide. We should normally have $2 a gallon (or less) gasoline and diesel. $40 oil is the free market price- and we'll see that soon. There is no reason to drag in a bunch of conspiracy theories about this. In 2009 it was down to about $35 a barrel. Yes, at least a trillion dollars in oil derivatives have imploded. Yes, the U.S. fracking industry has been destroyed- and that is a good thing. We don't need expensive fracking when we have oceans of oil and gas to pump cheaply. Remember the oil price is not determined by mere supply and demand, as it should be. It is politically controlled and probably the most complex control of any commodity. The world runs on oil more than anything else.
It is politics that prevent us from drilling our own oil and gas fully. It is politics that prevents us from having SASOL plants in every state. SASOL converts coal to any fuel you want cheaply. Our government has banned them except for one in Louisiana. Here is a then year oil chart showing how cheap it usually is.
North Korea is the worst communist prison on earth, but they didn't hack Sony. An unhappy former Sony employee did that. There never was a shred of evidence North Korea did it. Nor was there any motive whatsoever. What do they care about a stupid movie? Yes, it would be nice to depose the commie regime, and give those poor, cold, starving people freedom. Blaming them for something they didn't do, though, is ridiculous. Now 99% of the sheeple are convinced North Korea did the hack job.
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, ‘Account overdrawn.’ – Atlas Shrugged
One Year GDX chart
Here is more evidence gold and silver have bottomed. This is a one year GDX chart. We have a two and a half month bull market and a double bottom. Also the same extreme open interest (buying) at the very bottom; like the HUI. We now have gold, silver, the HUI and the GDX indicating we have a bottom in November, and we are well on our way. Many "experts" will tell you precious metals cannot go up while the U.S. dollar is going up. Baloney! Gold and silver don’t care what the dollar does or doesn’t do. Forget about the U.S. dollar- it's worthless green toilet paper. The "value" is based on comparison all the other worthless currencies. The Fed is printing trillions of dollars in unbacked counterfeit paper, while the dollar index is now over 90. That's crazy, it can't last, and reality will soon come back.
Indian Prime Minister Narenda Modi begged the people of India to put their savings into the banks and not buy any more gold. This is too funny folks. Indians traditionally buy silver and gold and avoid banks. They know better.
On the 5th (the report of the 2nd was delayed) the commercials dropped 1,000 net silver shorts but added 8,000 net gold shorts. Makes no sense. On the 9th they added 1,000 more net silver shorts, and added ANOTHER 10,000 net gold shorts. This means 18,000 more net gold shorts in a mere two weeks. This is not a good sign, but their efforts have less and less effect all the time. All manipulations end exactly the opposite of what they were intended to do.
A 2014 poll of Americans showed 30% do not believe in the 2nd Amendment right to own firearms. This is in the Bill of Rights and is 239 years old. Gun bans are hallmarks of any totalitarian, Marxist, communist, or police state. The main reason to own guns is protection against an evil corrupt government, not mere self defense of your home and family. The fact that 3 out of 10 Americans do not believe in the right to own firearms shows how brainwashed the masses are.
Let's talk about prepping. Nearly all the prepping sites are terrible!!! They advise you to stock up on horribly unhealthy foods like dried milk, powdered eggs and cheese, canned and dried meats, white flour, white pasta, white rice, sugar, coffee, liquor, and all kinds of things you should not be eating. They rarely mention pets. This is about SURVIVAL and health, not gourmet meals. Put whole grains in sealed plastic containers. Brown rice, wheat berries, whole barley, oats, grains, and buckwheat can be boiled. Flour oxidizes, and it's almost impossible to grind your own flour. Even oat flakes oxidize. Nuts don't last, even in the shell. Put lots of varieties of dried beans in sealed plastic containers. Yes, you should have some canned goods for variety, and they last a long time. This includes high quality canned pet food. We feed Bear half whole grains and half animal foods. He has lots of canned meats, fish, and poultry for emergencies. Bagged dog food oxidizes within a year. If you don't have an independent water source you're in trouble. In many areas you can dig a shallow well and use a hand pump.
More and more you will hear the name "Elizabeth Warren". Who is that? Well, she may be our next president. Less and less you'll hear the name "Hillary". In 2015 the Whore of Babylon will be forced to give some lame excuse about why she's not running. Actually, she has started doing just that in recent interviews. She will not admit she is dying of various diseases. In the next 23 months Hillary may well fall over dead, or be permanently hospitalized, or bedridden. Google "Hillary won't run in 2016", and you'll be amazed. Even that fat, ugly disgusting Kosher Candy Crowley admits that she won't run. We've been telling you this for years of course. Right now neocon Jeb Bush is absolutely the choice to continue the Bush dynasty. He and his Mexican family will automatically get 14% of the vote. The Libertarian candidate will be lucky to get 2% of the vote, like the Libertarians did in 2008 and 2012. 98% of Americans are brain dead, and would rather have a Republicrat to lead them down the road to Hell. How can anyone prefer Big Government, poverty, and slavery to freedom and prosperity?
The second Arctic Blast Winter in a row continues as we warned. The entire country is frozen solid, except for the tip of southern Florida. In many areas (like here in Wilmington) these are record low temperatures. The liberals keep babbling about "global warming" and "rising sea levels" from melting icebergs. Reality never bothers liberals because they're all nuts. The planet has clearly gotten colder in the last decade, but that doesn't bother them a bit. The One World Order United Nations issued a 127 page Intergovernmental Panel on Climate Change report. Of course they claimed the planet is warming up dramatically, the oceans will die, people will die, countries will be underwater, and all this is due to "greenhouse emissions". Here are the temperatures on January 8. The entire country is frozen over. We warned you winter 2013/2014 and 2014/2015 would be horrible. Yet, the liberals have the nerve to keep babbling about global warming. Facts only confuse liberals.
The Paris "Charlie Hebdo" terrorist attack was done by Mossad to further inflame the French and the rest of the world against the Muslims. The CIA may well have helped them. Just Google "Paris false flag terrorist attack" if you want more details. The supposed "terrorists" were from Yemen, which means this poor innocent country is the next target of the Zionists and neocons. Why Yemen? It is a vital oil chokepoint. Just read one article and you'll see how obvious this was a staged event. Yes, this time people really died, but Mossad did this. Do you really think a “terrorist” dropped his ID in the getaway car? How ridiculous. Did you know Police Commissioner Helric Fredou of France’s Judicial Police (JP), Limoges, investigating this event “committed suicide on the night of Wednesday to Thursday at the police station.” Did he know something that global public opinion “should not be troubled with?” All this misdirection dominated the news for days, and 99% of the world sheeple fell for it. This kind of evil takes people's attention of the real issues, and blames the Muslims for all the problems. Anti-Jewish sentiment is very high in France now, and many Jews have fled Paris in fear. This was reported in the Jewish media. In November Israeli PM Benjamin Netanyahu warned it would be a "grave mistake" for France to recognize a Palestinian state. Well, they fully recognized the Palestinian rights to their own state. On Monday French President Hollande asked for Western sanctions on Russia to be lifted. Two days later, Paris was attacked. Go to this website for more:
PREDICTIONS FOR 2015:
Casey Stengel said, "Never make predictions, especially about the future." He was right. Your poor, old author is going to make some 2015 predictions, and stick his neck out regarding silver and gold. Basically, it's all going to Hell this year.
Gold and silver will go back to their old highs of $1,800 and $49.
Both commercial and residential real estate will keep crashing.
Europe will divorce itself from American more and more due to Russian sanctions. Also the endless war mongering we keep involving them in. Germany will be more and more forced to ally with Russia due to U.S. interference. Eventually they will tell America to remove all military bases from Germany.
Inner city (e.g. ghetto and barrio) violence will increase. Racial tensions will get worse as the media keeps pouring gasoline on the flames.
The police will keep militarizing. The police no longer "protect and serve" in any way, shape or form. They are now Caesar's minions and are there to enforce the totalitarian
state. DHS (Homeland Insecurity) will keep expanding into train stations, bus stations, sports stadiums and even shopping malls.
ObamaCare alone with destroy the economy. The original bill was 906 pages, and not one senator or representative ever read the entire thing. It now has almost 20,000 pages of regulations added. No one on earth has any real idea of what is in it.
Taxes will keep increasing to pay for the welfare state. The standard of living will keep falling and falling until we have the European standard of poverty.
The media will tell people our problems are due to, "too much freedom and lack of regulation". The sheeple will then welcome more laws, rules, and regulations to further ruin their lives, and make poverty stricken slaves out of them.
At any time we could have a truly catastrophic event. This could be a nuclear bomb in a major city. It could be a bank collapse with all the banks shut down. It could be nationwide martial law after a black city like Oakland erupts in violence. Or nothing horrible may happen in 2015. We won't know until it does.
For ten years McDonalds was one of the very best stocks in the world. This is the most popular food chain on the planet. You can see it peaked last May with no sign of recovery. People simply cannot even afford to eat cheap fast food anymore. This is a warning of what's to come. The stock market is a house of cards held together with
bubble gum and scotch tape. Most everyone has their IRA/401k invested in the stock market. Their life savings and retirement will vaporize when the market crashes. Then the gummint will rush in and seize everyone's IRA/401k, and give them worthless Treasury annuities. Dump your IRA401k, pay the penalty, and buy silver bullion. Hold it yourself.
McDonalds (MCD) One Year Chart
48 top bank officials and financiers have died under mysterious circumstances in the last 2 years. The various causes were "unknown" (lots of them), suicide, murder, disease, fire, drowning, and shooting. Richard Talley was shot 8 times in the head with a construction nail gun, yet it was ruled a "suicide". Just try shooting yourself in the head 8 times with a nail gun, and see how far you get. What does all this mean? They are being killed off prior to the biggest banking crash in history. This will dwarf the 1929 crash.
Obama and his Communist cabinet are now going to send everyone to college for "free". NOTHING IS FREE! Free means hard working, tax paying Americans pay for this crap. The liberals claim everyone has a "right" to higher education. "America's College Promise" will send every stupid, shiftless, brain dead, worthless scumbag to community college for two years at YOUR expense. Have you seen your local community college recently? Looks like a co-ed prison. These used to be called "junior colleges", and the students were generally good, intelligent, upstanding young people from good homes who didn't, or couldn't, go to regular four year colleges for various reasons. Now they look like convicted felons for the most part. College as well as community college, used to mean something. Only people with intelligence and ambition attended. Only the sincere graduated. Now, with affirmative action, political correctness, and trillions of dollars in student loans it doesn't mean much anymore. A black, handicapped, lesbian female, for example, is guaranteed to be accepted at the very best colleges. Not only accepted, but with financial grants and an almost guaranteed graduation regardless of her performance. Americans have fully embraced the Marxist agenda of equality for all- regardless of productivity. We now have a right to go to college no matter how stupid or lazy we are. We now have a right to medical care with Medicaid, Medicare, and Obamacare. We have a right to eat with food stamps. We have a right to live without working with welfare Social Insecurity disability, and unemployment benefits. Funny, none of these rights are mentioned in the Bill of Rights or the Constitution. Just the right to life, liberty, and the pursuit of freedom. This country is finished after 239 years, and will soon be a third world backwater like England.
Take a look at this 95 year chart of the Dow. There was a huge bubble that popped in 1929. After that, for almost 85 years, the Dow has done nothing vis a vis inflation. This means a share of the Dow would buy the same amount of groceries 85 years later. Where is the profit in this? There is none. Investing in the stock market is a losers game. The best you will ever do is break even over the long term. The idea of making money in the markets is patently ridiculous. History proves that. Inflation takes away any profits. Add capital gains taxes, and you really lose on this deal.
Here is another Dow chart to prove the same thing. The Federal Reserve was formed in 1913. The dollar has lost 95% of it's value in 102 years. The Dow has not gone up at all, except in inflated, counterfeit "money". Thanks to Mark Lundeen and GATA for these two charts.
In 1942 Time magazine made Josef Stalin the Man of the Year!!! He ruled Russia from 1928 to 1953. The KGB said he murdered 36 million innocent people. The book History of Europe said 54 million, and the University of Moscow said 57 million. He starved 9 million Ukranians to death in the 1930s in the Holodomor. The West just didn't care. How did he do this? GUNS WERE OUTLAWED IN RUSSIA. That’s how. No one could fight back. That's how he did it. This is why Obama, the liberals, the neocons, and the Zionists want total gun confiscation. Stalin was our ally in World War II. President Roosevelt revered him, as did millions of other liberals, progressives and other morons. Stalin called these useful idiots "his maggots". Stalin said, "history doesn't judge victors". This sums up all world wars. He further said, "One death is a tragedy'; a million deaths is a statistic."
Look at this 15 year crude oil chart. Oil is not cheap at the $50 level. A fair market price for oil today would, in fact, be about $40. This would mean $2 or less gasoline in every state. This will not last unfortunately. The price of oil is politically determined instead of by the free market forces of supply and demand.
THE STOCK MARKET IS DANGEROUSLY OVERVALUED!!!
The stock market is simply overbought and overpriced. For instance, the market’s price-to-sales ratio is at an all-time high. The market’s capitalization to GDP ratio ( Buffet’s favorite indicator) is the second highest in history. The Shiller Cyclically Adjusted PE (CAPE) Ratio for the S&P is 27. That level has been exceeded only twice before in history – in 1929 and 2000. In other words, the current market is dangerously overvalued and way overdue for a correction or a bear market. Don't be in it. Get out. If you have an IRA or 401k, sell it, take the penalty, and buy silver bullion.
Above is a J.C. Penney (JCP) six month chart. Hopeless. They were a pillar of American commerce for over 100 years. No one knows when the stock markets will crash, just that they are ridiculously overvalued and are overdue for a collapse. Great events always cast their shadows before them. We have many signs warning us, so heed them!
The HUI bottomed at 150. You will see gold and silver stocks make a dramatic recovery this year. History shows us this is true after long bear markets. Here is a five year chart to show how bad the collapse was...600+ down to 150. We have a nice 10 week bull market going. We are headed back to the 600 mark. Yes, it's been more than three and a half years of disappointment.
Here is a six month gold chart. We have another nice 10 week bull market going.
Here is a six month silver chart. We have a nice, but erratic, 10 week bull market going.
See you in February. Buy silver at $17. Prep as much as you possibly can. 2015 is going to be a disaster. The chickens are coming home to roost, the piper is getting paid, and America is reaping an evil karma.
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