1. Harry Schultz, arguably the greatest currency expert alive, said the US dollar could top out near 88. It came close to that and is now tanking.
2. In the late 1990's, 99% of investors "knew" gold was finished. And the stock market was in a new era. While investors had a big laugh and celebrated their smarty pants lifetime free money to come in the stk mkt... the richest bank owner families loaded up on a MOUNTAIN OF GOLD.
3. "Just like in the 1970's it will be the BANKERS that make all the money in gold this time." -Jim Sinclair. World's Largest Gold Trader. 1968 -1980.
4. "The banks will be finished when gold soars" - Joe Investor with a couple of broken down penny gold stocks to his name.
5. Most gold bugs have a fantasy that can only be called... bizarre and surreal. A fantasy that somehow there is this giant naked short (bet it falls) position in the New York paper gold and silver market, a position held by the bankers, and they will all be instantly destroyed when the metals finally have some magical rise to the sky.
6. The REALITY is there WILL be a rise to the sky, and GUESS WHO IS GOING TO MAKE ALL THE MONEY IN GOLD WHEN IT HAPPENS? YEAH, THE BANKERS. The bank families appear to hold far a VASTLY more massive physical gold position in Dubai, London, Switzerland than their supposedly bank-breaking positions in the New York paper mkt. Their bets that the metals fall are RISK FREE. If the New York paper mkt really does blow up... THEY ARE THE WINNERS.
7. It is the LITTLE gold and silver investor and the funds that are being smashed time after time, not the bankers.
8. The bankers ONLY buy weakness and ONLY sell strength. In ANYTHING they buy.
9. The million dollar question: Do YOU???
10. The current bear rally in the stk mkt may go a LOT higher than most think. Aprox $3 trillion was printed up three wks ago. So far, those money printed lows are holding. I'm hearing a TRUCKLOAD of financial HORROR STORIES from people with substantial money who are DESTROYED. They don't want ANYTHING to do with the stk mkt EVER AGAIN. This is the type of thing that sees HUGE bear mkt rallies launched. 99% of their problems were caused by the TACTICS they used.
11. Only ONE THING really matters: What TACTICS do YOU use to buy stocks and funds? You are likely either using the tactics of the Joe Financial Advisor (JOE GOLF BALL ADVISOR) or the tactics of the GOLD BUGS.
12. Most gold bugs think gold can rise to thousands of dollars per ounce. I might not be very smart, but here's some common sense: LOOK OUT YOUR WINDOW. Have a look at the FINANCIAL HURRICANE. Gold is trading in the $700-1000 area. Now PICTURE gold at $3000 an ounce. Or $5000 an ounce. WHAT DO YOU THINK THE VIEW OUT YOUR WINDOW WILL LOOK LIKE THEN?
13. Bottom Line: If you are a small business OWNER, here's the ACTIONS you need to take: FORGET about making money. Protect your company treasury. You need a proper custodial situation that legally separates your assets from the banks' assets, while paying the bank to hold cutody of those assets. That's easier said than done. There's an ARMY of lawyers who are lined up to charge you fees for their 200 page disclaimer, giving you ZERO real separation of assets.
14. Bottom Line #2: Go to the bank. Put 1-2 months living expenses in cash in a safe at home and in a safe held by your personal lawyer and accountant. Preferably 6 months.
15. Bottom Line #3: Stop playing stock trader. Take IMMEDIATE delivery of your stock certificates. ALL the banks are soaked in derivatives and so are most of the world's brokerages, whether they know it or not. Store copies of those certificates, and the certificates themselves, properly, following the instructions of your lawyer and accountant.
16. Hold some physical gold and silver. Gold is the world's lowest risk investment. Exactly the opposite of what you've been told by Joe Golf Ball Advisor for years. Unlike ALL stocks and bonds, it is a THING, not an OBLIGATION.
17. 1% of the $700 trillion otc derivatives iceberg has poked its head above the waves, thanks to the failure of Lehman.
18. WHAT DO YOU THINK IS GOING TO HAPPEN WHEN THE OTHER 99% OF THE ICEBERG RAMS INTO YOUR FINANCIAL SHIP?????
19. In other words, can you have your cake ($5000 gold) and still call your broker and count all the money on your gold stocks? Answer: At $5000 gold, the odds are 90% that your brokers (internet or full service) will be on the BREAD LINE and your stock holdings... will have been converted into govt bonds that are being hyperinflated to nothing.
20. You CAN make a lot of money in gold but you need to face the fact that the system is broken and you won't make any money fooling yourself that you can hold your gold assets IN the system while it blows apart and walk out with a big fat profit.
21. If you don't escape the system, you'll likely find yourself in a financial wheelchair... on the bread line.

Over and out from the Happy House,

St

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Disclaimer: Stewart Thomson is no longer an investment advisor. These updates are for general information purposes only. Stewart may or may not hold positions in securities and investments mentioned here. Your risks in any investments are a MINIMUM of 100% loss. If you knowingly or unknowingly use leverage, derivatives, and/or short sales your risk is unlimited. Consult numerous qualified professionals before taking any action with any of your money on any investment no matter how clear or safe it appears.

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