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Thank God we don’t live in the 1930s … (with comments)
Larry Edelson
So is this the end of their bull markets?
Hardly! The pullbacks are, as I have been explaining all along, merely healthy cyclical declines to test prior major resistance levels, which should now become support. (Or, they are deliberate actions on the part of the Silver and Gold Barons, to prop up the value of Federal Reserve Notes, to keep there paper-money ponzi scam going for as long as they can. The game is about confidence -- the perceived expectation that no matter what real value FRN's might have, that the next guy will take them in trade for what you need -- and the only way to maintain that confidence is by artificially manipulating value ratios between paper and metal assets. The Jew bankers need Gold and Silver to put a value on their paper, not the other way around. They also know that their paper has no real fundamental value, other then what they can convince you and I into believing it has. Their entire scam is based solely on our ignorance of monetary fundamentals, specifically in the area of honest weights and measures -- an area I might add, where the Jews thievery and true criminal genius has shown the brightest.)
These declines will serve to shake out all the weak long positions, so that fresh new buying can come back into the markets. (This is probably true for people who purchase metals as a commodity, with no plans to take delivery -- meaning that the big Jew investment house's can continue to sell gold and silver on spec to millions of brain-dead Americans, knowing that not one in 10,000 will ever request delivery of their metal. Imagine being able to sell the same ounce of silver for $30.00, to 10,000 people? Not a bad profit, if you don't get caught short, when increasing amounts of trusting lemmings start calling in delivery orders, which could happen, even in this country. Don't be fooled into thinking for a minute that these Jew parasites have a 100% lock on the game they designed for the ignorant masses, because they don't, and once more they know they don't. Many a banker have been strung up by their nuts, or worse, for overplaying their hands. They know all to well the telling signs that the game is over; like when the stupid goyim muster up enough effort to take the apple out of their mouths -- one sure-tale-sign of needing to pull up stakes in a hurry, if next they remove themselves from the serving cookware. )
Mark my words: When gold and silver bottom out in these corrections, they will be truly awesome buys, for what will come thereafter will be their biggest phase yet to the upside.
Right now, however, I strongly recommend refraining from purchasing any new precious metals investments. Either in physical form, or, via ETFs or mining shares. Gold can fall to at least $1,250. Silver to $25, and probably lower to the $23 level. (Keep in mind that you may not be able to get silver very much longer, at any price -- save junk silver -- becasue 1 ounce rounds are already drying up due to current demand vs raw metal inventories. Monex has been lying through their teeth for the last 20 years about how much silver there is.)
If you own core gold holdings, whether recommended by me or someone else, I strongly suggest you consider hedging them right now. If you haven’t already, as my Real Wealth members have.
Now is not the time to load up on precious metals. Use an investment such as the PowerShares DB Gold Short ETN (DGZ), an exchange traded note that seeks to profit from declining gold prices, and the ProShares UltraShort Silver ETF (ZSL), an inverse ETF designed to move up at roughly twice the pace of silver as it declines. ( Profit? You mean paper profits, right? What are Powershares denominated against? Are they not Federal Reserve Notes? What if those notes suddenly become worthless, what then will your Powershares be denominated against? I will tell you what they will be denominated against, NOTHING, NADA, ZIP, all of your perceived wealth gone in an instant. What's that I hear? The shares will be revalued against whatever new paper currency replaces the Federal Reserve Notes, and not to worry." Or better yet, in the interim period, until some form of new value can be assigned to the PowerShares, your Jew Broker will tell all of his or her customers, "while it is currently true that your mythical stocks/shares no longer offer any stated commercial value, they do give you the security of knowing that whatever future denominated instruments of theft we cook up for our most beloved cattle, be rest assured, that your original investment is safe with us, and always will be. )
But be nimble with those investment hedges. Don’t go overboard. And don’t get married to them. Because once gold and silver bottom, you will want to get out of them ASAP, and then buy truckloads of gold and silver investments.
Why Precious Metals Will Take Off
There are numerous reasons why precious metals will take off, yet again, after the correction is over. Chief among them are …
The Federal Reserve is continuing to print money like mad, and will not stop. And with more than 20 U.S. states now edging towards bankruptcy, the Fed is going to have to print trillions more fiat money to bail out many busted states and dozens of big cities.
Naturally, the international value of the U.S. dollar is still very much in question, wickedly trapped in a long-term bear market. Yes, there will be the occasional dollar rally, but almost exclusively against the also sick euro currency.
Meanwhile, the dollar continues to lose purchasing power against most other major currencies, even the Mexican peso, and of course, Asian currencies.
Speaking of Asian currencies, I suggest you look to place some cash, when you can, in currencies such as the Singapore dollar, the Chinese yuan, of course, and even the Thai baht.
I’ve personally done extremely well with the Thai baht. Money I placed in Thailand over a year ago now buys me 11% more dollars, if I were to convert it back to the greenback.
But I’m not going to do that. I’m keeping some money in Thailand because I see the dollar losing far more value in the months ahead.
I think that will be even more true going forward precisely because President Hu has already made some big concessions to President Obama at this week’s heads-of-state meeting in Washington.
The two leaders covered a gamut of issues, from human rights, to environmental concerns, to trade. President Hu even authorized a $19 billion order for Boeing aircraft as a show of good faith.
But far more important is what’s not being publicized. President Hu will head home with the message that Beijing must start loosening up its tight grip on the yuan, let it appreciate, and help Washington stoke up some inflation.
All you have to do is read between the lines. This week’s meetings between the two leaders went off far better, were far more friendly than ever before, and stressed cooperation between the #1 and now #2 economies. There were no acrimonious sound bites, no tit for tat. Instead, it was a solid show of new found efforts of cooperation.
Part of this will be to let the yuan gradually strengthen in value, so that China can help quell its accelerating inflation and give its consumers — more buying power.
Conversely, for the U.S. it means an even lower U.S. dollar, so that it can get a dose of badly needed inflation — to help ease the burdens of debts gone wild and to help U.S. consumers come out of the closet and start spending again, and more.
Like it or not, this is what’s going down in Washington, and it has, as I have recently explained in my flash alerts and in this column, vast implications for your wealth.
Is the End of the Financial Crisis in Sight?
Will all this kill off the great financial crisis that is still the affecting the U.S., or even Europe for that matter?
No, it will not. In large part, it will only kick the can down the road until our leaders wake up and realize they can no longer spend other people’s money with reckless abandon.
Until that day comes, and I’m afraid it won’t come for a few more years, and not until it gets so ugly in our country that our leaders have no other choice, we are likely to see some of the most violent, wild market moves ever.
And, we will likely see the end of the dollar as the world’s reserve currency as well.
For now though, you owe it to yourself and your loved ones to recognize and understand what’s happening to both protect your wealth and grow it.
And you need to recognize another force that is one of the biggest ever to hit civilization: The evolution of 84% of the world’s population — some 5.88 billion souls — who now want lifestyles as good as we have in the developed world.
It’s an economic force that will continue to drive emerging economies and natural resources higher for years to come.
Lastly, for today, a thought I’d like to end on: Thank God we don’t live in the 1930s, when there were so few ways for U.S. investors to protect themselves.
Instead, we should all count our blessings that we live in a world where there is such a variety of investments, that you now have full control over how to both protect and grow your wealth. You no longer have to bury it under your mattress or in the back yard. [We live in a time period that is 100 times more precarious and volatile then the 1930's, when factoring in the size of the population, the collective skill levels of most americans, declining morality, debt, weather, massive corruption, pending earth changes, shifting wealth, food chain collapse, water pollution, air pollution, ground pollution, contrived scarcity, increasing poverty and hunger, skyrocketing fuel and food cost, and no more industries that create and produce wealth for America. There is no protecting your wealth, if your perceived wealth is in paper, or bank computer. Furthermore, as the goverment becomes more desperate to ply its favorite trades of Murder, Rob and Rape, it will confiscate all pension funds, 401K's, Mutual Funds, any and all paper instruments not under its direct control already. Hells bells, the US Corporate Government has already taken over all private sector wealth. (See CAFR man, and read all about it.)]
God bless and best wishes,
Larry
P.S. In this week’s episode of Money and Markets TV, we continued our review of 2010 by looking at some of the year’s hottest investments: Commodities and emerging markets.
If you missed last Thursday’s viewing or would like to see it again, simply go to www.weissmoneynetwork.com and follow the on-screen instructions. Access is free and no registration is required.
Jan. 24, 2011
Comments: Rod Remelin rod@rodremelin.com
www.uncommonwisdomdaily.com/thank-god-we-don%E2%80%99t-live-in-the-1930s-11036