- For the first time I am convinced that the document presented
as the President's long-form birth certificate is in serious enough doubt
that the original needs to be taken to an unbiased third-party expert for
verification. Since the President appoints the head of the FBI, CIA, BATF,
Secret Service and every other agency that could do an unbiased analysis
it is not going to happen. They sure as hell aren't going to hire anyone
whose findings they cannot control.
-
- The fact that Jerome Corsi picked up the story won't
help either. It will just muddy the waters.
-
- The President is still touring around pretending the
economy is getting better. It isn't. It is going in the shitter and that
commie spy Geithner is happy as a clam because it was his job to cause
it and the little brown-noser is doing a heckova job. I wouldn't have
cared WHERE Obama had been born if he had kept just ONE canpaign promise
- but the day he got into office, all those promises went out the window
and the Dick Cheney mind-meld took over.
-
- Bottom line: This country - the one our military is
not defending in Afghanistan - is going to fail economically and when it
does, the military will be too tired and demoralized to come back and save
it from the people who have stolen our liberty. There will follow a popular
uprising, as is happening - or about to happen in most of the rest of the
world - and it will pull civilization back into the dust-bowl of strong
vs weak, predator and prey. I'll deal with that in a minute - in the precious
metals section.
-
- It had become pretty clear that the last explosion at
Fukushima #4 marked the end of camera coverage at the plant. In a few
more months the Japanese government will announce that work is continuing
at the plants; that everything is ok but that they will keep the exclusion
zones in effect for awhile just to be safe. They won't mention that 'awhile'
is thousands of years. In the mean time they will continue to poison the
planet and make it illegal for anyone to report it - which is what they
are already doing.
-
- The 40,000 Geiger counters and dosimeters in storage
at Narita airport will stay there. Since many were shipped with batteries
installed, ready to use, the batteries will go bad and ruin the equipment.
-
- All right....the re-re-re redux on precious metals.
I'll stick to silver and gold. I know a lot of people who are still playing
silver against gold and/ or PMs against the dollar. Every one of them
disagree with me about the efficacy of doing that. I contend that the
game is rigged and that no end-user (read small investor) can ever create
wealth or hedge against catastrophe with silver or gold. Spot prices for
PMs are set by traders who buy and sell futures of thousands, thousands
of thousands and millions of ounces. Get this if you never listen to
another thing I say:
-
- Shares of stock and futures contracts of commodities
do not exist as a vehicle for an individual investor to accrue wealth.
They exist for one reason only and that is to spread potential losses
from corporations and large investors to small individual investors. I
am sorry that I cannot articulate the concept sufficiently in plain English,
but I was a registered Series 7 and 63 commodity options trader and I saw
how it worked.
-
- Let me explain how it might work. Large Billionaire
Investor (A) has a position in Gold. One million ounces. At this point
I don't care whether he owns physical gold or futures. He doesn't care
what the spot value of gold is because he has no exposure - YOU do. If
he needs a few million dollars, he can either sell a million ounces of
gold and take his profit, which will also drop the spot price of gold,
and then buy it back at the lower price. Or he can sell a million ounces
of gold short - which will also drop the spot price and but the short sales
back at the lower price. He made money. Someone LOST money because it
isn't there anymore - it is in his bank account. YOU lost that money and
you have no control over any of it.
-
- Now...you can tell me that you are hedging against anything
you like, but you aren't. You are, as with all speculation in fixed markets,
betting against yourself. It is a bit like life insurance. You but the
life insurance company that you are going to die and thay bet you aren't.
And you PAY THEM to take that bet. There is a suicide clause, so that
won't work - but anyone who bets they are going to die and then tries not
to by being as healthy as possible and getting medical care when required
is giving the life insurance company free money. They KNOW you don't WANT
to die, so they have a sucker bet with you.
-
- Precious metals are like that except you don't know what
you are betting against because no one tells you - all they say is nonsensical
bullshit like "Silver has been undervalued for a hundred years and
it will correct SOON." No, it hasn't. NOTHING IS UNDERVALUED! Using
terms like "XXX has outperformed YYY by %%% over YYYears" means
nothing. It is hype to get YOU, the sucker with the cash, to buy something
you can't ever use in the real world ( have you tried to buy a house with
silver or gold lately?) so that cash will be available for someone else
to take it from you as profit.
-
- You may THINK your buying power has increased - you may
THINK you are accruing wealth - you may THINK you are hedging against either
economic collapse or inflation...but you aren't. Because your PMs are
only as valuable as fiat currency. If you trade them, it is in fiat currency
- which you must already assume is worthless or you would not be investing
in PM.
-
- That's fine - think one more step down the road. PMs
will follow fiat currency if it hyper-inflates. If a loaf of bread costs
$6,000, your ounce of gold will be worth a loaf of bread. PMs will also
follow fiat currency if it deflates or the economy fails. In Hawaii, we
already know what will happen. The barges will stop coming. There will
be a run on stores and they will be empty after day one. The barges which
bring gasoline and propane and fuel for the electric plants won't come,
either.
-
- So....can you walk from where you are to somewhere you
can get food and water? Not really. You won't dare venture out of your
safe zone. And you won't be walking the streets with a bag of silver or
gold. So your choices are: Live on a self-sufficient farm and grow enough
food to feed your tribe and enough extra to barter to hungry people so
they won't kill you for what you have. When you actually NEED your gold
and silver to be worth something, they won't.
-
- It's like life insurance. You are betting against yourself
that the economy will fail. If it doesn't, you don't need the PMs. If
it does, you can't use them.
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