Hardin, Montana. Under Hostage?!?

August 31, 2009

The other day, I went to the Department of Motor Vehicles (DMV) to renew my driver’s license. This was not my first visit as the last three attempts ended in frustration. Unlike some, I can’t afford to “take a number” and wait four hours for my turn to come up. Funny thing, I have a business to run so I can pay the taxes that make this inefficient system possible.

It didn’t used to be like that, but my state thought it more important to eliminate DMV offices so they could employ two new ACLU lawyers. This is big government at work. And you think, by any stretch of the imagination, that government run health care could ever be successful?

The inept morons, masquerading as government employees, that run the DMV would be running the health care system. Be prepared to die in line while waiting for healthcare.

Small business employs 70% of America and big government is running at a breakneck pace to destroy the hand that feeds them. If Cap and Trade and Healthcare “Reform” passes, you will see an exodus of small businesses that either fail or realize that working to subsidize degenerates just isn’t worth it. Why take the risk of private capital if there are no rewards? In their attempt to re-distribute wealth, or Marxist leaders are going to equalize the poor and destroy America as we know it.

Our leaders today are nothing more than a pack of ambulance chasing lawyers who have sued their way to positions of power. They have not created wealth with capital expansion and job creation. No, they have destroyed wealth with a blizzard of lawsuits attacking every segment of the economy. They themselves bear the brunt of high health care costs. Yet they are in charge of the “change” we are supposed to swallow.

As we continue to lose 500,000 jobs per month, where on earth are the “green shoots” in this economy that have propelled the S&P 500 up 50% since the March low at 6,500? How absurd is this rally when corporations are closing facilities and laying off employees in order to try and hit their REVISED earnings numbers? Now, we even hear that this will be a “jobless recovery!” Give me a break. Seventy-five percent of our GDP is based on consumption. So tell me how unemployment at 10% and rising can benefit the markets? You see, if people lose their jobs, they stop consuming, which grinds this economy to a stop. On the flip side of this equation, these newly unemployed now stand in line for unemployment benefits. With millions of unemployed drawing benefits from a bankrupt system that has a shrinking cash flow due to a reduction in tax payers, where in the world is the “recovery” going to come from?

Our banks use revisionist accounting practices (AKA: FRAUD), as do the crooks on Wall Street and in Washington. They have been so corrupted that they regularly use “fantasy” economic models instead of Generally Accepted Accounting Principles (GAAP). Where on earth are the SEC and CFTC to regulate this hocus pocus smoke and mirrors show? One can only assume that they are but one cog in the wheel of corruption.

Going forward, third quarter earnings will be very disappointing. Business can make only so many cuts to the top line (close factories, lay off workers, reduce inventory) in order to make their bottom line (earnings) look good. But they are running out of cards to play. The consumer needs to consume and they are not. They are either paying down debt, saving, or unemployed. No recovery, and certainly no growth, is possible in this scenario Comrade Obama.

The Marxist solution to this problem economy is predictable – keep raising taxes on a decreasing tax base until you are bankrupt. Need an example? Look no further than California. How would you like to be paid with and I.O.U. instead of a paycheck? Sadly, there are a dozen states out there that are facing similar conditions as they confront mounting deficits in their budgets.

We are headed toward a firestorm that will destroy everything in its path. A soft landing is out of the question at this point. The Fed knows if they raise interest rates to curb future inflation, they will destroy what is left of our feeble economy. On the other hand, the lack of confidence in the economy and zero interest rates will guarantee the coming Blitzkrieg of hyper-inflation. They have put America between a rock and a hard place and we are about to be ground to pieces.

The reality of the situation is this: As a nation, we are broke. The dollar is breaking up as the world’s reserve currency. Nobody wants to finance our socialized utopia anymore. Like a gathering storm, people are waking up and looking to “real money” – silver and gold – to protect their wealth.

It is vital to your survival to own physical silver and gold. Personally I am purchasing 100 ounces of silver to every one ounce of gold because the percentage rise in silver will dwarf gold. A good strategy in your silver holdings is a bag of pre-1965 U.S. silver dimes, quarters, and half dollars. This will give you smaller denominations of silver for barter in the coming black days. Also if you shop around, you’ll find these bags of $1,000 face value silver can be purchased at the lowest premiums over spot silver.

Definitely, get started or continue your accumulation of silver and gold. We are going to see a disconnect of equities and metal when gold goes over $1,000/ounce and silver breaks $20/ounce. In other words, when the S&P goes down, metals will go up instead of these two markets working in tandem. This day is in the very near future. At least 20% of your net worth needs to be in metal. Play Russian roulette with the other 80%.

I will be in Hardin, Montana. Show starts Monday 105-2009 at 9 p.m. M.T.