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: 

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

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.