THE COUNTDOWN IS ON

George Offerman

For those who still ‘don’t get it’, we had major headlines over the weekend that the EU had exactly 8 days to straighten out the financial problems that took decades to make.  We are seeing the balking of Germany and France, the two major countries that have the closest thing to a surplus, that are expected to bail out the deadbeat PIIGS nations, and in essence, reward bad behavior.  This is not looking good for the PIIGS, and by extension, not looking good for any of the nations that are spending more than they take in, which is most of them, or for any nations that are using paper currency for money, which is every one of them on the planet.

It will be interesting to see what happens in the next week, and see if the EU is able to kick the can further down Debt Avenue, or if they get sidetracked and end up in Default Alley where the money powers, err, muggers await them.  Without any changes in the business model used, and no real plan on stopping the excesses, there is no way this charade can continue much longer, and it is a certainty that the problems will leapfrog the pond and make their way here in very short order.  It seems very few over in Euro land have much hope in this turning out even remotely well, and it seems many are beginning to bunker down and finally take these warnings seriously.

It’s too bad we aren’t getting the message and showing the same urgency as many are over there.  I guess the distractions are too many, and with the recent monsoons ending, many are taking advantage of the nice fall weather and living what used to be normal activities and acting like things will simply plod along, and Europe’s problems will continue to be Europe’s problems and stay over there.  No, I am not getting the urgency over here that ought to be occurring, but I have come to expect nothing different and it will most likely not hit until many have had an empty belly for a few days, and the realization has set upon them, that there are no more supplies coming to those magical places called the supermarkets, and the shelves will not be replenished.

Of course, many would balk at the last couple of statements I made, and cannot fathom anything remotely coming close to that scenario, but it’s already started in certain parts of the world.  The easy credit and “I’ll pay for it later” mentality will give into the reality of credit meltdown, and it will be a painful lesson learned the hard way, and with little to no warning proceeding it.  All of the fiat currencies are in a race to the bottom.  They all will ultimately fall to their intrinsic value: $0.  It is a matter of which goes first, and how the particular peoples and government react to that event is what will determine the future course.  But we are definitely getting near the end of this fiasco, and it will play itself out.

I’m hoping it does not happen on or by this Friday, as we have one more ‘end of the world’ scenario thrown out by Mr. Camping.  But if you have not made any preparations as of yet, it might be a real good idea to get an extra flashlight or two, and about two weeks worth of water and food.  When credit dries up, so will all commodities we come to depend on, and we will find out in short order how big of a mistake it is to not be ready for any contingency.  There are those who believe 'this too shall pass' without major repercussions, but they think this way at their own risk.  One day soon, our 'good luck' will run out and we too shall know want.  Better to be prepared a year early than try to do so a day late.

IT'S TIME TO ACT

George Offerman

It seems over the past few years when I take two weeks off, things seem to happen.  This particular vacation, I was expecting to see major movements in the financial world, and my expectations were met, if not exceeded.  This was not unexpected, and the rumblings in the financial world are really at the beginning phase of an all out collapse.  I have been telling people for some years now, how by simply using mathematical principles taught in the 8th grade, anyone can come the conclusion that the only outcome from blatant money printing and institutionalized deficit spending is collapse. 

Before I go on, I will point out once again, that this issue is not only linked to legalized child killing, it is the genesis of it.  Anyone who has ever done any sidewalk counseling knows the number one reason cited for killing children is lack of money.  The individual say it, planned parenthood says it, and even our government has alluded to this.  If we had fair and honest money, we would not be in the mess we are in.  But because we have a tendency to compartmentalize everything, we will continue to wander in the financial desert until we get the connection and do something about it.

Getting back to the issue, our debt in this country is increasing in a geometric progression.  Our productivity or ability to pay it back is at best increasing in an arithmetic progression, but more likely stagnating, if not actually regressing.  With this being the case, it is a MATHEMATICAL CERTAINTY there will be a crash, and this will usher in a need to reset the whole economic reality of this country.  Because the whole world is on a fiat based currency system, there is no historical precedent in which to refer to, so we are truly in ‘uncharted territory’ concerning the severity and duration of this reset.  There cannot be any other outcome at this time, and it is only a matter whether we have the gumption to pay now with great pain, or later with greater pain, plus interest and penalties.  But pay we will.

This is why both parties ‘caved’ on the debt limit ceiling.  Very few of these people are statesmen, and they don’t want to be known as the ones who caused the ‘greater depression’.  So they did what all previous congresses and presidents have: kicked the can down the road.  The problem is there is not much road left on Debt Avenue.  So, economically, we are treading water until the main event begins in earnest.

I have included a brief snippet from an author I am learning to really appreciate.  It discusses what children may learn from the current economic situation, but it also reflects rather accurately the behaviors of the average American.  This is taken from Simon Black’s article, and his writings can be found at:  www.sovereignman.com



I have to imagine that any child watching the goings-on of American politics would conclude that:

- debt is wealth
- living beyond your means is completely sustainable
- if anyone tells you otherwise, denounce their mathematical errors
- if at first you don't succeed, keep trying the same thing over and over
- working hard and saving money is bad
- spending money and not working is good
- if you have a problem, the government will bail you out
- people are entitled to things that they didn't work for
- no one should be held accountable for the consequences of the risks they take
- it's not illegal if the government does it
- despite what our eyes and ears tell us, inflation is not a concern
- everything is going to be OK simply because the government says so

The financial system is completely different than what it used to be, and the basic premises have been thrown out. The dollar is no longer stable. The US is no longer "risk free". The government is not there to help. The happy-go-lucky days of safely putting our savings in bank CDs and T-bills are gone for good.

http://silverbearcafe.com/private/08.11/piggybank.html     



Two years ago, I discussed gold and silver for the first time on this site and mentioned how the majority of the pundits were trashing both metals, despite the increasing price for both over the past 8 years.  I also mentioned how there were a few people back then (just 2 years ago) that discussed $1,500 gold and $50 silver.  The majority of people back then did not imagine, nor believe these prices would be breached.  Just two years later, it has been done, and in the most recent few days, a few commentators in the arenas I read have discussed $20-25 K gold.  We haven’t even hit any type of hyper inflation, and the predicted numbers have grown ten fold in just 2 years.  These numbers would have been laughable to even the most strident of gold bugs, yet there are credible authors and gurus of these markets now openly making these claims.  (I can’t wait to see the numbers two years from now!)

This wouldn’t be happening if our economic troubles were improbable.  These numbers only make sense in an economic crash scenario, and it seems more and more of those who study these markets are coming to this conclusion.  We really are at the threshold of something catastrophic, and it is very important that people begin to see this.  It is time that we begin to act on what we know, and take actions that will be positive for ourselves and family.  Godl and silver will go to heights that no one can really believe at this time, but it will be common knowledge in short order, and many will have regrets they did not act on this information.

WHY GOD'S MONEY IS GOING TO WIN OUT IN THE END

George Offerman

There are those who have yet to ‘get it’ about the times and situations we are living in, and want to continue to put faith in the fiat currency that is used world wide. Never in the history of the world has every nation used paper money and not God’s money, and this is the ultimate set up for the largest opportunity in world history to transfer wealth to those who understand and obey the Word of God. No matter how much one studies the Bible; they will NEVER find any of God’s references to money as being paper script. God’s references about money are ALWAYS GOLD AND SILVER.

For one to grasp the ‘dollar amount’ I am going to give silver at the end of this posting, they first must make a paradigm shift in their head. This is similar to an adult learning a second language: they want to convert the new language to their native language in their head, and thus, it takes much longer than a child, who ‘rolls with the punches’ and is babbling fluently in a new language in about 2 weeks. So I will be referring to silver by the ounce, not by denomination like we are used to. But before that, there needs to be an understanding of what money is.

Money’s primary purpose is as a medium of exchange, in which it can be used to buy or exchange one item for another between two individuals who agree on the value of the items. Money must be divisible, durable, portable, limited in supply, a stable unit of account and fungible, and mostly a stable medium of storage over time. If we look at modern currency, it has some of these elements, but it fails in the most important aspects that it is unlimited through printing and as a result inflation is killing its ability to be a stable medium of storage for wealth over time. For all practical purposes, a $100 note is no different than a $1 note, and these pieces of paper do not have any intrinsic value. By printing more of these ‘notes’, the notes in circulation become worth less, and it is this hidden tax, called inflation, that ultimately causes the problems we are experiencing at this time.

Gold and silver, however, are very limited and have great intrinsic value. These precious metals must be discovered, mined, refined and minted before they can be circulated, and this is a process that involved a great deal of labor. An FRN $100 face value is created for $.04 and is limited only by the number of trees that can be cut down and processed into paper. When money is limited, there is no inflation, and the greatest aspect of money, holding its value to be passed on, is left intact. If one were to bury 100 oz of silver coins, and a $100 FRN, and these were dug up in 100 years, the silver would minimally have maintained its value, while the $100 FRN would end up in a museum as an ‘artifact’. There can be no comparison in a material that is rare and takes a great deal of effort to obtain, versus something that can be printed at will, and have zeros added to it by proclamation. There is no question we are at a turning point in our economic history and if one wants to have any chance of surviving intact, they’d better look at God’s money as part of the solution.

Why are the precious metals going up now? Because people around the world, no matter what religion, political affiliation or level of education know that gold and silver are money, and understand it is the safest place to be when all other forms of money fail. This was instilled by God, and all of the ‘sophisticated thinking’ will never drive this out of man. Good luck to the incompetent, inbred idiots known as the money powers, as they try to force their toilet paper down the throats of the people. Too many have woken up to the fact that this multi colored monopoly paper is worthless, and have been exchanging it for the real thing, and causing a shortage in the metals. Good luck holding the price down, you idiots.

Now, to the piece in this posting most want to see. I have long held these prices in my head, and have told a few people privately where I think the prices should be, and where they may possibly go. To fully understand the quotes I will soon give, will require a paradigm shift. One must think of money as a tangible asset, mainly coinage, and that it is the coinage in exchange for goods that is the main engine of commerce. To try to convert this into dollars all of the time will result in headaches, but also numbers so large that they will seem to be out of reality as we know it. The prices I will be quoting are coming from simple math equations and historical and Biblical data.

Where should the price be today? History shows that for much of the existence of our country, good daily wages for skilled labor was 1 ounce of silver (1 dollar). If we look at today’s average wage (source: U.S. Department of Labor) we come out with two numbers. The median income in America, including all part time and seasonal workers comes out to $16.27 per hour or $130.20 per 8 hour day. Excluding part time and seasonal, this increases to $20.20 per hour or $161.60 per 8 hour day. If we look at the nominal high of silver in 1980 at $50, and consider the real rate of inflation using John Williams www.shadowstats.com site, we come up with $178.00. So, starting with the most conservative of these numbers (and remember 1 oz of silver per day was for skilled labor) we come up with a minimal price per ounce in 2010 dollars of $130.20, to a maximum of $178.00 for inflation adjusted prices.

If those numbers are eye popping, these will truly get your attention. If we go by much of the world history, and Biblical times, the average pay per day was a denarius, which most historians and Biblical scholars agree was about a tenth of an ounce of silver. We also know from Revelation that a day’s wages again will be a denarius. So, we know that in the past, and in the future a day’s wages stayed the same. If one ponders this, it shows: 0% inflation!!!!!! That is truly in the realm of what God expects and what ought to be the way thing are now.

So using these numbers, we then multiply all of the above numbers by 10, to come up with a range between $1302.00 and $1780.00 per ounce. And this is in 2010 dollars. Considering that most ‘hot commodities’ enter what is called a bubble, and the most recent bubbles have ‘overshot’ the real values (such as homes 3-4 years ago) we can multiply these numbers by 2-3, or come up with a range between $2604.00- $3906.00 on the low range to $3560.00 - $5340.00 on the high range. One needs to study the history of money, and precious metals to begin to understand the potential in them. The price of precious metals will continue to rise because they are undervalued and are being attacked from all angles by the money powers.

The ultimate reason the precious metals will rise to unbelievable heights is because God, the creator of all things, has mandated it. The incompetent, inbred idiots know as the money powers cannot mock God, and ‘trash’ his money without severe consequences. These idiots soon will pay this price, and those smart enough to get on this train are going for a ride of a lifetime.


*special thanks to Ted Butler, Jason Hommel, David Morgan and Jim Willie for the great education