Showing posts with label debasement. Show all posts
Showing posts with label debasement. Show all posts

Wednesday, January 30, 2013

Ron Pauls Urgent Warnings


These are very serious times with very serious consequences. It is important for people to become educated about events like those transpiring around us; and they are not isolated. Simply open the pages of a history book and you can find that situations like these have played out in almost every major civilization dating back to ancient times. Most notably, because of its recency, is pre-WW2 Germany.
A nation whose currency had been inflated to the point of worthlessness in an attempt to pay off their enormous debts. Peoples lives were destroyed, their savings evaporated into thin air. Simple necessities like food and water and heat were unattainable for most. The fear of uncertainty gripped the nation; the people were desperate for help and answers. Then, during a meeting in Munich on November 8, 1923 the hall was over run by militants and a man took the stage and delivered a speech, to a literally captive audience, that would change the world. He gave the people a scapegoat for the tragedy they had suffered and promised a way out.    That man was Adolf Hitler.
 
Think about what happened.... There was an entire middle class of people who were going through hard times because their government was in debt. Jobs and incomes began to slip away. The quality of life they had grown accustomed to began to fade. They began to lean more and more on their government while trading their liberties for perceived safety. Their government inflated their currency to worthlessness. The middle class (largest portion of the population) lost everything; savings, jobs, homes, etc. They were scared and looking for help. The fingers were pointed at the Wealthiest citizens who had planned ahead (who at that time happened to be the Jews), and the new governmental leaders promised to even things out. They imprisoned the wealthy, took the remaining liberties from the population and followed their own private adjenda. The middle class was never given the opportunity to rebuild itself, all of the promises were false, the people were herded up like sheep because they were to scared to take control themselves.
 
The early stages sound strangely familiar dont they?
 
we are entrenched within the same story line unless we as a nation decide, at this pivitol point, that we would rather change for the better and retake the reins of responsibility and freedom.
 

Saturday, November 24, 2012

Whats so hard to Believe?

Why is it that the huge majority of Americans have absolutely no idea whats looming ahead, and what is actually going on? Is it because they dont know any better, or because they follow blindly what they hear on tv, or maybe because they just dont ever change the channel from sportscenter? Whatever the reason is, its hard for me to wrap my head around.....

Perhaps it has to do with what science deems the 'normalcy bias'. This title refers to a state of mind that most people naturally enter when facing disaster. It causes them to underestimate both the possibility of a disaster occurring and the possible effects of the disaster. I think it also might have to do with a sense of arrogance that tends to surround us and our nation. We have this mindset that the rest of the world needs us and depends on us so its to all of their best advantage to make sure nothing bad happens here, as it will most likely have negative effects on them as well. We have this 'it cant happen here' kind of attitude which makes us extremely vulnerable. The remainder of the delusional state can be accounted for by a serious lack of economic and financial understanding which some how the Board of Education doesnt feel is a worthy teaching, so people just absorb what they hear, from a young age, on tv and from their friends and family. This is also the reason that the rich get richer, the poor get poorer, and the middle class struggles with debt.

BUT....... for those who are prepared these times of great crisis and upheaval will be also times of great opportunity. The world has seen this many times before, yet never on such a large scale. If you simply look back in history at all the times these same events have played out you can see the outcomes. In order to survive financially and physically you must be prepared, you must protect yourself. A few weeks ago the northeast was hit by Hurricane Sandy and all of the water, batteries, candles, jugs and pails, bread, and other necessities were cleaned off the shelves. So what will happen when a world-wide currency crisis occurs? do you think the stores will remain open and full of food and water? even if they did would they except your money if it were worthless? These are all scenarios that are not only possible but, at this point, almost guaranteed. What will you do when your savings accounts and retirement funds cant buy you anything? or even prior to that what if you cant withdraw them from your bank? Sounds crazy huh? well all of these events have occurred all over the world time and time again, most recently in Greece, Ireland and Spain; but also in Germany in the 1920's, Zimbabwe, twice during the French revolution, a couple times in England, Japan, Russia, Turkey, even here during the civil war, and countless other nations dating back to the ancient Greeks and Romans.
Do you not think the Romans were a high and mighty civilization? Well the downfall of the roman empire can be partly blamed on a currency collapse. If the currency of a nation, or in this case many nations, begins a freefall to worthlessness what do you think the people of that nation will all be trying to do simultaneously? Thats right, they will be trying to convert their cash and savings accounts into some sort of tangible asset, whether it be wheat, or cattle or water, or gold, or silver, etc. because at least the value of the money will remain in tact although in a different form. The cattle can then be traded for bread and water or gold and silver. But all commodities are not created equal, you see most commodities are consumables like wheat and water and beef, there are only a couple of commodities that we can see throughout 5000 years of history have fit the bill as money. The attributes that make them suitable for money are that they are a medium of exchange, a unit of account, they are portable, durable, divisible, fungible, and they are a store of value. The only two commodities that have been used consistently throughout history as money are Gold and Silver, so if you wish to protect your purchasing power you should at this time be converting your savings and retirement funds into precious metals; as the masses begin to hysterically pile into them down the road you will not only protect your purchasing power but you will magnify it, and then later you can trade accordingly for whatever you might need.

Friday, November 23, 2012

The FHA, whats the plan?


...and the winner of our next huge bailout is..... The FHA!
Lets ask ourselves for a second HOW our broke government is going to bail out the FHA?
Thats absolutely right, their going to use tax payer money to do it. Their going to use our hard earned tax payer money to bail out a Federal agency that somehow couldnt figure out that a few billion dollars wasnt enough to cover the losses on $1.1Trillion of insured mortgages.
The real underlying question here should be why the hell is the government insuring mortgages?
Their creating a false sense of security which props up prices that would otherwise continue to fall. People who shouldnt be purchasing homes are able to do it with almost no money down, so ofcourse when they lose their job or things get tight the easiest thing to do is walk away from it, they have nothing to lose.
Well in the end it just means the printing press will continue to run and the savings of the middle class will be quietly swept away. If your not converting your savings and retirement funds to precious metals then you'll have no one else to blame when they dissappear.

Friday, September 14, 2012

Wait for QE4, its only a matter of time


Chairman Ben Bernanke of the Federal Reserve announced yesterday September 13th that the FED would put into action an open-ended plan to purchase $40 Billion dollars of Mortgage Backed Securities every month. Thats about $500 Billion a year. They will also hold interest rates at near zero until at least mid 2015.
What a shock! Just like I predicted.

Between the FED and the Government they've created such a situation where there is no easy way out. Theres only two real options; either they are to incompetent to realize that their "solutions" are only increasing the underlying problems, or they know and are just trying to hide the truth for as long as possible. Either way its not good. The only way we'll see a real recovery is they stop intervening and just let markets find their equilibrium. We have a very harsh reality to face, that is true, but the sooner we face it the sooner we can begin with a fresh slate and correct the real problems. The perverbial can is just being kicked further and further down the road with the government bailouts and the banking bailouts and QE1,2,3,4; but no matter how long the road stretches, theres a cliff at the end of it.

The government is in dire straits. They have no money and continue to fall farther and farther into debt with every day. but instead of making cut backs like a normal business, they continue to borrow and grow the government with more tax programs and bailouts and stimulus and wars. Ofcourse wall street is happy because the stock markets keep floating higher on the constant wave of money coming from Ben at the FED. But what the average Joe doesnt realize is that while their mutual fund moves up a couple points and their housing prices seem to regain a foothold its only because the FED is diluting the currency with Trillions of dollars. So their savings and retirement funds are being swept away.

Analogy:

If Ford Motors produces only one of a new model vehicle its going to be worth a lot. But if Ford produces 1 Trillion of the same model, you couldnt give one away. They'd be worthless because everyone would have a hundred of them in their back yard. Well its the same thing with Dollars. Right now having $50,000 is great, but when all those fresh trillions hit the markets that $50,000 wont buy a stamp. Thats what QE is doing to the public savings.