Entries Tagged as ''

Dollar Is Tanking, Gold And Silver Soar!

The dollar index just sliced through it last major low of November, 2009. It is currently down in the aftermarket to 74.13, breaking the old low of 74.23. Looks like we are heading for a test of 71! Gold and Silver are higher; Gold is $1505.60 and Silver is 45.39.

We’ll soon see if the report that 25% Of Scotia Mocatta’s Silver Transferred From “Registered” To “Eligible” Status: A 45% Reduction In “Physical” is a big deal!

Movie Review: Atlas Shrugged

Last night my wife Bev and I saw “Atlas Shrugged” at the Fox. The crowd was late arriving, but the place looked sold out by the time the film rolled. To me, the audience looked younger and grungier than typical movies at the Fox. I was excited. Afraid I would not be able to see the film on Saturday night, I bought tickets online through Fandango. The Friday night show at 7:25 was sold out.

I thought the film was almost exactly like the book. I knew just when to echo those famous words, “Who is John Galt?” Dagny Taggert was played by Taylor Shilling. She is perfect. She’s beautiful, thin, well dressed and when she turns those big, round, blue eyes on you…well she’s perfect. Hank Rearden played by Grant Bowler was a great pick, too. I just pictured him a little fatter.

The book to Ayn Rand ten years to write and was published in 1957. I’ve read it at least four times. To me the film, set in 2016, had a perfect balance between modern and an smokey, film noir look of the fifties. The bad guys from James Taggert, and Wesley Mouch, to the lobbyists and the union leaders were taken right out of Washington D.C. today.

Watching the film brought on a certain sadness. It could have been a documentary of our times. On the other hand, there was joy that finally many will see this film that haven’t read the book.

One moment of joy was watching the train run on Rearden Steel. My only nit would be the bridge across a chasm that was built in something under six months. When the film ended, the whole audience, with the exception of Bev who thought it had a made for TV look, erupted in enthusiastic applause.

Want A Flip?

Purchase a Qualifying Flip, Get a Free Accessory

Palin Blisters Obama!

Untitled from Breitbart on Vimeo.


Jim Grant On Inflation And Interest Rates

From Zero Hedge is this interview of Jim Grant:


Ferguson Vs Krugman

An excellent interview of Niall Ferguson about a year ago.

Niall Ferguson on PBS Warns U.S.

My friend Kathy rejects Stansberry’s message because of his past dealings with Vexgen and his fine for statements that turned out to be untrue. Yet, his message is important because of the road the U.S. is on to our dollars’s destruction. Here, historian Niall Ferguson, interviewed on PBS, offers the same message as Stansberry. We must get control of our spending and bring down our debt or we will go the way of other countries facing the same situation:

Porter Stansberry’s Letter To The President

Dear Mr. President,

Welcome to the ashbin of history.

With the speech you gave this week, you have firmly and permanently put yourself in the same garbage bag as all the other communists and socialists of the 20th century.

Your speech sounded like the faint echo of a speech Lenin gave in an icy square in Moscow 100 years ago.

The promises you made, Mr. President, about the government giving people things they can’t provide for themselves – a better income, reliable health care, an advanced education, cheaper mortgages, a “shiny, happy” life – have been made time and time again… sometimes by speakers even better than you.

And they have always been lies.

While the government can demand obedience (and taxes), it can’t mandate dedication, creativity, or innovation. The fact is, the government itself is nothing more (or less) than the organized ambitions of the people. Promising something to the people that they don’t already have is a logical absurdity. And therein lies the timeless flaw of all collectivist theory: Governments cannot deliver benefits to the people that the people cannot deliver to themselves.

To demonstrate this truth, consider this example… Governments cannot simply mandate higher tax revenue. Any substantial increase to tax rates will reduce total collections, an economic phenomenon known as the “Laffer Curve.” This has been proven countless times in our country and many others. Any sensible person will immediately understand why. Taxes are a disincentive. The higher the marginal rate of tax, the more powerful its impact.

That’s why, over many decades (and many different tax structures), U.S. tax revenues have been remarkably stable at around 20% of GDP. That’s why, as you surely know, Mr. President, changing the tax code will not result in increased tax revenue. Taxing only the rich simply doesn’t work. It never has. And it never will. To increase the government’s revenues, we must first increase the size of the economy. The government cannot tax what the economy doesn’t produce.

In another time, most Americans might have simply ignored your speech as the ignorant remarks of yet another handsome, Ivy League-educated, dilettante president. But at this point in our history, my bet is people are going to take you far more seriously than you expect. In fact, I think you’re going to get what you deserve – the trash heap. Why will Americans turn on you so rapidly and so completely?

Two things have changed – forever – about American politics.

The first is the media and access to critical information. It’s no longer possible for a president’s administration to control what people read, see, and think by simply managing the evening news broadcasts.

Thus, all your lies are now exposed almost instantly and broadcast to millions of people via websites and services like the Drudge Report, Twitter, and Facebook. Socialism cannot possibly survive over any long period of time in a society with a free media – because socialism is based on a lie. Facebook means the “half-life” of socialism is now weeks instead of years. Even mainstream publications like the Wall Street Journal have called you a liar this week. They have no choice. Your lies were broadcast to the entire world long before their op-ed pieces appeared.

Your advisors told you none of these “bloggers” mattered. All you had to do was promise more benefits to more voters and then force fewer voters to pay for it all. I’m sure you did the political calculus… You believed your power to bribe and bamboozle the poor and the ignorant was stronger than the resentment you’d engender among the “rich.” And I must admit… since at least World War II, that’s been a safe bet in American politics.

But you forgot one critical factor: We simply can’t afford this nonsense anymore…

Immediately after your speech, the price of silver went from $39 to a new high above $42. Gold went up, too.

These are signs, Mr. President, that the world is losing confidence in our currency. If our foreign creditors were to call in our debts, America would suffer an economic cataclysm unlike anything we’ve ever seen in our entire history. Americans now owe a total of $56 trillion. Without the Fed’s money-printing, it’s unlikely we could afford even the interest on these existing debts… much less the $1.5 trillion or more in debt you continue to rack up year after year by promising benefits we haven’t earned.

Sooner or later, our foreign creditors are going to decide our money-printing amounts to a default, and they will stop buying our bonds. On that day, everyone who trusts you, everyone who believes in your lies, will be wiped out.

But that won’t be as many people as you expect.

Almost every American knows in his heart what made this country great for the 200 years between 1776 and 1976. It wasn’t the lies of our presidents. It wasn’t our ability to print money and rip off our Chinese creditors. It wasn’t the modern crybaby mentality of our school system or our unions. It wasn’t the baby boomer’s dream of a 40-year retirement with free prescription drugs. And it sure as hell wasn’t a suave, made-for-TV version of Karl Marx promising everything to everyone, but with no way to pay for it.

No. What built America was her people’s unwavering faith that they were free to enjoy the rewards of their accomplishments.

As our country tumbles into bankruptcy and crisis, the people are going to want their prosperity back, Mr. President. And deep down, they all know… even your most fervent supporters know… you don’t have the goods. You don’t have the foggiest idea of how to deliver prosperity to America because, really, you don’t know anything of what America is all about.

Regards,
Porter Stansberry

Are Your Retirement Assets Safe From The Government?

There have been trial balloons thrown out there from time to time that the U.S., in dire need for funds to support our treasury bonds, would nationalize our IRAs and 401-Ks. I posted about this threat back in January of 2010 asking Will They Force you To Buy Treasuries? They would force our retirement plans to own Treasuries, IOUs, just like Social Security is stuffed with Treasuries.

Townhall today in an email is fanning the flames of fear by again warning that Obama is readying plans to confiscate our retirement plans. Maybe it was this line in Obama’s recent speech that stirred up the fears again:

That includes, by the way, our commitment to Social Security. While Social Security is not the cause of our deficit, it faces real long-term challenges in a country that is growing older. As I said in the State of the Union, both parties should work together now to strengthen Social Security for future generations. But we must do it without putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market.

Do you see that last line that I highlighted? Obama is anti-business and anti freedom. He doesn’t trust you to invest your money or to hire someone else to do it. He doesn’t want you to be able to invest part of your social security and based on his advisor’s beliefs, like Dr. Teresa Ghillanducci, wants to invest your money for you. And when you pass on to the next world, he wants that money in your plan to stay with the government and to hell with your heirs.

YouTube has plenty of interviews of Dr. Teresa Ghillanducci. You can see for yourself what she believes:

Let’s go back to the statement: “…guaranteed retirement income to the whims of the stock market.”
If you take a long view of the stock market, there is no doubt that stocks beat bonds for accumulating capital. Generally, financial planners recommend that you invest in equities when you are young and are more risk oriented and as you near retirement move assets to provide an income. That could be governments, bonds, utilities and high yielding equities. The problem arises when we are in periods like we are in now where fixed income investments yield very little. One big problem with fixed income is the risk of rising interest rates and inflation. Suppose you bought 30-year Treasury bonds to get the highest and safest income stream. Your risk is that interest rates go up. If they double your bonds will go down to reflect the new level of interest rates.

The second risk is inflation. The government wants us to believe that inflation is running at one to two percent per year. The Treasury bond at 4.5% covers inflation, but what if inflation is really 10%, then your fixed income stream is not keeping up. You will either have to cut your expenses or dip into capital to make ends meet. By the looks of my grocery and gasoline bill, someone in the government is not telling the truth about inflation.

You say that the U.S. government will never nationalize your retirement plans! Better take a look at recent history in Argentina.

In October, 2008, the NYT reported

Argentina’s government said Tuesday that it would seek to nationalize nearly $30 billion in private pension funds to protect retirees from falling stock and bond prices as the global financial crisis continues.

There’s that fear of the stock market again. The U.S. retirement assets totals $17.5 trillion, not the little $30 billion in Argentina. Someone has to be whispering in Obama’s ear about that money that could be invested in government securities.

The Power Of Words!


Copyright © 2007 Mover Mike. Design by Anthony Baggett.