June 2011 Economic Rant

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June 2011 Economic Rant
Roger Mason
June 1, 2011
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"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." - Benjamin Franklin

There will be 9 billion people on this planet by 2050. Unless we have plagues (plural) or nuclear war, there will be 9 billion people on this planet. A half billion (500 million) sounds a whole lot nicer, doesn't it? We cannot deal with 6 billion people, so we certainly can't deal with 50% more. We need to get rid of more than 90% of the CURRENT population. Who is breeding like cockroaches? Chinese, Indians, uneducated blacks, and Latin Americans. Who isn't breeding like cockroaches? Europeans, Amerindians, Japanese, educated blacks, and Jews (except Sephardic Jews). The population of Africans in Africa are kept down by starvation, disease, and war. We can't handle 6 billion, so 9 billion is out of the question. A half billion would be pretty nice. How about America with only 25 million people? Or China and India with 80 million apiece? How about New York City with 1.5 million instead of 20 million?

Look at this 25 year Case-Shiller house price chart. The average price for a U.S. home peaked in 2005 at $225,000. It is now down to about $155,000 and headed to $100,000. That's right, the average home will only be worth about $100,000 within five years. The residential- and commercial real estate markets are collapsing, and will keep collapsing for years. Only farm land is going up in value. Farming is the future. Food shortages are going to be severe. When silver hits $400 you will be able to buy the average American home for a mere 250 ounces of silver. Seriously, you will. At $35 that is only $9,500. Wouldn't you love to have a fully paid for home for $9,500? Then buy all the silver you can. You will be able to buy a luxury home for about $200,000 or 500 ounces of silver. Want to live in a small mansion for only $17,500?

HALF OF U.S. MORTGAGED HOMES ARE UNDER WATER!!!

Now, look at this 50 year chart. The lowest housing starts in a half century, despite the population going over 300 million people in the U.S. We have tens of millions of unsold empty homes just sitting there doing nothing! You can even insure these unoccupied homes. There are also tens of millions of "shadow inventory" homes the banks won't admit to having. This would make their account books look really bad. Eventually they will have to admit to these. Banks will become rentals agents be necessity. Housing prices will continue to collapse.

GASOLINE IS ONLY 16 CENTS A GALLON IN REAL MONEY.
Did you know that gasoline is only 16 cents a gallon if you use pre-1965 American "junk" coins? Stop and consider that for a moment. Ten pre-1965 dimes will buy you six and a quarter gallons of gas. If you have a dollar bill from that time it will buy you ONE TWENTY-FIFTH of that- a quart of gas. That is 1/25th. Silver is real money. All paper "money" today is merely unbacked, "fiat" currency, not money at all. Silver has held its value for 5,000 years now. Every single currency has failed. Your poor old author just went massively short U.S. dollar futures again at 75.90 on Tuesday. There is talk of selling the gold in Ft. Knox to pay our bills. First of all, there is no gold in Ft. Knox. You can't sell what doesn't exist. Secondly, paper money needs to be backed by gold and/or silver. The American public is so totally stupid they think Quantitative Easing I and II were "good things" that "helped" our economy. They will cheer when we have QE III as well. They do not understand the only cause of inflation is printing unbacked green toilet paper. Inflation is no mystery at all. They are being robbed by inflation. Their entire lives are being destroyed by Quantitative Easing, yet they just cannot comprehend such an obvious fact.

Back in 1964 if you had put a $10 bill under your mattress along with $10 in silver coins you would see the reality of this. The $10 bill is worth $10. The coins are worth over $300. The U.S. dollar is green toilet paper. Note that well- $10 or $300 by putting that money under a mattress with no interest at all. That is over 30 to one folks.


If you think the stock market is fine, and the economy is fine, just look at this Google chart. Hopeless. From 645 to 520 in only four months. The internet is the future, and Google is King of the Internet. This should be one of the strongest stocks in the world. If Google can't make it, who can? The stock market is going to crash, and probably crash this year. Only God knows. When it goes, everyone's IRA and 401k will go with it. Then the government will step in to "save" the sheeple. All the IRAs and 401's will be turned into worthless Treasury annuities. Cash yours in, take the penalty, and buy silver bullion. If you don't, you deserve to starve in the street. The stock market is being artificially propped up by government intervention. All such interventions fail in the end, and fail badly. Yes, it is no secret the stock market is artificially supported with massive government intervention.

The "Patriot" Act was just renewed by both Democrats and Republicans. Soon, we will have TSA checkpoints at train stations, bus stations, sporting events, rock concerts, and even your local shopping malls. 95% of the sheeple willingly get x-rayed at the airport when then can simply refuse and get a patdown. You have far more freedom of travel in Russia and China now. And you think this isn't End Times? Ha!


This chart shows how completely undervalued gold (and silver) stocks are compared to the spot prices of the metals. This is the first time in history that gold and silver stocks have been this undervalued. The problem with silver stocks is that the countries where the silver is are too unstable to invest in. Five years ago you could buy silver stocks that had mines only in Mexico. Now Mexico is in anarchy due to the drug cartels. It's just not a good idea to invest in Mexico, no matter how attractive silver is. Buy silver bullion and hold it personally. No paper silver and no storage programs. Scumbags like David Morgan have come up with scams like the Silver Saver Program. Don't go for them. It is getting harder and harder to buy silver bullion. By the end of the year you may not be able to buy any at all except at extreme premiums. Soon there will be an official spot paper price, and a real world bullion price. Two prices for silver.

More good news on silver. The commercials have reduced their net short futures COMEX position to a mere 35,000 contracts. They simply have no power any more with only 35,000 contracts. The better news is that their "Magic Ratio" of longs to shorts has fallen to 1.94 (79,099 shorts and 36,082 longs). History shows us when this ratio occurs the bottom is in every time. There are only 32 million dealer (available) ounces of silver on the COMEX. This is a really, really low figure. London Bullion has been out of silver for months. This means silver bottomed at $33 in May like we have been telling you. This is the last train out folks. Back up the truck and load up on silver. You may have to pay a $3 or $4 premium to get it. Do not accept delayed delivery. This is cash and carry only. This is your last chance, as we head for $100 silver by Christmas. There goes your poor old author making predictions again. Well, you can expect $100 silver by Christmas for a lot of reasons. The dollar is going completely to Hell. Silver is in backwardization, where the futures price 3 years out is CHEAPER than the spot price. This is crazy! It's because there is no physical silver available. Entire countries are out of silver. The commercials are down to a mere 35,000 net shorts. The Magic Ratio is 1.94. We just had a full one third major correction from $49 to $33. Silver is headed for Mars to refuel for the trip to Pluto. Sell anything and everything you can and load up. The media is now telling people we need to sell the gold in Ft. Knox to pay our debts. First of all, there is no gold left in Ft. Knox. An outside formal, official audit is required by law every 10 years. None has been done in over 50 years. Secondly, even if we did have any gold that would make the dollar worthless. The dollar is supposed to represent physical gold and silver. That is exactly what the Constitution says, by the way.

Here is a fascinating 40 year chart on the price of American homes in gold. The same applies to silver even more. When housing peaked in 2005 it took a full 600 ounces of gold to buy the average home. Now it is only about 120 ounces. Within five years you will be able to buy the average American home for less than 20 ounces of gold. That is $30,000. Or 250 ounces of silver. That is $9,500. Silver will far outperform gold by three to one. Just stop to think about that. In 2005 it took 600 ounces of gold, and in 2016 it will take less than 20 ounces of gold to buy a nice home. That's 30 to 1 folks. Yes, that's crazy! (Thanks to chartotheday.com.)

Ten Pillars of a Police State- proof we now live in a Marxist, welfare police state.

1) We now have a rule by force, rather than one by law and by rights.
2) Peaceful protest is no longer allowed.
3) Internal and external checkpoints. Try getting on an airplane!
4) Citizens are used to spy on you.
5) Executive orders without Congressional approval. Not even published openly.
6) Extreme total over-regulation by government agencies.
7) President can declare war without Congressional approval.
8) Torture is now acceptable.
9) FEMA camps just waiting for you.
10) Total control of the media. The only freedom is on the Internet now.

"Those who trade liberty for security have neither." -John Adams
It's appalling to see the sheeple give up all their freedoms for a false sense of "security" and "safety" from the government. The Patriot Act was just renewed by BOTH Democrats and Republicans. We have a one party Marxist, welfare police state. There is only one party!



Above is the famous Rich Guthrie (Captain of the Silver Rocket Ship in the U.K.) Magic Ratio chart. When the commercials have twice as many long silver contracts as short contracts they have a 2:1 ratio. When this ratio goes below two, history proves this is always a bottom. Never fails. This happened last week when silver was $35 (and the daily low the week before was $33). This is a bottom folks. Back up the truck. This is the last train out.

The media is still trying to promote the GPS tax-you-per-mile tax. You would be forced to attach an expensive GPS system to your car or truck. You would be taxed for every mile you drive. Peak hours would be a higher tax. This is how insane the world has become folks.
The sheeple are actually buying this insanity. The ONLY thing stopping the government from doing this is that it is simply impossible to bill over 100 million drivers and vehicles 24 hours a day every day 365 days a week. That is the ONLY thing stopping this psychosis.

The National Debt is not $15 trillion as the media tells you. The entire Gross National Product of the U.S. is about $14 trillion. That would be payable. We could actually pay that over the years if we made enough free market changes. The REAL National Debt is almost ten times that, or about $140 trillion. This includes the military, Social Insecurity, Medicare and Medicaid. Those are the Four Biggies. Let's just compromise, and say $70 trillion. Honest accounting proves that it is at least this much. That comes to a quarter million dollars for every man, woman, child, and baby in America. Now, how is that going to work? A family of four just doesn't have a million dollars lying around to pay the National Debt. All debts get paid. Never forget that. There is no such thing as an, "unpaid debt". All debts get paid by the buyer or the seller. The sheeple are going to pay this debt with the Much Greater Depression, and the complete destruction of America. And the debt gets bigger every year, as the spending increases every year. Well folks, all this insanity is going to come to an end and it's going to be the total collapse of this country. Just remember that... a million dollars per family of four.

Want some good news? China is falling apart as badly as we are. They're still breeding like cockroaches. They're still trying to buy up all the natural resources in the world. But they have severe problems, like sky high unemployment, severe inflation, terrible food shortages, and all kinds of other things. They are sick of Europeans running the world for the last 5,000 years, especially when Europeans make up less than 10% of the world population. They want to run the world, and they are intent on doing so. The make up almost one quarter of the world population, and you find Chinese in every country in the world. It's impossible to even count them all. They have clear military plans to invade Australia and take it over completely. Who can blame them? All that land and just a few unarmed sheeple. Yes, they cheerfully gave their guns up years ago.

Yes, we keep showing Warren Buffett's famous Berkshire Hathaway (BRKA) chart, and we're going to keep sending it out time to time. The "Oracle of Omaha" has LOST money for the last three years. Adjusted for inflation, this is much worse. This doesn't stop countless hundreds of thousands of fools from investing in his company. He has the worst stock picks in the world. A blindfolded monkey could throw darts and at least break even. The senile old fool is trotted out on TV every week telling the sheeple to "invest in America", and "don't bet against America, and "buy stocks". Screw him! If he loses money every year, how are you going to do? The stock market is going to crash, and probably crash this year. BRKA will crash along with it. When the market crashes everyone's IRA and 401k will lose their value. The sheeple will be scared, and the government will rush in to "save" them. The government is going to seize your IRA/401k and turn it into worthless treasury annuities that pay 3%. When hyperinflation kicks in you'll starve to death on your life savings. How many of you are still blindly holding on to your IRA or 401k? Well, keep holding on to it so you can starve in the street with your stupid assed friends. You won't get any warning. One morning you'll wake up and the news will tell you the government has just "saved" you by seizing your life savings. France changed their laws to do this. Argentina did it years ago. Hungary just did it. Ireland did it with a 10% annual tax. It's going to happen here and you don't know when.

Obama and his friends have absolutely destroyed this country in the last 29 months more than any other president in history. He outdid Carter, Clinton, and Bush! And he may well be re-elected by the sheeple. The Republicans have no one to run but Mr. Socialist Romney. Ron Paul might get 2% of the vote on a good day instead of 1%. You think this isn't End Times when the last free country in the world elected a Marxist who is not even a citizen, and may elect him again? You think this isn't End Times when there is not one square inch of freedom in this entire world? You think this isn't End Times when there are over 6 billion stupid brain dead subhumans on this planet and there will soon be 9 billion? You can't see World War III on the horizon? You don't have to drag religion into this. It is End Time however you want to define it. Get ready, be prepared, do everything you can to survive and prosper as the Much Greater Depression takes over the entire planet.
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