Paul Mladjenovic - Freedom and Prosperity

Reversal of Fortune; Outlook for Markets 2014-2015; part 2 of 2:

2014-02-28T06:02:00.001-08:00

Here is the 2nd video in the 2-part video "Reversal of Fortune...

Thanks for viewing. Stay tuned for future videos and other commentaries by getting your free subscription to my Prosperity Alert ezine. Get it at...

http://www.prosperitynetwork.net/paulmlad/subscribe/

or CLICK HERE.

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I wish you continued success!

Regards,

Paul Mladjenovic
RavingCapitalist.com

Reversal of Fortune: Stocks and Precious Metals in 2013 (part 1 of 2).

2014-01-17T10:51:00.002-08:00

2013 was a good year for stocks and a bad year for gold and silver (among other developments).

Why? What impact will it have for investors in 2014? What should we consider now?

Check out my latest video commentary:

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June 20th Market Massacre and the Big Picture for Stocks and Precious Metals

2013-06-21T09:00:00.001-07:00

Talk about a bad day...The Dow plummeted 354 points...gold and silver massacred...

How should we look at this day? Does it portend more bad days to come?

In this video commentary, I discuss the stock market and precious metals. I also put the market massacre in perspective. During the first half of this year, stocks have had a good run while gold and silver have been hammered. But how have these markets fared long-term?

You will also see a "Tale of the Tape" as I compare stocks and precious metals long-term.

I will also discuss what I expect for both of these markets in the coming years...

Click the picture to view the

If the above doesn't work, you can also view the video by clicking here.

Coming soon: Strangle Profits...my program (for speculators) that show you how to make a profit in stocks or precious metals regardless if they SOAR or CRASH! Details coming soon in the newsletter, the Prosperity Alert which you can get free at RavingCapitalist.com.

regards,
Paul Mladjenovic
RavingCapitalist.com

Stocks, Gold and Silver...What to Expect during 2013-14...

2013-06-19T12:34:00.001-07:00

Will stocks keep going up? What will gold and silver do? I expect some major moves for all 3 coming during the next few years.

In this video commentary from my youtube channel, I address these questions and provide my expectations...

(click on the image below)

or click on this link http://youtu.be/qZ8dldN-ShY

Stay tuned for more posts...

Regards,
Paul Mladjenovic
RavingCapitalist.com

P.S. Lots of changes are coming your way. All of my educational programs are being revamped and updated to help you learn more ways to build your prosperity. More details to come!

Stock Market 2013-14: Bull market or Bubble?

2013-03-15T10:14:00.003-07:00

Is the stock market in a bull market or a bubble?

I address this issue in this video (posted March 2013):

I am delighted to tell you that the 4th edition of Stock Investing For Dummies is now available!

Find out more about it by clicking here.

I wish you much prosperity going forward in 2013 and beyond...

Regards,

Paul Mladjenovic, CFP

P.S. Need to make money? Struggling to earn some cash?
Then consider becoming a "Micro-Entrepreneur"! I provide tons of strategies and resources in this new guide...it is coming in April 2013: "Microentrepreneurship For Dummies".

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5 Things Every Investor Should Do Now - Part 5 of 5

2012-11-21T07:38:00.002-08:00

This is the final segment of the 5-part series "5 Things Every Investor Should Do Now". This segment was actually done before the November 2012 elections but Hurricane Sandy delayed its posting. Please view it and I hope you share it with others.

The 5-part series is now more important than ever:

To view the previous 4 segments, Go to my youtube channel "paulmlad".

I wish all of you a safe and happy Thanksgiving!

Paul Mladjenovic
Ravingcapitalist.com

P.S. Because the economy will get worse and many hazards are coming our way, it is important to be informed and prepared. Get a free subscription to the Prosperity Alert and stay a step ahead.

Get your subscription today at RavingCapitalist.com (subsribe button is on the left side)

5 Things Every Investor Should Do Now- Part 4 of 5

2012-10-16T11:25:00.000-07:00

Investing can be a dicey pursuit (as it has been in recent years). With that, I post this.

This is part 4 of the 5-part series "5 Things Every Investor Should Do Now". Part 5 should be up within the next few weeks:

In the coming weeks you will see an educational program that will reflect this post and help you put into action what the video covers.

Thank you for viewing....I look forward to having you visit again.

In the meanwhile, check out the latest program:

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Paul Mladjenovic
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5 Things Every Investor Should Do Now; Part 3 of 5

2012-08-31T13:08:00.004-07:00

This is part 3 of a 5-part series. You can see parts 1 & 2 at my youtube channel found at
http://www.youtube.com/paulmlad

In part 3, I cover another point that I believe is important not only for investors, but for everyone in our uncertain economic times:

Here are some take-away points for viewers:

1) Get a free subscription to the Prosperity Alert email newsletters. New Subscribers will get
three free reports that you can download instantly:

* Financial & Budgeting Strategies ebook
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You can subscribe by CLICKING HERE.

2) If you prefer to only get the report mentioned in this video, "15 Ways to Make Money in Your Spare Time, then CLICK HERE.

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I wish you a great year...make it great!

Regards,

Paul Mladjenovic
http://RavingCapitalist.com
http://www.ProsperityNetwork.net

P.S. make sure your family and friends are ahead of the curve too. Share this post with them!

Warren Buffett vs Gold and Silver…and the Winner is…

2012-05-07T22:54:00.002-07:00

Recently, the folks at Berkshire Hathaway have talked down precious metals. Warren Buffet and Charles Munger (two titans of the stock investing world) had made some unkind remarks about precious metals in general and gold in particular.

I have tremendous respect for them (who doesn’t?) and I think that if the topic is “long-term stock investing” then few (if any) could match the performance they have racked up in recent decades. I wish them continued health and prosperity! But I write this essay for a very specific issue and that is their attitude towards precious metals.

I believe that it is a less than stellar record when you scrutinize it. If you were an investor with them you would obviously be doing it by investing in Berkshire Hathaway, right? Therefore, we could easily construct a scenario where we could have pitted their stock against those barbaric and unproductive metals, gold and silver.

Let’s imagine that you broke up your portfolio into 4 parts and invested equally on the first trading day of 2000 into the following entities;

1) Berkshire Hathaway class A stock
2) Berkshire Hathaway class B stock
3) Gold
4) Silver

How would that type of portfolio performed since the beginning of the millennium?

1. Berkshire Hathaway class A stock started at $54,800.00/share and closed on April 30, 2012 at $120,800.00 for a total percentage gain of 120.44%. Nice!!

2. Berkshire Hathaway class B stock started at $35.40/share and closed on April 30, 2012 at $80.45 for a total percentage gain of 127.90%. Also Nice!! (please note that the stock price quoted here is adjusted for stock splits)

3. Gold started January 2000 at $282.05 (Kitco.com closing price 1/4/2000) and closed on April 30, 2012 at $1,651.25 for a total percentage gain of 485%. Ultra nice!!

4. Silver started January 2000 at $5.30 (Kitco.com closing price 1/4/2000) and closed on April 30, 2012 at $31.20 for a total percentage gain of 488%. Ultra nice again!!

Given the above, one can see easily that the two most popular precious metals outpaced the stalwart Berkshire Hathaway by nearly 4-to-1 over nearly 11 ½ years! Bashing precious metals for being unproductive is certainly uncalled for…especially given that amazing comparison.

If you noticed, I didn’t choose some arbitrary period like a single year or other short-term measurement. As most of you know, Mr. Buffet (to his credit) is a true long-term investor and patience has been his “secret” to success. He typically doesn’t trade stocks or decides to jump in one day and jump out the next. “Buy and hold” for him is not some flashy saying…it is part of a long-term discipline approach to wealth-building.

Therefore, I think the comparison in this essay is valid.

Look…I like stocks and I like precious metals and my Dummies guides on these two topics attest to that. When times are good (I look forward to that), stocks will most likely lead the pack. But when times are as uncertain and as dangerous as they have been (and still are!), you need diversification above and beyond mere paper assets.

There will be plenty of good stocks that should do well during the next few years but I am definitely very bearish on the overall stock market because the massive risks from many venues are still there and in some ways growing more dangerous.

Yes…there will come a day when I am not bullish on gold and silver. However, given that politicians, government bureaucrats and central bankers have not stopped their massive financial and economic mismanagement, that day is still very far away.

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Coming this month to subscribers of the Prosperity Alert the new report "the Precious Metals Consumer's Buying Guide"...free! To get your free subscription, CLICK HERE.

The Silver Reverse Bubble of 2012

2012-04-23T22:19:00.001-07:00

Copyright 2012. Paul Mladjenovic. All rights reserved. In late 2008, when silver was massacred in the futures pit and saw its price fall from over $20 to under $10, I told my readers at that time that silver entered into a “reverse bubble”. I know it sounds odd, but let me re-visit the concept. As you know by now, a “bubble” is when an asset reaches an unsustainably high level due to artificially stimulated demand. In 2004, I wrote that housing was entering a historic bubble because government policies such as excessively (artificially) cheap credit inflated the price of real estate to nose-bleed levels. The real estate mania was everywhere in 2004-2006 as buyers were going berserk. At the time, I had done a seminar with my favorite real estate expert (David Corsi…look him up!) entitled “Housing Bubble Profits” and detailed my bearish rationale for why I thought that housing was entering a dangerous phase and that real estate investors and speculators would get hammered. The bottom line is that when an asset (real estate, stocks, whatever) gets bid up to high levels artificially (a level way above its’ true market price), the next step will be a painful plunge. I go into greater detail in prior essays on the anatomy of a bubble. In late 2008, I initially wrote about what I thought was a “reverse bubble” in silver. In other words, artificial selling pushed the price of silver below its true market price. For a brief moment toward the end of 2008, the price of silver on the futures market was actually lower than a silver miner’s cost of mining it. The culprit was excessive shorting on the futures exchange by several large financial institutions. This excessive short selling in silver futures has been painstakingly documented for many years by one of the world’s leading silver analysts, Ted Butler. I consider Ted Butler, David Morgan and Jason Hommel to be the world’s best silver analysts and I highly recommend their research for anyone serious about silver. Whenever an asset’s price is artificially pushed down below its true market price, the resulting move boomerangs to the upside sooner or later (usually sooner). This is essentially a “reverse bubble”. What happened to silver? Silver hit a mind-boggling low of $8.88 (spot price) on November 24, 2008. It then went on a strong rally hitting $48.70 on April 28, 2011. It did touch $49.85 overseas during April 29th. That 29-month rally resulted in a gain of about 461% before a sharp correction in May 2011 took silver to the $30s. As I write this, silver is hovering around $31 and has been consolidating since mid-2011. Massive shorting by a handful of large institutions had again entered the picture. Has silver entered its second “reverse bubble”? Judging by the supply/demand data and market machinations (including excessive shorting in the silver futures market), I believe that the answer is a resounding “YES”. I won’t punish you with the latest data since others do a much better job of analyzing and presenting it (see the latest research from Ted Butler and David Morgan…again, look them up!). What will silver’s price look like a year from now…or 29 months from now? I am on record as forecasting that silver will hit $100 during 2012-2013. If silver were to mirror its percentage run from 2008-2011, then you are talking about silver’s price being in the general vicinity of $142. There are some that offer compelling views that silver could easily exceed $200 in the same general time frame. In the coming months, I will be reviewing and discussing silver’s fundamentals in venues such as preciousmetalsinvesting.com and in my free newsletter so I look forward to silver’s next rally. How much longer will a buying opportunity still be available? Given so many positive factors for silver, I think that triple-digit silver is not an “if’…it is a "when". Got silver? --------------------- Paul Mladjenovic is a CFP practitioner, speaker and author of “Precious Metals Investing for Dummies”. He edits the financial newsletter Prosperity Alert (available free at www.RavingCapitalist.com).

5 Things Every Investor Should Do Now - Part 2 of 5

2012-04-20T08:21:00.003-07:00

The world is crazy and disruptions are here and more are coming. The series "5 things every investor should do now" is meant to help you get through this unsettling economic period with less pain and more safety than most investors. This is part 2 of this 5-part video series> In the coming issues of the Prosperity Alert, we will provide more alerts, information and resources to help you survive and thrive in these times. Subscribe by clicking here. Coming soon: Updated: Profit from the Commodities Super-Boom! To be alerted, get your free subscription to the Prosperity Alert. New subscribers will get a free ebook on Budgeting & Financial management tips and strategies. I wish you continued success... Regards, Paul Mladjenovic Editor, Prosperity Alert Newsletter

Lunacy and Confusion over the Gold Standard

2012-03-27T08:55:00.000-07:00

It drives me crazy when I read stuff by “economists” that is just plain wrong. Some of them are allegedly “MBAs” and “PhDs” but I think that their common sense is actually “DOA”.

Unfortunately, millions in the public arena see their interviews and blogs and they seem to automatically swallow their commentaries… hook, line and sinker. Let’s address some of the nonsense that these pundits are expressing.

Some conventional and well-known economists have expressed the idea that a gold standard is a bad idea and that the gold standard was a major (and possibly THE major) catalyst for the Great Depression. One well-known fellow surmises that an equivalent of the gold standard is the reason why today’s European financial crisis is going on. In due course, I am sure that they will blame the gold standard for global warming and probably the heartbreak of psoriasis.

I have expressed myself on this topic in video venues such as at Preciousmetalsinvesting.com and at my Youtube channel (You can look up “PaulMlad”) but the topic deserves attention here.

The case can easily be made that most financial crises have occurred when governments didn’t use a gold standard (or any type of standard).
The point that critics make is that the gold standard “removes financial flexibility” when a system-wide financial crisis unfolds. They don’t like a gold standard because it is viewed as a “rigid constraint”.
In a monetary system that is on the gold standard, the amount of currency you can produce at will is indeed greatly constrained since the amount of currency (dollars or euros or whatever) is limited to the amount of gold that is on reserve. This condition puts the breaks on the unlimited creation of a currency.
The real problems behind today’s (and yesterday’s) financial crises and depressions have nothing to do with constraints such as a gold standard; the problems come from mismanagement of spending and debt… and governments that are too expansive in their size and scope.
Economists don’t blame governments for spending too much or creating too much debt or printing up too much of their currencies; they blame whatever may stop them from doing so (such as a gold standard). This is insane; it is like blaming the seat belt for a car crash.

Imagine for a moment if a financial planner took the same line of thinking with their client. How would that go?

“Well Mr. Smith I see that you are spending way beyond your means and you are taking on a lot of debt as a result. You are now hitting your credit limit! Well…the problem is obvious to me! Your spending and debt are not the problem…I blame the credit limit! The creditor is not letting you borrow your way out of your excessive spending and debt! Yup… I blame the credit limit.”

Could you imagine that? But that is essentially what these “educated” commentators are telling the public. The public confuses “eloquence” with common sense. They figure these guys “must know what they are talking about” since they “sound pretty smart”. Ugh…

We must remember that the gold standard was present when America had the depression of 1920-21 and we got through it and then proceeded into the roaring twenties. What’s that you say? You never heard of the depression of 1920-21? That is because the government did very little to intervene and the economy righted itself very quickly.

…But how about the Great Depression?

FDR effectively removed the constraints of the gold standard in 1933. However, the Great Depression continued… for over a decade! The Great Depression did not end until AFTER World War II ended (in 1945).

Look, we may not need a classical gold standard; but we need SOME type of standard. The essential point here is that our governments need some type of restraint… otherwise they will continue to spend and spend and create more and more debt. Standards and restraints on endless money and debt creation do not cause financial catastrophes and depressions.

But it is the lack of this constraint (gold standard or a modified version of one) that opens the door to catastrophe.

This is why I tell my students and readers to become as self-reliant as possible (financially and otherwise) since we are at risk as today’s economic ills get worse.

Unfortunately for pundits and economists, there is no “standard” to blame for the trillion-dollar disaster that is unfolding before our eyes today and in the months to come.

Be prepared…

Dow vs. Gold vs. Silver since 2008

2012-03-19T10:57:00.003-07:00

By Paul Mladjenovic
March 19, 2012
Copyright 2012. Paul Mladjenovic. All rights reserved.

We can read all sorts of opinions about what you should do with your money and we hear the scuttlebutt from every pundit out there (including myself!) but at the end of the day, it is about what has done well and what hasn’t done well.

Even though I wrote the book Stock Investing for Dummies, I am not a blind cheerleader for stocks in general (although there are some good public companies and industries worth considering). Additionally, although
I wrote the book Precious Metals Investing for Dummies, I haven’t always thought of precious metals as the best place for your money either. I wasn’t bullish on precious metals during the 1980s and 1990s but many of you know that I started being bullish on precious metals (and commodities in general) circa 2001.

In other words, I wasn’t bullish on precious metals in recent years because I wrote a book on them….I wrote a book on precious metals BECAUSE I have been very bullish on gold, silver and other precious metals for nearly a decade.

In future articles I will certainly tell folks which segments of the stock market I favor. But let’s get to the point of this particular piece… how did the Dow Jones Industrial Average (DJIA) do against Gold and Silver?

The period I will cover will be from January 2008 until the end of last week (March 16, 2012). How did the 3 of them perform during the most turbulent market conditions in recent decades?

Here is the tale of the tape:

On January 2, 2008 (using the closing price for the first market day):

1) The Dow was at 13,043.96
2) Gold was at $846.75
3) Silver was at $14.93

How did they do? Here is where they were at as of closing on Friday, March 16, 2012 (along with the percentage gain or loss):

1) 1) Dow was at 13,232.62….up 1%.
2) Gold was at $1,658….up 96%.
3) Silver was at $32.27….up 116%.

Very Interesting! During a time period of over 4 years and 2+ months….the Dow actually ended up about 1 percent. Meanwhile, gold and silver roughly doubled during the same time frame.

What is even more interesting is that during that time, the federal government (and the “Fed”) cranked out highly accommodative fiscal & monetary policies (bank bailouts etc.) to help (directly or indirectly) the stock market during 2008-2009.

In addition, please keep in mind that the components in the “Dow of January 2008” are not the same in the “Dow of March 2012”. Some failing components were dropped (such as General Motors) from the January 2008 roster while more stable companies were added (such as Kraft Foods). How much worse off would the Dow have been if the exact same components were still in place?

Meanwhile, while gold and silver suffered from some antagonistic policies (such as excessive shorting in the futures market) and many financial commentators “talking them down”, they performed very well. How much different would the picture had been if some forms of intervention did not take place?

What does the next few years look like for the Dow, Gold and Silver? Stay tuned… more on this in a coming commentary. Meanwhile do check out the latest video commentaries at my youtube channel (look up “paulmlad”) for further investor points to ponder.

The bottom line is that investors learn from this not only the lessons of patience and discipline but also diversifying away from paper assets in the ongoing age of financial and economic crisis.

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Learn more about how to invest in Gold, Silver and other commodities in the seminar "How to Profit from the Commodities Super-Boom) by clicking here.

or get the Free Financial Newsletter, Prosperity Alert at
www.RavingCapitalist.com.

5 Things Every Investor Should Do Now - Part 1 of 5

2012-03-09T11:31:00.000-08:00

the world economy and financial markets are fraught with risk. Millions are still at risk as the governments of the world churn out trillion-dollar & trillion-euro debt. Economic instability, financial risk and potential crises & conflict are found in every corner of our world.

What is an investor to do? I think that if every investor implemented these 5 strategies, they will be a lot better off down the road.

Here is part 1 of this 5-part video series:

To find out more about how to invest in Gold & silver, check out Paul's seminar on Commodities Investing by clicking here:

or go to http://www.payloadz.com/go/sip?id=1312554

Paul Mladjenovic 2012 Forecast for Silver

2012-01-06T08:23:00.000-08:00

Silver had a roller coaster ride in 2011...it had some eery similarity with its run during 2008. Given that, I think the setup is for a strong rally in Silver.

From 2003 to the end of 2011, silver went from under $5 to about $29 for a sosolid gain of 480%. Not too shabby!

In this video, I reveal my forecast for 2012 and discuss the prospects for sisilver:

For those interested in learning about investing & speculating strategies in silver, gold, energy and other commodities, consider the Commodities investing seminar. It is very affordable and you can download it instantly.

More details at RavingCapitalist.com

or you can CLICK HERE.

Video: How an Economy Collapses (part 2 of 2)

2011-12-20T07:49:00.000-08:00

This is part 2 of the two-part video series, "How an Economy Collapses...and how to Protect Yourself".

On this blog, you can find the 2-part essay series of the same title. For a fuller understanding of the topic, consider viewing both videos and reading the essay.

Both this and the 1st part of this video series can be found here or feel free to head over Paul Mladjenovic's video channel at YouTube which is
http://www.youtube.com/paulmlad.

For those that want to implement immediate strategies for financial security, check out the financial audio ebook, "Financial Firewall" by clicking HERE or get more details at
http://bit.ly/tGFrU4.

essay: How an Economy Collapses… and How to Protect Yourself. Part 2 of 2

2011-12-16T04:13:00.000-08:00

To recap the main point from Part one of this two-part essay series, I mentioned that the internal collapse of an economy occurs when it is overburdened by too much consumption (such as debt) and that the primary engine of this over-consumption is typically a government that has grown too big to sustain. The United States is definitely trending in that direction. I used my former country, Yugoslavia, as an example of what may occur.

The interesting thing about the economy collapse of the Soviet Union and Yugoslavia is that when the dust settled, both country’s land space was then made up of smaller nation states. The Soviet Union became Russia, Ukraine and so on. Yugoslavia became Croatia, Slovenia and so on. In the wake of an economic collapse, could the United States became a different configuation of two or more sovereign states?

Not every economic collapse unfolds as expected. The collapse of the Soviet Union was spectacular but much of the tumult was in Russia proper and the urban areas. The rural areas got through fairly well. What would happen in a collapse of the United States economy? Would there be strife and upheaval in major metropolitan areas?

There is plenty of speculation here along with events from our history that could provide clues about how people would behave. I personally do not fear the financial aspects of a collapse as much as I fear the social aspects. As I have written before, economic disintegration leads to social disintegration.

As I wrote in part one, an economic collapse is distinctly different from a currency collapse. In a currency collapse, the economy and its infrastructure could stay generally intact and in the aftermath could recover (with a new currency) relatively soon. Maybe not days or weeks but some type of normalcy could ensue in a matter of months.

In an economic collapse, the matter is much worse. The key is how soon production can recover from any disruptions that occurred. In addition, the big variable is how people will react when their routine and day-to-day needs (food, water, electricity, etc.) are severely disrupted. When many people are dependent, especially when you consider millions on public assistance, how will they act in the event that their subsidies are abruptly stopped? Greece and Egypt certainly provide us with unsettling examples.

When my former country, Yugoslavia, collapsed into oblivion in 1994, the result was chaos and civil war. Could such events happen in the United States?

Right now as I write this, some states in the US are already dangerously close to disintegration. States like California have been greatly mis-managed and the condition of some of their cities are very dubious. The United States economy is generally strong and diverse and you may not see a nationwide collapse (similar to how you didn’t see a nationwide collapse in the former Soviet Union) but you will definitely see pockets of dangerous upheaval in some parts.

I believe that no matter how the potential collapse unfolds, the best strategy to implement boils down to this to-do list:

1. Physical gold and silver bullion. Paper assets have risks attached to them. This is quite evident in recent years. Virtually any paper asset can go to “zero” value in frightening speed. Stocks, bonds, mutual funds, bank accounts and currencies could become worthless very quickly.

Precious metals in physical form do not have this “counter-party risk”. Consider diversifying away from paper assets by holding at least 5-10% of your assets in physical bullion form. Yes…gold and silver prices can fluctuate and can have some scary corrections but that is due to market buying and selling volatilty. Both metals have enduring value and they won’t go to zero.

2. On Stocks: only be long in stocks of companies that have proven and consistent profitability, pay dividends and sell goods and services that are considered “human need”. This includes food, water, energy etc. your common sense goes a long way in this pursuit and you should make it clear to your financial advisor. For more conservative investors, consider ETFs that specialize in the same categories.

3. Stay away from fixed-interest, long-term bonds regardless of whether they are corporate, treasury or municipal. Economic collapse or not, the danger of currency problems (such as the potential for inflation or even hyperinflation) is very real.

4. Self-sufficiency. Self-sufficiency is a good idea in good times and it is a great idea in bad times. If you are dependent on a third party (such as government assistance or pensions), it is very important to find out how solvent they are. But regardless of solvency, you will just be better off knowing that you can get by without relying on others. In a recent report, some 48 million people are dependent on food stamps. What happens when this service breaks down?

5. Find out about your town’s general well-being. Right now as you read this, there are literally hundreds of towns (thousands?) that are either considering or are already shrinking or eliminating essential services. There are towns that have closed their police departments and/or their fire departments. Decide what you will do in that town. Do you stay or move to a less-risky area?

6. Think safety. In the event of social disintegration, more crime will be the norm. How can you secure yourself, your family and your property?

7. Are you discussing possibilities with your neighbors, friends and others in your “support circle”. Family and friends will become essential when people need to help each other. It is time to build alliances.

8. Start a part-time business. At my site, www.RavingCapitalist.com, I tell my subscribers and readers that weath-building isn’t just investing your assets for growth and/or income (passive wealth-building), it is also about using your time, effort and talents to make money (active weatlth-building). In today’s economy I think that having a part-time business is an essential part of your over-all wealth-building action plan and financial security. It is a form of diversification along with your job or pension.

9. While you are at the site, get a free subscription to the ezine Prosperity Alert. In January subscribers will receive a free report on the best resources and strategies for self-sufficiency and wealth-preservation strategies.

It is far from a complete list but I think it is a good start. Fortunately, you and I have many venues both locally and on the internet to network, plan, prepare and to be informed. Right now self-sufficiency and survival topics are popular topics since many people do see the writing on the wall and more people see the unsettling trend more clearly.

The economy is definitely struggling and it could be years before any significant rebound. The growth of government (federal, state & local) in terms of size, scope and debt has been relentless and the burden will become unsustainable.

The answers to all the questions in this essay will come soon enough and we probably won’t like the answers. I will certainly keep monitoring and commenting on “the big picture” and keep providing more information to you…stay tuned!

The big question for you is ....”are you prepared?” Sure…there is a remote chance that nothing or very little will happen but what is likely to happen? It doesn’t hurt to be prepared.

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Paul Mladjenovic , CFP is the author of “Stock Investing for Dummies” and the editor of the Prosperity Alert newsletter (available free at www.RavingCapitalist.com). He teaches nationally on investing and business start-up issues and his video & essay commentaries can be found at www.mladjenovic.blogspot.com.
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Video: How an Economy Collapses (part 1 of 2)

2011-12-12T09:10:00.000-08:00

Because it is such an important topic, I am covering it in both essay and video commentaries. Here is Part 1 of the video commentary from Youtube:

For those that want to implement financial strategies immediately, consider Paul Mladjenovic's audio ebook "Financial Firewall" by clicking HERE.

Thanks for viewing part 1. Part 2 will be out within a few days.

I wish you a joyful holiday season and a prosperous and safe 2012!

Regards,
Paul Mladjenovic
www.RavingCapitalist.com

P.S. Coming soon...A very special program to help you have a successful 2012...no matter how bad the economy gets! To get the details soon, get a free subscription to the free ezine, Prosperity Alert (click here).

How an Economy Collapses… and How to Protect Yourself. Part 1 of 2

2011-12-08T10:01:00.000-08:00

Copyright 2011. Paul Mladjenovic. All rights reserved.

There are growing fears that an economic collapse is on the way. Is this fear justified? Before we conclude that it is a by-gone conclusion and that it’s time to head for the hills, let’s first cover how and why an economy collapses. In this essay I talk about economic collapse as an “internal event”. Keep in mind that there are “external” reasons for an economy to collapse (such as war and/or natural events such as earthquakes etc.)

Keep in mind first that we are talking about an “economic” collapse… don’t confuse this with a “currency” collapse. History has witnessed thousands of currencies collapsing into oblivion and in many of those the economy in question was able to get through it without general harm to the economic infrastucture and much of society. Yes…currency collapses are very painful but they don’t necessarily spell doom for society.

My former country, Yugoslavia, experienced both a currency collapse and also an economic collapse. It was, after all, a communist country (hard-core socialism) and so it was already an “economic basket case”. The populace was already suffering before its currency was hyper-inflated into oblivion. During 1993-94, Yugoslavia’s hyperinflation caused the dinar (its currency at the time) to become worthless and the currency indeed collapsed. As I have written before, “Economic disintegration leads to social disintegration”. Soon the currency collapse led to economic collapse. Chaos and civil war followed.

Could a similar economic collapse occur in the United States?! The harsh truth is that it is not out of the question and…let’s face it… we are clearly trending in that direction.

Back to the central topic of “how an economy collapses”. It can easily boil down to the simple dynamic of supply and demand. A good economy is a reasonable balance between supply (production) and demand (consumption). Put simply, when consumption greatly exceeds production, you have an “imbalance” which (if not rectified) leads to an unsustainable situation resulting in collapse. The most important hallmark of a successful economy is production. This means that people are producing (goods and services) through work, effort, ambition, innovation and initiative. This is usually embodied in the private sector. The most important economic incentive for production is profit.

The problem is consumption and the culprit is usually found in a single entity…government. No matter how you slice or spin it, for reasons both good and bad, the government (the public sector) is an engine of consumption. More government means more consumption and it also means a coercive burden on the private sector. What happens when the folks in the private sector can no longer sustain the folks in the government?

The current data bear out this imbalance. It was recently reported that over 48 million people in the US receive food stamps. Our current federal government budget deficits annually exceed a mind-boggling $1 trillion. Total federal debt is surpassing $15 trillion. Unfunded federal liabilities (Social Security and Medicare) are passed $50 trillion. Then there is war! War and national defense is also very expensive. Oh…and don’t forget about massive bank bailouts too. This explosion of massive spending can not be sustained and the economic danger is unprecedented.

As I wrote earlier, Yugoslavia was a communist country. Communism is an extreme form of “statism” or the idea that “the State” …government… should be growing in size, scope and reach. A communist government typically rewards or encourages consumption while simultaneously discouraging or penalizing production. Communism obliterates the “profit motive”…so why bother producing? Therefore, communism (or other form of totalitarian government) never survives on its own. The imbalance is impossible to carry indefinitely.

Never forget that federal and state governments are engines of consumption. Government does not produce wealth… it can only take it or destroy it. Politicians promise more and more to win favor with voters. More and more folks are either employed by the government or are dependent on government. Meanwhile, less and less folks are producing and paying for this burden. Is it such a mystery that this type of dynamic usually ends badly? We can only hope that our leaders and our society take the necessary and painful steps to mitigate or avert catastrophe (such as shrink government). Keep praying!

You and I will not be able to turn the situation around in any meaningful way (not yet anyway) but we can take steps to protect ourselves as citizens and investors. I will provide more details in part two of this essay (coming shortly) and make available more video commentaries at my blog, but let me reveal the first thing you should do:

Accumulate gold and silver physical bullion to be diversified away from the risk of paper investments (I cover this in a short video commentary found at my blog (or my Youtube channel (www.youtube.com/paulmlad). That is a first step and an easy step that anyone can do immediately. I will give more details on this and other considerations in part two of this essay and other videos to come.

The bottom line is that an economic collapse will be an ugly event. Let Greece be a warning to you. Even lesser events (such as a banking crisis) could wipe out your savings or investments. Preparing for the potential problems of an economic collapse is prudent and much of what you can do does not require a major lifestyle change (such as moving to a distant cave). The point is that the majority of citizens and investors are not adequately protecting themselves.

What are you doing to minimize the risk? See you in part two (coming soon)…

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P.S. What better time to put up a "Financial Firewall". You can protect your finances and your investment portfolio with easy steps you can do immediately!

Find out more about the Financial Firewall audio ebook at:
http://www.ravingcapitalist.com/paulmlad/ravingcapitalist/FinancialFirewall.html

The Risk with Paper Investments

2011-11-28T08:09:00.000-08:00

Risk has never been more obvious than it has been in recent years for our economy and the financial markets. Millions have seen their stock portfolios and retirement accounts plummet. We worry about the next crisis and what financial hurricane will blindside us.

In that spirit, I offer this video commentary so that we can be aware of the risk of paper investments and how to protect yourself:

I wish you a Merry Christmas and a Happy Hanukkah! Let's make 2012 a truly good year...

Warm Regards,
Paul Mladjenovic, CFP

P.S. Get our free newsletter (and an ebook on budgeting too) at
http://www.RavingCapitalist.com

Understanding Greece's Financial Crisis

2011-11-02T15:51:00.000-07:00

the Financial crisis in Greece is causing disturbing effects across the world financial markets. Yet there seems to be confusion about the topic.

In this video I try to provide a straightforward explanation about it:

In upcoming videos, I will share some strategies about how to better protect yourself and your investments from the inevitable fallout.

The governments of the world (and ours included) are in a massive financial crisis that took decades to create but reality is catching up.

It is time to do something about it! Here are some educational programs that will help you get through the difficulties happening now and yet to come:

Financial Firewall:
How to Protect your Prosperity in the Age of Financial Chaos

http://ravingcapitalist.com/FinancialFirewall.html

I wish you continued success...

Regards,
Paul Mladjenovic, CFP
The Raving Capitalist

What is the Economy? A reminder to pundits...

2011-10-25T13:38:00.000-07:00

When I hear pundits and politicians say that "government should do more" or that "government should spend more to help the economy", they forget a simple point that is covered in this video:

No matter how wonderful the government is (and much of it is not), it is still a functional burden on the economy. If government grows in size and scope, that does not bode well for the economy.

Why do I illustrate this fine point? Because it will have a dramatic and powerfulf effect on your ability to prosper.

I will go into greater detail about this in future essays and videos.

All the best to you...

Paul Mladjenovic, CFP

P.S. Do you need a job? or want a better job? Do you know someone that needs a job? Then find out about the best job-hunting resources on the planet! They are found in the Job Hunter's Encyclopedia!

Paul Mladjenovic on the Max Keiser Report

2010-12-03T06:17:00.000-08:00

I had the opportunity to speak about the silver market and other issues on the widely-followed Max Keiser program a few days ago.

To get straight to the interview, go to 14:45 point.

Happy holidays...

Paul Mladjenovic
RavingCapitalist.com

Gold and the Great Depression; the Great Myth

2010-10-23T14:42:00.000-07:00

October 24, 2010
By Paul Mladjenovic
Copyright 2010 Paul Mladjenovic. All rights reserved.

As I peruse the usual financial sites that I am also fortunate to be on, I noticed an article that made a reference about gold and the Great Depression. The writer normally covers investing and the financial markets but this time he veered into a topic that I have had a keen interest in since my college days; the Great Depression.

Just know that the causes and issues of the Great Depression are not bygone events; They are very relevant to today’s economy and financial markets.

I will try to keep this article short but I read something in his piece that compelled me to address it. He writes:

“…We no longer have a gold standard, which is a GOOD thing.
The gold standard of years past…was largely to blame for the Great Depression.”

Now, keep in mind that I normally think that this writer offers good commentaries and I wish him well. Readers will find his views on financial markets very useful. However, I can’t let items like this pass by without commentary. Let me state the main point of my essay:

The Gold standard had NOTHING to do with creating the Great Depression.
Absolutely NOTHING!

Blaming the gold standard for the Great Depression would be like blaming a seat belt for a multi-car crash. It defies common sense and logic.

In fact, had the federal government adhered to a gold standard, it would have curtailed the dangerous over-production of fiat currency. Remember that the first event of the Great Depression was the collapse of the stock market in 1929. This event was largely due to the government’s reckless creation of easy credit and a currency bubble (sound familiar?). If America’s central bank, “the Fed”, was constrained by a gold standard, a bubble would not have been created in the first place. A gold standard puts a “straight jacked” on reckless currency inflation.

We must also keep in mind that the Great Depression was not a singular event…it was a series of events induced by federal government blunders that hurt (and suppressed) economic activity for over a full decade.

Massive, stifling regulations (such as Smoot-Hawley) were implemented along with oppressive tax rates (hitting 96% by World War II!) that kept the economy struggling throughout the 1930s. From massive stimulus spending, the government burden grew beyond the economy’s ability to carry it (does that also sound familiar?).

In addition, federal wage policies made hiring employees too expensive and this forced unemployment to stay at artificially high levels for years. It can not be emphasized enough; depressions are NOT caused by a private, free market economy. The culprit is government.

Lastly, the next persistent myth was that that World War II got us out of the Great Depression.

Wrong! Wrong! Wrong!

World War II only gave us the ability to give the unemployed a uniform and a gun and ship them overseas.
War doesn’t solve economic problems…it creates them. If war actually helped an economy then the answer is simple; produce a million bombs and then dump into in the ocean! Wouldn’t that create prosperity?! Of course not!
War is actually the most obvious example of the “broken window fallacy” that the great Henry Hazlitt so ably described in his book, “Economics in One Lesson” (available at Fee.org).

Before we make the same destructive mistakes (which have been happening in recent years anyway, it seems), we need to understand the truth because the causes and symptoms of depressions and recessions. A good place to start would be to go the Mises institute website (Mises.org) and get a copy of Murray Rothbard’s excellent book, America’s Great Depression.

The bottom line is that if America (our government, actually) adhered to a gold standard, we would be much, much better off than we are now.

The sooner we learn the lessons of history (and the value of gold and a gold standard), the sooner we would be much more prosperous.

Until the government its their act together (never?), we need to take measures to protect our personal prosperity. Accumulating gold and voting for those that want to severely limit the government’s role in meddling in our private economy are good for starters.

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Paul Mladjenovic, CFP is the author of the ebook “Financial Firewall: How to Protect your Money and Investments in the Age of Financial Chaos” and he also does national seminars on investing and financial planning concerns. He is also the editor of the free financial newsletter, the Prosperity Alert ezine, which is found at www.RavingCapitalist.com.

Come Hell or High Water…Discipline is Profitable

2010-10-07T11:02:00.000-07:00

October 7, 2010
By Paul Mladjenovic
Copyright 2010 Paul Mladjenovic. All rights reserved.

Yesterday (Oct. 6th) gold hit an all-time high of $1,349 (spot price) while silver hit a 30-year high of $23.19. Today, Gold and silver are pulling back from these record highs as profit-taking is occurring.

In recent years, you and I have constantly heard about the problems with precious metals. We have seen and heard much about the corrections and bearish forecasts. When a particularly strong pull-back occurs, the critics tell us “the bubble has popped” or “the bull market in gold and silver is over”.

I have heard from students and readers about their worries about gold plummeting or how the price of silver cratered. We all remember the second half of 2008. Gold held up well but silver was massacred! Silver was over $20 during the spring of 2008 but massive panic selling forced the price of silver to a mind-boggling low of $9.17 by November 2008 (using the data at Kitco).

In 2008, Silver started the year at $14.93 and ended at a dismal $10.79 for a disheartening plunge for the full year of about 28%. However, as of yesterday, silver over the past 24 months had risen by 120%. Of course, you know gold’s performance during that time. The precious metals had proven their “mettle”. Those that were buyers (especially in bullion and quality mining stocks and ETFs) in recent years and stayed the course were rewarded with strong gains. Short-term speculators were hammered but long-term investors prospered.

In 2008, Gold was one of the few investments that ended up. It started the year at $846.75 and ended the year at $869.75 for a gain of about 3%. In a normal year that is nothing to crow about but don’t forget how bad that year was; most investments were down by double-digit percentages. Many stocks ended up in the graveyard of forgotten securities like Bear Stearns and other financial firms (R.I.P.).

How many investors panicked and sold their quality holdings at the bottom of the plunge? Investing means that you choose wisely and logically and then have the discipline to stay the course.

A student of mine was quite disheartened when she bought a silver stock at $14 during the first half of 2008 only to see it lose over 50% of its value in the subsequent months. During that horrific period, the best stocks joined the worst stocks in a terrifying plunge. However, when the recovery took place, the best stocks regained their footing while bad stocks stayed down for the count.

Fortunately, that student did not panic and her silver stock is up 80% since she acquired it. yes…discipline can be profitable.

For us, the lessons are clear. In recent years, precious metals have been a good place to put our money. If you choose good investments, they will make it through the market storms that occur. Unfortunately, the market storms have gotten very strong in recent years and the volatility and tumultuous activity will continue and probably get worse. For investors, that means not only diversification and patience (and aspirin) but also discipline.

This does not mean being complacent and hands-off with your investments. It just means that you monitor them and see if they still make sense as the market goes through its roller-coaster path. It the investment has strong fundamentals and nothing is a direct threat to it, in due course it will do well.

What is the outlook for precious metals and their related securities (stocks and ETFs)? The fact that the economy is still very shaky and the central banks of the world will continue to pump up their money supplies bodes well for gold and silver. Yes… they will continue to have un-nerving corrections.

As I tell always tell my students, bull markets zig-zag upward while bear markets zig-zag downward. Precious metals (along with commodities in general) are in a long-term, historic bull market. Their fundamentals have been strong in recent years and that strength should continue.

The wise investor uses the corrections in a bull market to accumulate more positions. In the end, the disciplined and patient investor wins.

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Get Paul Mladjenovic's free financial newsletter, Prosperity Alert found at www.RavingCapitalist.com.

Find out how to Profit from Gold, Silver and other commodities with Paul's
audio seminar “How to Profit from the Commodities Super-Boom”.
Find out more by CLICKING HERE.