ECONOMICROT

Fall Of The Republic - Must See!

2009-11-01T20:06:00.000-08:00

Verbiage below from Infowars.com

Fall Of The Republic documents how an offshore corporate cartel is bankrupting the US economy by design. Leaders are now declaring that world government has arrived and that the dollar will be replaced by a new global currency.

President Obama has brazenly violated Article 1 Section 9 of the US Constitution by seating himself at the head of United Nations' Security Council, thus becoming the first US president to chair the world body.

A scientific dictatorship is in its final stages of completion, and laws protecting basic human rights are being abolished worldwide; an iron curtain of high-tech tyranny is now descending over the planet.

A worldwide regime controlled by an unelected corporate elite is implementing a planetary carbon tax system that will dominate all human activity and establish a system of neo-feudal slavery.

The image makers have carefully packaged Obama as the world's savior; he is the Trojan Horse manufactured to pacify the people just long enough for the globalists to complete their master plan.

This film reveals the architecture of the New World Order and what the power elite have in store for humanity. More importantly it communicates how We The People can retake control of our government, turn the criminal tide and bring the tyrants to justice.

Nine Banks Seized Last Night!

2009-10-31T06:41:00.000-07:00

The closing of nine banks in one day is the most the FDIC has shut since this recent financial crisis began.

The nine banks are: The 68 branch California National Bank of LA; Bank USA of Phoenix; San Diego National Bank; Pacific National Bank in San Francisco; Park National Bank in Chicago; Community Bank of Lemont in Illinois; North Houston Bank, Madisonville State Bank, and Citizens National Bank in Teague, all in Texas.

Entire FDIC failed list here

This brings to 115 the number of failed banks this year with no end in sight.

The big problem now is: THE FDIC IS BROKE

Goldman's Amazing Magic - a must watch!

2009-10-31T05:17:00.000-07:00

MSNBC's two week old video on the Goldman Sachs magic trick that was used to record a $3 Billion profit - in a mere 3 months - while the US economy crumbled around them.

Hat tip Richard L.

Visit msnbc.com for Breaking News, World News, and News about the Economy

$12 Trillion in debt - did anyone notice?

2009-10-31T05:01:00.000-07:00

Anyone hear that sound - yup, crickets chirping.

This week's MASSIVE/UNPARALLELED sale of US debt ($153 Billion) caused the Gvt's public debt load to slice through the $12T mark like a hot knife through butter.

Next: expect our Congressionally authorized debt ceiling of $12.104 trillion to be breached by the end of November 09 - if so, and if the limit isn't raised by then, our Gvt could be forced to shut down... Don't expect that to happen though - lawmakers will once again raise the ceiling, as they have done more than 90 times since 1940 -- eight of them since 2002.

2002: Raised from $5950 billion to $6400 billion
2003: Increased again - from $6400 billion to $7384 billion
2005: Wasn't enough - increased to $8184 billion
2006: Raised from $8184 billion to $8965 billion
2007: Big one this time - from $8965 billion to $9815 billion
2008: July 08 housing Bailout package included provision for increase to $10,600 billion
2008: Another Bailout Package Plan - increased ceiling from $10,600 billion to ~ $11,300 billion.
2009: Ceiling increased to $12.104 Trillion as part of the American Recovery and Reinvestment Act of 2009 - an economic stimulus package that was approved in February.

The United States total public debt, commonly called the national debt, or U.S. government debt (clock below), is the amount of money owed by the federal government of the United States to holders of U.S. debt instruments.

The Gross National Debt

Note: this national debt figure (above) does NOT include unfunded liabilities.

David Walker, Former Comptroller General of the United States, places "Unfunded Liabilities" - Future Obligations of our Nation IF we actually had the money in the bank today - at > $100 Trillion.

So, will our National debt (and unfunded liabilities for that matter) ever be repaid?

Well, that answer could be a No or Yes...

Answer #1 - No: If our country defaults on its debt the debt won't be paid - but that option will be avoided at all costs (Pun intended)...

Answer #2 - Yes: And this option has already been selected.

It WILL be paid through significantly devalued payouts caused by monetary expansion that will eventually lead to a currency collapse and hyperinflationary blowout (same end result as a default, just more palatable).

Open Forum

2009-10-30T17:09:00.000-07:00

Illustrations that speak a thousand words... Your comments/thoughts?

Feel free to post up your thoughts, links, hold a discussion etc here.

Weekend Funnies Oct 30th

2009-10-30T07:21:00.001-07:00

Click any image to enlarge

Dollar - The 800lb Gorilla in the room

2009-10-25T08:29:00.000-07:00

Superb Peter Schiff interview w/Red Alert: "Get out of the US dollar"

His perspective is well worth your time - and if you agree with his warning you may want to get some gold/silver while it's still available (and a bargain), because when TSHTF and the dollar becomes a true global crisis, you'll likely be unable to find any precious metals at ANY fiat dollar price...

Weekend Funnies 24 Oct 09

2009-10-24T09:33:00.000-07:00

Click on any of the cartoon images to enlarge

Closing Note:

HR 615

Doesn't it make sense that the public option - the one our elected officials in Washington are trying to ram down our throats - should also apply to those who vote for implementing it?

Rep. John Fleming (R-La.) is doing his part in the House by nudging his colleagues into doing the right thing. Ninety-six House members have recently signed on as co-sponsors to his non-binding H.R. 615, “Expressing the sense of the House of Representatives that Members who vote in favor of the establishment of a public, federal government run health insurance option are urged to forgo their right to participate in the Federal Employees Health Benefits Program (FEHBP) and agree to enroll under that public option.”

Bottom Line:

This amendment would require Congressmen and Senators to take the same health care plan that they plan to force on us. (Under currently proposed legislation they are exempt.)

Congressman Fleming is encouraging everyone to go to his Website and express their opinion/sign this petition. The process is very simple - even I (not quite the sharpest knife in the drawer) was able to complete it in ~ 15 seconds.

Express your opinion here: Congressman John Fleming

Oath Keepers

2009-10-22T18:13:00.000-07:00

This topic has become a new awareness for me and I haven't yet had the time to delve deeply into the subject, but from what I understand thus far the Oath Keepers (Guardians of the Republic) initiative is a superb effort that ANY Constitution backing, freedom loving, Second Amendment cherishing person should support!

If (after reading) you also agree, I suggest you send this link to all your friends - especially those in the police force and military. (use this hyperlink)

Right now the Oath Keeper effort looks to be a movement with just a few thousand supporters, but with the help of you and others like you, those numbers can increase significantly.

As the Economic Shit hits the fan in the coming months and years, SOCIAL CHAOS will likely break out and the Gvt will use the "crisis" as justification to significantly tighten their reigns of control - severely restricting and/or revoking your liberties. When (not if) this happens we will certainly need the support of true patriots like these guys/gals!

Las Vegas Review Journal: Oath Keepers pledge to prevent dictatorship in United States

The Oath keepers are a nonpartisan group of current and retired law enforcement and military personnel who vow to fulfill their oaths to the Constitution and pledge to prevent a dictatorship in United States by laying down their arms in response to unlawful orders.

"The whole point of Oath Keepers is to stop a dictatorship from ever happening here," Stewart Rhodes, a former Army paratrooper and Yale-trained lawyer, said in an interview with the Review-Journal. "My focus is on the guys with the guns, because they can't do it without them.

"We say if the American people decide it's time for a revolution, we'll fight with you."

The group's members, which number in the thousands, pledge to disobey orders they deem unlawful, including directives to disarm the American people and to blockade American cities. By refusing the latter order, the Oath Keepers hope to prevent cities from becoming "giant concentration camps," a scenario the 44-year-old Rhodes says he can envision happening in the coming years.

Oath Keepers is not preaching violence or government overthrow, Rhodes said. On the contrary, it is asking police and the military to lay down their arms in response to unlawful orders.

The group's Web site, www.oathkeepers.org, features videos and testimonials in which supporters compare President Barack Obama's America to Adolf Hitler's Germany. They also liken Obama to England's King George III during the American Revolution."

OATH KEEPERS: ORDERS WE WILL NOT OBEY

1. We will NOT obey orders to disarm the American people.

2. We will NOT obey orders to conduct warrantless searches of the American people

3. We will NOT obey orders to detain American citizens as “unlawful enemy combatants” or to subject them to military tribunal.

4. We will NOT obey orders to impose martial law or a “state of emergency” on a state.

5. We will NOT obey orders to invade and subjugate any state that asserts its sovereignty.

6. We will NOT obey any order to blockade American cities, thus turning them into giant concentration camps.

7. We will NOT obey any order to force American citizens into any form of detention camps under any pretext.

8. We will NOT obey orders to assist or support the use of any foreign troops on U.S. soil against the American people to “keep the peace” or to “maintain control."

9. We will NOT obey any orders to confiscate the property of the American people, including food and other essential supplies.

10.We will NOT obey any orders which infringe on the right of the people to free speech, to peaceably assemble, and to petition their government for a redress of grievances.

Bottom line:

Certainly appears to be a very noble effort - please share with everyone you know, and help spread the word!

Regards

Randy

$8,000 Gold?

2009-10-20T20:08:00.000-07:00

Bloomberg Oct 19th - key excerpts below

John Williams:

Gold would need to rise more than sixfold to top the 1980 record, using a more accurate inflation-adjustment, said John Williams, an economist and the editor of Berkeley, California- based Shadowstats.com. He said the government has understated the cost of living over the past two decades with adjustments in the way it measures the basket of goods and services monitored by the U.S. consumer price index, or CPI.

Gold futures for December delivery closed Oct. 16 at $1,051.50 an ounce on the New York Mercantile Exchange’s Comex division, gaining for a third straight week.

“If the methodologies of measuring inflation in 1980 had been kept intact, gold would have to hit $7,150 to be the equivalent of the 1980 record,” Williams said.

James Turk:

At Jersey, Channel Islands-based GoldMoney.com, which held $759 million of gold and silver for investors as of Sept. 30, founder James Turk said bullion can climb eightfold based on the historical relationship between the metal and the Dow Jones Industrial Average. The Dow is up 10-fold since January 1980.

Gold and the Dow, which has gained 14 percent this year to 9,995.91, were at about the same level during the Great Depression and the early 1980s, he said. On Jan. 21, 1980, as gold futures surged to $873, the Dow slipped to 946.25.

“The dollar is constantly being debased and inflated,” Turk said. “By 2013, gold is going to be at $8,000 and the Dow will be at 8,000.”

____________________________________________________________
Additional Viewpoints:

Randy EconomicRot:

Back in Jan of 2008, before the US money supply exploded, I targeted an upside potential of $5-6K - see linked article: Gold how high?

Peter Schiff:

Schiff's July 2008 Video: $5000.00 Gold by 2012 - Dollar never recovers

IMPORTANT NOTE:

If we experience a US dollar crisis and/or hyperinflationary blowout, all bets are off and not even the sky will be able to contain the future price of gold - can you say million or billion dollar gold?

Zimbabwe example

Zimbabwe: inflation rate hits 11.2 million %

A mere 2 months later and the Zimbabwe currrency collapsed/was no longer accepted: Zimbabwe - Gold for bread

It'll never happen you say - well think again:

Hours from Global Collapse - Electronic run on the banks

.

Weekend Funnies 17 Oct 09

2009-10-17T08:20:00.001-07:00

Dollar?

2009-10-15T05:40:00.000-07:00

Though I'm very pessimistic about the long-term future of the US Dollar, shorter term, I think it's due for a bounce as 1) sentiment is extremely bearish and 2) the dollar is oversold.

A key indicator will be: What will the dollar when it reaches 74ish on the US Dollar Index?

Personally, I'll think it will bounce upwards and break back through 78 on the upside (again, short term).

Note: if this does happens, gold/silver will likely also correct (possibly a very good time to buy).

THIS IS BIG!

2009-10-12T11:16:00.000-07:00

A MUST READ for those who own gold yet feel the market is manipulated - Central Banking: A Blight On Humanity

US Consumer Expectations - Next 5+ years

2009-10-12T07:46:00.000-07:00

I created the following chart to help individuals visualize (in 30 seconds or less) what we (as US consumers) can expect to see over the next 5 or more years. I hope it helps to clarify some of the issues in play and assists you in making the right decisions when preparing for your family's future. (Disclaimer: see sidebar - this is not investment advice - merely my learned opinion)

Bottom line: The US Dollar is in a very precarious situation and when we combine our Gvt's excessive monetary printing (to offset a deflationary economy) with a total loss of international confidence in the world's reserve, the dollar WILL FALL (mid-long term) - causing our cost of living to significantly rise and our standard of living to fall (precipitously) - ultimately leading to a hyperinflationary depression.

Click chart for larger/sharper image

Excerpt below from my 2006 post - American Wakeup Call:

Ultimately, this adjustment of the dollar will be painful for the world, and the average American’s standard of living will suffer significantly (much lower). Many Americans will become unemployed early on, but those who live through this era will eventually be put back to work and things will begin to get better… However, the trivial issues we concern ourselves with today (Politics, American Idol, Survivor, keeping up with the Jones’, etc) will no longer be the forefront of our daily lives, as we struggle to keep food on the table and a roof over our heads. The ACLU-type concerns of today will also become irrelevant and family values/religion will become the center-stage of the new America.

Another bright side to the issue: This dollar devaluation will allow the United States to eliminate much of its foreign debt and American citizens will demand that our government leaders LEAD (rather than today’s sickening ego power plays, rampant corruption and partisan politics). Welfare will probably become a thing of the past, and people will have to work to earn an honest days pay. Companies and the Government will again start to invest in infrastructure, American expectations will begin to rise, factories will once again start to billow smoke, and ultimately, our country will be competitive in the world once again…

I personally believe it will be a long, very difficult ride ahead, but in the end, it will probably make us a better, stronger nation. We, as a people, have become way too self-centered and soft, trivial issues have become important, important issues are ignored, people are completely ignorant to the world, values are gone, family means little, government is completely out of touch and ineffective, everyone wants something for nothing, etc. This wake-up call will probably do us some good.

Another relevant article if interested: Dollar: Faltering foundation of US Economic Strength

One more link as "food for thought": Social Consequences of an Economic Meltdown

Best Regards

Randy

Weekend funnies 10 Oct 09

2009-10-10T13:31:00.000-07:00

Latest on US Dollar and Gold Trends

2009-10-07T04:11:00.000-07:00

A new report in the UK's Independent newspaper says China, Russia, Japan, France and the Gulf states plan to stop using the dollar in oil trading and instead, replace it with an oil pricing mechanism that uses a basket of currencies AND gold. The newspaper claims these countries have been in ongoing secret talks regarding the matter.

Cavuto - The Dollar Ain't the Deal!

Glenn Beck - End of the Almighty Dollar?

US Dollar Weekly - click image for sharper chart

Extract below from Forbes - Gold sets new record; analysts expect more as US dollar falters

"Gold hit fresh highs on Tuesday as it continued to take its cues from a weak U.S. dollar. The greenback tumbled as uncertainty over its global strength was triggered by a report from the U.K. alleging that certain Gulf states secretly met with Russia, China, Japan and France to discuss replacing the dollar with a basket of currencies to trade crude oil. The basket would include gold in addition to the euro, Chinese yuan, Japanese yen and a new currency for nations in the Gulf Cooperation Council, according an article The Independent that was later denied by the Gulf States."

Excerpt below from this must read Safehaven link: Gold Breakout Alert - Powerful Uptrend - Target and Trajectory

"The key point to grasp here is that this rally is going to be BIG. The major consolidation in gold has been going on for about 19 months now, so gold has built up a tremendous amount of energy for its next move. This is the 5th attempt to break above the March 2008 high, the other 4 attempts, after March 2008 itself, occurring in July 2008, February and May of this year, and the attempt now in progress. Thus it should be quite clear that once gold breaks clear above the MAJOR RESISTANCE at this level, it is not going to settle for some pitiful $50 - $100 gain - it is going up at least $300 and very possibly of the order of $500 - $600 and this gain should be achieved in short order over the space of three to six months or so. Silver will go wild when this happens."

Just a beautiful chart! - click to enlarge

Gold Weekly - click image for sharper chart

Last, but certainly not least, I highly encourage you read my very informative post on the history and likely future of our US Dollar - Dollar: Faltering Foundation of US Economic Strength

Best Regards

Randy

Open Forum

2009-10-05T05:31:00.000-07:00

Please feel free to share your thoughts, post up links of interest, hold a discussion, etc here.

Worst is yet to come - Super Depression w/Collapse of US Dollar

2009-10-05T05:26:00.000-07:00

RT Interview with Immanuel Wallerstein - Senior Research Scholar, Yale University:

What we're seeing is the last of many serial bubbles caused by "Finance and Speculation" - created by massive debt.

US Dollar Hegemony is over, US Domination is over and no efforts can bring it back.

Next 5-10years: World will consolidate into new alliances - there are currently 8 or 10 poles of global power - far too many... Russia is among one of the world's main poles of power - working with China and others. US likely to join forces with East Asia rather than Europe. EU enlargement aimed at straining Russia-West relations.

Arab world to pursue "own interests" in Middle East.

Excellent Interview!

Weekend Funnies - 3 Oct 09

2009-10-03T07:19:00.001-07:00

Peter Schiff: U S Rally Is Doomed, Gold Will Hit $5000

2009-09-29T21:56:00.000-07:00

The worst is not over, according to Euro Pacific Capital's Peter Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.

Schiff believes gold is currently "climbing a wall of worry" but will eventually become as hot as tech stocks in 1999 and start moving up $100 per day - eventually hitting $5000 per ounce sometime "in the next couple of years,".

Peter predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1. His forecast is based on a view the U.S. dollar will eventually collapse under the weight of our massive deficit and reckless policies of the Obama administration, which he compares to the massive spending programs of the 1960s - which paved the way for gold's ascent in the 1970s.

Commercial Real Estate Crisis Looming?

2009-09-28T21:04:00.000-07:00

Commercial real estate is the "second shoe" to drop in hurting the economy, Daniel Tishman, chairman and CEO of the Tishman Construction Corporation told CNBC.

"We're getting through the single housing real estate market OK but the numbers involved in commercial real estate in all sectors are staggering," Tishman said. "Trillions of dollars are involved in commercial loans. The roll over of those loans in the next 5-7 years is going to happen and the money just isn't there for refinancing."

"I think they (banks) are very exposed," said Tishman. "There are huge numbers of banks that could have problems (and face closings) going forward because of carrying these commercial loans."

I anticipated this crisis back in 2006 - link

$15,000 Gold?

2009-09-27T07:24:00.000-07:00

Robert Kiyosaki, along with friend and author of the Rich Dad Advisor Book, Guide to Investing in Gold and Silver, Mike Maloney, explains why gold and silver are vital investments for todays economy - and their explanation on why the price of gold could rise to $15K deserves consideration.

Note: Before our money supply exploded, I suggested $5-6K Gold - Link Gold How High?

Peter Schiff also suggested $5K gold by 2012 - Link $5000.00 Gold By 2012 - Dollar Never Recovers - Game Over

Weekend Funnies - 9/26/09

2009-09-26T08:52:00.000-07:00

Enjoy!

Marc Faber: Massive Gvt Stimulus + Super Easy Fed = Trouble Ahead

2009-09-22T22:02:00.000-07:00

"Run for your lives! The future will be a total disaster, with a collapse of our capitalistic system as we know it today - wars, massive government debt defaults and the impoverishment of large segments of western society."

Interview gets good after 3 minute point:

Interviewer: "You are talking about Economic Armageddon here."

Farber: "Yes, Yes, Absolutely - that I am convinced. A high confidence prediction that total collapse will come."

Farber: Bullish now but ultra-bearish for the long term. (note: this is a comment that I disagree with - see charts at bottom of post for rationale)

Charts below extracted from Ty Andros's superb article - Fingers of Instability Part VI - Train Wreck Dead Ahead

Bottom line - near-term: I think we're overdue for another severe stockmarket downturn. Now I don't believe this near term market correction will lead to the complete Economic Armageddon Faber is talking about, but I do agree with him it will happen over the longer term... Main issue over the longer term being: The dollar is toast!

Twenty Ten by Lloyd Marcus

2009-09-22T21:48:00.000-07:00

Excellent song, superb lyrics and phenomenal voice but remember folks... this is NOT a Democrat vs Republican issue (two heads of the same monster)... If you recall, we as a nation were against the bailouts - we emailed, faxed, called, wrote letters and our Representitives completely ignored our wishes - REPUBLICANS and DEMS ALIKE!

Your 2010 vote shouldn't be Republican Vs. Democrat (a lesser of 2 evils) issue - It should be a wrong vs right vote; a "government of the people" vs a "Gvt supporting financial institution and corporations" focused vote; a pro-constitution vote; an anti socialism, anti fascism vote; A vote for ethical men who understand the issues - like Ron Paul. Others who have shown their ignorant colors and favoritism (like Pelosi, Reid, Frank, etc) deserve a good swift boot to the curb!