THE FED'S SUICIDE MISSION

George Offerman

I would hate to be B.S. Bernanke.  I would hate to be the one in charge of what will be the most spectacular monetary collapse in the history of the world.  I would hate the mere thought that I would be the most despised person to have ever been born on this rock.  I could not live with myself knowing the policies I implemented stole money from the neediest and those dependent upon fixed incomes and gave it to my greedy bastard masters and banksters who salivate over amounts of money uncountable and unimaginable.  I hate and despise the whole existence and purpose of the Federal Reserve and hold in the highest contempt those who dare, in the name of ‘fairness and equity’ openly steal the wealth of the people for their own private use and abuse.

But let us return to the purpose of this posting, the suicide mission the Fed has embarked on.  It ought to be most apparent to even the deadest of zombies out there, that the Fed has chosen to destroy the dollar in favor of keeping its power and giving the incompetent inbred idiots, known as the money powers, their last vestige in getting their affairs in order before the hungry and homicidal mobs seek them out.    This policy of purchasing dead Treasury Bills at 0% interest rates on an unlimited basis demonstrates there are no other avenues to pursue, and that no one or entities or countries are interested in our toxic toilet paper.  Instead of default, they have opted for hyper inflation and will keep printing the garbage and selling it as ‘securities’ until the streets are littered with its burnt remnants and their buildings are nothing more than empty husks.

There can no longer be any credible claim by the Fed’s or the government that they give a rat’s rear end about you, me or anyone not an elitist, as all paper products will soon go much lower, with some going to zero.  These elitists are willing and able to allow the average American to lose everything they have ever worked for, and have no plan and no intention of making restitution for their crimes.  Make no mistake: the dollar will be printed into oblivion and the official policy was set into motion yesterday.  The only question on anyone’s mind ought to be how much time one has to prepare for this devastating and complete financial collapse of this once great nation.

For those who propose ‘austerity’ measures to ‘save’ the current economic model; there are not enough people working who are paying enough in taxes to even cover the bare minimal of budgetary items.  We have set records for the most unemployed, but eligible workers with 87 million, set the record for the costliest year of social security ($596 billion for the first 11 months of this year) and the largest percentage of people on disability EVER in the nation’s history (slightly under 10 million).  Structurally, it is impossible to tax high enough to pay for this, and the only other ‘tool’ in the economic Keynesian toolbox is borrowing.  The only way this country can ‘borrow’ at this time is the fraudulent and very illegal ‘purchasing’ of treasuries by the Fed’s to keep the party going long enough for the government to get its defenses prepared for the inevitable riots and civil unrest that will soon manifest itself.

Without a new metals based monetary system, this old system will crash upon its own weight.  There is no other outcome possible, no matter how one crunches the numbers or wallpapers over the reality.  This country is hopelessly bankrupt and the only method of keeping the party from turning into a massive hang over event, is to spike the punch with very devalued dollars and convince those not paying any attention that ‘all is ok, and continue watching football and drinking the cheap beer’.  Well, very soon the cable TV and the lights are going to go out, and the taps that serve the cheap beer will dry up.  It is only then, that the masses will ‘get’ what happened, and realize their government and the ‘Federal Reserve’ scammed them out of everything they have and ever will have.  The anger will be unquenchable and God can only have mercy on any bankster who happens to be anywhere in this country.

The Federal Reserve is on a suicide mission.  They are very aware there is no way out of this game they set up nearly 100 years ago.  And B.S. Bernanke is so arrogant, and believes he is such a savior that he is positioning himself for a reappointment as Chairman.  What a fool.  This is a system that is mathematically going to fail, guaranteed.  The only questions those in power have is how they will get out of town in intact skins.  This is going to turn out horribly, and it is not time to place one’s head in the sand or any other orifice and pretend things will magically get better.  The dollar is going to crash, and virtually every financial instrument denominated in dollars is going to crash and burn and all of the blame can be laid at the feet of the Federal Reserve.  Glad I’m not one of those folks on that day, because I enjoy my head being attached to the rest of my body.

PRESS ON

George Offerman

I am still dealing with some concerning the precious metals markets and the volatility issue.  I’m not sure whether I am writing unclearly, or if it is that some are not reading what I write, but claiming they are, or if it is simply pure raw emotions, and an inability or unwillingness to do any research on this subject.  Any way that it is, people ought to be making informed decisions concerning their money and need to be actively involved in these matters.  I am not asking anyone to take my word blindly, I am presenting well researched and documented positions on the silver market and informing the readers of the well documented and 100% failure rate of paper currency throughout history.  I am encouraging readers to do some research themselves, but I also think we have a time crunch we are dealing with, and I’m going to throw out my conclusions because there is not time to waste.  But still do some research, as it does not take as much time as one may think.

People cannot allow themselves to get bent out of shape over some rough times in the market.  We are in a marathon, and the goal of all investing is to have more money, or net worth at the end of the timeframe in which one chooses to exit the workforce or pass on wealth, or whatever goal one has set for themselves.  Virtually every book on wealth will tell you that those who did well went against the ‘herd”.  What is the ‘herd’ doing now?  Going into cash and US treasuries.  They are also running headlong into the slaughter house, but are being told it is the safe house to hide in against the oncoming storm that is nearly here.  Who is telling us to get into cash and treasuries?  The puppet MSM, with CNBSC leading the pack.  Who owns the MSM?  The money powers.  What else does the money powers own?  The Federal Reserve, and all central banks.  What are the Federal Reserve and central banks buying now?  Mainly gold, but starting to purchase silver through the ETF’s.  Do you think the money powers want to share wealth with you or me?  HELL NO!!!

What is at stake here folks is plain old fashioned survival.  People that are seeing the light and grasping what is about to happen are preparing, and part of this is in getting out of paper assets and into tangibles.  When this wave hits, and it will be huge, it will wash away very quickly those who are not anchored down and it will be relentless and devastating.  I am seeing reports daily about things like this government buying large amounts of MRE’s, along with other necessary survival gear.  There are wealthy people expatriating at an alarming rate.  There are even what one may consider to be ‘mainstream’ folks who have decided to purchase farm land and leave the cities without any real experience of country living.  People all over are starting to sense big trouble, but unfortunately, most are still not acting on this, and doing their imitation of a deer in the headlights.   Some are still in denial, and believe ‘things will turn around soon’.

As I have said in the recent past, this is not a pleasurable task, nor am I excited about what silver will do if it means the devastation of everything I know and those I love.  But it also does no good to invest in some make believe future that has no chance in hell of ever happening and lead others into this delusion.  There simply is too much evidence, and too many people (even some from the ranks of the money powers are now saying an economic collapse is on its way) to write this off as ‘conspiracy theory’.  It seems, unfortunately that it will be those that embraced a scenario of a very quick and devastating crash that will be correct when all is said and done.  If that is the case, it will be more nightmarish than what I can imagine or write about.  It seems unlikely that the crash will be methodical and slower, which would give us time to adjust and transition into the simpler lifestyles that will be required to survive and thrive in the new times.  It seems many will be left behind, but not in the good sense of the word.

I can hope that I am way off on this matter and be as wrong as a person can be.  This would be one topic I wish I could write about and have to retract due to errors I’ve made.  I wish I could fall into the magical thinking trap, and see a bright and prosperous future ahead of us, and I wish I could believe those in power are lead by love and have a strong faith in God that would lead them into making the right decisions.  But unfortunately, I am not delusional, and none of the wishes stated above are happening.  I cannot give strong enough warnings for what is coming.  It is unfortunate the Church and those who should be warning the public (if they actaully gave a damn) are not doing their jobs and due to their lack of vigilance, will not see this coming, and will mock those who are trying to get the warnings out before hand.  Get ready, because it is coming, and it is now on the doorstep.

CLARIFICATION OF THE PRECIOUS METALS SITUATION

George Offerman

I’ve been spending nearly all of my free time addressing many folks’ concerns over the silver market and what is happening in the overall picture.  Yes, the precious metals are experiencing significant drops (I will not call this a ‘correction’ as silver ought to be at least 20 times what it is now).  What I am telling these folks privately and what I am writing here and now is, we are entering the endgame of this struggle between God’s money and fraudulent paper money and the economic system as it exists today.

Most don’t comprehend this, yet even want to accept it.  I can only tell people to research and read historical accounts of paper money, and its 100% failure rate, and how countries that stay on a bimetal money system have a history of thriving and remaining stable.  That is one of the primary reasons our Founding Fathers put in the Constitution that only gold and silver coinage is to be legal tender for all debts.  If one does not know, we, even in the good ole U.S. have had three instances in which paper currency has failed: the “continental” during the revolutionary war, the confederate currency and Lincoln’s “Greenback’ or the better known “shin plasters” during the civil war.  (Notice, it is in times of war, that currency is debauched, similar to today).

Now, we are on the verge of the fourth failure of paper currency in our history, but this one is going to be the ‘big daddy’ of failures.  For starters, we are going into debt faster than at any time in this nation’s history, and doing it with the largest numbers as well.  There is no end to the debt and the need to borrow to service this debt.  Secondly, we have the largest welfare state in our history, and have more people receiving ‘benefits’ than are working, an unsustainable process in and of itself.  But most importantly, our currency is the reserve currency of the world, and as such, allows the private corporation Federal Reserve, to print as much as is needed.  Once the rest of the world gets tired of this behavior (which is occurring now) this money will make it back to our shores, and hyperinflation is the only possible outcome of this.

Gold and silver, by their nature, cannot be made out of ‘thin air’.  Gold and silver will NEVER lose its value, and can only increase due to its relative scarcity.  Once the common man understands the true VALUE of gold and silver, there will never be enough ‘paper money’ to exchange for even 1 ounce of either of these metals.  If this were not known by nearly everyone, and especially demonstrated by most central banks, they would not be scrambling to buy as much as they can before their currency becomes worthless.  By virtue that most, if not all of the central banks around the world are buying is perfect clarification of the intrinsic value of the precious metals.

It seems why most people who have purchased silver in recent months are panicking and having second thoughts is they are confusing volatility with risk.  Although the prices of the metals are currently volatile, they pose no risk in ever losing any of their value.  Although the dollar, and treasury bonds have demonstrated little volatility over the past several years (although trending down), they carry great risk in losing some, if not all of their initial principle.  People buy bonds and hold cash in order to ‘preserve’ capital.  With interest rates near 0% on bonds, and cash paying no interest, there is no return or growth on this investment.  Given the ever increasing debt we are incurring, it is becoming a near certainty that our government will default on its bond obligations, and those placing their life’s fruits of their labor into treasury bonds are likely to be nearly or totally wiped out when the music stops.  Those holding precious metals are going to see multiples of increases in their net worth, but will have to be willing to ride out volatile times.

I have been most frantic in urging everyone I’ve talked to, to buy more silver while these lower prices occur, a gift from the money powers.  Since the precious metals are diametrically opposed to paper money, it is in the evil people’s best interest to ‘demonize’ the metals, and use their puppet MSM to convince most people to stay away from them (as they buy up the metals themselves).  Remember, the saying goes this way: “Those who have the gold make the rules”, not “Those who have the dollars make the rules”.

The dollar will soon go the way of the dodo.  It is nearly a fait accompli.  Ben “helicopter” Bernanke said it as much years ago when asked about deflation versus inflation, and his response went something like this: “If need be, I will drop dollars from a helicopter to keep the economy going”.   We see the government has no intention of shrinking itself, and is increasing its spending despite declining revenues (read: taxes).  The government has only two ways of increasing their dollar reserves: 1) higher taxes and tax revenue, or 2) increasing the number of dollars, via borrowing and printing.  We already know tax revenue will not recover to any sustainable level, as in EVER in the current system, so the only other option is borrowing and printing money.  They will print money until it is worthless, but at least the debt, in theory will be gone.  But carnage will result and it will devastate those not prepared.  The writing is on the wall; the dollar is “toast”.  And once again, gold and silver will be the king of money as it is meant to be.

IT'S TIME TO MAKE A MOVE

George Offerman

Try as I may, I cannot help but to keep commenting on the financial realm as the events are unfolding at such a pace, that my head is spinning.  I wish it weren’t so, but it’s of no use to deny the reality around us and pretend all of the many trivial matters still being pursued by the majority actually mean anything.  It seems like the majority of the people I talk to are aware of the elephant in the room, but don’t want to know or hear anything other than information that allows them to stay in their “things are getting better and this will not last’ mode.  Despite the temptation of falling into that trap, it is not going to happen, and what is happening better be paid attention to, and acted upon, or it will end up very badly for those who are unprepared.

I had a lengthy conversation with my wife about this a couple of days ago.  These are matters we have been anticipating and discussing for several years now and we are even amazed at how many ‘hits’ this economy is taking, and has yet to fall.  This phenomena, however, will not continue on for much longer, and we are both in agreement this economic system is terminal, and it is only a matter of how much time we have and it is no longer an issue of ‘can’ it get better.

It gives me no pleasure to write about these matters on a regular basis, as this is a very unpleasant topic with very unpleasant outcomes.  But it is more difficult to stay silent when it seems the evidence all around points in one direction, and it is that of total collapse of the current system.  Fundamentally, there is no possible way we can continue on the trajectory we have set ourselves onto, and it is the lack of honesty and integrity by those in charge that is going to cause the most pain (and death) which is so avoidable.  There is no urgency in any of these matters, and the political and financial (and to a large degree, the Church) carry on as if we have all the time in the world and believe “We are America, we are blessed, and God would never allow us to fail”.

I told my wife that I am really sad and grieve for those who have not prepared.  It pains me to see the trivial being pursued by the masses and the deliberate deception perpetrated by elected officials, financial representatives, the media and the Churches.  Most of these people will come out after the fact and claim with straight faces that “We didn’t see this coming, and really no one could have seen this coming”.  Lies, lies and more lies.  These are the same people who now say to trust in them, and want the majority to put their faith in them.  Unfortunately, the majority are doing just that, and it will be these actions that will be the ultimate downfall of these people.

Right now, gold and silver are having a huge sell off, and are being trashed by the financial world and MSM as being in a ‘bubble’.  They will never discuss how the masses are being deceived into seeking ‘safety’ in Treasuries and the dollar, of which both are printed at will and at an ever increasing amount.  Instead, they trash God’s money, metals that are very limited in amounts and cannot be counterfeited.  They have managed to convince the majority that an infinite supply of paper has more value than a commodity universally recognized as money that is in limited supply that is ever decreasing in availability.  They have convinced the majority to ignore buying any of this metal as a hedge against the shenanigans they are doing, and they will have no sympathy for the common man when TSHTF.

If there is ever a time to buy into the precious metals, it is now.  They are deeply discounted, and who doesn’t like a good sale!  It is counter intuitive when concerning money matters, and is outright scary when one goes against the ‘majority’ when it seems clear the majority put their faith in paper that has no intrinsic value.  This is a time to look at the facts, and not let emotion take over.  This is the time to make a move that may ultimately be the difference between surviving and dying.  These are dangerous times that require great urgency in action and there is not the luxury of time to waste.

So I will continue to harp on this point regardless of how many readers may be turned off by it.  I can’t stay quiet when I can see these matters so clearly and believe they are on our doorstep.  I can’t continue on in silence when I see most in this society walking around in a comatose state and seemingly unaware of what is ready to befall them.  Once this collapse hits critical mass, most will not believe the speed in which things happen, and it will be then that the masses will find a need for urgency, but by then, the exits will be blocked and it will be too late.

It’s ugly now, and about to get so much worse.  I don’t think even I can understand or grasp the nature of what we are about to witness.  And I have been reading about this matter for years.  Never in the history of the world has every nation used paper money and there is no precedent in which to refer to in history to predict what it will look like.  All one can know for sure is it will not be good, and it will require a total revamping of the way mankind does his finances.  The world as we know it is passing away right now as we watch.  We can choose to do something about it and possibly benefit ourselves, our family and our community, or we can continue on with bread and circuses and find when it hits critical mass, that we, along with the emperor, have no clothing.  Your choice.  Choose wisely.  And have some urgency and purpose behind your choice.

THE FED: THE IMMOVABLE MEETS THE UNSTOPPABLE

George Offerman

There are two extremely powerful economic forces at play, and both are diametrically opposed to each other, and the Federal Reserve is caught in the middle.  These forces are ready to collide, and the outcome will be so dramatic, that the crisis in the late 1920’s known as the great depression will look like child’s play in comparison.  Now, no one needs to cry for the Fed, as they are solely responsible for one of the forces, and influential in the other.

The first force is what I will call the immovable. Over the past century, the Fed has been in charge of our fiat currency, and their primary (claimed) reason for existence was to stop all financial crisis (which it failed) and to guarantee a stable monetary system (which it failed).  Looking at nearly a century of existence, the financial status of the United States could not be worse.  Our country is the largest debtor nation in the history of the world, and it was just announced that this past month’s deficit was $112 billion, which annualized, would be over $1.3 trillion.

The American consumer is up to his eyeballs in debt, and barely able to service the debt he already has, as well as trying to eat and keep a roof over his head.  The ‘official’ unemployment rate is around 10 percent (See John Williams http://www.shadowstats.com/ for the real number).  Prices of items are up in the double digits for many items, yet our government tells us inflation is 1-2% or under control, closer to zero.  People are not getting raises, yet seeing all sorts of taxes going up due to the deficits of local, state and federal government, which in turn cuts into their personal budgets. 

As one can surmise, the ability for the American consumer to service not only his own debt, but the debt and interest payments of the government at all levels, are literally topped out.  There is no more room for increasing debt load, and the government in general and Obama in particular are sensing that if things get worse, there will be massive retribution, and the majority of the people will ‘quit playing the game”.

The above listed coupled with the fact the Fed cannot raise interest rates makes up the force that is immovable.  For if the Fed raised rates, the cost of all debts would escalate, business activity would be greatly reduce, resulting in more layoffs, credit would dry up most of government would shut down due to lack of money, many more would be homeless, due to mortgage rates changing, credit cards going up, etc. and the cost of business would become so much higher that more layoffs would soon follow, thus escalating an already downward progression. Raising the interest rate just one percent would require an additional 150 billion dollars going towards the debt.  Where is this money going to come from?

The other force that is diametrically opposed to low interest rates and out of control money printing are the creditors.  Those who have lent the United States government money, via Treasury Bills, want a high rate of return on their money.  In the current environment, interest rates on the T-Bills are near record lows.  This is particularly disturbing to our largest creditor, China, and was evidenced by an emergency meeting held last year with Fed. Chairman Ben ‘Helicopter’ Bernenke, and then Secretary of the Treasury Hank ‘printing press’ Paulson  China warned them at the time, to not ‘print’ their way out of this crisis, but resolve it through fiscal conservatism and an increase in production from the United States (Ironic, coming from a communist country).

The creditor nations want a decent return on their money (or at this point, a simple return OF their money).  These countries will not accept default: they expect a fair return on their investments, and grow more alarmed by the current Fed policy of ‘monetary easing’ which in layman’s terms means ‘printing at will’.  Creditor nations want a higher rate of return to offset the risk of inflationary policy of printing money, hence, want to see the Fed raise interest rates.  This incorporates the force of the unstoppable: they want more for their money, they will continue this push until they get what they want, or they will come ‘collecting’ the debt.

So, these two forces are ready to lock in a fierce battle for the ages, and one will prevail over the other.  Last year, the Fed chose the immovable, and began the process of ‘monetizing’ the debt.  China also began its defensive moves against this policy and has been buying up assets that will thrust it onto the world’s stage as the number one nation economically (barring disaster).  They represent the unstoppable, and have the backing of many different nations, who are also creditors to the United States.

Consider this: China has the largest manufacturing base in the world, and still growing in capacity.  China has become the number one country in the refining of precious metals, and number three in production and mining of precious metals.  China recently banned all export of precious metals, and has been a net buyer of gold for the past few years.  They have allowed their citizens for the first time in 60 years to buy gold and silver, and are they ever! China has lead several nations in calling for a new ‘reserve’ currency or basket of currencies: they recently signed a multi decade deal with Russia, the number three oil producer in the world, they are working with Venezuela in exchanging oil for goods (meaning protection) China also has control over the panama Canal for the next 99 years, and thus has control of an important shipping channel.

The creditor nations, lead by china, are not going to allow the United States to print their way out of this mess, and the citizens of the United States are not going to give up their property and heritage to the bankers that created this mess.  The unmovable will meet the unstoppable very soon, and it will be very interesting to see the results of this titanic battle.  In the middle is the Fed, and either way, there are likely to be marches by throngs of people with torches and pitch forks headed towards the Fed in the middle of the night.  The only question is: will the mob be speaking English or Chinese?


Part 4: Where’s the Gold?

WHAT'S UP IN 2011?

George Offerman

If this past year is any indication of things to come, 2011 is going to be a wild ride in many different aspects. Over the past few days, there have been reviews of 2010 and the major events as the MSM sees them. It is many of the events that seem important in the larger context that seemed to have been given the short end of coverage, but this is not unexpected, given the nature of things as they stand now. Given that it seems we have not learned much in the past year concerning preparation and understanding the nature of these times, I fully expect an escalation of both graces by God, as well as curses by the evil one. Battle lines will continue to be drawn, and it seems like we will be tested in areas we may not like or be prepared for.

Pro lifers saw the passage of the most vile legislation in the hell care bill (law) which will not only result in taxpayer funded abortion, but will bring about rationing of care, and yes, the dreaded death panels that the Demovamps vehemently denied during the debate. We will start to see the exodus of the top health care providers as they are run out of business due to reduced payouts, overburdening requirements and other unintended consequences of this law, or just decide to get out for sanity’s sake. We also saw another Supreme Court justice sworn to the bench who is no friend of the pro lifers in Kagan, and there was barely a fight from our side. We saw the significant change in the Legislative branch in the past November elections, but this tidal wave of change was primarily instigated by the Tea party, which focused on financial responsibility, smaller government, and saving the Republic and not the ‘social issues’ the pro lifers would like to believe.

We witnessed some of the largest financial meltdowns in the history of the world, and coverage was minimized and downplayed. We witnessed one of the most devastating environmental disasters and few in the MSM pressed Obama on his lack of response for the first 50 + days of this. Deadly chemicals were used in ‘containing’ this mess and the news of many of the clean up crews getting sick and dying made no headlines and was nominally covered in the few stories that did make it out. We saw many of our rights taken away in the name of ‘national security’ and there is now talk of doing similar searches and impositions by government on subways trains and busses in the near future. With little resistance given in these measures, it will be very likely this intrusive and freedom hating government will continue to stomp on the Constitution and Bill of Rights over the next year.

What could be in store for 2011? Ultimately, the answer resides in our response to these matters listed above. If we continue to hold to our fractured and liberal beliefs about our faith, and do little to nothing, it will be way worse. If the Church continues on in its muzzled silence, evil will continue to progress at a stunning rate. If there are enough true warriors out there, willing to be inconvenienced and persecuted, we may have a great revival in our time and send the dark powers back to hell where they belong. It seems we truly are at a crossroads in historical terms, seeing events that have never occurred in world history, and at magnitudes not imagined just a generation ago. Whichever way we go, huge changes are coming next year.

If we continue on in the current pattern of inertia, we will see a huge earthquake in the financial world. The U.S. Treasury bubble is getting close to explosion, and if this occurs, the outcome could not even be made into a movie that anyone would believe at this time. It will set off a chain reaction of disasters that will effectively end the way of life as we know it in these good ol ‘Untied States’. All that we have come to depend on, and all the things that have clouded our relationship with God will be wiped away, and we will have to contend with our maker, and relearn dependency on him for survival. I will not get more specific than that in this posting, but I will give one specific concern/fear/warning I have for people. There is talk of the Government taking over all 401 k and other retirement plans, and substituting them for ‘guaranteed annuities’ backed by U.S. Treasury bonds. This is the last bastion of wealth this spendthrift group of thugs can land to sustain this ponzi scheme they have unleashed, and the door may be closing quickly for one to withdrawal these funds and get into commodities (especially silver).

If we do pull it together and go before the Lord with humble and contrite hearts, we may see a massive defeat of the money powers, as well as getting our Republic back. With the money powers defeated, along with their hellish gospel of scarcity (which includes legalized child killing) we will truly see a renaissance here, with a much more prosperous, healthy and God fearing nation than what we may have known in our lives. This requires action, guts and a plan that spells out total victory versus the cursed incrementalism that is embraced at this time. It can be done, because God says it is so, when men are willing to act in his will and act in faith, not by sight. Do we have what it takes to make it happen? The next 12 months will give us that answer.


BUY SILVER, LOTS OF IT.

THE DEMI$E OF THE DOLLAR

George Offerman

For those who believe this is unrelated, or very unrelated to legalized child killing, I want you to consider a few things first. If a country can be that jaded that it kills its most innocent without abandon, and with only a ‘show’ of a fight by the forces of good, this country is just as jaded when it comes to the prospects of using fake money in lieu of real money. Make no mistake, our paper money is fraudulent, and has been since the day it was implemented. It will soon go to its intrinsic value: $0. For those who doubt this, do a little research on the history of money, and you will soon discover that paper money has a 100% track record of failure. It is the antithesis of God’s money, which cannot be printed at will, and is limited for many reasons. Just because one does not understand this principle, or if they outright reject it, does not invalidate God’s very clear mandates on what money is and how it is to be used. If one does not want to know, then they deserve whatever comes their way as a result of this willful ignorance.

Bernanke and the FED decided to meet a day after the elections in order to facilitate their next fiasco, dubbed QE2, for quantitative easing, second edition. The rest of the world no longer has blinders on, and they are very aware that this will doom their long-term investments in our debt through U.S. Treasury notes. It has become clear to the rest of the world that we are no longer able to pay our debts, and these investments will be lost. Our creditors, lead by China are going about re writing financial systems without our input, and we will soon be left in the cold concerning our ability to purchase even the most mundane of products, no longer manufactured in our country. The pursuit of the ‘good life’ via borrowing over the past 20 + years will be coming to a very abrupt ending in the next few months to two years, and there is NOTHING anyone can do about it.

Bill Gross of PIMCO, the “Michael Jordan’ of bonds, has declared the 30 year Treasury note ‘dead’. This is a very large deal, due to the fact Mr. Gross is the most successful bond trader on the planet, and he is very in tune with the movements of large amounts of money. The reason for such a dire proclamation is due to the need to have higher interest rates for long term bonds, in order to lure money into them, coupled with the larger fact of the bond holder believing they will get their money back after the term of the bond expires. The world clearly understand they will get neither a good interest rate, and nearly all now believe they will never see their money again. The ability to fund our deficits are over, and it will be the FED purchasing bonds, to create an artificial market for this junk. But the more money they print and spend on bonds, the lower in value the current bonds become, and the less purchasing power the bondholders now have when (if) their money is returned.

This most likely will result in our over bloated numbers of dollars in print being repatriated, and say hello to hyperinflation. At that point, the only currency the world will accept from us will be God’s money: gold and silver. If one understands how little of these metals exist, they will begin to understand what prices they will attain once God’s money once again takes front and center. It has been stated that for every trillion added to the world economy, that adds another thousand dollars per ounce to the price of gold. Well, the amount that has been batted around concerning the QE2 has been anywhere from .6-3 trillion over the next several months. So minimally, this guarantees gold at $3,000 per ounce and silver at $200 per ounce, as a FLOOR. Even Jim Cramer, the maestro of paper products has been talking $2,000 gold, and mentioned on his show earlier in the week that “No one I know has gold in their portfolio, but they need to get some”.

No one with any sense can argue with the massive increase in the prices of both gold and silver in the past several weeks. These metals will continue their increase over the next several years, and attain prices that cannot even be imagined at this time. I like to tell the skeptics that mining is fairly constant in the amount of production. 2010 numbers are 82.5 million oz. gold and 704 million oz. silver worldwide. Compare that to a declaration by a banker that they will ‘create’ between .6-3 trillion DOLLARS by fiat, or declaration. Now, what is behind this ‘new’ money that gives it value? Nothing. However, if gold and silver were to ‘monetize’ these created dollars, we would be adding many zeros behind the current prices of both metals, and that is just considering the U.S. debt. But because this post is covering the dollar, we will stay focused on U.S. debt. The dollar will soon be rejected as the ‘reserve currency’ of the world. And when that happens, we will be very much like Greece, and have to have assets in which to purchase all of our foreign goods. The metals will be the only thing most of these countries will be interested in, so their prices will have to do a ‘moon shot’ in order to continue obtaining any type of goods we have grown accustomed to having.

So, here we are. We are now at the endgame of this monopoly money experiment, and the losers are the common folk. We are the ones who are going to pay the price of this folly, but we also contributed to this mess by playing the game, and buying into the scheme that we can borrow our way to prosperity. This bill is now due, and those who threw the party are attempting to sneak out the back entrance, leaving us the bill. Well, the bill needs to be paid, and paid it will be. We better prepare.

SILVER AND WALL STREET

George Offerman

The silver market my very well be at a critical juncture. Over the past four weeks, the silver price has jumped nearly four dollars, and hit a 30 year high. At the same time, there are large numbers of futures contracts that are being submitted for delivery on the CRIMEX err… COMEX for later this week. The COT report is also reflecting an increase in short contracts, courtesy of JPM, which is no longer a secret, but blatant move to manipulate the prices lower. The cartel continues to manipulate the prices lower, which only gives those wanting physical metal, the ability to buy cheaper. However, this will empty the CRIMEX much faster, and this is only good news for those who are holding physical.

This battle will be over, sooner or later, and the cartel is going to lose big time. Now, more than a few have asked recently “is silver oversold?” NO, NO and NO! Most want to look at technical charts, and seeing the ‘steep move’ in the past 4 weeks, believes the prices need to go down. What they are not considering is the fundamental piece of this equation. Silver is in greater demand than ever, while in the shortest above ground supplies ever. The metal exchanges have been slow in filling the physical orders, and the demand for physical has been very strong, and becoming stronger. The depressed price for silver over the past 2 decades has virtually shut down exploration and opening of new mines and the supply cannot be increased by mines for at least 5-7 years (at best).

There is no question silver will be going up a lot, the only question is, whether it will be a gradual or explosive increase. Gold hit it’s nominal high of $850 some time ago, yet silver has not come even close to its $50 nominal high of 1980. If one uses John Williams shadow stats for the true rate of inflation, the inflation adjusted level for silver would be $178 per ounce. No, we are nowhere near ‘oversold’ conditions; we are still in the ‘give away’ phase of this baby bull market. When the price finally takes off (when the power of the cartel is broken) we will not be looking at cents, but dollars per day and those who got on this train will be very glad they did.

Wall Street: Money never sleeps

I have been anticipating seeing this sequel since I first heard it was being made. Regardless of one may think of Oliver Stone, this movie seemed to cover the current financial time in history so well, I wouldn’t even consider it to be fiction. For those of you who want to see it, I will not ruin it by giving much in detail, but it is a very accurate portrayal of the Bear Sterns fiasco and the fallout, and shenanigans behind the scenes. What I found most intriguing were the very subtle messages within much of the dialogue, which could easily be missed if one did not keep up with the news, as well as the major banks and Federal Reserve generating fears of a financial Armageddon if they don’t get what they want.

I do have to make a few observations about the protagonist Gordon Gekko. Stone has Gekko take on more of a prophetic role in this sequel, which is a very good blend with this man’s known ruthlessness from the first Wall Street movie. Gekko explains to his young protégé (also engaged to his estranged daughter) in everyday language, what is going on between the forces of Wall Street, the Federal Reserve, and government and how these crimes are so severe, that his 8 years in prison for insider trading is mere fodder for the beast. Despite the fact that Gekko is still Gekko, he looks almost ‘saintly’ in comparison to those who are committing heinous crimes, and appear to have the means of remaining above the law, and have no fear of being stopped. (Best line in the movie, Gordon Gekko to Bretton James, played by Josh Brolin: “If you stop telling lies about me, I’ll stop telling the truth about you”)

While many have focused on how Stone seems to ‘rehash’ a story that is two years old, Stone has Gekko make one very cryptic and possibly prophetic line that seemed to go unnoticed by most moviegoers: “This is in preparation for the ultimate bubble”. This line was delivered in the midst of Gekko discussing derivatives, and it would definitely link the taxpayer bailout to the sale of U.S. Treasuries and the bursting of that bubble, an event still off in the future. If I were to go into a conspiratorial mindset for a moment, I would bet the whole movie was a set up for this whole premise; the biggest financial fireworks are still ahead. We shall see.

WINDOW OF OPPORTUNITY IS CLOSING

George Offerman

Events, in this country as well as the world, are definitely picking up steam. As most are paying attention to peripheral issues, the real news goes nearly unnoticed and definitely under reported. We have had major moves by the money powers in the past few days that are so blatant, that they probably wouldn’t have been attempted just 2 or 3 years ago. It is amazing that so much can be done in the open, and covered up the way it is with minimal efforts.

The dollar index has been hovering between 75-77 and it was only 2 years ago that “the sky would fall” if the index went below 80. Well, here we are, going on several weeks, and not a word about it. In fact, most of the press is stating ‘the worst is over, the recession is ending” without taking into consideration the reality all around us. George Orwell would even have to be impressed with this blatant “Double speak”

The latest sales on U.S. Treasuries were abysmal and as rigged as a market can be. It was the foreign central banks that bought our “junk bonds’, and in essence, used their own printing press to augment our printing press. In other words, NOBODY BOUGHT THEM! No one reported on this.

The latest short positions on the COMEX, as large as they have ever been, as reported by Ted Butler, have failed to take down the price of gold and silver as they have in the past, and this is an especially ominous warning. Once the precious metals market gets good traction, the whole lid will be blown on this fraudulent money scheme, and there will be a lot of ticked off people. I will tell you now, before it happens, that the price of gold will go up hundreds per day and silver $10-20 per day at the height this crisis, and will more than likely overshoot by multiples what the real price ought to be before it settles down.

The biggest news, of course, are the problems on the precious metals markets between delivery problems and questionable quality of metal delivered. When one money power begins to mess with the ‘goods’ of another, trouble is right around the corner. There are some very unhappy world players out there, and it would not be a shock to anyone watching if there is a default on any of the large markets easily within the next 9-12 months. Prior to default, there will be a quick consolidation of what is left (which is very little) and like musical chairs, those left standing when the music stops are out of luck.

I am encouraging all of my pro life friends, and readers of this page (and anyone willing to listen to me) to hedge with some precious metals as soon as you can. I don’t want to sound sensationalist, but when the large players start to shaft each other, you have to take notice and act. In all the years I have been following the metals markets, the group targeted for the shafting has been the institutional and individual investors, usually buying paper products on the COMEX, and not the real metal. This is a new turn of events, and seems to indicate the only money accepted now by our trading partners and the rest of the world is God’s money, gold and silver, and the money powers are now trying to cheat their way out of this obligation.

All these years, I and others have heard the likes of Ted Butler, David Morgan and others claim ‘the sky is falling’ and it never seemed to happen. These dynamics have taken years to develop, and seemed like they would never arrive. If these men are right, we could conclude the storm has arrived and is no longer on its way. Hedge yourself as soon as you can.