Actual Real Money

I make it a point to keep abreast with ones who tell the truth and are financially educated.  Max Keiser fits both categories but this is an understatement.  He is a true financial truth teller and one with great knowledge on financial markets.  Since he spent a great time earlier in his career as an agent of the financial terrorists I would say he is more than qualified to talk about their practices.

 

Recently he did a video on his show Keiser Report (a must see if you want the truth) in regards to the MF Global Scandal CME Group and the over all common practice of faulty accounting practices.  He even through some bones to the Occupiers in which he and I agree to have some grounds of anger in frustration even though we don’t agree with their talks for more entitlement and more Government.

To not get to far off topic Max pointed out that the shell game of debt is common practice for most companies.  Many companies don’t report actual or lets say true financials they engage in what Max calls Peekaboo accounting.  You can get a glimpse of our accounts and then Peekaboo you can’t see our debt or real financial actual’s.  Essentially ACCOUNTING FRAUD!

The CME GROUP does not do their job in regulation and cannot be counted on especially with MF Global’s recent billion dollar fraud.  How can you leverage 40-1 and not suspect to get caught financially.  This is what MF Global essentially did.

The most disturbing truth that Max alluded to is you and I buy securities based on company financials. If they are fraudulent then we have more to worry about as the truth will always come to surface.  Risk can only be concealed for so long.

It should come at no suprise that Italy is now facing debt issues it was predicted several years ago that they amongst the other PIIGS would be facing a financial crisis.   Extreme austerity measures would be the only outcome with every country in the world not having anything backing their currency and the United States dollar the illogical cornerstone that each currency is pegged to.

This maddness  in no small part due to the ECB and the financial terroism perpetrated by them and the Federal Reserve.  But what is ironic is the difference in spreads between the 10 year bonds for Germany and Italy.

For instance On Wednesday November 2nd the Italian 10 year bond yield reached a Eurozone-era high of 7.48% and finished the day at 7.25%.  The  spread between the German and Italian 10 year bond yield had reached a record  553 basis points. There is no reason for such a huge spread between their bonds because both countries are denominated in the same currency.

In addition last weeks rally was pure folly and people were bullish in Italy for no real reason.  During the last two trading days of last week, the Italian 10 year bond declined 103 basis points from its peak to finish Friday at 6.45%.

 

At the same time, the German 10 year bond yield bounced from 1.72% on Wednesday to finish Friday at 1.89%.

The spread between the German and Italian 10 year bond yield is now back down to 456 basis points, a massive decline of 97 basis points in just two days.   The spread between Germany and Italian year bond yields has signinficantly more to go in the weeks and months to come.

All this hype is due to the hope Italy’s steep Austerity measures will work.  I hold my breath if they do but one things for sure the ECB will not let Italy fail especially with the trillions it has to loose if they let it fail.  Bonds are nothing but iou’s backed by the faith and ability for people or in this case countries to pay.  I am not sure how they will be able to.

On the U.S. front the situation is considerablly worst The White House budget for fiscal year 2012 currently projects a U.S. budget deficit of $1.101 trillion.

 

The deficit is projected to decline in 2013 to $768 billion and to a low in 2015 of $607 billion, before rising back up to $774
billion in 2021. These projections are based on pure optimism and not realistic.The  U.S. will see substantially higher budget
deficits over the next decade than what is currently being projected.

The bottom line is moderate inflation if were lucky and possibly hyper inflation if were not and this is hopeful. 

IF YOU HAVE NOT STARTED PURCHASING PRECIOUS METALS YOU STILL HAVE TIME: 

There is a new war in the mix for the American people a political civil war persay between the Tea Party and the Occupiers who have expanded their message pass Wall Street.  The Tea Party who believe in limited government and personal responsibility and the Occupiers who believe in expanded government and more entitlements.

Why I stand on the side of liberty hopefully the message in which I think the Tea Party is trying to express I not only understand and emphasize with the Occupires who started in Wall Street.  Although misguided their anger is well placed the government has addicted to this drug of entitlement painting the picture that you are supposed to have.

This is no more evident than every social welfare the government has catered to wheter it be the involvement in education, social security,medicare, extended unemployment, government pensions and the like.  In the Occupiers defense they were coaxed into believing this illusion that you are supposed to be taken care of.  The market and the real world outside of the American utopia is completeley different.

As a patriot and American citizen who loves his country it would only show my ignorance if I did not deny this fact.  The creator in which I believe in designed us to depend on him and only him.  But that is a different concept and not the focus of this discussion.

The question will come in the very near future is will the difference in philosophies between the two parties aka Tea and Ocuppiers remain civil.

Or will the civil war between the two erupt only time will tell.  I leave with this message the promises of anything free comes with a price.  The price for the occupiers may mean a destruction in what I believe was the American spirit liberty to fail or succeed.  The truth is we are now functioning on a corporate welfare, social welfare, societial disfunction.

What so amazing is in our worst economic time people are able to eat sleep and still be taken care of what if they weren’t able to a reality for most of the world.

Its hard to change your context but if you do you will see things so clearly it may stun you into consciousness.  I am refering here to the battle for true money, something that cannot be manipulated so easily and only benefits the elite.  This is none other than Gold and Silver.  Gold and Silver have done accounting for centuries and remain the victors even when it seems illogical to the masses of people.

The only reason why I am saying this because the world population of precious metal investors remains less than 5% and this is globally.  However the reverse of owning fiat currecies remains in the billions.  People are still ignorant to the importance of purchasing gold and silver and with the latest drop I suspect for people to sell their gold and silver which would be gallatically stupid.

As I write this silver is less than 30 bucks and gold is under 1,700.00 dollars.  Silver remains the buy for the next 10 years since it is and reamains the most used undervalued commodity of our time.  This is the only way a poor or middle class person can get ahead and have some dignity in the not so far future.  But alas people still hold faith in currency as I see people still open up savings accounts and try to hoard something that has no intrinsic value.

This war of fiat money versious precious metals will continue but never has it been more accessible for the poor and middle class to change their station in life if they change their context.  The fiat money scam benefits the bank and the government and then finally gets to the masses at the bottom of when it has lost the most of its illusionary value.

 

ARM YOURSELF FROM THE CONSPIRATORS  BUY

Interesting title huh?  I can’t take credit for the term Debt Ghetto it was coined by the brilliant Max Keiser from his Keiser report.  However the aftermath of Grecee’s austerity measures and debt overload fits the term debt ghetto to a T.  While Greece is in the spotlight right in our own backyard we have at least 25 states that fit the bill of a debt ghetto.

Two which come to mind is California and Las Vegas.  California who dosen’t have enough money to sustain them pass tomorrow and is constant need of debt restorations as they sell bonds and give out IOU’s to their state employees.  In Las Vegas real estate projects have been abandoned leaving lifeless structures partially finished.  The debt pushers the Banks which the world now receives their constant fixes from only prescribe more of their debt drugs.

This is just the beginning folks as Bank of America announces 30,000 lay offs and permanent unemployment.  In the near future we will hope for just 9%.  The debt Ghetto’s are on the rise as the municipalities in most states are well underfunded and will be needing a fix soon.  I mentioned 24 states in the U.S but that is not really accurate its close to 40 who don’t have sufficient funding.

As a child of the urban ghetto it was considered a stigma.  Now the stigma has become acceptable as even the most affluent areas in the United States are engrossed and only sustain by the debt drug. What makes things even sadder is the world looks to take more of the drug from the pushers who have caused the problem in the first place.

PURCHASE REAL MONEY PURCHASE SILVER STOP THE BIGGEST PUSHER JP MORGAN

Here is where you can purchase your cure:

You know there is something to say about a country when their leaders function as WIMPY from Popeye.  I can’t take credit for this quote but I am glad to reference Brother John F who used it in his silver update.  If your not familiar with Wimpy from Popeye he is known for the phrase “I will gladly pay you Tuesday for a hamburger today”

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Essentially this is what can be derived from Ben Bernanke and President Obama’s speech that took place several days ago.  Increase government spending now to decrease government spending in the future aka I will gladly pay you Tuesday for a hamburger today.  The hamburger metaphor can be substituted with Hyper inflation.

Both speeches mirrored each other in content: Government spending is necessary now and figure how it can be paid for in the future.  In the case of Obama he states 10 years and with Bernanke it’s indefinite since he gives no time frame.

Believe me I know many people are hurting, with 14 million people out of work and 1 out of every 10 Americans on food stamps but what good is actions that will destroy the currency of a nation.  The ripple effects will be catastrophic when everything is for sale but nobody can afford to buy because the dollar is not worth the ink its printed on.

I take the stand with Brother John F that WIMPY ECONOMICS HAS TO BE STOPPED! 

STIMULUS OVERDOSE As President Obama pushes for another stimulus package I chuckle at the absurdity.  When will we learn we don’t fix problems with solutions that create the problem.  Let me explain what I mean by referencing a well done documentary video done by the DailyCapitalist.Com called the next Financial Crisis OVERDOSE.  This video received opinions from individuals with true financial intelligence an attribute that has been uncommon in todays economic climate.

The most notables were Peter Schiff and Gerald Celente their intake was priceless.  Essentially the video goes over every bailout since the Great Recession in 2008, The collapse of Lehman brothers the bailout to the banks, the auto industry cash for clunkers, the home made affordable program and the like have led to an overdose similar to the one a junky has.

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Trillions of dollars have been spent and for what? THE collapse is only delayed!  I would hope to believe President Obama means well but as a parent how could I willingly destroy my daughters by prescribing something that would cause them lethal harm.
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  This is what every stimulus package does to the United States. What’s most unfortanate is this insanity is followed by other failing countries of the world making the problem systemic and otherwise incurable.
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We all know what needs to be done but who has the guts to allow the United States and essentially the world go cold turkey.  Its only a matter of time before the stimulus overload kills us by HYPER INFLATION.Info links

I have touched on this before but its worth repeating “Price means nothing what’s the value”.  Now as much as I like to take the credit for this genius statement I can’t it comes from the brilliant monetary cycles and best selling author Mike Maloney of Gold and Silver.com.

With that said it never rings more true than now as we live in a world where everything is measured in currency.  But to stay to the point I recently read an article given by another great financial analyst who goes by the endearing title Brother John F.  His article was looking at the fundamentals of silver and how this above all other markets is manipulated the most..

The article was intriguing to say the least but to not endure over all the points I will focus on the overall theme.  We need to understand the fundamentals in order to make rational decisions on what to purchase by using price.  Stated another way when comparing things in price it must be compared with items that store value.

To illustrate lets look at 6 items of value.  The items are corn,wheat,gold,silver oil, and copper.  Each one of these items are traded daily and each are essential items to our livelihood but out of the 6 only two have been money.  Roughly there are 30 billion gallons of oil produced which is roughly 3 trillion dollars.  Corn there is 870 tons produced a year when translated to bushels this comes out at 224 billion.

In terms of copper there is 10 million tons a year produced.  The silver mined on the earth is 750 million ounces and Gold is 880 million ounces mined a year.

As metioned in the latter paragraph Gold and Silver are the only two of the items that has been considered money since the existence of money has been established on the planet.  Gold is 880 million ounces a year mined and Silver is 750 million out of the two Gold is hoarded silver is used in everything in our modern life.

Lets look at the other factors Brother John F pointed out corn and wheat have a shelf life of 7-10 years of storage, copper tarnishes and oil is a fuel.  Out of them all Gold is hoarded and now beginning its bull run.  Silver has still not hit its 1980′s high of $49.00 only to several months ago and then shot back down.

So out of the fundamentals what gives you the best value for your price for your currency.

YOU NEED TO PURCHASE SILVER AND THE BEST PLACE TO BUY IS GOLD AND SILVER.COM YOU CAN ACCESS IT BY JUST CLICKING HERE OR ANY OF THE HIGHLIGHTED ITEMS FOR GOLD AND SILVER.

I am not shocked but a little perplexed why so many people stay in the dark to our economic plight.  The masses seem to function almost oblivious to how much change will occur in the near future.  Why the dow is down it almost seems like they believe our leaders will fix this problem.  If you think the economy is going to return to some level of normality you are in for a world of disappointment.

 

 

 

In the next 5 years the largest population in American history will be hoping to sit on their laurels and collect the money from pensions, 401ks and social security.  They have little concern for the population that comes after as long as they get what they have worked for.  But sadly the fundamentals are against them.

The numbers don’t lie.  We simply cannot afford their lifestyle.  The question that my hero Robert Kiyosaki posed in his book RICH DADS PROPHECY has not been answered.  For those that have not read it is “What do you do for people once they get to the age when they can’t perform”?

As a hold our country does not have the production force we don’t have the population to cover the baby boom generation.  Masses of people are laid off and we are not creating jobs.  Our policies make it very difficult for entrepreneur’s and business to function with such regulations.  In addition because of the mental fortitude it takes to build anything from scratch people are more amp to look for employment than seek financial education and to create employment.

Very few Americans have very little savings and if they are saving its not the right savings vehicle.  They still hold U.S. dollars when they should be holding gold and silver.  To make matters worse this is a global problem and never in the history of the world have all currencies been pegged to the United States Dollar.

We have reached the point of economic no return and the Fundamentals don’t lie.  Get financially educated to whether the storm.