Hurry, hurry!! Sell your gold!

As you’ve probably noticed, most of my blog titles are facetious.  This one is no exception.  According to various articles I’ve read today, investors are selling gold due to expectations that the Federal Reserve will drop rates and then leave them be in hopes that a 2% interest will curb inflation.  One of them states the following:

Analysts blame the slide on profit-taking after the run-up, weak demand for jewelry and a sense among investors that the worst of the credit crisis may have passed, which would diminish gold’s allure as a safe-haven metal.

Wow!  Where to start?! 

Number one, weak demand on jewelry is caused, at least in part, by consumers not having money.  Why don’t they have any money?  Hmm… could it be that we are in a recession?  No, our government denies that.  That can’t be true.  Could it be that Americans will have lost over 6 trillion dollars on the value of their homes by the end of this year with no end in sight to dropping values?  To keep that in perspective, that’s about as much money as the entire economy of China, the second biggest economy in the world, makes in a year that just went down the drain.  In other words, imagine all the wealth that a billion people created just disappeared!  The worst part about losing 6 trillion dollars is that we are also losing our ability as a nation to earn it back!  Our economy has been driven by spending not wealth creation.  And how are we getting this money to spend?  We borrow!  From whom?  Not from other Americans… from foreigners.  What is the non-elected, non-government agency – the Federal Reserve – doing to prevent this?  They encourage more borrowing by cutting interest rates!  Oh, I almost forgot… our government does have an answer to the problem.  Spend more money!!! “Free” healthcare anyone? 

Number two, there is “a sense among investors that the worst of the credit crisis may have passed“?  Are you kidding me?!  The entire reason that these articles are being written is because the Federal Reserve is cutting interest rates.  Why?  Because of the credit crisis!  Oh, but apparently they aren’t going to continue to lower them for some time to come.  Well, if the entity that got us into this mess thinks that it’s current policies will get us out we better believe them.  How can a we revive our economy if we don’t have the money to spend anymore?  I have an idea!  If they encourage us to borrow more by lowering interest rates, maybe that will solve the problem!

Let me conclude by saying that you should always follow investor sentiment.  After all, investors were right about the technology stocks in the late 1990’s and the they were also right about the housing prices in early 2006.  I sure wish I would’ve bought a home in June 2006.  So sell your gold and silver.  After the coming brief drop in short term gold and silver prices I’m buying more along with some more ammo and food storage.  The zombies are coming.

This government is delicious! Could you please give me another helping of taxes?

Not only is the U.S. federal government facing record deficits, states are also feeling the pain of the recession that the government is denying we are in.  A survey of all 50 states reported in this AP article and this Bloomberg article show that 23 of these states are facing looming budget deficits due to significantly decreasing tax revenues and two thirds of them are concerned about the upcoming year.  How are some of them hoping to combat this recession?  Well, obviously the best way to get us out of this recession is to let the government fix it which means raising taxes!

Unfortunately, so far I haven’t covered the most important reason that I’m writing this blog – to educate and emphasize preparedness.  What do we need to be prepared for?  I don’t know what the future holds but I can imagine some pretty horrible things and in my view, it’s best to prepare for the worst.  Would if there were a huge natural disaster and you were without electricity, running water and food for a few days?  Would if rioting and lawlessness erupted for some time because your favorite sports team won the championship?  Would if the value of the dollar decreased significantly causing food and energy prices to shoot up?  Nah… those things could never happen here in the America!

Just in case you move to some third world country and the zombies do come, here are some helpful warnings.

• Physical preparedness.  You’ll want as much food and water as you can store.  You don’t have to rush out and buy it all at once.  This can be purchased little by little.  A year’s supply is an excellent goal.  In addition, you should think about protecting it.  What good is food and water if it gets stolen from you?  A law ceases to exist if it cannot or is not enforced.  You need to be able to preserve your own liberty.
• Wealth preparedness.  What good is money if you can’t buy anything with it?  There are plenty of millionaires in Zimbabwe.  In the case of a complete monetary collapse, you will be very happy to have something that is not worthless.  For this reason gold and silver are great investments.  I’ve been telling all my family and friends to buy silver.  Also, I’ve personally invested my “nest-egg” in various very safe foreign companies whose business is not tied to the U.S. dollar or U.S. exports and imports.  I highly recommend reading Peter Schiff’s book “Crash Proof”.  Each person’s financial situation is unique so you’ll want to decide for yourself how to protect your wealth in a worst case scenario. 
• Spiritual preparedness.  Are you ready to meet your maker?  Watch therefore: for ye know not what hour your Lord doth come.

Just remember, you too can have full faith like I do that we can always rely on the government to fix everything.

This could never happen to us. We live in America.

Check out these paragraphs that are quoted here:

With the creation of massive amounts of new fiat (not backed by gold) dollars will come the eventual complete collapse of the value of the U.S. dollar and related dollar-denominated paper assets.

…a law professor at Harvard and The University of California, Berkeley, who experienced the Weimar Republic hyperinflation, said, ‘It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money.’

…the still-unfolding banking solvency crisis has confirmed the Fed’s and the U.S. government’s willingness to spend whatever money they have to create in order to keep the financial system from imploding.

The circumstance envisioned ahead is not one of double- or triple- digit annual inflation, but more along the lines of seven- to 10-digit inflation seen in other circumstances during the last century.

The historical culprit generally has been the use of fiat currencies – currencies with no asset backing such as gold – and the resulting massive printing of currency that the issuing authority needed to support its system, when it did not have the ability, otherwise, to raise enough money forits perceived needs, through taxes or other means.

The United States is no exception, already having obligated itself to liabilities well beyond its ability ever to pay off.

But we are the most powerful nation in the world!  How could hyperinflation occur here?  Do you realize that our government has an unfunded liability of over $50 trillion dollars?  In other words, the government has promised over $50 trillion dollars worth of stuff (i.e. social securty and medicare benefits) that it doesn’t have the ability to pay!  To break that down, it’s $170,000 per person or $440,000 per household.  How is the government going to afford that?  Why borrowing of course.  This is also called ”monetizing the debt” which leads to inflation which makes our money worth less which makes it easier for the government to pay off debt. 

I urge you all to go buy wheelbarrows.  You’re going to need them to wheel your money over to the grocery store to buy milk.

Sanjaya or food?

A quote from Jay Leno that I just read:

How many watched the debate last night? [on screen: Light cheers and a few boos]. How many watched ‘American Idol?’ [on screen: Loud cheers and applause]. You get the government you deserve. 

— Jay Leno, The Tonight Show

Wake up everybody!  There are worldwide food shortages!  Listen to this:

http://www.telegraph.co.uk/earth/main.jhtml?view=DETAILS&grid=&xml=/earth/2008/04/22/scifood122.xml

In Cameroon, 24 people have been killed in food riots since February, while in Haiti, protesters chanting, “We’re hungry” forced the prime minister to resign this month.

In the past month, there have been food riots in Egypt, Cote d’Ivoire, Senegal, Burkina Faso, Ethiopia, Indonesia, Bangladesh and Madagascar.

The World Bank now believes that some 33 countries are in danger of being destabilised by food price inflation, while Ban Ki-Moon, the UN secretary-general, said that higher food prices risked wiping out progress towards reducing poverty and could harm global growth and security.

33 countries are in danger of destabilization!  Isn’t that something like one out of every 5 countries?  People are rioting overseas because of food shortages and our minds are on American Idol!  Does the average American even have a clue about the imminent threat of food shortages?!  What gives?!

I’m blown away by the fact that the media isn’t covering this more.  It’s not even limited to third world countries either!  Listen to this excerpt from the following article:

http://nysun.com/news/food-rationing-confronts-breadbasket-world

Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing.

Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks.

Food rationing in the United States?  Impossible!  Aren’t we the most powerful country in the world?  Don’t worry though, as long as Sanjaya wins, everything will be okay.

Introduction

There have been countless movies made, books written and stories told about some disease or unknown horror that spreads throughout the world and causes humans to turn into irrational, chaotic mobs seeking death and the destruction of civilization.  Zombies!  The devastation displayed in those blockbuster films may very well be seen by us in our lifetime.  The zombies are coming!  These zombies may not come as a horde of undead monsters but they are coming.  They are coming because, generally speaking, individuals in our society no longer have any concept of what is really happening in the world.  They are so caught up with consumption, celebrities, the latest TV shows, keeping up with the Joneses, etc. that hey have no idea how bad they are being screwed by powerful influences (including their government) which are creating a terrible situation for a huge economic collapse.  “Normal” people, who have no clue what is happening, will become helpless zombies as this economic collapse destroys their way of life.  It will foment continued moral decay, homelessness, massive unemployment, poverty, shortages, rioting, mobocracy, crime and more! 

The zombies are coming.

This blog will serve as a warning to all.  It will continue to be dedicated to spreading the truth about what is about to occur with a hope that maybe it can be prevented.  I sincerely believe that it is not preventable but hopefully the insight provided hereafter, if heeded, will serve to prepare you for the upcoming wave of tragedy.