Passionate Plea From Asia

The first thing we should do is get out of the two wars we are fighting. Between the costs pertaining to the war in money and lives it is dragging us down considerably.

I got out of the market Jan 08. Have not ventured back. What safe investment income producing vehicles would you recommend for a retiree?
Your article is scary……makes investment decisions more global for growth…agree?
SteveC

Among other things, I own physical gold and silver. They often move in tandem, but either can move on its own for different reasons. I know that many think gold investing is silly, yet time and time again, gold shows strength when the dollar is faltering. Silver may be one of the most undervalued metals and is at an historic low relative to the price of gold.

For the long haul I think that commodity investments are wise, especially nergy, agriculture and water. It would not hurt to own some farmland if you can do it.

I believe we have reached a tipping point. Clearly a nation that has lived beyond its means as long as we have cannot reasonably be expected to change it’s course, and live frugally enough to repay it’s indebtedness. At about this point the interest on the national debt begins to crush any attempt at fiscal prudence. Thus, as a nation, the only path is down. Individually, each has a choice. One can prepare for the coming calamity, and chaos. (Move to the country, get self sufficient, store food, and real money coins….. though our only safety is in the savior YAHUSHUA) Or move to a less profligage country… (My brother suggests Belize, as a nation where they speak English, have a relatively stable system, and are certainly behind the US in the downhill slide.). Or bury your head in the sand and hope that the calamity somehow spares you.(which seems highly unlikely, unless you plan to die in the next few days.)

Not sure what to do. Sounds like the dollar will continue to plung. I have thought about buying gold but cant stomach the 30-35% up front commision the gold companies seem to want. I am a trader by nature and starting off 30% in the hole seems crazy. Could use some ideas.

I am quietly buying gold stocks and gold of several forms, both bullion and rare gold. I can’t buy very much at one time, but am buying some every year. If we can’t use it (we are seniors), it will be there for our children and grandchildren. I can’t do anything about the government debt–only try to protect our family.

protect myself? have bot gold and silver for years last time i bot silver bars fm TD Bank they were ancient looking tarnished! i realized they were the last ones at the bottom of the shelf cant get silver coins any longer gone am short us treasuries short us dollar long agric stocks, energy, oil service starting to look at rare earth metals paid off mortgage long ago no debts but our city council aka idiots think there is no recession and spend money like crazy on frills such as new hockey rinks we stockpiled food for y2k then just kept doing it for bird flu etc could hold out maybe 3 months medicines too

Larry,
I notice you are not in the USA. Where in the world do I/we go to avoid this insane train ride the USA is on? Or do hunker down in rural USA with our guns, gold and god-fearing friends? Or do we really have any opportuities to avoid the inevitable?
Brad

I agree with Larry’s assessment. I believe our federal bureaucracy is out of control, have no fiscal discipline and are/have ruined this country. We have not felt the full effects of our debt burden but we will with a declining standard of living, etc. Rep. Pete Stark has it all wrong when he equates debt with wealth. We are a debtor nation and the bill has come due. Unfortunately, all of us will be punished for the sins of our elected officials.

The best thing thing US can do, even though it is going to be difficult, is to let the marketforces of supply and demand run it’s course in the markets. Stop having the government bailing out everyone and stimulating the economy to much, because if you do it´s not capitalism anymore then it´s socialism which Americans use to hate so much…

I’m doing the same thing I have done all my life . Don’t buy anything that will cost me interest except for a mortgage & I paid those off as soon as I could.

I think we need to start at the top (i.e., the federal, state and local governments) and reduce or eliminate departments like Energy that do little or nothing based upon the initial mandates. Stop automatic raises for Congress, forbid by law the ability of former members of Congress to moved into lobbying positions when they leave Congress for ten years. Revise the tax code to establish a simple flat tax with NO exceptions.

1. the way they have been printing out the dollars, if they wanted to they could print enough to pay off the debt. It’s just another ponzi scheme.

2. the corporations and banksters are causing the problems and reaing the benefits. They own the government.

3 Get rid of the federal reserve

4. Ron Paul has it right.

Wish I had an answer. We should have addressed this issue long ago.
This was not a subject to be discussed in polite company.

How long before the Piper get paid??

Hi Larry,

First appreciate allt eh work you do to give us insight into the world markets and would like the opportunity to work with you someday as it sounds fascinating :).

I am abosultely in agreement with you that we all responsible for this crisis not the rest of the world. A few years ago I asked myself a question ” if every American decided not to pay their monthly credid card or mortgage obligation what would ahppen to this country” well my answer is the current time as people are not making payments because they don’t have the money.

In my opinion, this could have been resolved easily if the goverment would have taken all those bailout dollars and paid of the first mortgage of each ameircan’s home as that would have given banks the money and people would have their homes “free and clear”and use the extra income to pay other bills or make purchases which would have helped jump start the economy.

As long as our goverment doesn’t help create jobs it is going to be a tough ride because they can keep spending their credit lines but if the income source is not there to pay it off it’s worthless and as much as everyone speaks of saving money people have no income so how can they save :)

Thank you for all the knowledge you share with us as it’s priceless and please continue the good work.

Bhavna

Larry you and the group have been reporting our real world situation for a while so this is a rehash for many readers. With this update it seems ‘the fat lady is about to sing’!

In the past I have emailed short messages to Congress and the president to “STOP SPENDING!”. Your newsletters are not political but perhaps you should include suggestions for monitary policy changes that we could use as a format to protest. I use the free congress.org web site.

I have to draw my own conclusion to this article that screams buy gold and short the dollar.

Thanks

My opinion?
Everyone’s wrong for blaming America for the whole world’s foundering economy. No one forced the Asian countries, or anyone else to think of the U.S. as their selling market.
At the same time, I do think that OUR problems are our fault. Between consumer spending, state & local spending, & federal spending, we’ve actually mortgaged our grandchildrens’ futures!
I also believe that our national economy is drowning in a sea of illegal immigration. I don’t care how hard we work, or how heavily we’re taxed, we CAN NOT support the people of the U.S. & of Mexico & central America all at the same time!
Unless we become willing to lower our standards of spending a lot right now & for several years to come. We WILL be loweriing the standards of living for our children & our grandchildren for their entire lifetimes!
It’s impossible to borrow & spend, or to tax & spend our way out of the hole we’ve dug ourselves in to. Only truly honestly & sincerely looking at our spending habits, learning how to live within our individual & national incomes, while still reserving a fraction of those incomes to pay off our debts. Can ever work to get us back to where we should be.
I don’t honestly expect our country or our citizens to do so. So, all I can see on our horizon are intensely dark & dense storm clouds.
That’s my opinion.
Joe

It,s a very scary situation and I don,t see any way out of this unless the whole country bites the bullet,that,s everybody, government and the citizens.I don,t see that happening so the next best thing to do is to protect ourselves.
Do you have any advice on opening an account in a foreign country and which one would be the best?Do you think buying a piece of property somewhere else would be advisable?
Any suggestions on this would be helpful.Thank you

Larry: Very good commentary today on how Asia is perceiving us at this time
You asked how are we protecting ourselves vs an eroding dollar. I’m out of debt and have an equity portfolio which is about 40% in precious metals, about 40% in energy with emphasis on Canadian trusts (ERF, PWE, Crescent Point, Pembina Pipe, etc) These provide income as well as, hopefully, a dollar hedge. The other 20% is allocated over speculative Patrick Cox recommendations, some geothermal, Sprott Resource Corp, Hyflux, etc.

I’ve “drunk the Kool Aid” on Gold Resource Corp, (GORO) an on the verge of production Oaxaca, Mexico gold/silver miner run by the Reid family of Denver. Mgmt owns 24%, Hochschild owns 24% and Tocqueville 18%. If you’re not familiar with this one you might look at the website company presentation. THANKS FOR YOUR WORK. KEEP YOUR CARDS AND LETTERS COMING. Brad Fowler

The American Empire must start closing up shop. I’m with Chalmers Johnson on this one. Our network of bases, our habits of military spending, and our penchant for interventionism must come to an end. Once you become serious about military spending, you signal to the rest of the world that your are serious about getting your finances under control. Long, complicated subject, but without seriously reevaluating our empire, very little progress can be made.

I just returned from a trip to China and Hong Kong and was totally impressed with their monetary structure. It is based on a CASH transaction society. We didnt use our credit cards once the whole 15 days.
As for what I am doing to protect myself; I am trading stocks with very few long term holds and buying silver any time it goes down

Dear Larry
I would like your feedback on this issue. The biggest uncontrollable cost in America-both for the government and the consumer is healthcare. 70 percent of all bankruptcies are related to health care bills. The health insurance industry has been given carte blanche on whether they want to pay your bill or not, cover you or not, disrupt the political and economic climate or not.

Relief on the federal level is dead. However, in Pennsylvania there are two house bills which support a single payer bill for the residences of the state. All citizens would be covered, long term care and dental would be included. Businesses would pay 10 percent of their payroll, and each working citizen would pay 3 percent of their income. The insurance industry would be out of business in the state, and billions of dollars would be saved. So far I have not heard any objection from any business, mayor, or municipality in the state, when they are fully informed of the prospect.

The Chinese are not only laughing at America about the dollar. Other nations who are responsible to their citizens, cannot believe how America operates their health care system. The biggest obstacle, in America, to acquiring wealth is the area of long term care which other civilized nations deal with effectively. In those nations, the wealth of a family can be transfered to the heirs and charitable giving. In America, the health care industry siphons it away, Only in America, does a large indusrty like General Motors go under, because it cannot compete with other manufacturers which do not need to add the cost of a workers health care to the price tag.

I hope that your thoughts on this subject expand outside of party and economic lines, and take into consideration, a world view about America’s health care.

Thank You
Tom Harner
MDC Subscriber

spend a little less than you earn would be a good thing for everyone to be aware of..

Unfortunately there is no quick fix and I am afraid to say that until the corruption is wiped out of government the direction the us is on will continue impairing the US and its citizens and their wealth.

I must say I took some drastic measures recently to protect my wealth and freedom from a tyranical and corrupt government. I started to take stock of my family’s life back in 2003 and downsizied our home to become mortgage free. We lived mortgage free until 2005 when we sold our home and began renting. We were living in the US then and had just receivied our citizenship in 2005. We were completely debt free, renting. In 2007 when the financial crisis hit I became increasingly concerned about the safety of my money in the banks long term and decided to move back to Canada and gave up my ciitzienship, worried about the long reaching arm of big brother USA. The talk about pooling personal pension accounts, bank defaults, FDIC underfunding, corporate pension underfunding, wealth taxes, exit taxes, and death taxes increasing, etc. We retired, took lump such pensions and moved North. While the economy and unemployment are not much better, the banks are more stable and I sleep a whole lot better. My money has been safe from the stock market jirations thanks to you and the entire Weiss team.

A loyal member since 2002.

We must begin to reverse our mindless reaction to increasing taxes on ourselves.. So we begin to pay off our debts to ourselves and the rest of the world. Yes, some more frugallity in our daily lives will also be needed, and that will slow down “recovery”.. But we need to bite the bullet and pay for the services we demand from our government, or else discontinue them.. Radical disdain for being taxed to pay for services and benefits we demand of our government can no longer be the mantra of politicians of the right wing, or any other wing.. Let’s move towards economic maturity.. All classes must pay more except the very lowest rung of the ladder.

Have been turning my IRA to gold stocks and gold. will get into some energy stocks, and have have limited my
expenses and icreased savings but want to get free of my dollars and into more spendable safer currency.
No debt, everything paid for and have been trying my best to keep my job. So far, so good. Am close to retirement but see no safe haven their as the politicians keep pissing our money away on this war thing
not thinking they have no money to wage it. We are paying suppliers with ious and they do not even know it.
Reading all I can on the real problem, the fed and it’s funny money and the role they have played in taking our government and our freedoms away from us. Presidents are just thir clandetine agents and the plan is to, since 1910 when the fed was concieved, to rule the world and that means take America down. Well thier plan is on schedule and nothing we do will change that unless we dump them, go bankrupt and reform our currency tied to Gold. No fiat currency ever survives and when they go they kill the economy in a slow and painful way and all the people in it. Ron Paul is right and should be allowed to step up and solve this horrendous crime against America. We have been hijacked by the International Banking Cartel.

250K “I” bonds
250K Vanguard short term bonds AVER 4 YEAR
250K GDX
100k MAPLE LEAVE COINS
250k REALESTATE, NO MORT
150K 401K FOREIGHN ETF’S
100K METALS CPU,FCX,GDX, SLV
2 CARS NO PAYMENTS
50K COMPANY STOCK
150K 401K CONSERVATIVE MUTUAL FUND

What I’m doing is “nothing.” I don’t go out to eat. My mortage and autos are paid off. I turn lights off when I leave a room.

When I do go out I try to get as much done as I can in one trip.

I shop at walmart etc. and I don’t eat as good as I once did.

I’m retired and on a fix income so it will be getting worse.

Hi Larry,appreciate your perspectives,i live south of you near pattaya thailand,and yes,we are being highly questioned here sir.ive been an investor since the early 80’s[most of my life]and thus have weatherd a few tough environments,but this one is a doozy.Thanks partly to your direction,i was barely scathed in the decline last year but admit i missed the rebound largely.it caught me by surprise and simply ran away on me.such is life.however,i do believe lower prices are in the future as soon as the IV drip wears off the patient.i rely on your service to analyze these complex,rather scary times,as i frankly find them dumb founding,and irresponsible.ive adapted to a more realistic standard of living here in Asia,and find the simplicity and comfort of living within my means is a good way to go.Im one who thinks we will recover from this insult but never quite fully.i will cost average in and diversify,keep costs low and live within my means.fundamentals i guess.thank you for all your wisdom,and keep us all informed..

Larry:
It is not likely that the American people have the luxury of going back to the old days of excessive materialsm as their most hallowed values. My own husband made a career from the construction of an excess of glitsy, shoppertainment malls that now pepper our country. In the post-mall era, we are likely to be growing veggies and bartering with farmers: whiskey for eggs and milk. Build up your whiskey pantry! It sounds like a joke, but some economists foresee a strong barter economy.
It might be possible to take back our country from the liberals, provided writers such as you get some
editorial space to wake up those in a stupor, charmed by sweet talk from socialists. Even if
their stupor is cracked, it is necessary to turn a large ship: the masses who want and welcome a govt. that takes care of them; they don’t see that actually, there are no FREE lunches.
So many millions of people love “free money,” but don’t connect those gifts with the tax system.
Education of the masses seems to be the only thing to be done now; otherwise, our goose is cooked
as far as a free enterprise system; the men who created our republic must be doing a flip by now./

i appreciate the point you are trying to make re the chinese and the dollar.
but its time to see the other side.
the chinese are holding a lot of dollars because of a trading advantage based
on the weak yuan.by chinese design and american laissez faire
no matter what becomes the
‘reserve currency’ the yuan and other currencies will have to rise versus the dollar
and why should WE worry about safeguarding the chinese hoard?
do not for a minute forget shady,deceptive, and downright illegal chinese business
practices ( un?officially santioned). they may have stolen an equal measure of intellectual
property all the while accumulating wealth on the backs of chinese coolies
also i think you are wrong to lump all asians together– ask them what they think
of the chinese ‘dollar’ as THE reserve. they have more experience of the chinese than we

We need to elect Steve Forbes, as our Pres. and have you and Martin, guide us with your market experience. I follow you and have for quite some time, though not rich, feel confident with your judgment. China, Gold, natural resources and natural gas, are what I’m doing but again, do not have much money in them but value your advice.

Jay Andersen

Very Good Information and well written. Thank You!! Toronto Canada

Vote all of congress out and put fiscally responsible Libertarians in.

Bravo Bravo Larry. I am a fan of yours(subscribe to uncommon wisdom and real wealth)
It is sad for an old fellow like me( a teenager at the end of WWII) to watch our country go from powerhouse to laughing stock in the first decade of the new century. What have we done to our children and grandchildren. Keep up the good work

Vaya Con Dios

Larry,

This may sound lame to you…or unrealistic…or outright crazy. But this is all happening because we have drifted away from God and the devil is in the details.

I can say without doubt that the Obama administration has given the dollar’s decline a jump start to send it off the cliff…for they secretly hate the capitalist system and see any crisis as an opportunity to get more of their agenda pushed through. Globalists have been seeking for ways to form a one world government for decades and evil men like George Soros and Maurice Strong are behind most of the attempts to seek to establish another world currency by crashing the dollar (which is the closest thing to a world currency). Now that Soros has bankrolled Obama into office with his 600 million campaign contribution, it is full steam ahead and spend, spend, spend. You don’t have to be a genius to see where that philosophy will lead to…visions of wheel borrows full of Marks to buy a loaf of bread.

So if I see all of these secularists and humanists and marxists collectively manipulation the world’s markets towards this train wreck…how can I say that it is spiritual above all else. For it is spiritual warfare broken out big time and publically. The connection between those on earth and the heavens is our consciences or the lack there-of. For God is the one who instills an active conscience into every human on earth. Believe me…it doesn’t happen through evoilution or brain nerve synapses. God is real and so is the devil and so are the spiritual realms. God sets this moral compass into our souls and then we, with free will, can either protect and nurture that conscience or slowly kill it through sinful activities. The more habitual our sinful behaviors get, the more our consciences are destroyed. So we are now looking at an administration that doesn’t give a rats ass about goodness and is hell bent (pun intended) towards the destruction of all that we have held to be normal and moral. They seek to re-create our government into a Marxist regime and they use the playbook “rules ofr radicals” by Saul Alinski and they are godless and selfcentered narcissists and they are in the middle of this massive transformation. They lie about just about anything (and who is the prince of liars?), they confuse issues by playing both sides on many issues (good cop-bad cop), they circunvent our very Constitution with the appointment of these czars and they seek an end to capitalism so that they can have communism and gain total control. And most of the public is asleep in the midst of this upheaval.

Conservative talk radio is one of two places where we hear the truth on this. The other place is from the various Marian visionaries around the world. Trust me…God is watching and He is not happy and we are being warned to pray, pray, pray and fast. You may not think that prayer can help. But it can and it is about all that we can do right now. Satan’s plan in all of this is to continue with his final attack on humanity (materialism is the latest “ism” he uses to punk us all) and prayer is literally like passing ammunition up to the heavens to do battle with Satan. You can believe this and see the truth for what it is…or you can go ahead and just think that these things spin out of control with no apparent ryme or reason. Everything happens for a reason. This as well.

If you have ideas, email me

Just as doctors must practice some degree of defensive medicine, we investors must practice defensive investing. I am defending against our government by investing a portion of my family’s wealth in things which are valued worldwide, such as precious metals and other currencies, and investing overseas. Clearly the US’s debt cannot be retired, ever, using 2009 dollars. I believe the creeping method of addressing this will be partial default and wealth confiscation, with perhaps increased inflation sometime in the future–if we can avoid Japan’s deflationary fate. If this government that is so dependent on foreigners for working capital has to decide between defaulting on its promises to us or to those other governments, prepare to be disappointed.

Higher taxes will grab more of the fruits of our labors. People who have “too much” money will be excluded from Social Security and some Medicare benefits. House Democrats have already held hearings on confiscating our IRAs and 401(k)s. My wife and I have all but stopped contributing to our retirement accounts for fear of losing them in the name of socialism’s siren call of “fairness.” Can’t happen here? You mean like eavesdropping on our private communications, prohibition on arming ourselves (you can’t carry a gun into the building that displays our Constitution!), or confiscating gold as Obama’s role model did?

OK, none of that is the stuff of pep talks, but I actually believe I can and will prosper BY preparing for the worst case. If I’m wrong, I’ll have done even better.

My thoughts on the overspending by the Congress. Yes, ultimately Congress controls the budget at least that’s part of their job description as outlined in the Constitution. The whining by both sides would be laughable if it were not so sad. Congress allows the Executive Branch to do many things which are under it’s jurisdiction. The Judicial Branch makes law and interpretation of Constitution out of whole cloth. And you wonder why the people are angry?

The Republicans have been duplicite when they were in the majority and the Dems obviously are the same. The Dems say whatever they like and the Reps. are too obsequious; it seems everyday one or another of them is apologizing. What? Reid/Pelosi/Schummer/Clinton and the list goes on are quite cruel in their statements about Reps. and the people whomever they be, who disagree w/them.

So, Congress is taking our money forceably and giving it to other countries, left organizations, immigrants and people who have not earned it. This is not a mistake..this is deliberate in its attempt to break our country in order to fit well into the one-world government and to institute whatever type of barter that is in the works.

Well Larry, as long as we have the current set of economic illiterates as well as our ‘let’s just see how long the bubble will last without us doing anything about it’ Congress in charge and driving our fiscal policy even deeper into the woods…I don’t see things changing. Well, not until the inevitable collapse at which time…I don’t even want to conceive of what it’s going to be like. Perhaps Germany in the 1920’s? But, that’s what happens when the folks in charge basically hate their own country and what it stands for. Sad…isn’t it?

Jeff Adams
Baltimore, Md

I am worried . I live in mexico and our currency and economy is attached to the dollar.80 perecnt of our total trade is with the us.our oil exports are decreasing. Year after year. And. Close to 35 percent of gov spending idepends on oil revenues. We are the worst country in the lar in collecting taxes regarding gdp. And more than 50 percent of the population are on the categorized poverty level. What is the outlook for the future ? Same or worse as for the. US.

In your article you say the following;

“So to Asians, the crisis we’re going through is our own fault. And although it was also caused by blunders in Western Europe and other regions, truth be told, they are mostly right.”

To what blunders in Western Europe and other regions are you referring to? I find that remark very perplexing indeed. Surely the fault for the crisis rests fairly and squarely with the policies of past and present US administrations?

Hello Larry Martin. Where are you at in Asia. I am located in Thailand. Unfortunately I am already retired and don’t have much funds to invest (actually none at this point). I live on social security and a va disability pension and doing well so far, but no savings yet. I am married to thai lady living in the mideast of thailand near Nakhonratchasima (Korat). Presently I am building a house and will complete it all sometime in January. Due to not having much education I have limited knowledge except for that which comes from common sense. hehe. I think that once I catch up and get the house finished in Jan. I will possibly join your investment group for some education and as far as answering your question about what I would do in the situation for the country. Tell everyone to go to work, be creative, the american people were hoodwinked with rhetoric by O-Bama and all the other liars and strip them of their powers, and unlike others I don’t apologize for my feelings. I earned the right to have them. Americans are strong and just with purpose of honesty (most part-not including those under the age of 40-hehe).Globalization is the answer to our problems but BITE THE BULLET and get americans back off their asses and restore the values we had when we founded america. You can’t take the stripes off a tiger so why butt heads and try the impossible and rehabilitae bad people. Asians don’t, ha. Personally I am going to try and learn enough to try money exchanging-4x. This comment comes from a typical american (disabled veteran) living overseas because of the cost of living in america now and the changing values. I would be honored to hear back from you. Have a great day cause when your older there are fewer of them, hehe. Rusty

There is no will in America to take measures to prevent an eventual default on most of our national debt. The question is: what measures the rest of the world will take (in their self-interest) to moderate the fall? Without outside help (combating the self-destruct mentality of the American people and the American Government), the view is very bleak indeed.

Larry –
There is no question whatsoever that all this is our own doing.

I can remember that before I graduated high school in the 1960s my father’s friends all getting screwed out of their pensions by MBAs in pink ties letting men go at age 64 1/2 because the company they worked for wanted out of its ties to them. And I can also remember the mass exodus of American manufacturers already capitulating to cheap labor, ruining towns all over the country and exporting all those jobs rather than choosing self-sufficiency as a country.

And don’t forget the classic American hatred of thinking, as can be seen in every dumbed-down form of debased entertainment we excel in. In other words, the great Patriots of American industry have been throwing this country’s values away for decades since the Baby Boom began, and we’ve watched helplessly because not a single elected official knew how to stand up to it. Nor were they asked to, by a populace that worshipped “free markets.”

Many of the ones that remain are determined to plunder, rather than respect, the ground, water and air that give them life itself. Do you doubt this? When you say that we are the laughing stock, it’s because we have done nothing to conserve what is inherently valuable, and raced off the cliff chasing bling. Everyone can see our mindless celebrity worship culture for the hollow thing it is. Except us. We blunder on.

So what is the answer? Bring it all back. Make things here. Go green on the environment and who cares if our country is loaded with flat-earth believers who still can’t wrap their heads around global warming? These practices are of inherent value. If that were not so, then what is China doing making deals with our biggest solar companies to harness the only battery that counts? This is not rocket science. Not at all. It is staring us in the face.

We deserve the come-uppance we’re getting. We’ve punted on all our basic responsibilities to ourselves and our surroundings for 50 years. Let’s wake up now, grow up instantly, and trim the sails back here, call on all the able-bodied to reinvent a country off of its duff.

Spot on article, Larry! One scenario that popped into my mind recently regarding this is why are there still some countries buying US debt? I believe Brazil is one of those countries along with China (though somewhat reluctantly.) What are our US government officials telling our foreign neighbors?

I wonder if our own US government is (secretly) assuring foreign buyers of US debt that US citizens’ land is and will be the “collateral” for the US debt securities….since we don’t have the gold anymore to back up the securites. Maybe there is some validity to those “detention camps” that conspiracy theorists talked about back in the 1990s to hold displaced people who will have their land taken from them. Just thinking out loud.

Dear Larry: Good to get the latest from around the world. I’m 84, but active. My idea for my country is
“Put us all to work making the products and income we so desperately need.” Unfortunately, our plight is under the control of those who want it this way. I’m presently building a machine powered by gravity that will give us a new clean source of power. (Homes with their own source of free electricity) No need of highlines. I cant make this known till I get enough units built and sent around so that the PTB cant
squash me first, as they have done to so many others with ideas that threatened established monopolies.
My idea is so simple that I will soon have it running. Expect to drive a generator with it.

Larry

I dont understand, the first Money and markets letter from Bryan said the dollar was headed higher, and you say its headed for a crash.
Personally l think the dollar will crash big due to your fed reserve circus, so why does Bryan think the opposite

Regards

Angela

All of this “currency chaos” is headed in one direction, and that is a global currency. This is inevitable, and I believe will happen within the next decade between 2010 and 2020. What quicker way to reconcile deficits, trade wars, and imbalances than a global currency?

The “smoke and mirrors” that we see in global finance obfuscates the truth, and the fact is the average person rarely knows or understands what is actually happening. This allows the masters of finance to do just about anything they want,on the way back to a feudal, master/servant society, which is where we are headed.

America, as we knew it, as a free market economy, is history.

There is no way out of this. We have passed the point of no return $ trillions ago. The national debt now comfortably exceeds the national wealth. Higher taxes cannot solve our fiscal problem (but that won’t stop them from trying.) In fact if Washington, instead of raising our taxes, simply confiscated all of the private wealth of America, they couldn’t pay off their debt. All they can do is burn the furniture to stay warm.
However, all we can do is buy precious metals, commodities and foreign assets and avoid tax deferred savings plans like IRA’s, 401K’s and annuities and invest in tax preferenced vehicles like munis (gulp!) and MLP’s

We kick ALL the 535 Bums in Washington D.C out of office in 2010!
Over 2 million people marched on washington 9/12/2009 !!!
The media tried to play it down, But it was BIG .. We’re tired of the out
of control spending by these jerks .. Let Freedon Ring ..

Larry,
Trust me if Americans even saved 25% of the resources(all included) they use the world would be a much better fed world-than the usa with the fed—-

I strongly believe America should do everything possible to become more self sufficient. #1`Stop buying everything we use from other countries by: > Drill for oil everywhere possible in our own country. >Tax imports to help our own USA based factories compete so our own people have jobs. >Take away union powers. How can America compete if forced to pay Union wages to everyone on State jobs and union controled factories, people who turn around and spend it all on China imports. >Stop forcing our own farmers to comply to stricter animal treatment and farming standards while importing the same products from countries who have no regulations. Stop importing Ag products so we can compete. Keep the money in the US!
What am I doing to protect myself? Saving more money myself and trying to find safe places to put it. READING YOUR COLUMNS (Dollars under the mattress will soon be toilet paper) I also am watching for good deals on solar and wind power for my home farm to eliminate energy bills. >And we grow and store our lots of own home grown food.
Most importantly, make sure you and your family are Saved ! Heaven is the ONLY secure place to invest your energy ! God has not changed! Our current situation is why our American money includes the writing; ” IN GOD WE TRUST ” !!!!

Well I know it smacks of protectionisim, but we should focus on the US a bit more. Pull back some of the world/nation building, get out of the wars we are in and start investing right here in the US. Much of my investments are now in other parts of the world like China, India and emerging markets. I am in my mid fifties and am seriously looking at becoming an expat and living in places like Ecuador, Mexico, Panama where the cost of living is much much less, healthcare costs, quality and insurance are as good or better in most cases than in the US. I have been a loyal American for decades, buying US made autos, investing in US companies and Muni Bonds etc. But now the return on investment is poor at best, and I feel as though I have been penalized for being loyal while the big banks and investment firms get bail outs. I have only a few short years until I hit 62, if SS is still around I will take all I can get and invest and spend my money and life in another country. It’s the only plan I have left that makes some reasonable sense.

Many solutions were tested and proven under the pre-Clinton FmHA which some claim returned a profit to taxpayers. At the least it demonstrated the least expense of helping people to help themselves and shows innovation in handling excess debt.

For starters, the US absolutely must:
1. Get out of the health care business, except for Medicare/Medicaid - government employees can buy insurance on the private market like the rest of us.
2. Get out of Iraq and Afghanistan NOW.
3. Get serious about balancing budgets - Congress take note.
4. Get back to business - that’s where America shines and if the government get out of the way, we’d generate the money we need to escape from this downward spiral.

Hello,

Thank you for your offer to listen to readers ideas and what action we are taking…..we live in Sweden now, previously Australia until six months ago….we sold our house and business 15 months ago at very good prices and invested the money trading the short side using CFD’s until February 2009…trading is now my sole income. The US dollar is likely to fool most and actually rise much higher very soon as debt is liquidated globally in the next selling wave…the dollar will not be at risk of collapsing until near the termination of the bear market….by then there will be no conversion or buyers of dollars left…exhaustion. To be quite frank, I cannot see any way forward at all for the US, the massive debt still hanging and growing must be paid back…..there is only one way and the nature of the market will dictate how that is acomplished…default? or inflate it away?…it’s going to be one of them…..I would choose default as the likely scenario as debt is written off on a scale never witnessed in our history…….The US is bankrupt and can keep the lifelines pumping a little longer through yet more credit, but the game is over now through a global eruption that stimulus packages cannot match. Eventually, declaring bankruptcy of a nation will signal the end and only then can the US rebuild over generations to come.

I worry our Democracy has shown it’s flaw. Too many are draining it’s resources and too few are funding our overly Large Government.

Larry, what I fear as much as the two alternatives is the thought that we are probably in the midst of financial warfare. I believe that each scenario has almost equal probability. because our powers at be are watching and waiting. It is probably politically sounder to prevent a current deeper downturn, but it remains possible for a shift of gears if the rest of the world is leaning too much toward that result. Think of it. If we see too many adversaries dropping dollar holdings and hoarding dollar denominated hard assets., we could do an about face and pull the plug on further stimulus. A deflationary spiral might ensue, but one in which the dollar strengthens and the adversaries are stuck holding hard assets that will devalue (buyers for these items will now be absent). The problem is the two scenarios require drastically different positions to be properly hedged. One scenario would have gold , commodities, and foreign securities rallying; while the other would have those holdings getting hammered. I believe this uncertainty within the context of financial warfare is the real crux of the problem of how to be positioned. I too am a trader of some 20 plus years and this feels like one of those trades whereby you can be right and still be wrong. Larry, let me know your thoughts.

Well, I’m just a self educated stay at home wife and mother, therefore I’m sure, my opinion is of little value to most, with today’s ideas, but non the less they are of some value for they are mine. My husband, who is self employed, and I are of old school we save and spend. The major debt we have is our home. Every thing else is paid for except for those credit cards that are paid off at the end of the billing cycle which by the way those credit cards pay us back for using them.
We spend within our means. If it looks tight we don’t buy anything extra, only food and essentials. We might have more to spend but taxes are so high. We can’t complain too much because my husband makes below $30,000 a year. Two years ago he only net $16,000. We don’t know how we did it but we made it through the year and survived on that small amount of income.
My husband has been very wise in being secure with investing in gold. Which will save our tails if something stupid happens.
We do not have heath or life insurance. We have placed our trust in God to meet our needs. We eat good foods, I do not follow the main stream media’s ideas of healthy eating, low fat diets & avoiding high cholesterol foods, no way, give us good nutritionally dense whole foods to stay healthy, avoiding the calamities of unhealthy eating and life styles, which are the cause of I believe it’s 80% of the health related issues people are suffering with today.
I am very concerned with whats coming our way and something big is going to happen and this administration seems to think that killing unborn babies and ending the lives of the elderly are going to solve the problems of today, they are seriously wrong.
Best wishes and thanks for keeping me up to date with the economy.
Sincerely yours,
Mrs. Nerswick

I am a subscriber of Real Wealth and I would like to know your suggestion on the best way to buy gold and silver for safety.

What can we expect from a communist president? If one simply reads his reading list and studyies the TRUTH regarding obama’s background, then reads the full “health plan” and other garbage that he’s putting before congress, you’ll understand what’s really going on: the elimination of the USA!

Great perspective, and it follows closely with what both the Elliot Wavers and Gerald Celente are saying, so sadly I suspect that we will experience a Weimar Republic like consequence of unrepayable debt. It was exactly that, brought on by war reparations demanded by the banks, not the governments, that led to the collapse of the mark, and the rise of a very dark nationalism. I hope we don’t see that, but I fear we might, and every month it looks more possible.

I have no idea what we as a thinking people can do when our government is so controlled by the banksters behind the Fed, they have already stolen our money to correct their errors on a massive scale, and they continue to scam us through their sponsorship and control of Washington. Goldman Sachs was one of the biggest donors to Obama’s campaign, so is it any wonder he thinks we should give the Fed more power. I’m more inclined to follow Ron Paul in calling for an audit, and even abolition of the private banking cartel that everyone thinks is a government entity.

I’d suggest that only a radical overhaul of the current US financial system is the only thing the vendors you are speaking of would accept. They won’t be fooled by more of the same only different, and if they aren’t then it is safe to say that at some point the international bond market will rebel as well.

As the Chinese say, we live in interesting times.

Just my $0.02 worth.

Lets face up to reality as a nation and take responsibility for our government and remove the Fedral Reserve and all the manipulation in the banking system and wall street. We as a nation have been living in a fools world based on the reputation and intregrety of its people. The day of trading fiat money for the labors of others is over and day of reckoning is nearing in the world of free trade. We have lost our manufacturing base and given away our technology. What do we have to trade with? The day of paying for foreign products with fiat paper is over. Its time to start over based on our original priciples with honest people and not those hacks that have been bought and sold by special interests. John P. Wold

What I’d like to know is if we get crushing deflation first because of collapsing credit (99% of the money supply) derivatives imploding, etc. or are we going to wake up next week to find US dollars are worth zip because the world has shunned our “reserve currency” in favor of Yuan or SDRs or even food? Makes a difference whether one stays in short Treasuries or switches to gold and Singapore $$.

Get out of the Federal Reserve, Start a new currency issued by Our treasury and start all over. Before we lose our freedoms with our moneny.

The Dollar:
In the 5th wave down in a BEAR. 4% bulls
The short term I think there could be a substantial bounce.
The Euro is worse if that is possible. It is way over valued.
Watch for an ABC correction to the upside in the dollar.
Cycles show bottom in the $ and Top in Euro this week.
In my opinion the surprise is a big rally in the $.

I have bought some gold, silver and diamonds with cash and took possession.
I have bought some equipment which can be productive in any economy, inflationary or depression.
I have stockpiled the inventory I need to build the equipment which will continue to be in demand around the world.
I have paid off my house.
I have paid off all but one rental property; the one with a mortgage I consider a throw-away in the event of a depression.

IF YOU CAN’T PAY FOR IT IN CASH….YOU DO NOT NEED IT.
DEBT IS TO BE AVOIDED AT ALL COST. LIVE WITHIN YOUR
MEANS……ECONOMICS 101…. IF YOU MAKE $500 PER MONTH,
HOW MUCH CAN YOU SPEND????????DUH! THAT’S RIGHT..
$500…ANYTHING ELSE IS DEFICIT SPENDING WHICH OUR
GOVENMENT AND IT’S PEOPLE HAVE GROWN EVER SO FOND
OF AND IS WHY WE ARE WHERE WE ARE. HINT: CUT SPENDING.
BALANCE OUR BUDGET…HUNKER DOWN AND GET IT DONE!

Remove ALL liberal spenders from Congress - - Republican, Democrat, or Independent. No one
should be in Congress for more then 2 terms! ! ! We still have time to do this. If any one now in
Congress has been in there for more then 2 terms, VOTE THEM OUT ! ! ! THEN FIND AND VOTE
FOR THE MOST CONSERVATIVE PERSON YOU CAN FIND AND SUPPORT THEM.

I think LaRouches suggestion about a new credit system where US, China, Russia and India join first sounds like a good idea. http://larouchepac.com/lpactv?nid=11734

Larry, First Obama and his liberal socialist group must be voted out of office. Then, we must vote in fiscally conservative statesmen, a word rarely used these days. I have no interest in which party they are from because at this point, I see very little difference in either party. We then need to establish term limits for all Congressmen and get the line item veto for the President. The next item is almost next to impossible, that is getting rid of the lobbyists. In my opinion, Congress, in general, is controlled and ruled by the large banks and special interest groups. They are the ones that control the purse strings because of the vast amounts of money needed to be elected. Greed has totally taken over! There is no fiscal responsibility at this point. Can any of this work? I seriously doubt it with the nature of man and the way it is, and with the vast amount of apathy that abides with the American people, in general. Personally, I am surviving the Recession/Depression quite well. I have never bought anything that I could not afford to pay cash for, including my own home. I have no debt! I don’t intend to start collecting a debt. When I was a child, I learned a lesson from my father, and that is as follows: One Christmas, I showed my parents what I wanted in the Montgomery Ward and Sears Robuck Christmas Catalogs. Then on Christmas Day, I opened my gift. I received two things: a Sears Robuck Christmas Catalog and a Montgomery Ward Christmas Catalog. Later, when my youngest son brought down from his bedroom a list of things he wanted for Christmas, it was very long. I asked him, “Do you need these things or do you want these things?” I told him he had better learn to separate his needs from his wants. He subsequently tore up the list. So what is the moral of all this? Know your needs from your wants! Understand that what you buy you also must maintain. By this I mean: if you buy into a lifestyle, you must be able to maintain that lifestyle. Sincerely, Al

We are in the metals recycling business and believe that hard assets is one of the best ways to protect purchasing power. Metals recycling is also a good way to generate exports since many metals are shipped to Asia because they are to labor intensive to process in the US.
Personally, we hold gold, silver, farm land and other hard assets to protect our capital.
I believe that the best way to help improve America’s competetiveness is through domestic energy production.
The US is blessed with extensive natural gas reserves which could be utilized to reduce oil imports if we converted first our truck fleet and later cars to run either natural gas or gasoline fuels.
Conerting ignitions to run bi- fuels will produce manufacturing jobs which we sorely need. By gradually converting to bi- fuel vehicles, we can add Natural gas fueling stations to the system overtime increasing use of domestically produced fuel and not dirupting transportation.
We need to go back to producing at home and using our own natural resources rather than importing them and continually increasing our trade deficit. Natural gas is the intermidiate answer to US energy security and adding manufacturing jobs.
Come on US EPA, you can make this happen. Do it for your children and grand children.

Every American citizen in this country should be outraged at politicians in Washington. They have been warned for years that we were sliding down the slippery slope of financial armegadon. They didn’t listen then and they are not listening now. We should require that any politician elected to public office have a degree in accounting or economics. Attorneys will never be responsible enough to handle the taxpayers money and it is no wonder that their approval ratings are in the toilet. The American people have the power to change our countries direction by voting every incumbant out of office. They are turning our country into a third world nation and the out of control spending will change our standard of living forever. PLEASE WAKE UP AMERICA BEFORE IT IS TOO LATE.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

What to do…
Radically cut back military spending: close all military bases in 1st world countries: Japan, Korea, England, Germany, etc.; refocus military spending in other countries to incorporate humanitarian needs of medicine, food, etc., and Corps of Engineers projects in transportation, and other infrastructure development.
Tax at 80% all income over one million dollars and radically expand and extend the “charitable giving” category to allow the rich more tax-free giving opportunities. Use the Bill and Melinda Gates’ foundation giving as a model. Provide incentives that appeal to man’s better nature and disincentives to items that further greed and other of humanity’s worse nature, to wit, reward giving not with more material gain, but with recognition and other non-material gain. Look at England’s system of “knighting” as one model

Larry

I’ve been a subscriber of Real Wealth for years. You and Martin helped save my retirement! I have been increasing my holding in metals, oil and gas for over 3 years. I still have a a substantial amount of U.S. Treasury exposure. Any suggestions here?

Financially our government officials, especially the Congress who is accountable for the order of our “financial house”, have been a sleep at the wheel for decades and now cannot make the tough choices. It is sad and their fiscal and legislative irresponsibility is in my view unforgiveable. The political parties and their ideologies have become a higher priority than protecting the core financial and economic engine that really protects our way of life. It is a sad day for the country we love!

Roger

Thanks for

This is the biggest question of our life — how to protect our assets/purchasing power for our children and grandchildren. The history of the world shows that given the choice between abdicating a country’s debts and turning on the printing presses, politicians turn on the printing presses. It seems to me that investments in commodities (what China is doing=buying up commodities and commodity production facilities) and gold (again, what China and other countries are purchasing) tell us the direction we should all take personally. If there are any other ways to preserve some future for our children, please share!

Dear Richard,
Do you know what this supposed Dec 7th meeting called “COP 15″ in Denmark is all about? According to Gold World it will be market changing?
Alan

I think longer term the dollar is toast. My big concern is two fold 1) the call between switch from deflation to inflation and 2) China’s ability to continue to support commodities in the face of short term deflationary powers.

I am 5% in gold 10% in gold companies (RBY, GBG, and NGD) looking to add to all these when/if my expected pullback in gold occurs. Until the dollar trend short term clarifies I have 10% in U.S. EE bonds at 4% and 20% in foreign CD’s as Norway and commodity countries, I have 30% in six non-correlated managed futures funds through Altegris and Alphametrix. The remainder I manage agressively in ETF’s both long and short.

I am looking to go into more gold and commodities DBA, DBB, DBC a smidge in water and alternative energy and continue to vote in short term moves with short and long index ETF’s.

f

There’s only one suggestion I can think of (and it applies here in the UK too) tear up any contract you have with the Fed Reserve (Bank of England) ad if you are not all assissinated for daring such a move, you are immediately free of the unwarranted interest on payments on ‘loans’ (that aren’t actual loans. i.e. there’s no loss on the other sisde, no equla consideration etc)

Then let your traesury department (if you trust them) create the money required and spend it into the economy.

Got a better idea?

Regards

Graham

I don’t subscribe to conspiracy theory on a grand scale and I apologize if this sounds as if I do.
It feels as if every move the Treasury and Fed have made in the last 18 months to 2 years has
had the effect of bolstering Wall Street at the expense of Main Street. Are we getting the govern-
ance we deserve by not doing the due diligence that we should apply in the normal course of
being responsible citizens? Ultimately I feel that Main Street has to grab Washington by the neck and force policies that are sustainable. I see no such thing happening currently and we put ourselves - through our representatives - in the position of LOSING our leadership position in the world.

Larry,
I don’t disagree with much of your premise here - I have been concerned about the growing debt (both household and federal) since the days of Reagan.

But it is a bit disingenuous for our asian partners to point fingers solely at us. Their economies have developed through exporting of our jobs to their locales. This movement of jobs has been aided by Chinese support for the Yuan, along with support for many home-grown industries (e.g. Toyota’s many cash injections over the years by the Japanese government).

The only way the US will be able to balance the deficit is if we start producing things again. A strong dollar - while it may be good for tourists and investors - prevents us from producing goods that the world will buy. Because nobody can afford widgets denominated in expensive dollars.

But if the dollar sinks, then it will be a forcing function to get home-grown industry going again, since imports will become increasingly expensive.

It will cause a great deal of pain for many here - especially those unprepared for it. People will experience increased prices without increased wages. But at least there may be some blue collar jobs recovered.

Is there another way? I don’t see one.

The answer to our economic problem is simple: BRING OUR MANUFACTURING HOME!!!
Get the crooks out of the banks & out of the regulatory bodies. Put the criminals in jail.

Some of the things I have done over the last few years are:
- Study and load up on survival and holistic health books
- Purchase “junk” silver whenever I can find it
- Purchase solar battery units for electricity
- Stock up on dried (mostly), and some canned foods
- Stock up on medical supplies, such as pH strips (a good indicator of health status), bandages, aspirin, herbal remedies which have long-term storage value, etc.
- Stock up on heirloom, (organic, non-hybrid, non-GM) bulk seed for growing a garden as well as for bartering; seeds are as good as GOLD when it comes to bartering for something you need that someone else has stocked; everyone must eat!

As you see I´m not a countryman of yours, I live in ICELAND. And judging by your descriptionof the financial/money status and if your going like this into the future you will go our way. Perhaps you have heard of the bank collapse here in Iceland and the and almost total collapse of our money system ..
Your country seems to be sailing straight into the same predicament; Sorry that I can not give you any better advice but Spend Less Than You Earn !
Cheers
Jon

429 years to pay off debt of $1 million?

There is no question that we are headed for big trouble if we don’t do something to get ourselves out of this mess. It is imperative that in 2010 we replace the tax and spend politicians in Congress with representatives who will right the fiscal course. I for one will get involved to unelect every tax and spend statist who believes that government programs and resitribution of wealth through hgher taxes is the answer to our problems. We are at a crossroads, and if we allow the present group of politicians to continue the present course, we will become a second rate country. We must act in 2010. It is our last chance!

In my opinion, we need to drastically cut spending (all individuals as well as government — everybody). That was how I was brought up. You don’t buy extras unless you have cash. I have been disgusted by our spend-spend, shop to you drop mentality for years. We need to sacrifice now (by cutting our spending habits) so we don’t ruin our currency and standard of living permanently. But we need to cut spending across the board. Ideally, we get rid of all lobbyists (in a dream world). We need to stop the government subsidies to the banks and let the big ones fall. Stop the subsidies to all so-called hypocritical capitalists who say they believe in free markets until the free markets don’t work exactly they way they want, and then they go screaming to DC for a bailout and more regulation in their industry to stifle competition. I’ve had it with the way this country is operating, and I just thank God I’m not any younger than I am. Good luck to future generations because you are going to need it (as the US becomes a third-world country).

I would personally like to see the FED dissolved and the money making powers returned to the Treasury where they belong. At least that would be a step in the right direction.

Unfortunately, the small percentage of Americans who have lived within their means will bear the brunt of our downfall. Their assets will be confiscated to pay the debts of those who lived beyond their means. I fear the next few, potentially several, generations of Americans will live below today’s standard of living. Doug G.

I am a 45 year UK citizen born a once industrial famous city in the north. The whole East and Western world owes it to the USA to help pull it through this crisis. The USA has been instrumental in provising the catalyst for the last 70 years for the world to prosper particularly after seeing off Nazism and communism. We all should pull together and help the USA for if we do not then we in the west will surely perish and so will our children and grandchildren. The economic shift to the Orient will continue and we cannot ignore it. One day our grandchildren will be making leather bags, footballs etc for the wealthy Far Eastern Economies and we will be paid 50 cents per hour!

I agree. The dollar is doomed, Washington and Wall Street are corrupt and we are on a path of mega-inflation. I am heavy on put options and purchase of precious metals. I see the financial system being destroyed and unfortunately many folks have no clue it is coming.

Larry, I’ve been following your Real Wealth for 5-6 years. I nearly doubled my retirement fund in one year by buying precious metal funds(was NOT diversified). About that time, I opened a bank account in Canada for purpose of buying a recreational property. The Canadian dollar cost me 67 cents USD. Since that time when the dollar strengthens I add to that account. The Canadians are easy to work with. I continue to follow your advice to invest in companies outside the US. I own both bullion and gold stocks, as well as CD’s in Australian dollars. Afterall, gold bullion has beaten the S&P over the last fifteen years.

Much of your advice has been right on the MONEY! I am also considering retiring outside the US. I believe that our medical services is going to be a disaster/regimented(I’m a surgeon). Our wealth will be better protected and will allow us to live more comfortably. I’ve seen how my parents and in-laws (savers/frugal like I am) have been devastated by the actions of the Fed/federal government with the return on their savings account ridiculously low. Short of a return to liberty and the Constitution which I doubt will occur, we Americans face a dismal future.

THANK YOU FOR YOUR ADVICE(keep “ringing he bell”) Tom

My suggestion would be to use the economic power of the federal and state governments to ignite a major growth of the economy through the private sector. In other words cut tax rates for corporations, provide tax credits for job creation, reduce taxes on investment income, do everything possible to stimulate the real estate markets.

I have bought a tiny amount of gold, not that I wouldn’t love to have more, just can’t sink the money into it. I have a decent amount of physical silver and own stocks of silver and gold mining companies. The person who posted about the stockpiling of canned foods, seeds, basic medical supplies, etc. probably has it right on. We all hope the country will never find itself in a predicament where you need those things, but who knows at this point?

Hi Larry,

Unfortunately those like you who actually see things clearly are not operating our government. We have written letters to every Congressman and Senator who is supposed to listen to us and, fortunately, our Texas guys seem to listen better than some. We have slashed spending in every possible way, from fewer dinners out, no new clothes and shoes, less travel, smaller gifts, auto and homeowners insurance policy shopping, increasing the level of the thermostat to 82 instead of 79 (during a Texas summer), cutting down on watering, etc. Every penny that we can save is put aside, either in our checking account (which, due to a promotional thing by a new local bank, earns 5% on balances up to $10,000, or in our Fidelity Investments accounts. We have subscribed to your Real Wealth Report, Nilus’ Dividend Superstars, and Claus’ MCP and, while we don’t follow all suggestions to the letter, we at least research them and follow the ones with which we agree. Hope springs eternal in the American heart, but what we see around us in not encouraging. My husband is retired and we wait with baited breath to see what will happen to our health insurance. Please keep the info coming! We have a lot of respect for you guys and your no-nonsense approach to reporting.

First of all it seems to be clear whear this debt is continuing from, Its like you said prices need to come down but the problem is the the big man is not ready to let go of his profits! If the big man would take the same percentage loss as the little guys hes selling to we could get out of this. But as you look around its ben over a year now and instead of the big guy taking a loss he acts like hes going for broke.

I’ve moved into gold and silver. I’ll put a little more into gold and silver this week and then I will start to look into other areas with the intent to create a rabbit hole if I need to escape.

No way out. Just a slow nasty ride down.

I’88 yrs. Our company owns a small strip shopping center in San Diego, Ca. Back in 1990′ it seems I recall the Government announced that we were going to become the Service country of the world and let the rest of the world be the manufacturers. When I heard this I said that this was the most stupid thing I had ever heard and we would never do that. I think it has happened. I have been a manufacturer all my life. I understand the need for countries to make things and sell them around the world bringing $’s back to the United States.

What do we do now! We bite the bullet, face our mistakes, elect a honest government that believes in free enterprise, lower taxes, give small manufacturers tax incentives and restart the mighty American engine again. Bob Webb

Larry; I think you are dead on. I was hoping the US Gov. would wake up and take us through this depression with out the Hyper inflation. However it looks like they will push us into a decade of pain, maybe more. I’m getting ready the best I can by stocking up on every thing and getting ready for a barter economy and some silver.
Ron

Just as Helen above said. No way out. I disagree that this will be a slow nasty ride down. Look at Martin Armstrong’s papers of the last two years. This is a “Waterfall event”. Once we reach the edge (very soon) we will experiance a rapid, complete collapse of our fractional reserve banking and currency system. It is unavoidable at this point. Good luck to all.

Larry,
The Federal Reserve needs to be phased out within the next 12 to 18 months with its functions assumed by the Treasury of these United Ststes. Second I believe that ITC ( Investment Tax Credits )
would be a way to incourage investment back to this country. When ITC came into being the banks retained the 10% tax credit for themselves and lowered the finance rate by 1 or 2 points. By doing this they ending up paying very little tax. This could be done on a Federal and State level. Third goverment programs such as the Energy Department need to scarped. This would be a good start.

Sincerly
John Hagan

Americans are spolied and greedy period! Stop blaming everything on the government and policticians and learn to live within your means, that simple!

Hi Larry,
Thanks for your excellent newsletters, you are so right, your comments on the US $ are absolutely correct. Even in Europe and especially eastern Europe, were the US $ was king, no one wants it, except to quickly convert it into other currencies.
Your government must make drastic decisions to stop spending, ok it will bring a major recession
on maybe even a depression in the USA. This will have repercussions elsewhere but nothing like as bad as when the USA has Hyperinflation and the complete collapse of the US $.
Asia will carry on and take over the world leadership, led by China. Europe will play a much smaller role, unless it gets its own problems sorted.
If Europe does not get its act together, then the Euro will collapse, and each country will once again have their own currency. The only alternative, is a strong independent European central Bank, with every country floating its currency against the Euro, people could save and would trade in Euro’s,
but purchase locally in their own currency. (As Margaret Thatcher wanted many years ago). This I consider will be the only way for Europe to survive. It allows each country to set their own Taxes, and if they are fiscally responsible to have top exchange rate in Euros. The spendthrift countries currencies would depreciate, and they would be poorer until they are fiscally responsible.
Thanks again and God Bless you.

Hi Larry -
I agree to the maximum with your diagnosis of what’s actually going on but cannot see what political leeway there is in either the USA or over here in Britain. It would be political suicide for the leaders of either country to cut borrowing & spending drastically because a) we are both spoiled, self-indulgent cultures whose people long ago lost any willingness to endure austerity for the greater good and b) sharp cuts would plunge both economies over a cliff and into profound depression for a long time to come. About the only thing which has any chance of rescuing our two benighted nations is an intense ‘Green Crusade’ to develop cutting-edge low carbon technologies and a huge ‘Blitzkrieg’ to reconstruct the entire national infrastructure around them. That way we’d be playing into our historic trump-card compared to Asia - technological innovation - and we’d be leaping forward rather than looking backwards. Most importantly we would, after years of weary cynicism, have an inspiring rallying-cry for our society which might persuade the electing public to better tolerate the pain which is inevitable anyway. Not much hope, though. In the UK we have Gordon ‘dismal’ Brown at the helm, a man whose total lack of vision is matched only by his incompetent wastefulness and stealth-tax maltreatment of the hard-working and thrifty middle classes (ie - ME!). In the USA you have the utterly brilliant Barack Obama, who clearly wants to stoke-up a Sustainability bandwagon but is likely to be thwarted - like every reforming president since Roosevelt - by what I have heard described as a ‘Kleptocracy of Petro-Nazi’s’: the very oil men, arms makers, industrialists (and bankers!) who have been allowed to drive our once-proud western ship on to the rocks at full pelt. Next year, new government over here for sure - things might get more interesting then, but the pain will be with us a long time whatever happens. Jem Keen

Larry,

What I’m doing is : 1. Saving my dollars for a better buying opp.
2. Holding investments in Canadian Income Trusts.

BW

The Republican political machine has been the most destructive force in our history. Our work force has been pauperized. The downward spiral in wages, begun with Reagan, continues. The Republicans threw out Carter’s energy self sufficiency plan 29 years ago and instead gave us the Iraq/Afghanistan Wars as their version of energy sufficiency. Baby Boomer investments were wiped out, affordable housing no longer exists. Let us not forget that Conservatives have been in power for most of the past 29 years.

Let us continue to act like decent citizens, even if we are not rewarded for it. The non-consumer trends are still in place which indicate that we are finally listening to our old Scottish (and other) aunts - “Dinna let your wants exceed your needs.”

President Obama is far better than we deserve.

It used to be that an investor could protect himself with FDIC insurance, but with the demise of the US dollar, the value of the FDIC coverage falls under a huge shadow. Where does an investor go now?

Just purchased a Perth Mint certificaye with half silver/half gold. This gets some of the money out of the country and hopefully into a currency that will hold it’s own. Looking into currency ETF’s of Canada, Australia, Brazil. - a place to buy some. Also looking into swiss annuities - but interest rates are still too low to lock any money away.

Dramatically reduce our huge Military Budget. Convert many military bases to real green zones after cleaning them up. Close many of our overseas bases completely, most are no longer needed. Provide improved medicare for all, to stimulate jobs, and save huge administrative costs, and provide real health care. No cap and trade, fine the polluters. Reverse the Bush tax cuts, and re-instate higher taxes for the richest amongst us. We are willing to pay for the common good. (something no one seems to care about in our me, me society). Sorry but survival is one thing, but wealth at the expense of the survival of others is truly frightening.

Larry,
My wife and I are going “old School” by paying off our credit cards and home mortgage and investing in gold coins. Let the banks eat crow and fail.

The problem that you identify has been in the making for quite a while. We have encouraged consumer debt as a means to prop up an economic system that has yet to reconcile some fundamantal flaws. We cannot rely on consumers endlessly collecting more stuff as the primary (only) engine for growth. Like any successful enterprise, somehow we do need to make investments in our country that benefit the people in the process and for the future. We have continued to ignore our real problems while we spent ~2 trillion over the last 8 years on things (Iraq,tax give backs,etc) that have little or no longer term ROI and in fact have created more long term obligations. Now we have had to spend money that we do not have just to keep our financial system from collapsing in a way that probably would have been even more costly had we not stepped in to cover some of the damage.
We really are between a rock and a hard place. Our health system needs a major re write ( I am a small business owner and my largest expense is health care. It is a big problem for me but I know that if I stop paying it most of my people will have no heath insurance - because they will not pay for it out of their salaries.), we need to finally (30 years too late) reduce the dependence on oil and the middle east, we need to put inteligent regulation into the finacial markets to keep these cowboys from wrecking it (again), we need good and affordable education. The problem is that, up front, it all costs money….that we do not have…but will never have if we do not address the problems.

I live in Western Australia Larry - our State is fortunate to be very heavily involved with energy expansion & production … and mineral (notably iron ore) production. Much of our export income comes from China and, recently the Chinese have been actively seeking partnerships here. In the last week deals worth A$50B and A$70B have been secured for long term LNG supply out of Western Australia. Overall, our population of ~1M people has escaped much of the worst of the GFC.
I agree with your comments about the $US in Asia. I believe US citizens should prepare themselves for a much weaker $US over the next 2 years or so. A weaker $US will, of course mean greater US international competitiveness over time (enabling a balance of trade recovery).
I believe there is a global repudiation underway of the $US as the benchmark international currency. People are angry that the US has been able to print and export their paper money & inflation worldwide for so long. The US Govt. could probably have gotten away with it for years if Greenspan hadn’t argued against regulation of the banking system during the 90’s. He is viewed by many as the architect of the current global fiasco - that he has escaped public character assassination is beyond me.
The answer to the problem in the US is to give the people the incentive to solve their own problem. Governments worldwide are adept at strangling and stifling innovation and creativity. I have the utmost confidence that given the opportunity, individuals will discover ways and means to dig their way out of this situation. The standard Govt. response to just about everything is to tax it. I often bemoan the fact that Govt’s really only exist to tax us. In the depths of the GFC … people should be aware that every response by Govt. worldwide has been to protect the fiat currencies .. not to save the people … but to maintain the Govt’s control over wealth and taxes and their own ability to make money out of nothing (paper) to pay for their stupid promises … so they can stay in control and reap the rewards of power.
It’s a sad situation when democracy is just another word for mob rule … but that’s what has happened. Govt’s have abdicated the reponsibility to govern responsibly… out of their own selfish egos.

Hi Larry:

It’s my considered opinion that America’s leaders aren’t as stupid as you make them out to be. They now realize that there’s no way out of the mess they presently find themselves in. If people like you and I can see what’s happening and is going to happen, they certainly do as well.

They realize that the North American economy is based on people spending beyond their means — mostly by obtaining cheap credit. The North American consumer simply can’t cut their spending because either they don’t know how to because they have never had to or they are simply too far in debt to do anything about it — like America itself.

I think the present leaders have a plan and that is to at some point declare bankruptcy and create a new currency — namely the Amero. They plan on trying to get Mexico and Canada to form an ‘economic union’ where Mexico supplies the cheap labour, Canada, the raw resources and America the good old American knowhow — eg. the ‘brains’ behind the whole scheme.

I think this is the obvious and only course left for America and possibly North America. They’re milking it for everything it’s worth for now but mark my words — it’s coming.

Colin Moss
New Denver, BC
Canada

Larry, I fear it is already too late. Gold, silver, guns, and plenty of ammo is all I can think of.

Larry,
I am seriously thinking of moving to Thailand to live/retire.
How long have you been there?
Do you intend to stay there.
I’m going on a trip there for 5 weeks on October 16 to check it out.
Cheers,

Keven

I grew up farming and investing in farmland. last year I bought quite a bite of farmland and went deeper into debt. I plan on buying a fair amount more in the next 6 to 9 months if things work out.

I feel with the week dollar and increase in economic conditions in Aisa the demand for food will increase farmland value and rental rates. I like farm land better than gold becaue i get rental income every year and appreciation.

I have the interest on 60% of my debt locked in for 5 years with the balance floating. The floating rate is 1.5% beter than the 5 year fix.

If everything goes as you predict, I should be sitting pettry good. My land will increase in value and my debt will be paid of with cheeper dollars. (higher grain prices). The only thing I will have to worry about is income taxes.

The only thing that worries me is what an old man told me years ago, “if it’s obovious, it is oboviously wrong” What could go wrong?

This recovery might not be a recovery(I don’t think it is). If the world goes into a deeper recession, the fleet to quality will increase the value of the dollar,therefore decreaseing dollar base assets.

As you know, new wealth comes out of the ground. I thinks agriculture will have to pull the US. out of the recession.

yuor thoughts

thanks

ray

I read with amusement the apparent epiphany that you have had living in Asia: ”Our way of life, often based on consuming far beyond our means, is being flat-out rejected.” That my friend is the understatement of the century. Things have been moving south internationally long before wall street started sucking gas.
9-11 was a clear enough message that our way of life is “flat -out reject” by many throughout the world. Listen to the words behind the horror. “We don’t want become, what you are! ”We don’t want, what you are selling!” Naturally, religious and political leaders fueled this fear and loathing to further their own agendas as they alway have done.
The recent financial debacle was although, aided and abetted by others, was primarily a red ,white and blue production. It was stated clearly in your ”passionate pleas”. We have used other people’s money to live beyond our means. Just don’t be surprised when our international partners put the screws to us when we attempt to repaid outstanding debts on our SUV and wide-screens with devalued greenbacks.
When many overseas find themselves buffeted by unknown global forces that have turned their limited world upside down, America again becomes the scapegoat for all ills. Despite the fact that this particular shoe happens to fit, this bodes badly for America in future as our prosperity depends on having others as respectful and equal trading partners. The greed, overindulgence, and culture of immediate gratification and living beyond ones means only reinforces the antipathy toward America that is brewing worldwide.

Having lived overseas for 15 years, and having travelled to almost 80 nations during the last 30 years has afforded me some insight into how others view America. Place yourself into the shoes of those who have less opportunity to education, communication, travel and outside opinions. Their only view of American culture and values are those which we promote ourselves on television programs that are syndicated world wide.
The American male is most often portrayed as overweight, uncultured, ineffectual, emasculated, hapless buffoon, prone to violent outbursts, who is browbeaten by shrew-like, sexually wanton wife. The parents are verbally abused and rejected by their disrespectful, smart-ass kids, who lack even a modicum of discipline, civility or basic social skills..
Although we may smile at the sarcasm and overstated portrayal of family stereotypes, these create a lasting impression in the minds of millions who have no understanding of our cultural nuances and soundly reject what they believe to be American values and culture.
Larry, perhaps it is time for us to re-examine who we are, what are our core values and how do we want to be viewed by the rest of our world. Our economic future and security depends on the answers we find and the remedial actions that we must take.

Rick In Bali

in the state of florida,tax based union jobs suck up all the money.there needs to be a 20-30% wage cut across the board.all pay and benefits should be reverted back to pre bush levels.the obama handout is keeping these changes from happening.the only real construction is at mcdill afb.the military spending is everywhere.the benefits paid to public union employees is outragious compared to private industry.how can taxes from the poor pay for the union rich?the local governments are just another mini general motors.everyone knows these facts but will not speak out to protect their own bloated non productive state jobs.we need term limits and lobbyist restraints.retirement benefits for state workers cost 2 more jobs per current worker.healthcare costs need to be privatized and compet.

Larry,

About 80% od this deficit happened under Reagan, Bush I and Bush II when they cut taxes to thier wealthy friends, but didn’t cut government spending. We could go a long way to correcting the current problems if we reinstituted those taxes. Second, we need to reinstitute the Glass-Steagall Act of 1933 which was removed by the Republican Congress of 1999. In my opinion, that allowed the backroom financial corruption that caused the financial meltdown of 2007.

Two other points. I find it interesting that the last time the gap between the wealthiest and the average citizen was this big was in 1929, shortly before the crash. Secondly, I find it interesting how few people are familiar with the predictions of Andre Kondrotiev from the 1920’s. If your predictions of the next leg down between April 2010 and October 2012 are correct, I expect many more will become more familiar with his teachings!

I believe we should do what President Jackson did and he considered it his greatest accomplisment, he killed the bank. The majority of the American people do not realize that the federal reserve is not owned by the US Govt. but by wealthy European Bankers and Our Govt. Officals seem to play right into their hands. They also use the IRS to collect the taxes to replenish their supply of revenue. Both of these entities needs to go away and Our Elected Officials should be held accountable. I do not have a problem supporting My Country but God himself only asks for 10 % return from His people and there within lies the problem to much Ungodliness. And all whom lives in this Country should have pay something to support it .If taxes were at 10% Americans would not have the debt they have today thus helping them fulfill the American Dream and sustaining the economy.

As a first step why not require doctors to be recertified every few years. After all the average doctor doesn’t know as much about circulation as Olof Rudbeck (1630-1708 - the first anatomist to fully understand the lymph system) put in print over 300 years ago - and most of the medical problems that cost us money are related to circulation problems - s.a. heart disease (by definition), cancer (largely because of lymphatic system failure), and all sorts of diabetic related problems. In fact the 80,000 or so lower limb amputations Americans suffer (at up to $70,000 per) every year are mainly related to circulation problems that could be easily solved. I know because I have created methods and apparatus that have saved eight legs that the medical community had already totally failed on.

First of all I am trying to figure out if we are or will experience inflation or deflation. I think this is the biggest debate of our time. Once I determine that outcome I will begin to put my cash to work. Currently 65% cash 35% gold and silver. I would love to see you speak to these two issues.

Larry ,

I am looking for a position back in Thailand . Do you have anything for me over there ? I am 39 male background in Mortgage sales and auto. I have lived out there for 12 years but can’t seem to put together any type of work so I can stay .
Can you help ?

Rog

Get back Please

What are we doing to prepare for years of depression? (1) no debts (2) paid for home and acreage (3) large garden (4) investments structured to maintain buying power, or increase buying power, as USA suffocates on ever-increasing debt, and slow murder of our dollar. (5) critical thinking skills to filter the media/government BS from reality. That is about it.

Like every great superpower the world has seen for the past several thousands of years, arrogange, corruption, and greed surpass the once moral, fiscally responsible, inginuity and entrepreneurship of every great nation. Unfortunatly, we are no exception. We are rapidly becomming a socialist state, where indivdualism will be shunned and wealth transfer will be the staus quo. Our so called representatives in government are to blame along with a citizenry that has allowed this corruption to flourish. I fear we are to late to do much about this incidious CHANGE in our once great nation. Morality in everyday life as well as in business is looked upon as being naive or unsophisticated. Our wealth or earned money will be confiscated by the IRS and spread around to finance leftist programs that reward people that don’t work, illegal immigrants and big labor bosses. If I can, I will continue to purchase precious metals including, gold, silver, and also purchase foreign currencies. If I am still allowed to say, “God bless us all” we will need it!

We are in a bankruptcy mode in order to transition our present structure to Socialism. This is the change that was proposed during the election and all of the uniformed that voted for the present administratrion are responsible for it.

How do we get out of this mess? Socialism does not create wealth. Socialism re-distributes wealth in order to support the theory of an equalistic society. The only way out of this mess is to change the direction of our present administration and begin drilling for our own oil produced the USA. We are blessed with an abundance of enough oil resources to out produce our middle east enemies. If Amarica could build a military from scratch, strong enough to defeat Germany and Japan in the early
1940’s, It would be possible to drill and develope refinerys to get us out of this financial disaster.

The will of the American people is strong and will perservere in socialism or capitalism. The solution is here. Which do we want? The choice is ours!

We can solve our financial crisis in America by demanding our congressional candidates pledge to
stop reckless spending when the 2010 election comes up. If they will not pledge to stop spending and abide by Constitution of the United States, we must vote them out.
It is our responsibility to demand our elected representatives balance the budget, veto spending bills,
and uphold the concept of borders, language and culture.

Good thoughts Larry but why does there continue to be such demand for both short and long term Tresuries if there is no faith in the US economy?

We’ve definitely cutting back on spending, no longer buying big ticket items, buying only necessities
or things that our kids really needs.
No longer owning stocks except the vanguard healthcare funds, some etf that bets against financials, real estates and sp500. I see the economy will no longer recover without our govt. and peoples debt cut, If people keep borrowing and they can’t pay back will you as a bank lend them the funds? Any collateral? none…bec. they are all mostly borrowed beyond their means, govt is even worst, the spending they do is not their own money…we are paying for it. Our family is frugal and does not live beyong our means, its very unfair for them to keep borrowing without us approving it and worst is we have to pay the tabs, almost like someone stealing from you and you have to pay for it.

I found myself overextended and decided to do something about it. I can read my statements, unlike Congress and I NEVER signed onto some thing without reading the damn contract. Im well on my my way to digging myself out- NOT CONTINUING TO DIG DEEPER! If “we” are expected to bail “them” out of their frivolous spending, then BRING ON THE PITCH FORKS, and lets change a few things>

I am retired. I own Tips and many pre-ref munis. The falling value of the dollar makes our exports more competitive and will eventually help our economy. Sure the Chinese, the Indians and other Asia countries will sell off their long term treasuries. But the consumer saving rate has increased dramatically which in the long run may very well help the dollar.

I have stopped buying what I don’t need, increased gold and silver holdings, gotten into Claus’ Million Dollar Contrarian Portfolio and your FTA program as well as plunging into Martin Weiss’: World Currency Options, Million Dollar Contrarian, Crisis Opportunity ETF, and Safe Money Mr. Speculator Programs with substantial losses so far this year. Unfortunately I was only watching your recommendations in the first half of the year, but with what I’ve seen, your recommendations would have helped me to accomplish what I hoped for since beginning to invest following Weiss recommendations about the first of this year. I am wondering if the Weiss Group, who seem to be honest, intelligent, knowledgeable people can regularly update their opinions on what is going to happen in our economy, ie. inflation/deflation with best guesses as to “earliest”, “latest”, “most probable” dates (beginng and ending) for these trends to transpire as the government, and the Fed continue to “changes the game” with their bailouts, and destructive spending. Thank you, and keep doing all you can to help us survive this catastrophe.

Hello Larry. It seems to me that there is still not an awareness among most Americans that anything is fundamentally wrong. Alan Greenspan has received a great deal of criticism and blame for where we find ourselves. But I believe he not only knew exactly what was happening during his tenure, he also knew he was powerless to change anything regardless of whether or not he felt it was wrong policy. As long as this sentiment remains among our wisest leaders it will be difficult to change for the better.
Joe

You only have to look at Mexico in the 1980s to see the effect in 1986 of about 40 - 50% interest it had to pay for money and the effect devaluation of the peso had on its citizens. US and other expats built houses with the interest paid on peso investment accounts from US dollars they brought down. Inflation decimated the citizen middle class. There was no credit. It was a cash economy and frequently the medium of exchange was the US dollar even though prohibited.
If the USD deflates to nothing, US effectively cancels it’s debt, held in USD by China and other countries, and at the same time cancels all the wealth of it’s citizens, if held in USD in US banks. Also wiped out are the support systems, social security, medicare, pensions, credit. Do we go back to a barter system, survive by owning and trading physical commodities, only able to keep our houses if we own them without mortgages and can pay the taxes, develop a black market, grow a victory garden.
Cancelled is the debt, the wealth, and we start again. But we have to rebuild the country not just the financial system. We won’t be able to trade, so we will have to rebuild the manufacturing base and supply ourselves. Re-creating wealth will be the excess of production over consumption. How long will it take? Ten years? Those of us who are old don’t have that time, the health, to go hack out a new life from the ashes, with all support systems and all wealth stolen….There’s not much time to get a plan going… in the meantime we are being foreclosed and the banks won’t accept a short sale proposal of 3 months standing. What a way to end a lifetime of work… And where are the carpet baggers…

We should stop trying to save the world. Lets get out of Iraq and Afghanstan. That will save both lives and dollars.

Larry,

It’s obvious to anyone who is watching closely, here at home and overseas, that Obama’s wrongheaded approach and future plans are not what this Country needs! He will not change his mind and we are not so slowly going down the tubes. You hit it on the head when you said our standard of living is about to change dramatically! I don’t think the average American has a clue about this fact! What do we need to do to get their attention and how do we protect ourselves as individuals and investors? Keep up the good work!

Hal

Larry,
I think you are right. The dollar is doomed. My kids were getting credit card offers
in high school. It was crazy. We are finding out u cant run a economy on consumerism and
credit. The biggest cause of this in my opinion - u may not agree - is free trade not fair
trade which has been killing this country for years and still is by taking good paying jobs
overseas. How can we compete with countries that pay workers a fraction of what we pay
ours with no benefits and few pollution guards? Those people in Mexico who work in plants
taken accross the border still live in shacks. We need tarriffs to level the playing field in
wages and pollution control. If we dont do this our country will continue to lose jobs and
lower our standard of living. We have always had tarrifs since this country was formed
to protect our workers and raise money. If we dont start puting America first in our foreign
and domestic policy we are doomed.
RB

Why do you speak of the federal reserve as if they are anything more than who loans our country money ?

We have been advised for some time now to put a large proportion of ones funds into the relative ’safety’ of short term, insignificant interest bearing, US Govt. Securities. And, pay little attention to the value of the dollar. It seems time to get our head out of the sand before it is too late.
Now that the issues are becoming clearer and clearer, what viable and detailed strategies would you identify as a replacement for the ’safe’ mentality of short term US Govt Securities. Don’t necessarily limit yourself to dollar denominated vehicles. Thanks.

safety

Well all that I’ve got to say is BWAHAHAHAHAHA! It’s been about 15 years now since I wrote my treatise What is Money?, wherein I explained how and why fiat currency systems ALWAYS fail. Not one of them has ever lasted more than several decades. The current U.S. fiat currency is holding the record and it is highly unlikely that it will ever be broken, but that’s not saying very much for it. It’s like saying that Al Capone had a long streak of committing crimes. Or a serial killer murdered a lot of people. Yeah, so what? It was certainly nothing to be proud of, was it?
This fiat currency system is now on its last legs and will soon be relegated to the trash heap of history. Very few people with whom I shared my landmark work agreed with what I said, yet no one could dispute even one word of it! All that they could do was to bluster about how I was wrong, but not show any proof of where, why or how.
My researches into monetary systems and other things led me to what I call my two Magic Questions. They are; What is the EXACT AMOUNT of fraud that I am allowed to commit? What is the EXACT AMOUNT of fraud that I am obligated to endure? Without knowing what the limit is, how can we avoid going past it? There is not even ONE sector of society that you can point to where I cannot show you some amount of fraud going on. Not one. Which leads us to the only conclusion possible, that the entire society is based upon fraud and that is why it’s collapsing right before our very eyes. If you don’t believe me, go ahead and try me out. Give me just one example of where you think that there’s no fraud going on, and I will show it to you.
One of my favorite writing chores is to point out where people make mistakes in their thinking. I call it The Second Look.

Randy

America is bankrupt and will soon go into total financial collapse. The US continues to borrow trillions of dollars and add this new debt to previously-borrowed trillions of dollars. It is becoming nearly impossible just to pay the interest on this huge obligation. The situation is hopeless and this debt will never be repaid.

America must import 75% of its energy needs, mostly from its enemies. An economic recovery is impossible now that most manufacturing has been moved offshore. America no longer has anything to sell to the world, so it can only continue to amass more and more debt until the world no longer wants to finance its debt. That cutoff date is very near. After the cutoff date, America will begin selling off even more of its homeland to foreigners.

All entitlements, such as Social Security, Medicare and government pension funds will soon become insolvent. Banks will continue to fail at an alarming rate and the country will become more lawless. The US will begin waging war on countries that have loaned it money, in an attempt to cancel some its debt. Other lending countries will be repaid with worthless dollars after hyperinflation has totally destroyed US currency.

Individuals attempting to preserve personal wealth during the current economic disaster will achieve only temporary success. The entire global economy will soon collapse into total ruin.

STOP !!!
STOP all further legislation until corruption in Congress, The Senate and The White House is totally eradicated!

Wipe out the Zar concept by stopping all funding to them.

Return to strict implementation of the constitution limiting government to a very limited role as per our original foundation.

Investigate Acorn and any institution that violates our constitution and laws.

Marianne said: “Your comments scare me.”

Sometimes the comments are better than the article itself. It’s people putting in their 2 cents worth and if you can glean just one bit of information from the comments and put it to work, then the comments should be an enlightenment not something to loathe. Seeing what’s going on with this renegade administration is scary. The future of this country is scary. But fear immobilizes you, get the courage to protect yourself and your family.

…the problem is education (or lack thereof) …. and for this purpose, training does NOT substitute for education. That is, you can produce in your lifetime a billion widgets for wage, but if you’ve no time/inclination to read a book now and then…you and your way of life are finished. And if you over-consume, you have NOTHING to invest.
You save nothing…again..American marketing fosters that sort of thinking..know it for what it is.
IF you’ve got some time, take a look @ Mike Judge’s movie “Idiocracy”…very average guy who
thinks he’s got nothing out-of-the-ordinary going for him gets transported to the future where the population waters their crops with ‘gatorade’ (”Brawndo - It’s got Electrolytes!”), everyone sports slippery-looking synthetic apparel completely plastered with company logos a thick as a paisley, and you get your law degree from Costco ! The fruits of consumerism gone nutz!
HL Mencken noted : “Nobody ever went broke underestimating the taste of the American public.”
And that ‘taste’ is a function of marketing - “Buy now, save later” , “Buy American”, “The American Dream”
Dangerous thinking if that is the ONLY way you think.
When such a huge percentage of the American economy is consumer-based, you can see the problem.

What do you think the Canadian dollar will do?

Larry,
I’m not the blogging type, though your email invitation today was inviting.
I have been writing as many people, TV shows and other media since the middle of 08 with this suggestion;
Our government should be the first of many US institutions to cut wages by 30~50% over night for any wage earner over 150k. Then follow this by encouraging all media, sports, fortune 1000 companies, etc. to do the same PLUS cancel all bonuses indefinitely.
As a country we have not only spent ourselves into this crisis, we have also caused this crises by not having any real standards of compensation for our celebrity class tiers 1 & 2. Since the lower-middle class wages have risen well into the 150k range, and the middle and executive class have skyrocketed well passed 500k, many think they are rich and deserving of more riches. Well I say BS!
I can see that know one wants to admit that; our compensation system over the last 30 years it what caused this current crises. That’s right!
Think about it. In every aspect of American life (large corporations, all media (including TV, Film), sports, politics, banking/wall street, mafia, etc.) we have continually over paid our “so-called” best people. I first witnessed this 30 years ago when my management was openly admitting they were receiving a bonus back of 50% of everything they saved in the bottom line. Things such as toilet paper, stationary, cleaning supplies, etc. could not be purchased without management approval even though they were all in the approved yearly budgets. I experienced this time and time again even when I worked as a Chief Engineer for 2 Hollywood Film companies in late 1990’s. Bottom line; we broke our compensation system. And in such we broke both our humanity and our financial morals.

All we can do now is take many drastic financial steps to turn back our compensation system and regain some of our morals. Anything short of these steps will be disastrous.

What am I/we doing; Well not to much other than keeping a reasonable amount of cash & silver in a safe place where I can to it, min amounts of money in many banks, investing in BRIC (but not Russia, so BIC I guess) country’s, lastly just doing whatever serious expenditures now before inflation takes off………yes, and saving the rest for a very rainy day…..month…….many years…….whatever.

Dear Larry: You asked our opinion on how to get out of this economic mess — my opinion, “We the People” have to take over our government. We have to get rid of the CORRUPT politicians in Washington. That is the only way out. I am a faithful fan of Glenn Beck on Fox News. This week he will be laying out a plan on how to “clean-out” the thieves in Washington. Just look at the Tea Party march on Washington this weekend. Thousands and thousands of American people attended. I know one thing for sure, the majority of American people are downright fighting mad, including me and my husband. To answer your other question, all of our money has been taken out of the stock market and invested in GOLD. We did this one year ago. I am a subscriber to Money and Markets and appreciate all of your input. Sincerely, Alison

Thanks, Larry, for truth! We must accept the consequences for our foolish decisions, admit our no way out and ask for wisdom from above. America is now reaping what we have sown. This is a spiritual problem; as well as, natural and emotional. An honest biblical world view vs a world political view will help us gain the only sense of true peace that can only be found in a living relationship with our Lord Jesus Christ. Our real battle is with the false religions engulfing us. Prayer works, if we can hear the Lord’s wisdom. In addition, follow Larry’s team for the best natural investments. Not a sermon–just Truth as I know it! Stop being reactive and become pro-active as in Matthew 24&25.

America as well as England have chucked away there manufacturing base , relying on wall street &
the city of london to create prosperity along with house price inflation , it was an illusion we were so say in a service ecconimy . the only way forward is to start investing in green technolligy and hopfully
it will lead to some manufacturing , otherwise there is going to be millions unemployed for years to come, governmemt deficiets need to be reigned in to give the wealth creating parts of our ecconimies ie the private sector some breathing space to establish a healthy manufacturing base if possible once more , every thing is being is being killed by to much taxation and government legislation .

I’m sure you have heard the adage that, before a depression, 10% of the population holds 90% of the wealth. If you are a student of the last depression you know that this is what caused that one too. As painful as the last depression was, and I don’t advise another so severe, the only way to get money flowing again is to relieve the top 90% of some of their money. By denying them financial bailouts they are forced into supporting their own properties without the help of the populace. This causes a drain on their resources that eventually trickels down to the working class. And then the procees of the wealthy relieving the bottem 10% of their wealth begins again. By the government supporting the wealthy they are perpetuating the very thing that got us into trouble in the first place. I agree that some financial help was needed to stop a catastrophy, but the time has come for the fat cats to start feeling some of the pain.

Regards,

Arthur Faram

Dear Sir(s)
My solution, although not perfect by any means is to get people to focus on the deficits by imposing additional federal taxes (not income) but rather user taxes like we have here in Canada.
Your GDP is approx 15 trillion, Impose a Goods & Service tax of 5% on everything except grocery store food and prescribed medicines and hospital and doctor services. For lower income people your Government could rebate quarterly, based on prior years tax returns a percentage making it a “no affect”. The above should generate approx $ 600Billion plus
Secondly, the prices of gas, cigarettes, liquor, and wine, should be increased by both federal and state taxes across the U.S. and made equal to Canadian prices. This could generate another $ 600 billion plus, who knows the above additional taxes might curb smoking, binging and boozing, thereby helping curb medical costs.
I believe this would be a step in the right direction in getting yourselves out of annual deficits, like we did in Canada. We had surpluses for ten years in a row until your government botched things up with very low interest rates, all for the sake of the keeping the economy humming. Now we are now in deficit this year because of the U.S. mess.
Thank you for letting air my feeling about this serious situation we are in.
Regards
Dave

I believe physical gold is the only safe asset to defend ourselves from a crashing dollar. The unfortunate thing is that gold is not really very liquid. You cannot easily exchange it for food, gas, rent or even dollars.
The gold dealers are already gouging 15% on purchases and when the public start to redeem gold for spendable cash, the buyers will gouge even worse upon the sale exchange. You stand to loose 30%, or more, in the buy and sell of gold alone. Holding dollars will net the same result or worse. Holding foreign currencies might have less an impact with exchange fees for now but in the future, who knows? Furthermore, are foreign currencies stable?
I have given this inevitable crash much consideration but really have no idea what will be the best way to get through it. I have friends that have gone through two such events in Mexico in the last 35 years. I think it’s time to get their input on how they coped with it.
I’ll let you know what they say.

larry,
I work with common man in Los Angeles and most people are oblivious to what’s really
happening. But, I see unemployment increasing and many small businessess barely surviving.
If prices for imports go up, due to the falling dollar, and interest rates go up to keep capital
here, then things will get worse for the average American. The recent march on Washington DC
may be only the beginning, as healthcare is the least of our problems. What’s going on
with the tradewar with China? Is this just a minor scuffle, or the beginning of a long term battle.

Hey Micheal Clancy,

Interesting comments, but just a word with all due respect……………It is never too late for prayer, as you have suggested it might be. The reality of your statement might suggest that if you believe it is too late, then you likely have never believed or had faith in prayer or your God. That is too bad, but just for the record….God is still in control !!! He never said, life would be an easy road or that no one would ever get hurt along the way, in fact if you look at the history of Christ, you will find that his biggest and most challenging time of faith came at the end of his journey (by laying down his life). That being said, it might be a wake up call for all true men of God (those that not only believe, but are actually faithful in his word), to dig in and claim God’s words of promise for their lives and hang on, because God by definition cannot go agains his word. It is up to us to hold back antichrist as long as we can.

Regards

Richard Golany

Larry I read your report not because I have any money to invest ,but because I want to see what the men and women of the your position think of the future, even if I all ready know what to except. The bottom line I have excavating company,I have in the last year and half went from roughly 67 folks working for me to now 3! I had a contract with my expartner who decided that he know longer needed my help with the company and me being the kind of man that I am I let him out of the contract I had, later to fing out it was just about greed ! AH YES GREED see we can sit around and mole this postion our country is in untill your blue in the face but it really comes down to one thing SIN , now I can go on and on about some of the things that my family is doing to help in the postion we find our selfs in but you know what has helped me the most Praying yes thats what I said Praying to the God that created me you know the one that gave himself up to die on Calvarys Tree Jesus Christ what a friend we have in this one man, a man can never have to many friends, but a friend that would die for you WOW! now that is a friend. Now Larry I dont know about your faith and what you put it in but I can tell you acording to John 3;16 God loves everyone and the only way and I do mean the only way is through his Son Jesus Christ, my hope is that you have put your faith in this one man and if not you go dust off that Bible and get in the word becuase we know our time is short on this earth and what does it profit a man to gain the whole world and lose his soul and worse cause his family to go right along with him. Thanks Larry I hope to hear back from you

We have no ‘representation’. Our legislature and presidents don’t ask ME what programs, pork etc that I am for or against. Lobbyists have the representation. People who can provide the means for re-election almost single handedly.
I get form letters back from my contacts politely saying, “No”.
They should Audit the Fed, get the career politicians out, have line item veto. But all these have been proposed with nothing to show for them.
They say the demographics are the reason for the end of Social Security monies. But the truth is that the monies were “borrowed” extensively by Ronald Reagan through the Bush boys. “There is no lock box”. “it is just tax revenue”. Where I come from, if someone borrows without the intention of paying back, it is NOT borrowing.
Social Security was paid in good faith. Our legislators let this happen.
Credit ‘REFORM” LOL helped the lenders, not the borrowers. ID theft could be prevented if it were required to inform us at present and previous addresses of every application for credit. But the banks didn’t want the hassle.
If we try to leave this country, there is a 30% Exit Tax! The Patriot Act was not to keep terrorists out, is one theory.
We are basically financial prisoners and it took the Chinese to explain it to us.
Let the PEOPLE go through the budgets line by line and VOTE on what to keep and what to dispose of and Start Over!
Black box voting is happening, replacing paper trail, verifiable votes. Russian leader Josef Stalin said, “It is not the hand that casts the vote that has the power. It is the hand that COUNTS the vote,”
They don’t want gun control to help us. They can’t control the law breakers who have guns. But they don’t want us to be able to bear arms as the writers of the Constitution intended.

A lot to change

The process of debt buildup at all levels (public and private) have been accelerating for the past forty to fifty years. Now the chickens are coing home to roost. I believe that our leaders ??? and the American public at large have allowed this debt explosion get out of control. I can sympathize with those who are holding dollar based assets, especially currency, bonds, notes, etc. I am dismayed at the future prospects for my children and grandchildren in the USA. I do not look favorably on the other fiat based currencies as well. I say no more bailouts for anyone. Let the markets cleanse the accumulated excesses. We must reset our collective expectations and instill self discipline, honesty and integrity in our markets.

Do I think that this will happen in the near term? Hardly. At some point we will see an economic catalyst which will set off a chain reaction of events that governments and central banks cannot circumvent. We cannot contravene the collective impact of economic forces indefinitely. There will be a day of reckonong.

Yeah.It’s pretty hopeless.Due to the fact that the vast majority of Americans are short term greedy and long term stupid we end up with Obama Claus as our president.Just like kids believe in Santa Claus to provide them with gifts for free,most infantile minded American adults believe Obama Claus can do the same for them.There’s nothing I can do to stop idiot voters or about the U.S. continuing to decline except to handle my own affairs the best I can.Got Gold?Got investments in growing countries like China?Got commodity companies?I do.

And if you look at demographic impact on the future U.S. economy, our country isn’t going to get stronger, it is going to get weaker. 35% of all children are born out of wedlock (70% of black children). In 1948 3% were born out of wedlock. And 55% of children born are white, and 38% are black or Hispanic. I don’t want this to be a racist comment, but I would bet that these births are skewed toward the lower socioeconic levels, and as a result they are less likely to qualify for the more technical postions required for our economy to grow.

I’m Argentinian living in Buenos Aires and I consider myself a small investor and since my retirement I feel uncomfortable with the US Dollar performance. because a big portion of my savings are in that currency, but fortunately I converted half of my portfolio in Golod (bullion) to balance the risk. So far I was right.
In relation with what the American Authoryties should do with your currency is what my Country have done in the 80’s and 90’s. Forget about the losses and equalize
the Dollar to a real stable and solid currency. We did it in the early 90’s, 1 Peso equal to 1 US Dollar- Why not to go back to Bretton Woods? Is the only way to have a real back up for the mismanaging of your currency. But this has to be accompanied by a serious and long lasting public expenditure control and saving.
This is my modest point of view. Sincerely. Cesar Cerri

Push our government ………………….

LETS GO BACK ON THE “GOLD STANDARD”, SMASH THE PRINTING PRESSES and do away with MEDICADE and the SSI without a full 100% investigation.

If people can smoke, drive their cars, go to casinos, they can go out and work. These folks do not need SSI/MEDICARE.

JHC

I wish i did have a solution to this problem. I need a solution of my own. I have a 401k with the county of Los Angeles. How do I protect it or transfer it without quitting?

We hear so much about too much debt but I lived through the Great Depression and know that doing not enough is worse. I was nine years old in 1929. The banks and stock markets closed down without warning and this do nothing situation lasted for twelve years until 1942 when we geared up for World War II. My parents had no access to either bank account or stocks, unemployment rate was 25% and at that time women did not work, the husband was the only earner. All of the nay-sayers to government spending haven’t a clue to the alternative.

We should abandon this idiotic idea of wasteful spending on health care and cap and trade.

Larry,The United States government must cut spending and balance its own budget and do so on a yearly basis.If necessary a Constitutional Amendment must be passed demanding and enforcing a balanced budget law!The United States must devalue,which is already defacto occurring,and restore the currency to the Gold Standard as the Constitution and the founding fathers stated it should be.Our coinage should also be Silver as they once were!The Illegal&Unconstitutional Federal Reserve System(Private Central Banks)must be abolished and NEVER exist again in any form.Our money is to be under the direct authority of the Treasury Department who is to be directly responsible to the American people.Sound Money=Sound Government=Sound Nation=Sound People!Anything else =CORRUPTION of the HIGHEST ORDER!Sincerely,Robert Merryman

I am concerned as I am sure most of Americans are…my next concern is..if we invest in foreign market..wouldn’t that be like saying we have given up on America? I am retired age 68 yrs. my husban is 71.. If I invest now..how will I be guaranteed my investment will pay off either to us or our children?
I also think we as Americans’ should stand up for our country..it isn’t the America people to blame ..it is government ….of course we are responsible for electing those people to run our government…it seems to me that our government power has gone to far!!! Especially now…I as I am sure many Americans are concerned about the unconcern our president , congress and senate to do what is best for our country…paying the debt is not possible without some major resconstruction in our total way that things are done..if we give upon our country..what did all our forefathers fight and die for? I agree we waste a lot and take a lot for granted…hand outs are way over used…..it would take years to correct this mess…but…as an American who believes in my country…I don’t see how putting my money in a foreign country could help? Advise please….
Thank you

I don’t understand why some American’s are still infatuated with our New President. He hasn’t done anything good for this country since he was elected. He’s done more harm than anything. We have spiraled downward since January 20, 2009. He’s in our face every day and it isn’t talking to us about what is concerning us ..like terrorism or where our tax dollars are being spent or helping people get jobs. He’s so fixed on passing his Healthcare bill that he’s oblivious to what is happening in the rest of the US. His CZAR’s literally scary..no one knows what these people are doing. It bothers me that our elected officials aren’t screaming outrage over these CZAR’s..who are probably doing jobs that our Congressman should be doing. The People need to be outraged and jamming their phones telling them to Stand Up Now against what is happening in Washington, DC. We have by far the worst Congressman, worst legislators, worst government that we’ve have ever had in the history of the US. The people could do a better job. It’s time to FIRE them all and start again. We don’t need to wait until the next election….get 56 people with backbones in the White House to Stand UP and let’s stop them NOW!!!

Larry, America has to get rid of the Federal Reserve System, and replace it with lincoln green back type money system, with no interest charge for the creation of this money. The system that replaces also has to create just the right amount of money for trade and the money needs of the American people. To much or to little is not good. The way the system works now, we have to many ups and downs in the market place. This system has been used in our past history with good results, during the time before the revolutionary war and after the civil war. This system would have worked if it wasn’t for the interference of the banking click in London, England, which is the main center and power today today in the finances of this country as well as the world. The Rothschilds were for years the main power behind this corrupt banking set up, which is factional banking which they perfected over the last 2 or 3 hundred years and still today this day their run the same ponzi game on the peoples of the world. They want a world govt. and they are going to have by hook or crook. They have been behind every war this country has been in the revolutionary war. They were behind every scheme to hook America on this ponzi game called factional banking. They were behind the formation of the Federal Reserve in 1913. They are still in power and they intend to into a world govt and world currency. Larry type in Eustace Mullins and the Federal Reserve Bank. You will get several hits on google. There are videos that tell the true story about these corrupt people and their past. I ask you to view some of these videos and books. Eustace Mullins wrote a book back in 1948 called “The Secrets of the Federal Reserve” about 200 pages, you can read it for free on line just by typing it in on google. Just the other day in the freedom march in Washington D.C. at the capital building there were people asking to do away with the Federal Reserve Sytem. Congressman Ron Paul has a bill before congress HR 1207 to audit the Fed. He alread has over 289 congressman pledged to sign it. The Senate also has a bill to audit the Fed. It shows that the people are finally finding out the true about the past and present corruption of the Federal Reserve System. We need to boot them out of this country or hang them from the statue of liberty. Please send me an email on how you feel about this. Jack Faulk

I regret to say that most (all?) politicians are equally responsible for the absolute mess they have made of the American economy. The current situation is the natural result of the out of control spending in Washington, and their ability to print money without anything to back it up. The only answer is term limits for EVERYONE, and some fiscal controls.

From my limited understanding of history, this country started out with very little, that is why Franklin started printing money in the first place. We borrowed money to establish this country, we borrowed money to fund our wars and we printed money to fund ourselves. France, England and other countries and their citizens cursed their leaders for supporting us and now the same thing is happening in Asia. Can someone comment on this?
Ultimatly, the US will go on because of our capabilities and citizens, just like before we can and should print money as in the past because capital has dried up. This is a worldwide recession so I would not put my money anywhere else but in the US, except for Gold. To protect my family I invest in myself, who has a better idea? The Chinese? Come on isn’t that just a bubble that will burst too? This is like a financial chess game, one the US will ultimately win because of the genius of our citizens keep your money invested in the US and some Gold.

Yes, Larry, we are pathetic. I’ve watched us dig this hole of debt for the last 50 years
and I am still stunned by the per capita size of it. Have we no common sense? How do
we feel that a government can rely on foreign largesse to continue to live beyond its
means? Why do states have to live within realistic budgets but not the feds? When
we wake up it will be too late. I’m pretty depressed at the moment. I don’t see any
way we can correct this without 30-40 years of economic shrinking everywhere in the
U.S.

Thank you Larry!
What is currency anyway? It allows us to buy material objects and it helps us buy the necessities in life. You are a BIG proponent of watching the cycles. Isn’t this just another cycle and it too will pass? There is always someone yelling at us when the market is going up and when it is going down. Never fails. I say buy low and sell high and all will be well. Try not to get out of balance with the highs and lows of life.

I believe that B.Oobama should lead by example. 1. Eliminate all unneccessary jobs. The 30 or so czars. Their positions are already covered by cabinet post. 2. Cut salaries of all congress, senators, all the way to the president. Lead by example. 3. All staffers of the congressmen and senators will be paid out of the salary of the congressmen or senators. No benefits to the staffers and no retirement. All congress will use the same retirement of the american citizens. If it is good enough for us it’s good enough for them. All medical will come under the current proposed plan. All foreign aid will be stopped. Our soldiers in croatia, africa, and other parts of europe and asia will come home. No trips overseas for congress and senate, unless they pay for it themselves. No funding to any abortion. It will be a good start.

Thanks for taking this mess a step away from theory and ideology and moving to a personal experience level, because that’s where we have to work. Right now I am focussing on commodities and companies outside of the US and trying not to get locked into just that bias.

What probably scares me most about our present situation is that we aren’t really talking and listening to each other. Recently I have found myself looking at who the author of an opinion piece is before I read it. Is he one of “us” or “them”? Wow! Now that is dumb. It feels as though no matter who proposes something, nearly half the population is going to decide it is wrong or, if it seems to make sense that it must be a trick.

Maybe all US citizens should have to have some experience trading. If that doesn’t teach to you listen to what is being said (especially if it doesn’t seem to make sense or you don’t like it) and not just what you believe ought to be, nothing will. How many of us have trouble with that old old truth that the tape never lies? (My hand is up.)

If the trade isn’t working, get out! Pound your fist on the table and shout about how it should have later.

Now the only problem is, how the heck do we get out of this financial mess we are in long enough to clear our heads, settle down, and look at the opportunities afresh. I do believe that there are always opportunities sitting right out in plain view in the markets and in life. It’s just that we get so set in how it is “spozed-ta-be” that we can’t see them.

Do I see something that everyone else is missing? Alas, no. Right now I am afraid that I could be standing right on top of a huge opportunity and be missing it in the tumult and shouting.

As one with little to no debt and who always spends within my means, it is clear that credit-responsible Americans have been screwed. I’m not surprised that the Asians are laughing at us.

Recently read the comment that Obama’s spending spree – in current dollar terms – exceeds the spending for 1) Louisiana Purchase, 2) the Apollo Program, 2) the Korean War, 4) the Marshall Plan, and 5) NASA combined! Didn’t believe it, so did the calculation myself – and it is correct!

Moreover, the unfunded government IOUs you mentioned for Social Security, Medicare, and Federal pensions amount to nothing more than a massive ponzi scheme. If these programs were actually funded, they would consume the vast majority of each year’s budget. Maybe this is why more American believe in UFOs than in the viability of Social Security!

Our administration now tells us that they will “balance the budget” in a year or two (or three?)!?! What does that mean? Is there a plan in place to fund these IOUs and pay down the debt? Of course not.

But, we can’t blame only the current administration. This problem has been in the making for decades and has been facilitated by Democrats and Republicans alike.

What we can say about this administration is that it truly does not seem to care. In fact, Americans who are worried enough about this mess to protest are being ridiculed by the White House and Congressional leaders as “mobs,” “Nazis,” “un-American,” etc.

Good morning Larry. I read you regularly because you make a lot of sense to me. My wife and I are both retired, live modestly, and realize that, in addition to our pensions we must grow our IRA’s (with gold and energy - userx and pspfx mainly) to supplement the horrendous inflation I fear is ahead of us. We’re hoping to continue our modest, but good, life realizing the wheels could come off for all of us with the out of control spending taking place today. Mimi (my wife) grew up in Panama as a Canal brat. We go down there every year or so and have considered moving there, at least part time. We have no health issues at this time (ages 70 and 65), but realize a health catastrophe could bankrupt any one of us.

Keep up your good work, and thanks.
Howard

WHERE TO INVEST: Ok Larry, what is a safe currency to hold one’s bank account? You mention Canada, Austrailia, etc. - please give some recommendations with reason for such. Thank you! Don

Larry,
We are past being concerned. We, US citizens and all gov’t from city to Federal need to grasp the fact that you cannot spend what you do not have. I don’t think this will happen in my life time. The only goal of our elected politicians is to say what the “entitlement” people want to hear and get their votes to stay in power, and the US will go down as a second or third rate country - Broke Financially. No one had the economic guts to stop the sub prime mortgage business. It was fueled by GREED and STEALING. At 70, I am almost retired and have accumulated some retirement money. I hope that as the years go bye the money will last enough to get by, in this continuing declining value and confidence of the US $ buck. I expect that our “ecomony’ to keep spiraling down into a real depression and I do not expect our “economy” to recover for at least 10 years. Meanwhile I will try to spend more time at my cottage and burn wood in the wood stove to save on nat’l gas.The future for all of us and our grandchildren is BLEAK!

I vote that us consumers and our government cut back on spending. Yes it will hurt in the short term, but doing so will help us recover in the long term. I am cutting back on what I spend. I will no longer get another credit card for as long as I live and will shred my current one once I am done paying it off. Now the big question is can we get our government to lead by example? From what I’ve seen of our government that answer would be no. Our politicians stopped listening to the voice of the people a long time ago and are only in office for themselves. Economic growth occurs by using productivity and innovation in the private sector to create wealth for ourselves and to cover the government’s operational expenses of providing for what should be the governments only roles in our lives, facilitating this productivity and innovation in the private sector and providing for the defense of our nation against aggressor nations. And economic growth is sustained by using the fruits of our labor in the private sector wisely. Yes switching from a spend-thrift society to one that lives within its means will be difficult at first but it is necessary if we ever hope to rescue our economy from the spendthrifts.

We need to become completely energy independent before we even think about doing anything else. We must reverse the insane path our current administration has embarked on. We must drill for offshore oil, and begin to ease other WORKABLE sources of energy into the mix. There is a coming revoluion in electrical storage devices that will reshape the way we deliver and store inergy in our homes, and this cannot happen too soon. I am talking about the storage device bein gdeveloped by Ceramatec.
Following this fundamemtal change in economic policy, there must be some sort of tax code changes which would allow and promote savings and investment like we had in the seventies and eighties. Those policies allowed for a huge increase in business activity, which will happen again if we reenact them, or ones similar.
Our economy is an emgine that cannot be stopped, once it is fueled and running. The present climate of overgoverning and choking the economy must be stopped. Can anyone say 2010?

A highly respected financial columnist, writing in the Globe & Mail Report on Business, put forward the case for the American Govt. in effect “stealing” the money to make good on its debts. He stated there is abundant precedent for this, and, while it took my breath away I suspect it might have some merit. Of course the “theft” would likely be highly disguised (it seems to me at least) to the extent that even naive advisors and commentators could well miss the implications. I have no taste for conspiracy theories but considering the magnitude of the dilemma and the ever-enterprising nature of the U.S. financial system to rule something like this out would be very dangerous. I read widely in the financial press and find your columns among the very best.

The American people have to first take their country back from the federal polies in DC. The polies have absolutely no respect for their constituents except for one day every two years. The only way to take our country back is starting in November 2010 do not vote for anyone whose name is incumbent. After two or certainly three elections like this our elected “representatives” will start to take notice and we the people will once again become the masters instead of the other way around. Civil Servants (by the way are no longer civil or servant) need to relearn the lesson that they are there to serve the people and not the other way around. Only once we again have the ear of the polies will things start to change.

However, there is an inherent flaw with the one man one vote style of democracy. 50% or more (realistically 60%) of the people in this country pay little or no income tax yet they have the same vote as Messer’s. Gates and Buffett. Our politicians pander to these people by offering them the sun, moon and stars to secure their vote. These people will vote for whomever offers them the mostest without any consideration of the candidates qualifications. Therefore we don’t want term limits, we want one term only polies of say 6 or 8 years and then they go back to real jobs sans medical and pension benefits just like it was 235 years ago when this country got started. No re-election, no pandering to the masses, big business or lobbyists or at least not nearly as much. But since the polies are never going to vote themselves out of the cushiest job in the world, we the people can impose term limits with our power of the vote every two years, BUT WILL WE.

As for the second part of your question, I have taken adequate steps which I do not want to put down in print. I think my future is safe thanks to my frugal life style and 60 years of saving and investing. However, the government is all powerful and can confiscate everything I have, or make precious metals illegal again as they did 75 years ago, or redesign the currency and make all the currency over a certain amount in mattresses worthless, or any number of things. Just remember, “a government that is big enough to give you everything you want is powerful enough to confiscate everything you have”. When people fear their government that is called tyranny. When government fears the people that is called freedom. This citizen for one fears our ever growing larger federal government. And I fear there are many more just like me out there.

The one thing that is undeniable is that we are still a great country with
great companies—-we can come back from the most extreme depths as we have proven over and over again—we need the government to work side by side with the one product that is undeniable—-our ability to procuce so much of what the World needs—-WAKE UP WASHINGTON AND GIVE THESE COMPANIES YOUR BEST EFFORT—REDUCE THEIR TAXES SO THEY CAN GROW AND DO WHAT THEY ARE CAPEABLE OF DOING CREATE THBE PRODUCTS THAT BENEFITS US ALL

The USA needs to be ruled as mandated by the US Constitution and not by corporate influence. The USA is a republic that is suppose to rbe un by elected public servants representing the people NOT by corporations that have lobbied and influenced Congress. The Federal Reserve Bank needs to be abolished and replaced by a national bank. The assets obtained fraudently by Wall Street and the like need to be confiscated and the perpetrators prosecuted.

I know America is under vast economic strain,yet I just can’t see America giving up its hegemonic status.Will it be another wash,rinse and repeat,who knows?Yet the American leadersip supposes the acquiescence of China et al,is this too much to suppose?The figures are truly astounding and something has to give,yet I can’t see it being America.

Impeach the President and all that back him. His is destroying our Gov. Lived through the last depression and we worked hard to have what we have now and he is going to take it away from us. The American people have to learn how to save and do without all those fancy toys. Somewhere along the line they weren’t taught that if you don’t have the money in the bank to write a check, you don’t write it. Very simple.

Larry,
There is no solution to this except a very steep decline in US standard of living and issuance of an entirely new currency. The American consumer will no longer be the driving engine of world economic growth and the export economies of Asia and Europe (e.g., Germany) are going to suffer enormous difficulties as they try to rapidly restructure and make up for this huge loss in their export markets. The economic lags and bottlenecks inherent in such an enormous and unprecedented worldwide readjustment cannot be predicted. However, one thing is certain, US preeminence as the world’s largest economy and sole superpower will end, resulting in an enormous void in the world’s geopolitical / geoeconomic structure. This in turn will lead to a realignment of that structure, with all the dangers to world peace inherent in such an enormous restructuring. China will surely assume a much more dominant role, as will the EU and Russia. The US’s historic relationships with Europe suggest, but by no means assure, that militarily speaking the EU and NAU will remain the preeminent military block, but the EU will be the prime shot caller, not the US.

This is actually a rosy scenario. There are much more pessimistic scenarios including one that suggests huge civil unrest and conflict in the US as the loss of wealth and power on a national and personal basis causes an enormous armed reaction against the Federal goverment and its destruction of the US economy over the past 20-30 years.

Joel

Dear Larry-I have a dilemma of my own making as I was not able to watch the markets closely because of illness. I didn’t sell several inverse ETF”s when I should have ,particularly SKF and I am holding them because I would lose alot of money if I sold them now. As the economy gets worse do you think they will rise in value again? If you have the time I would really like to know your thoughts on this important problem I have. I have been following you and Mr. Weiss for several years. Thank you for e-mailing me back if possible. Sincerely-Gloria Austin

Larry there is much good advice given by your readers. Unfortunately we have passed the point of no return. I am sorry to say that I don’t believe anything can stop the demise of the dollar and a greatly reduced standard or living, not uniting with Mexico and Canada, not coming up with a new currency, not even going back to a gold standard although that might help, impossible as that seems to be at this point. HOWEVER, that being said, we can slow this train wreck down so the disaster won’t be totally destructive. Congress is the one who approves or vetoes the grandiose schemes that are adding to our debt, from health care reform to energy restriction and a thousand other things. Only a replacement of 90% of the 535 people who now rule our country can slow down the crisis of the millennia. The cause is corruption, greed, and debt and most of those 535 are spending us to death with no concern of the chaos they are causing. I warned about derivatives and the coming Greater Depression (although I believe it was Doug Casey who invented the term) in my autobiography three years ago. My latest book, “The Last Days of the Late Great United States,” is not a best seller but it is the best I know. Democrat or Republican makes little difference if we are not first American. I only hope the crisis that is coming won’t be blamed entirely on us or we truly will be the laughing stock of the world, because when the dollar dies, it will take the world with it, and until a new alternative world currency is established (and it WILL BE be gold backed as our money once was - probably a Chinese or Arab currency) well, before that happens, we will see changes beyond what most can even conceive of. It is not totally hopeless but the future is going to be more different than I can say here. Prepare for change (as the president likes to call it) on a scale never before seen in this country and probably the world. There is hope but only if everyday Americans wake up and get involved. Several hundred thousand have left the US hoping to find a better life elsewhere but what is coming is a global change on a scale never before seen. This may not be next year or the year thereafter but it is coming. I think it is better to stay and fight for one’s country, because once the world currencies collapse the world will not be a better place. It is not hopeless but a time of great change is coming, and not all of it is for the best. Those who can trust in God will have an edge that others will not. Carpe’ Diem, we may not have many left!

I suggest that all countries adopt an international currency based on “work”, It’s units would be any of several, ie.: Kilowatt-hours, Kilocalories, horse-power-hours, you name it. Once you have found the price in “currency” for an energy unit you can make the conversion. Prices will still vary from place to place, but we would all be using the same yardstick. How about it!

God, gold & guns… and don’t forget the silver bu!!ets

I am 83 years old and have a decent amount of money in IRA’s & liquid, low interest cash accounts. However, I am worried about what inflation will do to my dollars in the few years to I have left. I have never invested heavily in the stock market and am reluctant to do so now, prefering safty over risk. However, I have considered gold bullion or foriegn currency. What is your feeling on either and what do you perceive to be the strongest foreign currency.

Everything the government undertakes is on a large scale,and without polite projects. To assure what we are atttempting, is going to be practical and economically sound, this is a must. Remember once a government project is put into place, you can’t get rid of it. This in itself is financial disaster.
Secondly we have to many representatives, there is need for only 2 from each state. Even that may be to many to agree on anything.
Most of our elected officials lack the qualifacations necessary run anything, but their talk and rhetoric sell a lot of crap. (pardon the expression)
Politicians should not be allowed any pay raises, health benefits, or retirement, until the balance the budget.

I cant see any other end than bankruptcy. Get it over with and start again ASAP. The longer we wait the more difficult it will be and there will be less assets on which to base a new start. By calling “a spade a spade” the people will feel cleansed (like confession); they will see and feel a new awakening and perhaps work harder with renewed spending and saving habits that will give USA a new sense of integrity and a new beginning. And due to the learning experience, a new and stronger America.

It’s too late!

I’m saving as much as possible, while paying off certain debts, and investing primarily in silver, and some gold.

As a country we need to heed much of what rep Ron Paul has been saying for years, cut foreign
aid drastically, bring large numbers of our military home, especially by ending the war in Iraq, and our policing of the world, seriously begin rebuilding our infrastructure in America, support private enterprise/small businesses thereby creating jobs, close the boarders, cut way back on entitlements, especially to non-citizens, start investigating where all the so called bail out money went,
audit the Fed, and start prosecuting the criminals in Washington, and Wall street, just for starters.

This would take God doing something miraculous, although I think He has already given America up, to it’s own devices, since it has turned away from Him, again, and again. Read Romans 1:18-32

Dear Larry,
This is a very complex issue with origins in our economic culture. One aspect that is disturbing to me is the “quota culture.” Quotas are every where, either explicitly or implicitly. If we don’t make the quota, we are out. So, in order to make the quota, we will do whatever it takes.
The IRS turned into a corrupt agency because of the quota system. Many marketing/sales persons are fired for not making the quotas. Politicans are out if they do not make their vote getting quotas. We have a quota on inflation and play with interest rates to hold it back. We have a quota on mortgage initiations, so we get creative in configuring products people will not be able to pay in the near future. We have to have an increase in GDP, a quota, to do this or that.
Now, please consider that a young economy has room for those quotas. But a mature economy hardly has any space for growth. If you push a mature economy, like ours, with a growth quota, you will have to toy around with some variables that could eventually haunt you.
Think: How much of our recent economic growth, measured by GDP, has been “pushed” by government spending with borrowed money? Until when? I think time is up!
Take this example - it’s a beauty: We have reduced inflation by importing foreign products. But that’s only short run. For the money we sent out to purchase those products is coming back in the form of loans that are racking up billions of dollars in interest - every year. So our original savings have gone or are going down the drain - and getting us into more problems. Ah, but there was an implicit quota in reducing inflation!
We must stop meddling with our economy to make it work to our wishes. We must leave it alone. Our free market economy has built in inmunous qualities that allow for self corrections without our short-sighted interventions. Economic growth must take place naturally; must not be pushed with quotas. We must live within our means and stop thinking we can print our way out of evrything. It may work for a shortwhile; but in the end, we will find ourselves where we are today - practically broke and pushing harder.
Mario E. Porrata
Puerto Rico

I agree that we are between a rock and a hard place. Even more, I think that the current administration is beginning to realize that its unfunded mandates (Social Security) is about to run out of money in two ways. On the one hand, the number of older americans who will start drawing on SS is increasing rapidly and those americans become of the age to draw on their social security (62 years of age)–too rapidly for the system to handle it. On the other hand, the administration realizes that they “pot of money” they have been using for all these years by just putting in “IOU’s” and taking out funds needed for special programs is drying up.

It is now the challenge for Washington to find a new source of funds (pot of money) on which they can draw using IOU’s and which can also be used to “back-up” Social Security. That new “pot of money” is going to be the health care funds. By taxing everyone for healthcare, they can establish a pot of money that will work the same way as Social Security for congress– putting in IOU’s and taking out funds for what ever they might need the money for. In addition, if Social Security begins to run short of funds, they can easily transfer the money from Health Care pot to the Social Security pot of funds. Thus, keeping the game going for another 10-15 years. Only trouble is, our creditors can see it coming and won’t lend us $ unless they get a really high rate of interest. It is at that point that I hope the “Safe Money Report” and Weiss Research will begin to guide us on investing in bonds and fixed income investments. At that point, it will be the only game in town. No one will invest in stocks and the stock market becuase business will be down the drain in the U.S.

Tom

Reinstate the limit on the federal deficit AND sell bonds to citizens, as the war bonds in the second world war. We the citizens can finance this thing if we can stop incurring debt. Tell me what you think pls.

Hi Larry,
I feel I know you very well—watch/listen to all of your reports . Did not leave my last name on purpose—have been accumilating gold bullion for years ( some platinum and silver)—as I knew this day would come.One cannot spend more than you make, and this includes GOV. at all levels. I have ZERO debts, except ongoing month -month-expenses.Because you spend a lot of time Asia, you know what you are talking about.Thank you for this excellent,but worring report,and the best of luck to you.
Denis

We need changes in the administration and Congress. With all the foxes guarding the hen house it is impossible to correct anything. We need to replace Bernanke and get someone sensible to run the Fed. We need higher interest rates so banks will pay a decent interest and give people incentive to save something, and also to strengthen the value of the dollar. We also need to stop derivatives gambling, or at least confine them to Las Vegas. We also need to disallow short-selling, as this has undermined many a company. We need some tariffs to protect our jobs from disappearing. But we have been sold out by a corrupt Congress and administration. They will do anything for campaign contributions, which are in reality just bribes.

Larry,

Great article!. I am aware of our huge government spending and have been trying to benefit by it. But I am not doing that well, I purchased TBT, GLD and UDN. Why is TBT not performing? Are there any stocks and or ETF’s that you would recommend?

D J

Larry to begin with, we must place a moratorium on immigration both legal and illegal . This third world immigration is wreaking havoc on our education and health care system. Next we must reduce spending and the first place we need to look is our foreign policy. We have troops stationed in europe to protect europe from whom ? We have troopps in Japan as well. The war was over 60 years ago. It is high time we pull out and let the Japanese defend themselves . These are issues that cannot be ignored . We were lied into a war in Iraq and we continue to fight in Afghanistan . Our security was threatened on 9/11 because we did not have control over who was coming into our country . Clearly we have the ability to monitor and refuse entry to suspected individuals. We must enact E-VERIFY so that employers do not hire illegals which will force the illegals to go back to their home countries. These issues are our number one priority because if we aLLOW OUR COUNTRY TO BE FLOODED WITH THIRD WORLD IMMIGRANTS , WE WILL NEVER MAKE ENOUGH MONEY EVEN WITH YOU GREAT INSIGHTS TO SUPPORT THEM AND OURSELVES. Just look at California !

Largely it is our political system that is at fault. Our leaders didn’t do their job! They didn’t cause CDOs and various financial vehicles to be rated properly while it was completely known that this was going on to all involved. Hence our pension system is now half its prior value. They have been promoting spending thru debt, along with all other world leaders for 70 years. Meanwhile we have given away a large part of our manufacturing base and potential income for a borrow and spend economy.

We need to cut the corruption between politics and money.
We need to stop all lobbying. We can pay for expertise and training of congress as needed prior to voting on laws and debates.
We need to stop all campaign funds and opt for fed and state funded campaigns under completely new rules where political figures don’t set the rules. Do all campaigns in one month on TV in debates where political figures must answer questions or get removed from competition.
We need to vote on one law at a time so that we voters can understand how our elected officials are voting.
We need to start by removing all current political figures to get the message across, probably this would be done best through non traditional political party politicians.

We need to overhaul our political system and cut the known ties between money and political action.

There is so much corruption in our system, through money connections, that its no longer working for the people.

I am worried!

There is only one solution - the Americans should sell all the land west of the Mississipi to the Chinese.

Larry, I could not agree more with your analysis. The US $ is heading south at a pace that will economically kill most americans before they have a clue.
We are doing the following:
1. raw land and one house.
2. cash.
3.silver coins and small gold bars.[howver, the majority is in SLV and GLD]
b. oil stocks
c. reverse etf’s on the dow, financials, consumer and interest rates.

I expect to invest even more into commodities, and asia.

I hate politics, am semi retired and want to see this economic disaster stopped. I believe we as a country should not move into another new world currency, but should take bankruptcy, re-issue new money based on gold and silver. Gov’t should not be allowed to spend more than we take in, be restricted to enforcing laws, contracts, infrastructure, and national security. Stay home and protectect our borders– add a flat tax and decimate the IRS, Federal reserve, social security etc.
We should stop being a nanny state, Stop imagration now, kick out all illegals immediately and expect families and the churches to handle well fare.

We must bust up these huge international corporations, bring our jobs home and move people into homes that they can afford. [it seems we have a lot of empty ones out there.]

Other wise, see you under the bridge, bring your own cardboard box..

Given the weak school curiculum in the US, where no financial education is taught in elementary schools, it is to no surprise that Americans live so far above their means “Monkey see, Monkey do” Goverment spends more than it has, citizens emulate the example. Credit needs to be much stricter. No one should be allowed to purchase a home with less than 20% down payment. Credit cards are NOT to purchase things you do not have the cash to pay for. Credit cards are for emergencies NOT SHOPPING SPREES!!!! Get it??? Save your money, invest it well and if you want something buy it outright. Over the years I only bought things at deep discounts. YEs I shop at Ralph Lauren, Brooks Brothers, and J.Crew, but only when a sale is going on. My kid is the best dressed in school, I buy his polo Ralph Lauren on sale in advance for the next year. So, you can have your cake and eat it too. Simply put: first tule: Save, Second rule: Buy what you like at dep discounts if you need it or if you can pay for it with cash, Third rule: Do not buy on credit!

Thanks Larry,

The only way to protect myself, and my family is to get real money and needed resources.

It’s a very sad day for America. We are in a trap that would take more than a decade to get back sustainable recovery. May God help us.

I was holding a lot of cash for your predicted decline in stocks. Since that has not happened I am looking to get into gold and other commodities but not sure I should risk too much in commodities due to history of volatility. So where to go for safety and growth is hard to decide.

I thoroughly enjoy Money and Markets no-nonsense, tell-it-like-it-is approach to economics. Well done.
As for all this American debt and endless deficits, one can only shake his or her head in consternation. I understand much of this pattern began in the Ronald Reagan presidency years when (to paraphrase) he said that DEFICITS DON’T MATTER. Such arrogant stupidity!
Well, the chickens are coming home to roost, aren’t they? (If I believed in mythological deities, I’d say GOD HELP AMERICA — and, by extension, the rest of the financial world.)

In my house we are carrying no debt. We have no mortgage. 66% in cash.(soon to be mostly in commodity based currency) Mostly following the investment suggestions of you and Martin and Claus, with the portfolio. (with an occasional flyer of my own). No losses in the dot.com debacle, no losses in the real estate/banking debacle. My hats off to you gentlemen for your sage investment and non-investment advice.
I’m afraid the term, common sense and moral decency has mostly disappeared, in meaning, from the culture. Without a sincere return to the fundamentals of these two things, the degradation of our country will continue and it will end up on the trash heap of history.

Larry,

First of all thank you for telling the truth.

Secondly, the U.S. Govt. needs to immediately reign spending on whatever it still has control over without destroying the internal economy of our nation. The first thing that needs to happen is that we need to stop all Bailouts and audit the FED - find out where the money went and prosecute if necessary - that will send a good message to our foreign investors. Secondly, stop all foreign aid and pull our troops out of all foreign nations abroad including Iraq and Afghanistan - the empire building needs to come to an end. Our military should be dedicated to defending our people and our borders. Next all illegal aliens within the nation need to go - enforcement against infiltration and identification of those here illegally needs to be be vigorously moved forward - stop the obvious social services to those who are here illegally - provide them a one way ticket out of here! Next we need to face the obvious as you have pointed out to us - we need to reduce the size of our Federal government to the most basic essentials; defense and law enforcement. All of the Social programs need to stop immediately with the exception of those provided to the most helpless among us - unemployment needs to be phased out over two years. Those who are now receiving Social Security need to be cashed out - a one time payment based upon their remaining estimated life. Next all Social Security deductions need to be gradually phased out over say two years utilizing the payroll deductions to provide for the buy-outs. Next the Income Tax needs to end - substituting a sales tax on all things besides food - including Corporate Income taxes which would encourage investment by foreign corporations and produce jobs for our people - tax consumption - not production. That would require a Constitutional Amendment which would now pass easily. In addition the Federal Reserve needs to be abolished - the Treasury needs to print the money - get the private Banks out of our Government. After the FED is abolished set up a 30 year timetable for paying the Banks back for the irresponsible spending our “Leadership” in Washington has burdened us with. Next we need to immediately(as fast as we can implement) convert all gasoline driven automobiles to run on natural gas and follow T. Boone Pickens’ format for unplugging our energy dependence on the Middle East as fast as we can. The supply side needs to be worked first - we need to grow our economy by removing taxes and ignorant regulation that prefers snail darters and “endangered” species over the interests of people - leave it to the States to regulate Commerce - abolish the EPA. Next we need to make it illegal for the Federal Government to balance the budget - Government borrowing becomes illegal.The war on drugs needs to end but be confined solely to internally enforcing the laws against illegal drugs inside our borders and showing no mercy to foreign gangs or drug dealers. We need to develop clean gasified coal technology and become a net exporter of energy to the world. The subsidies for corn based ethanol needs to end - if it can stand on it’s own two feet go for it,if not - let it die. The export of our intellectual capital and jobs needs to end. Goods imported from China or anywhere else including energy will have a tariff - they will pay rent for selling in the Mall known as America. If trans-national treaties have to be ended - so be it.

These ideas have been out there for years - they would work if we had enough courage in Leadership in Washington to do it. Unfortunately we have self serving Politicians who will not stand up for our people and our nation - career politicians that will not take any risks for the benefit of our Nation - selfish individuals who care only for themselves and their next scheme to fleece the electorate.

Thanks,

Bob Williams,

Valdez, Alaska

As a true contrarian, I am expecting an imminent strong rally in the US dollar, certainly before year’s end. When this many people are against something, that’s a signal for me to take the opposite stance. ( P.S. : I don’t owe anybody a dime, never even had a mortgage, paid cash for my house, never lost a dime on the financial markets, retired early. That’s what a contrarian can achieve. )

The Govt needs to stop spending as of yesterday.The market needs to crash.We need to build a manufacturing base.Number one priority is to strengthen the dollar.let the banks fail.Give the $ back to the people.End the FED! We might be to late.

looking forward to reading

Hi Larry. I like hearing your bird’s eye commentaries from asia. keep up the good work.
I subscribe to elliot waves asia forecast, so Ive been looking at the various indexes for each country. I dont see the specific elliot waves the same way they do, I have my own ‘vision’…. but it helps me to get some overview.

As for the crashing dollar..I think it’s a tricky balance thats going on, and will continue…. controlled by the central banks and governments orchestrating some plan that the public is not allowed to know ahead of time, so we can only guess…but this balance involves letting the usd decline so that the us markeys rise…thats important to us investor confidence,that the us market doesnt crash again like last year…. Any decline in the us market right now, MUST be kept under control and Held at a support level no lower than the august 17 low,….I want to say, the july bottom, but I sense that any major movement down to the july bottom, would incite investor Panic, and the government would have another bigger crisis of confidence on its hands…so I believe that these issues, totally manipulated and controlled by the governments and central banks, goldman sachs at thr trigger, etc…. will be orchestrated as they intend to do….I believe , for the present time….we will see a top in the market by the end of this week….all markets…sept 17
and next week beginning some sort of ‘controlled’ correction,zig zag more sideways than sharply down….but depending on the country in question, all markets correcting…some a little sharper than others….but probably holding at the august 17 low,or sept 2 low…. followed by the next wave UP heading into october 1.
I understand your commentary was about the real life value of the us dollar, and that means something….I’m not sure what exactly.
My outlook as I analyze the charts…is that at some point in this Balancing Act, between the dollar (down) and the market (UP)….they will reverse the process, when they believe the market is ’stable enough’ to engineer the next correction….and then we will see the us dollar rebound back to a median zone…which my analysis says is around EUR/USD 142 area. 140 to 143…140 to 141 as a benchmark median zone.
The australian and canadian governments just mentioned that an overly strong audollar and canada dollar is Not good for their export economy…. they dont want it out of balance either. Its all a Balancing act.
I look for a major reversal in the usd,bringing it back to the 141 area,but maybe gradually in the next month, slowly, in waves that dont scare the public or incite panic in the markets.

this kind of sideways sliding down is characteristic of a 4th wave. many indexes are in a 4th wave set up now. finishing either a wave 3 or wave 5,or wave A up, looking for a wave B down….so I expect to see a ’surprizing’ us dollar recovery in the coming month,or two.

I’m curious as to your outlook on asian markets now…. they all look like theyre about to correct down a bit….but setting up to move forward strongly in the new year.if they HOLD at the recent lows.
and just remain stable for the next few months.
kind regards,Thomas

I’ve called my representatives, I’ve written turn around ideas since 2006 and the politicians ignore everything. I’ve even written plans for input to the Heritage Foundation. Nobody was listening! Its as if they have a PLAN to destroy the country with the greatest of haste. Part of NAFTA plan???
Everything they do is opposite to sane economic sense.
The erosion of constitutional rights, all the things that other countries did to seize power are being done here.
All of the G8 countries are using some form of quantitative easing in other words expanding the money supply so relatively we are all debasing except we are debasing faster. I suspect that when the treasury sells bonds that there are not enough buyers as foreigners are running away from us, so not to be seen as having a failed bond sale they have made back room deals to have them all bought and the government then buys them back giving some bond buyer banks commissions both ways. So where do you put your money. Most everything I own is dollar denominated.
I notice you moved to Thailand. That is a way of protecting what wealth we have left. Abandon a sinking ship. China could precipitate a dollar collapse at any time. My pensions are all in dollars.
When I visited Russia in 1997 the ruble was 5500 per dollar. R3000 just to use a public rest room.
So that is what happens to your pensions. Worthless. Interest rates are low so how do you make enough to live on? Many countries are still tied to the dollar like Panama and the islands in the Carribean. Canada is fairly healthy but if the US goes under Canada will be hurt.
Even the Mexican Peso is looking good. Where do you put assets to protect them from a crash which I think is coming. Its got to be outside the USA. I need a plan. I had a Contrarian portfolio that lost me money. Then the TFA only has a few percent of my portfolio working at any one time, the rest is idle cash. I feel like it should be working harder as time is running out. I need a survival plan and I don’t have one. I’m very concerned.
I have one drug stock that is soaring. I expect it to continue up for some time and actually in the green for the first time in years but do I play it prudently or go for broke? I don’t think we have time to be timid.
Why are you in Thailand? Permanent move? Residency? Abandoned sinking ship?

Larry..

I can’t begin to say thanks to you and your group for enlightening me further on this severe and serious dilemma this country (and our people) have fallen into.. I think the only answer is for me to start buying as much Gold and Sllver and I possibly can.. pay off all my credit cards .. lower my debts. prepare for a rough storm that has hit people in declining empires since ancient times.
When I was in Guangzhou, China last October (the very beginning) people were asking me “What is your Government thinking?? are they and the banks trying to commit financial suicide?”
Thank God we have the information from you and the Weiss group!

Bud thompson

Larry—I am a retired US Air Force pilot from three foreign wars. My personal friends & relatives are not as fortunate as I am having your direct knowledge from Asia of our United States economic blunders. I am trying to them by passing on your observations and directions.
Please make your Free Investment comments conveniently available for my re-transmission via email.

As to my own actions and for my own protection with respect to the severely faltering Dollar , I am investing 25% in metallic gold, 25% in gold/silver ETFs, 25% in China water and metal stocks, 10% in contra-long-term Treasuries, and 15% in ten-year annuities.

Hi Larry’
I also work in asia and will soon be in Bangkok for a physical at Bumrungrad. Stay in touch and I will buy when I get there! Our family is a long time client of martin’s !

tom bailie

Right or wrong, I’m moving toward buying gold and/or gold mining stocks. Is that good or bad?

Well, I couldn’t agree more, but I’m not the one to be telling this to. My husband & I, in our mid/late 50s, are living on the pittance I make at my part-time job and are buying nothing. No debt, not much income, living within our means, though it’s not much fun.
Someone needs to give our politicians, from the local level up to national level, this dire news. Don’t expect them to listen to mere mortals like the voter/taxpayer, though. They think and act like we’re a bunch of selfish idiots, and I guess we Americans, in the aggregate must be just that, if we collectively elected this pack of fascists.
But there are just enough Americans who want something for nothing to keep the whole foul bunch in office.
Crummy, huh?

Hi Larry, I have to be honest and say I really don’t see a way out of this without some form of National bankrupcy. Maybe a new currency (Amero) together with Canada & Mexico. In the mean time keep buying GOLD….J

Larry: Re Passionate Plea from Asia:
I’d appreciate your addressing whether stocks will be a good inflation hedge in the inflationary environment that will result from the scenario you have painted.
Mike

Larry why such panic? Don’t you realize you just said that every America family are now millionaires? My gov’t says that debt = wealth so why should I doublt these brilliant leaders?

Don’t you belive in continued American ingenuity to get us out of this? Don’t you think the Gov’t knew what they were doing when they spent trillions to save the last American industry - Wall Street ?

Keep the faith man - I have every confidence that those brilliant Wall Street bankers that make hundreds of millions per year can certainly create enough new fangled investements, derivatives etc to cheat the rest of the world out of their money. We also have Helicopter Ben printing enough money to pay all of our debts and even buy our debts. This fool proof system is sure to save the country. And what’s with these Chinese not wanting our money any more? If that’s the case I have some $100 trillion dollar Zimbabwe notes I can throw in the pot to help Ammerica appease them.

OK if you don’t trust these fantastic solutions then you can play it smart and leave the country or you can stay and enjoy living in a banana republic. Investing in gold, silver and oil can also lessen the eventual pain that our gov’t is inflicting on its citizen’s with ultra reckless fiscal and monetary policies, but there is no real solution for the economic bind we are in now.

Dear Larry,

Last year I was in Indonesia. I had brought new US $100 bills with me to spend. I went to at least ten money changers and banks and NONE would exchange my US bills for local currency. One banker even crinkled up her nost in disgust as she shook her head no! “NO WAY” was the response of another banker. I tried, unsuccessfully, for two days to change my US bills. Thankfully I had my ATM card which I used to take local currency out of the bank’s ATM machine.

Thanks, Terry Sheehan

I am cutting back here and there, where possible. Investing cautiously into higher returns but with solid companies that have a more realistic solid future. Shopping around for basically everything

Why doesn’t the Obama administration ever respond to the problem of the increasing debt?
I will continue to buy gold and gold stocks to keep my head above water!

Somehow I keep wondering whether or not there’s been a long term plan behind all of this, as it has happened in history before on occassion - could it be a game of “Bait and Switch” orchestrated by the most head honchos of the world’s money control game? Surely if there were a way to make big money in keeping an balanced spreadsheet, this would not have happened. Bigger bucks abide in the game of how can I get what’s yours without you seeing what I’m doing…It would not surprise me in the least if either a large war and/or a change in currency (U.S. dollar replaced by something else valued differently to allow a huge diminishment of U.S. debt) were to happen within the next 5 years or so. Hope I’m wrong, but I see no other way out at the present time.

Hi Larry…I’m one of the old geezers whom the young voters think is out of touch with reality. I’ve been writing booklets for years about the unconstitutionality of the Fed and how it is owned by private, and mostly foreign bankers; the fractional reserve banking scam; the need for revisions to the constitution to limit terms to one only (make it longer if need be, especially the ridiculous two year terms for representatives which cause them to be eternally dependent on lobbyists for campaign funds); the need to limit the length of campaigns and the amount of money spent; the use of publicly owned radio and TV only for campaigns instead of having to flood the air with their bullshit while driving up the cost of advertising for legitimate businessmen.

I could go on and on with things like the need for some kind of voter testing. Since I believe that the single most important quality of the people we vote to represent us is their knowledge of true
economics, not the Keynesian crap that most students have been exposed to, I think that voters should be required to prove that they have some knowledge of economics. I’d be willing to bet that many of those who voted for obama can’t even balance their checkbooks or figure out what rate they’re paying on their credit cards. (even some of those Ivy Leaguers)

Worse than that, the vote of someone who has never held down a job or run a business, or mugs people on the street is just as good as yours or mine. There is something basically wrong about that. Why should someone who has never contributed to the betterment of society or paid a pennysworth of taxes have the right to cancel out the vote of someone who has done so for many years?

OK, so I’m an old curmudgeon, but look up the meaning of the word “alderman”. I know that will be an unknown word to some who have never lived in a city where elected officials are called that. It means an “elder” man; one who has the right to govern because he possesses the wisdom accumulated in the aging process.

Some of your readers have wondered how our country can pull itself out of the mess our idiot leaders have burdened us with. The answer is, it can’t. No country in history which has debased its currency to a great extent has remained intact for very long. I have predicted that this country will some day split into at least three separate entities. Others have predicted at least ten. I can visualize that the middle of our country, where much of our nation’s food is produced, say between the Appalachians and the Sierra Nevada/Cascades will one day split from the East and West coasts, due to economic, cultural, and political differences. I’m sure that if it were done as a secession it would meet with massive Federal intervention, unless the army and navy were too busy fighting the Chinese invasion. (I remember reading a few years ago about a visitor to China watching amphibious landing practice by the Chinese army. When he asked one of the soldiers what they were doing he replied “practicing for the invasion of California” .) Think about it. If you were running China how would you feel about loaning the U.S. trillions of dollars and facing the prospect of not getting it back? They are already dumping the dollar and using the money to buy out our natural resources and businesses. Their bubble seems to be bursting a bit, and they have millions of young guys in their army without female companionship because of China’s recent practice of killing off baby girls. There are probably thousands of them who would like to go to war somewhere just to find a girl. An army full of impatient peasants can be a worry to politicians. They might decide that they need to keep them busy.

Well, as I said, I’m an old guy and will be in another location myself in the near future. My only personal concern is the fact that the Dollars I’ve saved for my old age will soon have the buying power of a quarter, or perhaps a dime in a couple of years. After all, I,ve heard that the Dollar of the 1950s now has the buying power of a nickel. (and I’m old enough to confirm that)

If you’ve read this far you probably think I’m a Republican. I’m not. I have the same utter contempt for them as I do for the Democrats. The same goes for the big business and banking crowd and their lobbyists as well as the unions and bureaucrats. I’d better throw in the academics who have filled our present lawmakers’ heads with false economics. They have all contributed to our downfall.

My main concern is for all of our children and grandchildren, and their offspring. What kind of a country will they be living in? I urge all young people to get some good books on Austrian Economics and study them so that you will at least know what you’re up against. Question what you are told in school. Many of your teachers have their own agenda and your best interests are not their main reason for being in the teaching profession.

Good luck to all. I’ll pray for you.

I read your 9/14/09 news letter on the “passionate plea from Asia” I am shock and amazed @ your lack of understanding of the american way of life, or should I say the American dream..

I have written several messages to our congress about wall street & mainstreet..My gut feeling last year “circa” 9/12/08 was let wall street go away, save the regional banks by reducing taxes by 25% across the board. This would have given each taxpayer money to save or spend, both options would have strengthen our banks and local economies..

On the other topic about those “little people” think we are a joke, why do they flock to our shores to educate, work here? My feeling is our way of life, abeit not perfect is far better and much more desirable than some swamp boat in a polluted river.

Sure people in Washington are trying to save their jobs by helping those same people that got us into the leveraged position we are now in. But we can change all that by electing goverment officials
with a sense of pride and ethical standards , which I may add are totally lacking in WDC.

I would like to add your math anaylical abilities are so flawed and misleading, on the debt issue
may be out of control, but that`s a temporary problem, easy to fix.. just tax those crooks in Wall street , add an immgration tax, send illegals home, reduce goverment services, and size

Rich

What is soln…..What do U suggest US government shold do

Larry–As a retired person, I am fully invested in the stock market and in precious metals. Since the dollar has depreciated about 95% since the FED was established in 1913 and that depreciation is accelerating, I see little sense in holding savings in dollars. My stock holdings are in oil, gas, gold silver and other resource companies as you have recommended. Also I hold stocks in certain financial companies, MLPs and REITs which pay high dividends as I need to supplement my income. I agree with you that investing in natural resources is the best way to preserve and grow one’s savings and I appreciate your continuing advice in Uncommon Wisdom. Also, as a geologist, I am comfortable investing in natural resources. Although I took a big loss in my stocks in last year’s crash, by holding on and re-investing I’ve now gained back nearly all that I lost.
Prosperity seems to be moving west to China and East Asia and the future doesn’t look good for us. We need to get this country back on a sound Constitutional footing. We should get rid of the FED and get back to a Constitutional money system based on gold and silver and institute sufficient regulation to keep Wall Sreet and the banks honest. We also need to stop spending hundreds of billions of dollars to keep our troops in all of those foreign countries and bring them all home, as Ron Paul has advocated. We can no longer afford “empire building”. Also, we must stop the petty Democrat vs Republican bickering, realize that both parties are controlled by the same people behind the scenes and vote out all of both parties who have betrayed Constitutional principles. I realize that’s a tall order!

Need to find a solution which is acceptable to all communities. (yes, I am talking about the world community) Just telling Americans what to do is not going to help. What you are recommending: tighten your belt, literally means squeeze rest of the world. That means: chances of wars and political unrest in countries which are too big to fail. It is not worth it.
Just think little sensibly and go little deeper. We need to have a open hearted summit and bring about resolutions which have not been brought before for discussion. Including some wild solutions. Yes, there are many solutions. yo have just have to have the heart and mind to talk about them openly.

Increased inflation is a logical tool to help manage our soaring debt. We’re buying international energy stocks, investment grade foreign bonds, selected foreign common stocks with healthy dividends plus a focus on commodities that China will not be able to provide for itself in the future.

Larry, There is a simple way that this immense debt will be liquidated. The very way that the money controllers have planned: Pay the debt with other newly printed dollars, after all, each hundred dollar bill costs only about a cent or so to make. Of course this will accelerate the devaluation of the dollar (as also planned) by the “money makers”. (”money makers”= the creators of fiat money). Who will suffer from this? All those who have gambled on the durability of fiat money. When they accept this paper, they are gambling that they can turn it into some other thing of value before it depreciates further in value, so it is always for these dollar holders a race against time. We should not feel sympathy for these people, they knew what they got into when they took the paper. As for our average citizen, hopefully their income will match the value of the dollar as it continues to tank. Theere is nothing we can do to forfend against this, we are totally in thrall to the money makers.

Larry,

Part two - what I am doing with the family finances - presently have all debt including mortage paid off - putting 50% of my take home pay in a 401 K every pay day all - 401K in FDLXX - Fidelity Treasury only T-Bill MMF. ( thanks to SMR advice). Saving 10% of my gross after the 401K deposit for contingencies such as food shortages, energy shortages, etc. Continue employment as a Lead Technician until I die or the Oil Companies run out of money at the Valdez Marine Terminal in Valdez Alaska - for Alyeska Pipeline Service Company in Valdez, Alaska - for the World’s finest employer.

Getting out of the mess we are in as a nation boils down to hard work and smart decisions for the benefit of the nation - not a select few - unfortunately we have only a few smart enough with the will to lead us out and the present Socialist President with all his Communist Czars don’t qualify.

Keep up the good work.

Bob

Seems more lik ea pasionate plea for Americans to wake the hell up….FAST!
What I have done personally is to carry no debt, with the exception of my house and God willing, will be able to continue at least that much. I am afraid to save much for the knowledge that our paper money is already useless….
M. Smith’

Americans should be wise up, and pretty much ignore the govt/wall strret propagandistic statistics, by diversifying into gold/silver coins(anti$ real money). And aboveall, just brace ourselves! We’re all bankrupt….the nation and all under these monstrous debts. Simply we just can’t possibly pay off the debts! So, DEFAULT is the only likely scenarior down the road; and we don’t have to walk very far down the road.

Larry Edelson,

Yes I do have some comments.

What about the possibility of “forgiving” mortgages one million dollars and lower ? (it has been done per the “Bible”. After seven years, loans where forgiven) As we are seeing the home values are now falling and should cover the majority of home owners.yes stats are showing an up tick in sales, but small). This would destroy the mortgage industry as we know it, but it would cauterize the major hemorrhaging(in every financial endeavor) that is occurring. We have a confidence crises. And if there is no turn around we are in for blood shed. With Bailout after bailout, the base has not been addressed ,and that is the US Citizen.

I have been following Dr. Wiess’s news letters since July of 2008 and I am seeing a slippery slope of our financial system. This will not end well. If mortgages, one million or less are forgiven an incredible turnaround will occur. First the biggest and may I say crucial issue is confidence. If no one believes Wall Street/Congress/Bankers can not pull anything off then it will be stagnant for years (example the Japanese Economy). Yes the Dow/Nas it is rising but this is a sucker rally and large institutions will bail out soon (it is written in the stars). Second, “forgiveness factor” will straighten the “Base”(As in the pyramid). Consumers will be able to concentrate on growth like nothing we have ever seen before (growth equals prosperity). We at the current pace will be over taken by China within years maybe months. If something radical is not done we will have a new master and he will be Chinese.

This will not go well with the American citizen and civil war WILL occur. First our Government will collapse due too the revolt. Second bloodshed will be the order of the day and race wars/ethnic wars ETC … will be raging and this country will become a tribal village. The bigger picture is very ugly.

I am not part of a think tank but, I would not be surprised if they have envisioned this scenario.

My suggestion are revolutionary indeed and needs more debate however we are approaching a “tipping point again” and there will be no return to normal. One of the tipping points that caused this mess in the first place(mind you tipping point, not what where the mounting policy’s) was that of fuel. Citizens had a choice between $5.00 per gallon and a roof over their heads and gasoline won the day (one must drive to work to pay for food). Do I need to make aware that Gasoline is creeping up again to unbearable levels ? (tipping point part two ?).

Victor Kwasnikoff

I knew you would not post my comment because you are just like the Main Media you condemn. Making money and issuing a plea for change are two different things. Change has to come with a change of values. Making money is largely a mechanical thing with a little intelligence applied.

Remember: if you are not part of the solution; you are part of the problem.

I think everyone I listen to on the tv, read in print, or read on a computer screen is either a liar, a complete idiot, paid off, has no morales or the combination of that.

That really includes all the so called economic professors of havard or CNN or all government officials.

The only one that tries to not lie too much is the head of the FDIC Shiela.

Go to any bar and talk to anyone right now and they will tell you more about what is happening and how to fix it than anything you will get on the net, tv or print.

#1. Dollars do not mean anything they are just a virtual representation of work. PERIOD!
#2. The economy really is how much can one person make and how many people do you have working.
#3. To grow the economy you have to increase how much one person can make with less waste of material and environmental impact.
#4. To grow the economy you have to increase the number of men and women working and the number of hours they work.

Anything that does not help item #3 and #4 does not help the actual economy. Anything that hurts item #3 and #4 hurts the economy.

If lending money has the effect of making more Americans go to work then it helps. If lending money has the effect of making more Americans work more hours than it helps.

If legislation has the effect of making more Americans go to work then it helps. Like minimum domestic content laws.

Thats it folks. We are closing down domestic automobile plants in America were one man or women makes about one car per day. Yes you heard that right, one car per person per day the most advanced economy and profitable economy in the history of the WORLD! We Americans are subsiding companies with the stock market to take dollars overseas to build automobile plants which take 10, 000 workers to build less than 400 three wheel cars a day. Or 20 people per day to build a little more than a 3 wheel bicycle with a motor in India with F.

So credit is not the problem and never was. It is all a lie.

If you have a job and can pay the credit terms you can get credit.

If you have a job and make minimum wage you can not get credit because you can not pay for it anyways because you do not make enough to live on. PERIOD!

The problem is jobs and the enormous stealing of everything that is in America that is not nailed down by the stock market and our government while the rest of the people in the world are laughing at our stupidity.

Wake up America, the stock market is a shell game, PERIOD!

Wake up America, NOT one penny has been lost in the so called mortgage crisis, use a pencil and paper and figure out interest and pmi and downpayments and stop being an idiot and realize that banks can not lose money on home loans until over %50 of the people stop paying and even then the governement and pmi picks up the tab!!! IS everybody that stupid!!!!!

It is all about jobs and freedom everything else is a big fat LIE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

There was a time when I admired the US - no longer - any one group who votes in an incompetent like Obama (a product of lunatic affirmative action) deserves what they get. But this is just a start: what the world is witnessing is the shift of America into a third world country. As more and more third worlders flood into the country with no sense of what the Founding Father were talking about only with the one desire in mind - to get what the US government can give them - the balance of power in the country is shifting.

I grew up in Africa and frankly Obama African ways (I am not talking about color) makes me homesick, in a perverse sort of way, for the incompetence of Africa. Consider: spending government without consideration of where the money will come from (no fiscal responsibility) ; promising whatever is needed for the sake of an argument (without any commitment to keeping his promises), personally spending (think Michelle’s $500 sneakers while visiting the poor) as if they are a privileged class (that’s what affirmative action does).

The parallels with an incompetent African leader are startling.

In just the way we look at the chaos of Italy and wonder how the could be the ancestors of the Roman empire so we will look back at the US in 50 years and be amazed that it was a once powerful country capable, even, of putting a man on the moon. The tragedy of the US will be a case study for bankers. How a once great country destroyed itself through allowing an incompetent president to bankrupt it.

I’m in full agreement with Randy Goodlett about our best and only defense at this time in our history being prayer and fasting. Glenn Beck said the same thing on his show on Saturday and will expound on it tonight. Randy said it all very eloquently. Obama and his hellish henchmen are looking to take full control of the economy and the people of the United States. We can either sit back and let it happen, like good sheeple, or we can fight back with our voice and numbers. The 9/12 events tell the story, of how the majority of Americans feel about this administration. Keep this alive and growing! Tell everyone you know! Be a part of the solution and talk intelligently about what’s happening in our country. Thank goodness for the 20 year old Hannah and 25 year old guy that just may be responsible for taking down Acorn with the video that they did. Show this to your kids. Inspire them to be a part of the solution too. They’re the ones that will be living in this crazy world after the baby boomers are long gone. Sooner than later in Obamacare! Get on your knees and pray, like you’ve never prayed before. God responds to a humble, praying people!!

Larry,

By the look of the lengthy comment section, it looks like you hit one heck of a nail right on the head.

Three years ago I was CFO of a General Contractor and saw the recession coming. When the interest yield curve was inverted it was time to look for something else to do for a living. This year my past employer is hoping to do 10% of what we did three years ago and has had to lay off over 90% of the staff…and I’m out earning a good living by helping all types of companies make money by utilizing my financial brains.

Where we live, in the boonies, you can hear the most frightening of talk in the local barbershop, drugstore, and grocery store. Some say that civil war will breakout between those that work for a living and those that live off the government. Some say that America will no longer exist in a few years. Some say even worse. Such talk that I never in my almost 50 years of living did I ever think that I would hear from rational, hard working, and intelligent American people. The fear is everywhere that we have screwed up as a nation and have elected a President-for-Life. Every day you can meet people on the street that have bought guns for the first times in their lives. Oh what a predicament we have put ourselves in by wanting “Change We Can Believe In”.

We have thought of moving to Australia, yet we have not one, but two sons that are US Marines and the thought sickens us.

Five generations of my family have fought…and died…for this country. Why should we give it up to the ultra-liberal, and so obviously lost, left wing radicals?

So, we shall stand firm and argue for term limits, debt reduction, fiscal restraint, wise monetary policy, and the return of Godliness and Common Sense to America.

God Bless,

Randall Turner, MBA

Drilling our own oil ,Alaska -off Fla -out west–etc., would save over 400 BILLION a year with the capital, wages and taxes going toward our debt. Drill here , drill now. Push your legislator..go free

i’m with john williams on this. used to laugh at conspiracy theorists, but not since 9-11. to believe our leaders are so stupid that they have unwittingly blundered into the mess that now exists is fantasy. THEY AREALMOST ALL LAWYERS AND THEY ARE NOT STUPID!! both political parties are selling us down the drain. to believe that a repub president or congress would be any different is sheer nonsense as is evidenced by the gw bush years. what can we do to get out of this mess? there is only one way out and it may be too late for that.

I have been buying some metal stocks, the best one is fcx-m which paid 15% on my first purchases, some gold and silver coins, some preferred stoocks a little ge, pipeline stocks and am considering overseas bank accounts converted to other currencies, also everbank had some cd’s denominated in other currencies. What are yoour thoughts?

I’ve been telling those around me, “Americans spent their tomorrows yesterday”, for quite some time now due to easily acquired credit, with no thought given to repaying the burden of credit. To analogize this to my children, I tell them to picture themselves in a box with a cover on it. If they run up debt, the cover cannot be pushed off, because of the weight of the debt service firmly holding the escape hatch down. This is now a country, with millions trapped inside individual boxes feeling alone, desperate and helpless, inside a box, with no hope of escape.
Responsibility begins in the home. To those of you who have nurtured this, I commend you. To those who haven’t, it’s never to late to teach, that everything doesn’t have to be learned in, ” The school of hard knocks”.

Larry, Very nice summary of events that are too big to divert. At least we can prepare and make some money by understanding these events. Expediency always gets us in trouble as individuals and as a country. Long term perspective is boring and painful.

Canada was in a far worse possition in the early 1990s with even higher percentage of foreign ownership of debt, a record low for the C$, declining competitiveness and promises of balanced budgets turning out ever-increasing deficits under the Conservative governemtn. Paul Martin, as Liberal minister of finance, turned all that around producing better trade and economic statistics, a dollar that rose and ever-increasing budget surpluses. To see what to do, just study what Paul Martin already did. He saved this country.

Well I am going to be honest here: Eight months ago I stopped paying for anything except my son’s college education and monthly necessities like rent, food and car insurance. I am not paying any more credit debt period, nothing! I believe that 60% of Americans will come out of this ten year recession with heavily damaged or no real credit worthiness and therefore I believe it will be easier to regain credit at that time than pay the exhorbiitant interest rates I am currently paying to maintain my credit rating and that rate is going to go up. I don’t want to own a house in the future; at least not in this country. I rent and move to were the next job is.

In the last year I have worked in three different cities nationwide and have a much easier time finding high paying jobs [130K per year] being able to move anywhere at anytime. Two years ago I put away about 30 ounces of gold bullion in a family safety deposit box and now I am buying 20 ounces of silver every month and putting aside for the coming crash.

Once thing I do pay is my taxes as you can’t run from the IRS in this day and age.

The last thing I am doing to do is officially begin the three year process of becoming a citizen of another country, Caribbean area, where I intend to move once my son’s college is paid for in three more years.

I have been ranting about this countries spending habits since Reagan educated me on possible future we were digging for ourselves. Now the future is here and I don’t feel responsible for the financial suicide we are committing. Once my son’s college is paid for….My A$$ Is Gone Offshore! and I am not planning on moving back.

There you have my plan.

Thanks for asking, Larry: :) NO MORE — bailouts at taxpayer expense; programs that cost the taxpayers billions while “saving” millions; lobbies; campaign contributions with strings attached (if you give $$ over a certain level, you sign a guarantee that you will not ask for nor accept any favors); a LOT more congressional accountability, rotating committee chairs, and — a constitutional amendment that would set one presidential term of 6 years, NO REPEATS, so the incumbent could actually work for 6 years, rather than work for 2 and spend 2 trying to get re-elected. Maybe even require that the parties alternate the presidency, which would take campaigning totally out of the equation. The Founding Fathers envisioned that Congress would govern with the tempering influences of the Executive and Judicial branches, but that can’t happen if the members are so busy feathering their own nests and paying back favors that they can’t or won’t do their job they were hired to do. And, ladies and gentlemen, we DO hire them. Let’s keep reminding them about that.

What am I doing? Reading a lot, trying to learn from it, I’ve moved what little I have (left) to a different manager, suing my (former) manager (because I can’t string him up by his non-existent private parts), selling my home and as much personal property as I can to raise money, and hoping the foregoing will be enough to see me through the rest of my life (P.S., I want to live a looong time).

May be a silly question to someone who understands the situation far more than I do. Is it likely or more preferable that international currencies consider in the future revaluing their currencies against a more stable currency, such as the Chinese Yuan, if indeed that is more stable?

In answer to the question, The U.S. and All Americans
Between a Rock and a Hard Place
Either …
• U.S. consumers and the U.S. government must slash spending drastically, accepting a deeper economic decline or …
• They will perpetuate the borrow-and-spend cycle, destroying the U.S. dollar and, ultimately, our standard of living.
I’d like to hear your thoughts on how we might get out from under this mess we find ourselves in — and, more importantly, what YOU are doing to protect yourself, your family, and your retirement from the dollar’s demise.

Stop the spending and let us feel the pain now and put it behind us.
Obama should look back through the stimulus packages and cut all the pork! Use an executive ‘do over’ after we have felt some pain and are ready to move ahead with drastic measures.
Determine which executives were in on the greed and saddle them with huge tax burdens. Pass those promised executive orders regarding excessive bonus to executives of bailed out companies or failing companies.
Terminate the czars that have been hired.
Disseminate the facts in this article over television. (Maybe on Fox Network)

It was very powerful to read about what other countries think of us!

Thank you for your work!

I am trying to protect my family by signing up for your Real Wealth Report and plan to try to follow your advice. We fly to Singapore every June to visit our Granddaughter, and it gets more expensive every year.

Let’s face it we have reached the end of the robe, in my opinion and there is no way I could think of to save this? What a shame.

Herbert Riedl

I think it will be the Federal govt. destroying the dollar and such in order to keep the game going. If they decide to cut benefits and spending, It would signal the death nell to the political party in power, and since they are politicians it will be put off the table until the problem is to big to hide.

do you reckon the british pound will get any weaker against the australian dollar .i’m moving there shortly and am worried the pound will be worth even less in the nex few months your opinion most appreciated best regards jim

Thirty years ago I stopped buying anything that depreciates on credit. I’ve paid cash ever since.
I think comsumers are as much to blame as the banks. Anyone should have been able to see that that No down payment, not payment of principle was completely illogical. Many people have dug themselves into a hole and want to blame anyone but themselves. NUTS!

What we have to do is simple. Follow what someone who has been through an economic crash before had done. Refer to books on what the people in the Soviet Union did, or the People in Argentina after their economy collapsed, and our own Great Depression. I find Dimitri Orlov to be spot on with his suggestions: 1) GET OFF THEIR GRIDS! Do everything you can to get off their electric, food, gas, water grids asap or make friends with someone who already has. Their grids are how they will siphon off your remaining wealth. 2) YOU’VE BEEN LIED TO - Get over it and do something constructive like learn a new skill that will be useful in the replacement economy after this bubble economy is no more. 3) LOCALIZE YOUR LIFESTYLE. Learn to use food and necessities from your own geographic area. Our transportation system is one that Bulgaria would be ashamed of.

And Larry, China is no panacea of virtue. China was caught with their hand in the cookie jar so tp speak when a ship carrying Chinese weapons was intercepted in route to re-arm the Janjaweed who have been systematically clearing out whole villiges in the Sudan under the guise of Islamic fundamentalism. This may be true to the murderers. However, a better explanation is that they are clearing the land so millions of Chinese can move there! That also exlains why there are thousands of Chinese engineers in and near the Sudan building an infrastructure to support millions. It’s not for the dwindling number of natives. It also solves the problem of further environmental degredation on the Chinese mainland due to all that manufacturing. They can export the factories to their new ‘colony’ and they’ll be closer to the raw materials they’ll use, etc . . . An ugly page torn right out of our own playbook as far as the American Indian is concerned. So, How do you feel about making money on China now?

Furthermore, you indicate that China is not copying the US. I disagree. Their new ‘consumerism’ is itself a bubble that will burst someday. And perhaps sooner than you think. Those resources they’ve cornerd are the last remaining resources on the planet, and once their gone into all of their automobiles an flat screen TV’s thanks to their stimulus program, they’ll be as resource poor as we are right now and equally unble to show anything for it. It will all prove to be a shameful waste.

Larry,
I hate to say this but I believe that America’s financial future is doomed. In my opinion our decline started when we allowed manufacturing companies to close and give other countries our jobs. If I am right, why did CEO’s and elected officials let this happen and why is it never reported in the news? Don’t people realize that when one job is eliminated, in addition to earnings (wealth) from that job being lost, but earnings (wealth) from available jobs is reduced because more people are competing for fewer jobs. The result is a gross decline in standard of living.

1. Make all OTC derivatives contracts retroactively illegal.
2. Trace down the winners in the game of the fradulent securities, expose them, put them on trial for fraud, collect the ill-gotten gains. Do it with a vengence. Show the Asians (and the American people) that our laws mean something - they sure don’t right now.
3. New currency, backed with gold. [No gold in government coffers? The chase to retrieve our stolen futures ought to motivate discovery. Real theft and fraud has taken place here - whether through sophisticated means or Ponzi schemes.]

Dear Larry:
First, thank you for your numerous advisories. They have been most helpful.
By asking “how do we get out of this mess?” you obviously identify your penchant for asking the hardest of questions. The problem of protecting (and growing) one’s family wealth is, obviously, becoming an ever more complex issue.
First, anyone with property holdings sufficiently large to trigger an estate tax upon death (currently that trigger sits at $3.5 million) is well advised seeking legal advise on how to restructure their personal estate in a manner that reduces or eliminates that taxes significant threat to family wealth.
Next, if one operates on the belief that the value of the U.S. dollar is doomed, than exchanging today’s dollars for goods or services that have a strong prospect of sustaining and/or growing against that decline is also well advised. To that end, as you have often noted, holding precious metals has historically served as a hedge.
Another available market choice is to actively exchange any U.S. currency one does not require for the conduct of day-to-day living for foreign currencies that are well positioned to rise in value as the U.S. dollar continues its decline over time. There are numerous ways this can be done.
For example, CDs can be purchased from some institutions where (1) the principal is guaranteed (as with all traditional CDs) and (2) returns are defined in terms of the future value of a basket of foreign currencies (such as the BRIC currencies) rather than by any specifically guaranteed interest rate. Further, some domestic banks, for about a 1% charge, will hold your cash savings denominated in the foreign currency (or currencies) of your choice.
Along a similar line of thought, trading off-shore in equities that are denominated in currencies other than the U.S. dollar allows for a play in both the underlying company and in the movement of that foreign denomination (as against the U.S. dollar) at the time of sale. This strategy provides investors a double shot at increasing their wealth.
The choice of one’s local bank is also critical. Though it can be argued that the FDIC has access to about one-half trillion in credit line funds to insure our nation’s domestic banking system, the realities are (1) the FDIC is currently broke and (2) the FDIC’s current insurance obligations exceed four trillion dollars in current bank deposits—a number it has no financial means to address in the event of a general run on the banks. As sad as it is to say, it has almost become safer in today’s banking environment to keep one’s money under the mattress than to entrust it to a bank where depositors are assigned the legal status of being unsecured creditors. In no instance, whatsoever, should one hold any single banking account that exceeds FDIC insurance guarantees. The same advise—though admittedly inconvenient—can be given respecting the “insurance protections” that surround security brokerage accounts.
As we all know, Americans are famous for the number of lawsuits they institute. This problem is likely to get worse as the economy continues to falter. Therefore, I would also suggest that, if possible, holding a good percentage of family wealth abroad—especially through privately held foreign companies, trusts, or private interest foundations (in which one’s family owns and controls the beneficial interests)—will make it more difficult for individuals in our litigious society to either identify or successfully attack personal assets via the mechanism of a law suit.
Simply put, the data based information technologies that are used here in the United States by lawyers, creditors, hackers, identity-thieves, and others to seek out your family’s asset holdings over the internet, operate far more poorly when those assets are based abroad. Though I am not a lawyer, I hasten to add that no one should ever use this strategy as a devise to avoid disclosure of resources or income to the IRS as required by existing law.
Further, even if one’s foreign property holdings are eventually disclosed through a local court’s discovery processes, often a litigant suing your family will not be able to pursue the matter through the legal maze(s) encountered in distant, foreign jurisdictions under treaties allowing reciprocity in the enforcement of judgments. This might be true for several reasons. For example, someone suing you domestically may not have the financial means to continue the process abroad. Second, the statute of limitations in many foreign jurisdictions begins to run at the time a suit is brought here in the United States. This means that the time for filing a judgment overseas can expire even before a judgment is procured in the states. Once that statute of limitations has run, a party is barred from enforcing their domestic judgment(s) extra-territorially in the foreign jurisdiction where the property is held. It is important to note that there is nothing illegal about either having assets stored overseas or using the laws of foreign jurisdictions in intelligent ways to protect you family.
Moving on, part of the answer to your “what can be done” question must be addressed at the national level.
The humorist, Will Rogers, famously stated that “we have the best Congress money can buy.” That witticism—from the early part of the last century—unfortunately, contain “truths” that continue to plague our nation to this very day.
Perhaps a good starting point for reestablishing common sense in our government’s fiscal policy is to work toward the wholesale firing of Congress in each election cycle. Using the power of the vote to disengage our lawmakers from the powerful, money interests that finance their reelections might assist in reeling back the numerous inappropriate and absurd spending practices we read about daily that are too often passed as political paybacks.
Next, supporting efforts to expose and extinguish the destructive nature of private institutions posing as government entities that, in reality, have nothing to do with “we the people” would also help.
Here I recommend we begin by ridding the country of control by the central bankers (i.e., the Federal Reserve). That institution—for any of your readers who may not be aware of its history—is nothing more than a private consortium of bankers. It has been said, quite correctly, that the Federal Reserve is no more federal in its standing than Federal Express. Despite that, it operates as a fourth branch of government. Congress gave the Fed the power it holds today. Congress can revoke it. Working to promote that end is, I believe, well advised.
Finally, as I just indicated, many in our society have no knowledge of the history that ceded our nation’s monetary controls to the Federal Reserve in 1913. Worse yet, many think that those who might presume to speak of unwinding the Fed’s tentacles from the throat of our Republic’s business hail from an unpatriotic or lunatic fringe. To these folks I would simply recall the words of two presidents.
President Jefferson wrote in a caution (that should now seem glaringly transparent to millions of Americans):
“If we American people ever allow monopoly banking to control the issue of currency, first by inflation and then by deflation, these banks and bureaucracies that will grow up around them will deprive we the people of all our property until our children will wake up homeless on the continent which God gave us for stewardship.”
President Wilson, after signing the institution of central banking into existence in 1913, wrote as follows:
“I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world . . . no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by opinion and duress of small groups of dominant men.”
Divesting those “small groups of dominant men” of their control over our treasury, strikes me as a good starting point in reclaiming our national heritage of freedom and abundance.
Best Wishes,
RLR

I appreciate you information, and I am hungering for a solution in addition to reduced spending, I am very disappoint with the behavior of our politicians as you can see clearly in the consumer protection laws, “I recently attempted to buy a product on line and ended up in a repetitive billing practice that I can’t stop and the bank has placed that burden on me, this has occurred inspite of the steps I took to prevent any problem prior to the receipt of any product. I believe the ordinary citizen is willing to do what it takes to heal the problem but there has to be a shift (restoring an integral system) in the practices in leadership - we need representation, honest representation, national and purposeful representation with the agreement and support of citizenry (consumers).

Hi Larry, Great work you do….keep it up. Personally I’m beginning to worry about the direction of the leadership of the country. Especially when I talk to people in their 80’s who have seen a lot of hard times and there very worried about the nature of our financial system running the country (ruining our country?)
Anyhow, since I used to be an expert in logistics and personally know that any given community in the US only has 4-5 days food supply in the grocery stores, it would be very wise for everyone to stock up with at least a 3 month food supply for your family. As far as investment advise, that’s why I subscribe to you.

Whaddya mean WE borrowed, Kemosabe?
I only borrowed because the prices of everything went up my whole life, while my wages have remained steadfast and static. I merely tried to offset the “inflation” of my Federal Reserve Notes turning to dust once the gold was removed from Fort Knox (& under the World Trade Center?) and silver was outlawed.
Did you lose your 401K or investments last year when our “leaders” voted themselves (& Wall Street comrades) the treasury? Many lost theirs! But no one at the top.
If not for computer/plastic CREDIT, we’d be in hyperinflation like Russia, Argentina, African dumps, Austria, Bosnia, Brazil, once even China, etc.
China is buying resources, not asking for credit. They don’t want to buy our bonds (have over a trillion $) or hold our FRNs (had over a trillion on hand in 2008) and are actively trying to sell them, while telling Chinamen everywhere to buy some gold & silver themselves. You’ll note the US Gov does not tell Americans to do so.
China will mine more gold & silver and drill their own resources as possible, but with over five times as many people as the USA in the same amount of land space, they don’t have time to goof about like the Washington DC lobbyists and politicians do. Perhaps the old robber-baron plan was to use up the mid-East’s oil before drilling ours, but the current mass-lefty-liberal green intervention has no science or common sense behind it, let alone any desire to protect our security or sovereignty that GIVES them the liberty to be Hollywood-celebrity cult-of-personality numbskulls. Our manufacturing has been sold out over 30 years. SO we’ve got nothing; we’ll have still less, soon.
And don’t ignore silver would be the new gold, if not for faux manipulation by the bankers. We’ve used up the silver in industry, and we can’t mine that much more from the crust, let alone in a timely fashion. But the robber barons have hoarded gold throughout history and will NEVER let that value fall.
None of this is an accident. Roosevelt said nothing in politics is. Wilson said there are men behind the scenes about whom we dare not speak above whispers. Lincoln held State Legislatures at gun point. All three changed the money system. Bush/The Dick Cheney and now Obamarx have usurped and claimed unauthorized powers, trampling our rights, sovereignty & security (worse than Clinton in Chinagate). We’ve had 21 years of horrid anti-American presidents, JUST NOW. Many States now have the motto: We Made Bad Presidents.
We’re deluged with minor emergencies, diversions, false science crises, dog-wagging wars—all to keep us from torching, pitch-forking, tar & feathering our corrupt elected officials. Only if we clean them up can they clean up the appointed bureaucracies. I was going to tell you, but died from bird flu a few years back.
UNELECT ALL INCUMBENTS, time after time—total term limits. If we make it to another election cycle, each time, it’s the only thing short of revolution that has a chance. (AND THEY HOPE it will be just long enough to rob us to death. Evidently the elected officials somehow hallucinate it is worth it, as if they will survive and be protected. They sold us out.)
Don’t ask We The People to pay for this mess (like Geithner & Obamarx expect), even if we were lazy and complacent and dumbed down and distracted with sports & recreation, bread & circuses. The curse came FROM the elected officials who refused to do their assigned jobs and honour their oaths. THEY will be the death of us. (However, we SHOULD have policed them & the rich all along.)
If we don’t stop the sell-out, we will all go down together. Expect the final stroke to come no later than right after the politicians fill their pockets and move to other countries, out of harm’s way.
But don’t expect any countries to bail us out with aid and charity the way we helped them for 50 years!!! Don’t expect foreign aid from them. They’ve got their own problems, which will get worse when we can’t pay for goods, like we’re seeing in China now, who changed their whole economy to pamper and profit from us. When we choke, all the folks we were buying from will, as well. Vlad Lenin and the Russky boys said they’d sell capitalists the rope with which to hang us. They said fascism is capitalism in decline. It doesn’t matter that socialism-to-communism NEVER worked nor can work, and that all workers ALWAYS want to run across USA borders where the living is good and you got to keep a piece of your earnings. The ignorant ALWAYS prefer the baloney of Marxism.
I think it was Reagan who said you tell a Commie ’cause he reads Lenin & Marx (that’d be Obamarx’s minions). You can tell an anti-Commie ’cause they UNDERSTAND Lenin & Marx (that’d be today’s conservatives).
If we collapse, we’ll be the smoke while the other countries will just be the mirrors. Then we’ll be the ashes, and there’ll be no phoenix in OUR lifetimes. Just socialism and slavery.
I say let’s hold accountable the politicians: from now on, every year, the new fall fashions include tar & feathers.

Since I don’t have a million dollars to pay my share of the debt, and also assuming others do not have it either, I will do like a lot of people. I will simply do without. It does come to mind though, the bartering system will probably flourish. Being retired and living mostly on social security, my most pressing need will be food. I am going to stock pile garden seed so I can plant and grow something to eat. Then barter vegetables for other needs.
Our leaders have brought this mess on us, yes both republican and democrat. I for one, will vote all of the incumbents the next election OUT. It is my hope that others will do the same.

Let the system flush itself out of all excesses.We are better off feeling the pain now,then totally destroying our way of life.I know about the CFR,TRI LATERAL COMMISSION,BILDERBERG GROUP,AND WHO RUNS THE FERERAL RESERVE,so, I do not think we have much say in what is going to happen.All we can do is figure out what ‘THEY’ are thinking,and go with the flow.

Do what the Asians are doing. Invest in gold. Cut up the credit cards. Live within my means and save and invest for my retirement. Any investment must have a foreign element. I am no expert, this just seem the common sense thing to do.

James

my father subscribes to your service, i see many of your articles and agree. i have been a mortgage broker for 16 years and recently took a job with bank of america. i wrote an interesting mortgage recovery plan. could you direct me toward or have interest in reading a 2 page tentative mortgage solution? i did not see an address to send to.

thank you
max

Keeping it simple. Cutting expenses to zero and buying gold and silver every chance I get.

First of all note that my e-mail address has been changed.

I am at a loss as to how we can change the climate in Washington DC. I’ve written to my congress people. IF you get a response, it always is don’t worry we know what we are doing. I have told them they have lost my vote. That seems to not phase them. We have just lost our way and I sincerely believe we will continue until ‘hell’ freezes over.

For my family and I, the only thing I can do is follow your investment advice. Also keep adding to the savings account. I hope your bloggers have answers, I don’t.

Keith Thistlewood

Capitalism needs to give way to Democracy … which has been lost in the USA since Kennedy …

From reading all the posts to this site, from what appears to be a very educated audience, clearly:

1. US economy & current policy makers are FUBAR;

2. Clearly precious metals & some commodities are the only insulation from the sinking $ ship;

3. Get ready for China & others to make their power play in the near future to bury the $ forever;

4. With the third world countries development will come less dependence on US goods & services;

5. Soon the only thing of value left in the US will be our real estate properties, land & territories AND our military ability which will be cherry picked, snatched up & leveraged by foreign investors;

Final rub to it all is it’s going to be every man & woman for themselves. Prepare for US economic Armageddon and ultimately the USA entering into Global Chapter 7!

Hi Larry, thanks for your update today, about the weakening $US.
I am truly perplexed by the US economy now, and especially the stock markets. Prices are way overvalued, and there is no healing going on in the markets… this looks like another bubble being pumped up, which will eventually pop.
As a “home gamer”/private investor who manages his/her own account, I was going down my checklist this afternoon. It went something like this:
Unemployment up (and government lying about it) – check
Consumer strapped (and credit markets shrinking) – check
Real Estate values continuing to slide – check
Government spending up – check
The money the government has already spent on bailouts of GSEs and auto cos., probably gone forever – check
Bad paper on banks books still not resolved (I have read this is in the 30+ trillion range?)- check
More money being printed (US treasuries sales) – check
Higher taxes coming soon - check
Corporations, and Retailers sales continuing to get hammered - check
Markets up (again) – check
It seems to me that the machines (computers) at the large investment banks are still in full control. And they continue to say “stock markets up.”
Stock values have completely decoupled from fundamentals at this point in time. Even stocks in companies (such as C, AIG, COF, DHI) that don’t make any money, appreciate in this market. Investing in the fully manipulated casinos called the US stock markets is a 100% win, if you are long now.
The markets are going up .6-.8% every day now. That is a 182% annualized appreciation in values, based on my crude calculations. The question is, how long can these propped up markets maintain this pace? Will they ever correct?
I bought a small amount of SSO as a hedge last week. I hope this position gets crushed, as I am about 65% short at this time. I am also long gold via GDX puts.

Sir
Are there solutions to the problem ? of course there are , the real question is , are you READY for the solution , are you ready for the hard work ahead , you may be hated , or scorned by many , many may lose their jobs to same the nation , this will have to close , or that service may have to go , remember
always , the enemy is within , hard choices will have to be made , are you ready to sacrifice ?
Regards
john

Hi Larry
I have been a ardent follower of the articles that you and your mates at Weiss put out for the worldwide audience.The answers to the dilema of the US is not very simple.The whole picture needs to be taken into account before a solution can be worked out.We need to analyze why the US administration is so keen on saving these instituions who arent very keen on saving themselves.On the contrary they are spending and taking risks beyond their capacities,gambling if you like with money which the administration has given them by going overseas,cap in hand,to the likes of China,India,Brazil,Saudi Arabia and the others.Larry,to put an end to the woes of the American average Joe Blog the administration needs to prescribe a bitter pill and not play politics with the lives and aspirations of the citizens of the free world.It should stop being the protector of these gamblers who for a few dollars take risks with the livelihood of the masses.The free world doesnt need these greedy people who just for the rush take ginormous risks.Even now there are solid banks and other financial instituions who are so secure and safe doing their normal business and building on what they have without trying to be the number one risk taker.The like of Lehmann and others come up with products which if taken aprat the paper on which it is written wont float on a pool of water,but avarice guides them and when the small risks in the beging take off they are just plain tempted to keep on increasing the stakes.What did “Mr Ponzi” Bernie Madoff say’ I was surprised that I wasnt caught out earlier” or something like that.

Dear Larry,

Thank you for sharing your incisive and in-depth realistic presentation of the the truly troubled economic situation of our country. Sadly to say, however, a majority of the Americans just don’t seem to grasp (or refuse to) the potential catastrophe we are now faced with. But, please continue to report the facts so that the majority, hopefully, may come to their sense.

I enjoy reading your articles and your colleagues articles as well. I have found them to be informative and they have been helpful to me in my trading. For me, I am sticking to real assets (gold, oil, silver, real estate, etc.), blue chip companies (MCD, KO, PG, MMM, etc.), and conservative use of options (selling covered calls, calendar spreads, and selling puts on stocks I don’t mind acquiring at the price I’m willing to acquire them). Most of the stocks I’m interested in are dividend paying stocks. In addition, I have set up entities (corps. and LLCs) to better protect myself.
DH

Larry,
The truth is that we will never get out of this debt burden. We can expect it to rear its ugly head in the not so distant future. It will be a painful blow for sure but you can protect yourself to a certain degree. Tim, ( who responded earlier ) had it right in that you should have a “supply” in place to get thru a period of social unrest that would coincide with this calamity. A couple of months supply may or may not be enough to stave off a shortage of food, fuel, and cash. I would definatley have a well placed safe in your residence with as much cash in it as you think that you would need. Now, I am not saying to run out and get all of this in place tomorrow. You will however be able to see the signs pointing towards the debacle. Runaway inflation, massive new taxes, a chokehold of new regulations that will be targeted, but will miss the target. This administration seems hell bent to revamp health care. They say that if you can’t afford the new plan that tax breaks will be offered to you. How many of the 40 million or so that they claim would be helped even pay any taxes? How would these tax breaks be paid for? Answer : By the middle class in the form of new taxes. Redistribution of the wealth for sure. They will just pass out more free money ( NOTHING IS FREE ) someone always has to pay for it —- I am buying gold / silver on the dips and selling the rips …..

Larry,

I do alot of reading and studying of our current crissis situation and I have come to the conclusion that there is only ONE way out for us as a country. Our current Governement administration in washington strongly believe that the way out is to spend more and dig the hole deeper. They couldn’t be more wrong! I understand that without major stimulus and governement intervention the markets and our financial system would be in turmoil right now or worse. BUT… I also understand that all they did was kick the can to the future, and I might add it would appear the sooner future rather than later. I only see one way out of this for us as a country, its simple but no one wants to do it, they must be forced into it, “STOP SPENDING WHAT YOU DON’T HAVE”. That includes our government. The average Joe has done it, we are saving more and paying off our debts as best we can, but our governement has just picked up the spending slack and then some. We need smaller government (on ALL levels including state and township etc.), equating to less future deficit and eventually less tax burden on individuals and Small businesses ( i know I am a small business owner gettting my *** handed to me every month paying my “fair share”). We need to get rid of our burdens not make them bigger, so businesses and individuals are free to prosper again. This is the only way to truely stimulate the economy and we might not get a very long and slow draw out recovery like we are doomed to now.

thanks for listening and keep up the great news letters,
Chris

Dump to quality Canadian Gold and Silver stocks (metal in the ground and lots of cash) as the money is out of the dollar and into something that will hedge inflation.

I guess you could also buy Swiss or Canadian gold ETF’s and just park the money until you wanted to convert it back to dollars which you would need to spend fairly quickly when you rolled out the dollars to buy something or “you might need to burn the dollars to keep warm!”.

Simple! But no one sees it! Government (at all levels) has grown to an unsustainable size. Benefits for government workers, their salaries, pensions, insurance are totally out of whack with private employee benefits. Government earns, owns, makes no money - government is a cost center.
Here’s the solution: Eliminate immediately all government employee benefits. Fire every other government employee at all levels of government.
Ask (I would be glad to do this) private citizens to pick up any work that needs to be done (through volunteered hours. I’ve worked for government two times, have several friends, many family, neighbors, etc. in government positions. Bottom line; government employees don’t work like private citizens, and their benefits, over a lifetime, dwarf any private citizen’s benefits.
Our government has too much corruption, too many “rights”, gets paid too much, has only limited value. Wash it’s mouth out with soap, put it to bed hungry, send it for an audit, and subject it to the “interrogation” practices we put in place at Guantanamo.
We would fix this country’s problems pretty d…. quick!

hello there, as i predicted, the U S D would enter into free fall, the globe would get sick pf the free spend attitude, the holier than thou of the u.s. as an economic power the U S is no longer,.
the now economic powers are India, China,Russia, Asia and Australasia,.
also capitalism as we know it is finished, a new form of socialism will flourish, that is history in repitition. the euro was floated , if accepted, to be the one world currency, what its name be eventualy, we wait to see. Wall st. and the chicago future ex. will no longer be the controller of world commodities, they will not be needed.
these were my predictions, and others, 12 mths hence, it had to happen, in some ways, not only predictabe, but as if they were planned, the modern romans , as it were,
cheers linz

What am I doing, aside from looking for a job? I have always tried to be smart about HOW I purchase items, house, car, etc, I’ve always tried to stay away from debt, keep cars well after the credit union loan has been paid off and don’t buy a new car every 3 to 5 years. I stay out of credit card debt by paying off my balance every month (as long as I have/had money coming in), I’ve paid less $100 in credit finance charges over my life time. I have two 401k’s, I cant tell you how much exactly I’ve lost due to the financial state of the country/world but it was around 40%. Over the years prior I had made some bad investments in my former company’s stock and lost around $40K. Very soon after the crash in October of 2008 I put all of my liquid savings into gold, all of it. I think that’s the best financial move I’ve made and think its nuts to put ANY money into stocks. My biggest expense is college, at a cost of approximately $130k per kid, we have one in and another one in the queue and couldn’t get any scholarship other than $500. We are trying to pay for it w/out taking out a loan, but that will be impossible if I cant find another engineering job. So our choices will be pay interest on about $190k loan on one income. Now, we are better off than a lot of folks out there financially, but I’m worried and both the wife and I are savers with percentages well above the 5% nat’l average and we still are having troubles. At least we have one area of growth as long as the dollar keeps falling and that of course is gold.

(51, unemployed 3 weeks, Lake Forest, CA)

Hi Larry. Historians for 20 years have predicted the events as you are seeing them happen. (”Rise and fall of the Great powers form 1500 to 2000AD” by Paul Kennedy) This book predicted the last remaints of the american armed forces will be forced off Korea by 2020. We are seeing the flow of capitol from west to east, as predicted.

I see yourself and Martin as our white knights here to help the educated preserve wealth as our economy and country continues to go thru a change from a superpower to a Great Power. There is nothing you can do to help save the USA from itself. We must go thru this cleansing process to become a more austere country. Both the Dems and the Republicans will have to make sacrifice in the future, but they must be shown the damage first before they are willing to compromise.

Your mission is to Lead us out of the desert, just like Moses.

Quite a disturbing take on things, but we’ve seen it coming for quite some time.

For me, it’s about increasing holdings in physical gold and silver and perhaps even some euro/pound items. Let’s just hope our fascist overlords stop upsetting all the countries with whom we do business so that this can be a slightly gentler landing….

quote from Richard above.

” In my opinion our decline started when we allowed manufacturing companies to close and give other countries our jobs. If I am right, why did CEO’s and elected officials let this happen and why is it never reported in the news?”
Read a book called “Blowback” by Chalbers Johnson (written 18 months before 9/11) and you will learn the the US military exchanged jobs to foriegn countries in exchange for SOF(status of forces) agreements.

George Neely, is all too quick to cast blame upon the american people. The present debacle is clearly the result of big government statists who follow Kenesian economic theory and Marxist escatology.

Larry,

Interesting article as per usual…. From Australia it looks like USA R.I.P.

TP.

As long as politicians aspire to stay in power and be reelected year after year, they will continue making short-term decisions to stay in office even if the long-term consequences are disastrous. I would recommend that a senator could serve only one term of perhaps 10 years and representatives only one eight year term and the president only one term of six years. These elected officials would be barred from consulting or lobbying for the same number of years that they served in the above offices. This is the only hope that I see for restoring the government. Government employees in all branches would have the same retirement programs and medical programs at the rest of the US citizens..

I don’t have a solution regarding on how to get out of this financial mess that this country is in right now and appears that the fed is making it worse with it’s spend and spend policies. Could we get rid of the Obama and his cronies sooner then the next 40 months before it gets a lot worse. The only solution I can suggest to fix the current problem is both the government and the people is to curtail the spending frenzy.

There is no more credit demand.

The Asians need to realize the facts: We are out of competent (willing and able) borrowers. Expanding credit demand is impossible; those who can borrow won’t, and those who want to can’t pay.

The Asian handmaidens who engaged in mercantile policies were just as blinded by their belief that they could “sterilize” their export money flows as we were in believing we could buy a $500,000 house on an $8/hour income.

Both were equally complicit, and the Asians now are faced with two choices: Sell while you can get whatever value is left in those “securities”, or watch them turn into dust.

Yes, Americans are to blame. But so are the Asians.

Sorry folks - actions have consequences. Would you like some of your money back, or none?

Hey Larry,
Although I’ve not written before, I have been following yours and Martins articles and videos. They have been very interesting and insightful. Thank you for sharing your wisdom and knowledge. I have been concerned about my retirement income for a long time. After watching my 401K lose 30% of it’s value twice in the last 8 years, I started investing in real estate to boost my retirement nest egg. You can probably guess how that turned out. However, I also started investing in gold bouillon and rare coins. That is the only investment that has held it’s value so far. I still own some real estate and I hope that the market will come back in the near (5-10 years) future. I really don’t know what else to do other than pay down my own debt and look for a house in Canada. LOL
I am still concerned about my financial future and don’t see many other options besides working until I’m 80.
Thanks for listening,
George Washburn

I am considering changing half of my cash in bank to Norwegian Krone, and/or or other European
currencies, before ours implode.
What if your thinking on this? I read about it recently, in Agora communications.

Jne Kuoppala

As I understood it, Larry asked for ideas on how the COUNTRY could come out of this disaster. From the answers, I would surmise that most people have completely given up hope on that idea and are searching for ways to save THEMSELVES! If we ever do come through this, we’ll need to rebuild our country from scratch. That includes what an earlier poster said. Throw ALL the bumbs out!! They are almost all bought. In return, they’ve sold US and the USA down the river. At this point it looks like a mass round-up is called for under the charge of treason! It’s certainly NOT what my grandfather and father fought to protect. I never thought I’d find myself grieveing for the loss of my country. My nestegg is buried in the woods. And in my special box there’s a treasure map for my kids.

What can I say ? Help. Thanks

“When everyone is thinking the same thing, no one is thinking.
I always believe : “The stock market is filled with individuals who know the price of everything, but the value of nothing.
take for instance! China that every economist is parading around as the saver of the world! a country that have no human rights, no openness in its world affair!
as a currency manipulator, so many SHENANIGANS ? pure politickin’.
many from near and far perceive China to have the position of strength over the world economy. But with an economy so dependent on a manipulated currency and maintaining unfair trade advantages,
I always believe “It’s not up to
China are the BRIC countries ] [ Brazil, Russia, India and China] to chose are determining which currency will be the world reserve currency.. in my understanding of the trading currency, in the end the market is the judge..
on the dollar! and the debt of our beautiful country, the feds will keep printing; this will no doubt about it.. this in turn will reduce the value of the bucks. as you point out here many time over.. but you must also noted this will at the same time reduce the the value of most public debts along the way..
since most debts are in dollars..
the problem this will cause is inflation can take hold with rising interest rate.
this will make new debts very expensive in the future.. and can slow down growth.
next! standard of living in the great united state of a America, will decline? to where? no one knows! our dollar will buy less,in the world! Taxes: will rise? to infinity!
to close up the missing income from low job growth..
next! to come control on gold! restriction on currency? no doubt about it. it will be a new era/ of change.
At this time, wealthy people from here and around the world. will be leaving the USA. to the new world powers like the BRIC nation, to invest and live… like Singapore. Panama, Thailand,and so on…. a sign of the time…
I know for sure nothing can stop it… the day that we give the Feds control of our money, in 1913 we were doom…..
finally! the dollar as the world currency, will no longer be the reserve currency. a new scheme of paper money will take it place.. in the long run no country in this world that used paper money is a safe bet: No. The feds will try to print their way out of this mess. This will reduce the value of the buck, as you point out. But as most of these debts are priced in dollars, it will also reduce the value of the public debt.
The main problem is interest rates will rise! as inflation takes hold. of this great nation. This will make new debt very expensive and slow growth. most standards of living in the US will slip by the way side… as US dollars buy less in the world. Taxes! will rise to infinity? Next! I am sure the government will put control over our currency and restrictions on gold ownership…
This will cause many wealth family! to flee the US. To live in places like Panama, Singapore. Thailand.. and so on… the dollar will no longer be the world currency…will cease to be the reserve currency. 

Decreasing expenditure on the US military would not only help the US stay afloat but have the added bonus of increasing US prestige around the globe.
Why this obvious change hasn’t even been seriously suggested attests to the US’s long held obsession with world dominance at the point of a gun. An obsession which is making the US one of the most despised nations on the planet.
Cleaning up your act involves changes to foreign policy as well as financial regulations.

Without commenting on the job that the troops are doing overseas I would like to express a concern about something I just heard today. A local police officer turned down a job in our Town to work overseas beginning this November as a security officer making $16,000/month. The source that I heard this from said that he will be working for a company that is contracted out by the Department of the Interior (DOI). Just when I thought that this was bad enough and expressed my concern of this to a fellow worker, he said that a freind of his is making $240,000/year as a security officer overseas and spends most of his time on the golf course and tennis court and has had to draw a weapon once. I do not know for sure that this one is a DOI contract, however I would suspect as much.

Federal spending is out of control, both contract positions and wages. The federal pay scale and retirement benefits are considerably higher than most companies around. Most federal projects could be completed for 1/2 to 1/4 the cost. This will add to the burden of the economy at some point in the near future.

We have been using credit as a way of life for years and it is beginning to catch up. it is ironic that the government thinks freeing up credit and everyone borrowing still more, is the way forward. How about encouraging people to save. Banks and the government providing decent interest rates. Can you remember when you saved up for a car or the down payment on a house? Jon.

Larry,

Thoughts on getting out of this mess? We ARE getting out of this mess … by crashing and hitting bottom just like any alcoholic or drug addict often does and then develops the desire to make big changes. We’re just starting the crash, but I’m afraid it’s the only way out in my opinion. Our government is overrun by much more corruption and greed than most people know. While the SEC and Treasury seems bad supporting the looting trillions from the American people, the corruption in the FDA (for example) and other agencies is just as bad. Some people seem to think that 20 more years hanging on with massive amounts of (still continuing) greed, corruption and looting throughout much of government and parts of society as well as bombing, attacking and threatening innocent people around the world is a “good” thing. The real *good* news is that we’re starting a massive crash that will force massive and positive change — it will be painful, but necessary. By the way, if there’s another way for massive change in the U.S. without a crash, I’d be thrilled.

I have a 25×50 garden plot for food (which I learned takes some practice to make it really useful). Storage place for food and water. The overwhelming majority of my savings will be in physical gold, silver and foreign currencies (as there is no possible way I have any physical gold or silver now). I have some Federal Resever Notes ($’s) in a safe place in case of bank closures or I need fire starter/confetti. I purchase locally-grown and locally-made products.

The biggest danger to this transformation, in my opinion, is the Federal Reserve, the big, criminal banks on Wall Street and the U.S. Congress. Therefore, I propose the “Save America Act” with the following goals:
1. Eliminate the Federal Reserve.
2. Put the CEO’s and other officials of the big banks in prison for the myriad of broken laws and looting and break up these criminal enterprises.
3. Add a tax for the American people to fund hookers (24/7) for our House and Senate members for keeping them the he!! away from the Capital Building and making any more ridiculous laws. Replace them with 536 chimpanzees. (And no that’s not meant as a racist remark. I just think they could do a better job without selling themselves off to the highest paying lobbyist).

Not only is our savings account losing value along with the dollar destruction, but the banks no longer pay interest on short term deposits. As you say, our government spending is out of control–but the swindlers have apparently taken over! When Paulson was treasury secretary and the credit crisis hit a year ago, he was in near hourly contact with his replacement CEO at Goldman Sachs. That favored broker got $!0 billion from TARP, $12.9 billion through the AIG conduit, and then $29 billion in FDIC backing after swiftly becoming a chartered bank. If we don’t deal with these swindlers and the totally corrupt rating agencies, even our own people will refuse to take the US dollar.

Gosh, maybe we should make sure that we don’t elect greedy financially backed Administrations or parties such as the Republican President and his cohorts that facilitated this mess…What are your thoughts on that? You won’t touch that one! Here’s a thought we should withdraw from the Middle East and end our foreign aid to some of those so concerned countries in SE Asia and elsewhere that you mentioned…Perhaps we should cancel the only benefit we have realized to date from our illegal war in Iraq, that is the contract to develop their oil resources over the next ten years. Then we should after cancelling those contracts, let the Chinese, Russians, and Japan develop them? Then your argument would shift from Gold, to Oil contracts…

I say screw the financial markets particularly hedge funds that deal in commodities, and invest in the banks, that would turn things around in a hurry…wouldn’t it? That’s right kick the fat cats right where it hurts signal that the US consumer knows something! Americans have awaken to the real problem, restoring their faith in the Home grown US banking system first,,,what a shift in thought that would be. Of course brookers and fiancial so called gurus would be rendered void in thier tracks…The US consumer would benefit immediately while the rest of the world would have to rely on their own intiative to live? No foreign aid, no longer having to police the worlds resources from ignorant tyrannical forces because SE Asia, Europe, Australia, Russia, Japan and China would all now have to jump in to do their part to stop the Bastard’s of this world?
Of course some of these countries would fall and a new leadership would influence the world. In that hypothetical case, those who have placed us in this mess would wish that the big boy across the ocean had not come to it’s senses and protected it’s own interests first rather then letting the rich financial institutions from shifting our resources to the foreign shores. Then those who have such disdain for our life style and spending habits, would plunge further into chaos and ignorance while the tyrannical movements in this world would have a new day…Lets all start studying our Chinese, because a world run now by the greedy financial know it all’s can’t stop that imerging tide can it?

Yes, Americans investing their savings within their own borders, no longer buying foreign products waiting as the US develops it’s own industrial base again? How creative, actually saving money and placing it back into our own financial system…What’s your view on that kind of radical thinking? You would’nt like it because your superficial commodities markets would fall on their perverbial inflated financial structural butts…

Larry, the unfortunate way to balance our budget is to go after the “sacred cows” which have been doing a number on us for years. For instance; the military budget of $500 Billion dollars is a disgrace. I have 14 years of military flying and overseas duty to feel comfortable saying we could cut our military budget by 25% and never know the difference except in the offices of the “military-industrial complex” that President Eisenhower warned us about. I’ve seen such waste that it would render any citizen speechless. For example, a recent documentary in the Atlantic Quarterly stated that we could accomplish our naval responsibilities with 8 fleets. We have 13. That’s a lot of Admirals we created. That’s the name of the game in the military…promotion. We are building $300 million dollar fighters when it is obvious that the age of manned fighter aircraft is over. Drones and missile technology are the future of aerial warfare. Our military force exceeds the TOTAL of the next 43 countries COMBINED. Enough is enough.

Hi Larry,

As a subscriber to Real Wealth, Uncommon Wisdom, The Safe Money Report, The Foundation Alliance and recently, The ETF Trader, I have benefited greatly from the advice of The Weiss Group for the past ten years. Our portfolio has averaged about 7% consistently since 2000. I thank you, Martin and your team for your invaluable advice over past decade.

Jennifer (my wife of thirty years) and I have no debt; we own our own home and vehicles. We live modestly. I am a retired member of the NYPD, disabled in service at The World Trade Center on September 11th and its aftermath. Despite that financial setback, Jen and I were able to get our son through law school and accomplish most of our financial goals, including giving. Now, all that we have worked so hard for, all our lives, is threatened.

I have heard that inflation is “the cruelest tax.” After reading the grim statistics stated in your article, I can not help but feel dismal about our financial future. This is incredible, since we tried to be good stewards of our money: we avoided consumption and we lived within our means. I served my community and my country. But my government is spending money in a way that will cause, I believe, a debasement of the currency I rely on to maintain our lives - and I am not in the position (other than tightening our lifestyle and wise investments) to inflate my way through the next wave of this crisis, as the government seems intent on doing.

Again, thank you for your efforts on our behalf, and all your subscribers. I hope we can get through this, but I think those in power simply do not see the problem, nor the urgency at hand. It’s like a house on fire: you and I are running for fire hoses, and Washington is buying paint! - John

Super article Larry, didn’t realize the US was borrowing THAT much. Here is a possible solution to the US debt problem. The US government takes over the whole financial system, prints a whack of new money, hires the brightest and the best financial experts and makes a killing on every stock market in the world, sucking money in from around the world to pay off the debt. Sound crazy? China as a socialistic or communist country can do just that and is probablly doing variations at this very moment. The whole idea behind rigid right wing capitalism is for the companies to make all the money and the government to be starving.

simple just don’t buy from China , or only when you have to , do so … If you buy products made in The USA , or other countries that actually trade fair , then you are saving …Look for goods / products made in The americas , canada - so on . or europe .. Chinas economy is export driven so they have keep their money , deflated , otherwise , they would have a implosesion

I’ve spent a couple of hours reading about half the comments above. My recommendations are simple:

1) Move to the Philippines, the third largest English-speaking country on earth (Australia and Canada have more land, but the Philippines has more people, across 7,107 beautiful islands, and the spirit of construction, growth and progress is everywhere.

2) Move all your money to the Philippines. Any commercial bank will gladly help you do this.

3) Encourage your friends and neighbors to do the same. The cheapest airline from the “lower 48″ is Asiana; complete details on immigration, retiring, and working here are available from the website “www.pcgny.net” with links to all the Philippine Consulates in the U.S.

My wife is Filipina, and it’s a friendly, hospitable country. I’m never going back to the U.S.

We have a word in Tagalog, the official language of the country: “Mabuhay!” (welcome)

Dear Mr. Edelson; There are several solutions that will take a long time to slow this train down before it goes off the cliff. The first thing to be done is for someone in Washington to pull their heads out of their asses and get the U.S. Congress to put the U.S Dollar back on the gold standard. One George Washington U.S. dollar for every 100 of those keystone shaped gold bars in Fort Knox. What does that do? First it revalues the value of the U.S. Dollar back into the stratosphere. Then every nation on the planet holding our national debt comes calling and China being the largest holder of our debt, Treasury T Bills, Bonds or anything else will exchange their 2 trillion or so dollar debt they are holding for gold which we will supply. What does that do. Well you say,” But we don’t have that much gold in Fort Knox!!”. That is the whole point. The demand for gold will soar!!! The Chinese will take as much gold as our gold mines will turn out as fast as they can turn out the oar. More gold mines will open. Thirty Million people will be put back to work in gold mines. New gold mines will open in Alaska, California, Colorado, Idaho, Montana, Utah, Nevada. Where ever someone thinks he can pull gold out of the ground a gold mine will be opening because demand will be somewhere around 100,000 dollars and ounce because of the scarcity. Not because gold is one dollar for 100 bars of gold but because the scarcity of gold when all those countries come knocking on our door and demand 2 or ten or twenty trillion dollars worth of gold using our national debt that they are holding. What does that do for us. We get our money back and they get the gold. We get millions of people back to work in the gold and metals industry, minerals industry, oil industry, other industries and the National Debt begins to come down because more people are tax payers. The tax rate comes down and spreads out so lower taxation spread out over more people means more revenue coming into the government because more people have well paying jobs besides flipping hamburgers and less people are on unemployeement sucking money from the Treasury.
We get our money back from China so we can do more Research and Developement into solar powered cars and trucks, 18 wheelers, diesel electric locomotives that are turned into solar powered locomotives. R&D into more green stuff like solar powered engines, wind energy, fusion reactors, medical research for cures for everything, anti-matter powered engines on earth and in spacecraft. Everything would change for the better if those fools in Washington would just take a 100 year vacation in Tahiti and leave us the Hell alone. Everything would change for the better if we would just go back on the gold standard. You know the one the Roman Empire was built on. Doofus morons in Congress and the Federal Reserve and the White House can’t leave well enough alone. They had to take us off the gold standard and now look where all you stupid Americans are. In the toilet watching your country go down the drain. When it does then the Republic of Texas will just start printing it’s own money called Sand Dollars and bid the rest of you embiciles good ridance. You can buy our oil then for 10,000 dollars a barrel; not the measely 2 or 3 dollars a barrel for the past 100 years.

american must learn chinese wisdoms otherwise they should choose asiatic background lesders

How can we win this dilemma. It seems to me at some point soon noone will accept our money as legal tender. Then what? We are senior citizens with some GE stock and a house with a small mortgage on social security. The stock is way down so that selling it now would resuly in a big bath. When do you see hyperinflation coming into view? I am very concerned and the government keeps getting worse

Hello Larry:
I fully agree with you. I MYSELF HAVE NO PROBLEMS for the simple reason that I live within my means which at the present time is from my Social Security payments. About 25 years ago I said that the
average American household is about 5 to ten thousand dollars overdrawn on their credit cards, this is totally
irresponsible - the Banksters however loved this and encouraged it - hence it gave them an unconcionable
income. Some folks I know bought new cars “Oh its only 10% down plus my old car” thats the car salesman’s
commission. After the “Deal” he couldn’t care less. That is just an example, that applies to buying of new
homes, going on vacation “play now pay later”. This applies accross the board, greedy sales people selling
the sky to credulous folks, I THINK THOUGH IRRESPONSIBLE WOULD BE THE PROPER TERM. How is it
that people on the lowest end of the economic scale can afford to provide their kids with $500.- Ipods and
cell phones, having them gapping whilest walking right into the traffic totally oblivious of moving traffic. Guess
their are as connected to reality as their parents. Certain things I have not been able to do on my house for
the simple reason that I do not consider it a priority above some other items.
Now when it comes to food prices I would ask you whatever became of the Sherman antitrust act and with
the Banksters and Credit card Companies: What became of the Usury law? If I have a couple hundred thousand in a bank and they pay me for their “Prime Money market account” a whopping 0.3% and at the
same time offer me a loan “Special” for 9.8% don’t you think their is something foul in Denmark? These are
Banks which got bailed out to the tune of 15 plus Billion Daollars. I believe it was back in Jeffersons days that
someone asked: “What is a bigger crime, to rob a Bank or to open one?” Jefferson of course had a lot more
to say in respect to Banks. Hence I live by myself and do my own cooking and shopping I know what prices
for goods are. When a Corporation comes out of nowhere and buys up several Supermarket Chains, and
following that some items which I am very familiar with, after their store’s Grand Reopening sell for more than
three (3) times the price in force before the grand reopening. Now how can they get away with that: I asked
several customers during my shopping trip in one of their stores why they buy particular items, the answer was
usually: “Oh you know it’s the price of gas”. I reminded them that the price of gas (at that time) had come down to around $1.50 and that the prices are that high because THEY are continuing paying that inflated price and if they substituted something else they would lower the price of these items very soon. It is in a way
the uneducated shopper who promotes such criminal behavior. Some consumers I find annoying, they walk
from isle to isle yacking on the cell phone like robots taking orders what to pick up from a wife or other entity.
Then they pay with their Credit Card, not in they slightest concerned what the total is. That much for the
Shoppers or Consumers.
What I said about the Banksters earlier, I believe that this was already mentioned by one of the members
of the Weiss Team. Unfortunately this was not done 30 years ago when it might have been posible to
educate some folks that a Credit Card was a matter of convenience so one didn’t have to carry large amounts
of cash, but that purchase had to paid off with the next from the credit card company. But here comes the
kicker: The credit card companies and Banks have no interest in seeing the customer pay off his bills. Think
about the USURIOUS penalties, added interests, compound interests that they are allowed to add, but I guess
that is “Spencer Halls Happy Land of Manhatton”. May be those folks have to knocked down before they ever
wake up.
As far as the whole country is concerned, I don’t know how a bankrupt country can fix a bankrupt economy. Hope you remember what Eisenhower said in his farewell speach ………………………………………
they will totally bankrupt this country on the pretense of keeping them safe from everything. As the Weiss
folks said, it would have been much easier more economical to let these gamblers at Wall Street and the Banksters go bankrupt. Out of the ashes we would by now see some “Green Sprouts” emerging with an
inbred sense of responsibility.
The Washington plans scare me. Who in his right mind would hire the foxes who through there nefarious
actions destroyed the contents of the whole chicken farm, to rebuild the same??????????????

The solution is simple and not so easy to execute.
1. Put the Federal Reserve monetary system through bankruptcy.
2. Establish a National Bank that now issues credit rather than debt.
3. Sort out the banking system. Good regional and local banks get support the rest go into the trash.
4. Cancell all derivitive contracts.
5. Begin a full blown national revitialization of infrastructure and the production of tangible goods.
6. Waste no time, spare no effort since the wolves are at the door.

I am living within my means, following (or trying to:) the Dave Ramsey financial plan, and saving for extra expenses (such as car, etc). Unfortunately, for the first time in my life, I know numerous people now from all walks of life that are in drastically bad shape. They are losing jobs, homes, and unable to buy food for their families. Many issues with houses in my own neighborhood, which used to be very stable, with long term family owned homes, and now has many rentals, re owned properties, etc. These are scary times. I love your publications!!!

I think its too late for the USA to change it habits and policies. It is quite clear that the government are happy riding this thing out by printing and praying.The government have ignored the structural shifts that have taken place in the economy since the 80s. It has promoted and relied on an asset inflation to fuel it recent boom and now it has gone bust. Its good to see that the savings rate has jumped but can that alone save the states? The USA used to be an innovative country, inventing and producing but the last several decades its has depressed its educational system. I hope there is a way back, i hope they can find good paying jobs for all those who have been laid off, but i dont think so, and its a situation that we all have to become used to.

In 1979 I went through a financially devistating divorce. Then in 1982, due to injuries in an auto accident, lost my flying career. I made many hard choices, started a heavy equipment buisiness, and was debt free in 9 years, and have remained so since. Our politicians refuse to make any hard choices, as well as many Americans. WE MUST DUMP ANY ELECTED OFFICIALS THAT ARE NOT FISCAL CONSERVATIVES, AND CONSTITUTIONAL ADHERENTS. AND WE MUST GO TO WORK! NOT IMMIGRANTS, AMERICANS. WE MUST DO IT FOR OURSELVES! Fat chance.

Larry,
Tough medicine time.
Spending side:
We need a cap on lifetime government medical benefits, indexed to the actual ability of the tax stream to support the payment stream. Most free-market plans have the cap already. They “index” it by arbitrarily changing the cap or increasing rates, yearly. We need a 75% cut in the military budget. We need spending that becomes wages paid to local residents - building transit, insulating houses - and less spending on tech goods. We need spending that leads to productivity: transit, renewable energy, education, training, roads, public works.
Tax side:
We need more federal income tax on the highest earners. We need more federal income tax on capital gains. We need fewer loopholes like “trusts”. We need the estate tax. We need to raise the social security tax cap. We need to reduce the illegal use of illegal residents for illegal work, and increase the work done by our youth and our poor. We need to ban tax incentives for specific private actions, like factory location decisions.
Culture side:
We need more work and less play. We need more exercise and less partying. We need more steamed broccoli and less fried meat. We need more scientists and less sex kittens. We need a world where good health and hard work are in style, but anorexia and addiction are not. We need more Scrabble, more soccer, more gardening, and less TV.

Dear Larry

The problems are obvious, but the solutions are not. It is like trying to get the health back of someone who has smoked, drunk, and eaten in huge excess for his/her whole life, and now thinks a quick fix will do. The fact is that Eisenhower in 1960 warned about the Military Industrial Complex, which now absorbs a huge amount of our wealth while making us no friends at all. The fact is that the Federal Reserve Bank has created many bubbles and refuses to be audited. The fact is that the media works hand in glove with the government to, in the words of Walter Lippman, a major jouirnalist of days gone by, Manufacture Consent. For Wars and for government and corporate fraud and abuse. The fact is that, as you well know, Larry, medicines in Asia cost usually only10-25% of what they cost in the US. And US residents are restricted from protecting themselves by bringing in a decent supply from overseas. These are just some of the corporate and government abuses. There will be a lot of pain ahead–as the old show said, it’s “truth or consequences”. We need a total breakdown of the current political system, to reverse all these trends. Think Rome or USSR.

Good day Larry from graham in Australia, I’m sorry to see the mighty USA flounder, slip and now fall. from where i am watching from it seems you must forget the political reasons to be in the middle east .. YOU NEED CASH AT HOME get out of Iraq and Afganistan, mothball your war machine, defer all defence spending and aero space research. defer the national health plan. the public must only buy the essentials , no christmas or birthday presents for 1 year no vacations too, …. good god the more i think about it, the more i wonder if you can really pull your self back into the right side of the ledger, I wish you well,kindest regards, Graham

Hi Larry!

I greatly appreciate the insight you bring to your newsletters. I learn a great deal from them.

A thought occured to me a while back. The deficit problems we have today and have had for the past many years are not the fault of the president or the people. I think we get caught up with the most visible people in government, like the president. The real culprits are in the Congress. They are the ones with the spending power.

So, what we need are not politicians running this great country of ours. We need the other “P” word: Patriots. Where do we find such characters? Well they are you and me and all the other ordinary hard working citizens of this country. We cannot afford any longer to have career politicians. I think the people of this country need to step up.

For me personally, I am reducing debt and following your advice. Unfortunately, I scaled back my gold holdings a month ago. I am hoping to see a dip in gold so that I can buy back in.

Best and Kind Regards,

Chuck

Larry
I am not an economist but an avid reader of Market Oracle, current events and a small business owner.
If I were King I would do the following to save the World financial system.

1. Out law Derivatives and all instruments of financial mass destruction.
2. Put the entire Western Banking system in receivership.
3. Outlaw the Federal Reserve.
4. Reaffirm the US Constitution.
5. Make a new financial currency pact with China, Russia and India. I would side line London banking to a lesser role.
6. The US Government would once again print it’s own money and extend credit at 5-6% interest to both public and private individuals. The dollar value would be based on a combination of gold and a basket of currencies. The interest income from the extension of credit would be used to pay off our debt to foreign countries. The balance would be used to fund infrastructure projects. Like Nuclear energy, power plants, mag lev trains, roads, bridges, drinking water, manufacturering.
7. Gut the US entitlement programs. Maintain flat tax at 20% private and corporate no loop holes.
8. Get Government out of business and abolish these never ending credit bubbles.
9. If you abuse your privilege as an officer of a bank or financial institution you die.(DON’T STEAL)
10. Protect all countries borders Language and Culture.
Thank You
Kevin McCracken

Hello there i read your post and what you wrote there was something that is was coming ,and the worse to come there are waiting for massive protesters all around the usa ,it was all set to happen to this government i am sorry for this country that has some interesting things and people are good here is political class that is worse ,i hope when protesters come to the streets let them express them selves not retaliations against them cause cubans in south florida said this is country where you have freedom of speech will see in the near future ,
now they are suffering of what extreme capitalism is now they know ,now they woke up and are living the real life of every single human man is living in some part of the world where all the natural resources where suck like thirsty vampires ,where all rain forest where tear down so they can be place in some fancy floor on Coral Gables,Central Park Penhouse ,.
They are so brutal that dont respect global warming putting are selves and are next generation in a complete risk for entire humanity ,poor Obama good feelings poor support know he know he can not rule this country without the cancer of big monopolies and corporations ,good intentions sorry english is not my natural language i read all your artical keep posting

We all need to take personal resonsiblity and paying off our own debts and be discipline with our spending living within our means. Also we need to watch very closely those in federal,state,city and county governments that continue to attempt to destroy not only our future but our children and grand childrens future financially.
We need to get serious about this and draw a line in the sand.

Our government employees and the members of the House and Senate consist, with a few exceptions, of lawyers who were not good enough to maintain a profitable lawpractice. They became professional politicians, drafting laws that create costly programs without adding anything to the bottom line. the business of this country is business.We need te elect businessowners, CPA’s and other seasoned financial people to the House and Senate, who understand that you can’t spend money you don’t have.Again, the business of this country is business, not doling out money to people who don’t want to work.

Energy may only represent a few percent of the budget of any nation, but it’s also the ‘bed-rock’ foundation of any modern economy. In my view the only hope for America now, is to correct the ‘Laws of Physics’. A little known fact, is that an obscure technician by the name “Thane Heins” has recently astonished the entire scientific fraternity, with an elegant and compelling experiment that defies Lenz’s Law. (An electrical equivalent of ‘friction’ based on the time-old dictum that you can’t get a quart out of a pint pot, ie The Laws of Thermodynamics)

Science is slow and methodical, I doubt there will be startling official publications from august journals like ‘Nature’ all too soon, but for those who are aware of the implications of Thane Heins research, there looks to be ‘light at the end of a long dark tunnell. I have personally witnessed the flurry of recent activity directly related to Thane’s discovery. I will naturally be conducting my own experiments, and probably sharing my failures on the Internet, so that others need not waste time repeating my mistakes. Thousands of others may do the same? and a small handful of researchers may hit ‘pay-dirt’ and stake their claim to more than a minor footnote in the annals of History. Humanity will have turned the corner, and the Galaxy will await our exploration. Mankind’s footprint will encompass the heavens. CHEER UP UNCLE SAM!…..THE BEST IS YET TO COME!

Larry, I have heard folks say “what’s all the fuss about, things are not that bad, in fact we are coming out of recession and everything will be back to normal during 2010″. Well I think you are absolutely right, the worst has yet to come. The majority of folks don’t seem to realise just how much this global financial catastrophe is going to cost each and everyone. Any green shoots of recovery will be instantly extinguished by an increase in taxes levied to pay for all the bailouts. The world is at a cross roads, either we continue to work with a broken financial system or we take the sensible decision to reset the system and start again. After all it was done for Africa, why not do it for the rest of the world and lets all get back to work. http://www.movethezero.com

Larry:

I don’t think there is a way to get out of this mess that can be crafted by politicians of either party. This is a multi generational cyclical long wave trough period. In terms of long wave cycles and looking at history through a 100 year lens, rather than the short term sense of history that the body politic uses to evaluate things, this trough is more the norm than an aberation.

The real widlcard in the investing environment today is the pending fiscal failure of government at the municipal, state and eventually the federal level. We have never lived with a fiscal failure of government in this country. The only way to get through this period is for individuals to figure out ways as individuals to find our own way through this period of time, which is likely to last for anywhere from 5 to 10 years.

I think investors inclined to follow the “Religious Model of Investment”, i.e. “Buy and Pray”, will probably suffer the most. I think the “Dairy Farm Model of Investing”, i.e. “Nobody Ever Went Broke Having Too Much Cash Flow and Too Little Debt”, is more appropriate for these times. The focus should be on liquidity, flexibility, dividends, interest, rents and covered calls. The cash flow is the “milk” and folks have to rid themselves of cows that don’t produce milk, focus on the ones who do, and look beyond the borders of the USA for worthy cows. Ones cows may go up and down in value, but if the milk keeps coming in and we live within our milk envelope, we can survive this period. Maintaining liquidity to focus on opportunistic asset purchases during the down turn will probably pay off in the future. Our investment watchword during these times is simple “GOT MILK?”.

I’m just an old, raggedy, disabled veteran with a fixed income that pretty much keeps me in clothing, food and shelter…not much more. Am I to be even more financially burdened by the President’s and Congress’s shenanigans? God, I hope not, but I’ve never witnessed such a political and social mess in my lifetime of 73 years. Someone has to anti-up for this crap. We are sorely without enough of non-”what’s in it for me” citizens who can agree on and plan for what’s best for this nation. Left and Right groups just ain’t gettin’ it done.

Currently I am confused as hell and frightened of the prospect of anarchy that, to me, will come if we don’t take corrective action to cool our wild spending and smug self-rightiousness on both sides. God forbid! There’s too much good in the majority of Americans for this to happen.

This is in response to your 9/15 afternoon MaM

Yes Larry, every single one of those responses identifying that nasty smell
are what we use to call the firing cone. All 500+ shots taken forms a pattern
around the bull’s-eye.
In our organization we called for the cause of the cause that made a catastrophe.
Stepping back and looking at the last six months, the sequence of under
which things unfolded was either convoluted thinking or a group of events to
be made that didn’t matter which order they took place. If thing were
on the up and up, the medical plan would have been addressed first.
He, Obama, has this giant push to get all these things done before the 2010 election
because if it gets done and the Democrats loose seats, it wouldn’t matter, the damage is done.

My opinion Larry, there’s a hidden goal to this so called administration to bring
America to it’s knees so America can not fight off the one currency planned
for the world. Which by the way, will eventually develops into a one world government.

This time last year, people would think it would take years for someone to
do what Obama did in 8 months. Again, by the way, Hitler ruined Germany in 6 months.

I am really impressed .You are fresh in thoughts,bold in expressions and inimitable in presentation. Pl keep it up.

Larry.
If you are saying we can pay off the national debt with a 5% saving rate (in 429 years) then what will happen if tax rates go up an additional 10%? Will we pay it off in 1/2 the time?
You’re use of a 5% savings rate is a misconception. You should restate the debt in terms of taxes since that is how the government gets money. I’m already paying 40%, so if I pay 50% what will the deficit look like?
Perhaps the government has not given up hope of repaying the debt. Perhaps they plan massive tax increases to repay the debt……more likely they will continue to spend, spend, spend then followup with tax, tax, tax!

The most effective way to stop the spending is to stop those spending it. Get behind candidates who stand for smaller government and less spending. Give your time to phone banks, walking precincts, donate, whatever you can, to level the playing field in Congress. One at a time we must unlodge those who embrace the socialistic concepts not allowed in our Republic. Work for term limits. Write your representives and tell them what you expect of them. Tell them you will not vote for them again if they continue to support this run-a-way President and his gang of Czars. The President has dismissed the American people as not important in his plan to turn this country into a giant community service organization–probably to serve his envisioned kingdom–not the USA. One little oust at a time adds up to a balanced Congress. Then we can start working on the problems, because no one is listening under the current Congress.

Larry, As China is encourageing it’s citizens to buy physical gold and silver, thats what I’m doing. My only speculative position is cash for the possibility of a C wave down asset crash. In which case, I’ll buy more tangibles. I’m not sure about the mining stocks as they are paper. Thanks for the article Chris

Larry,
you opened a can of worms here, it sure is interesting and educational to read all these letters. Thank you so much!
Herbert Riedl

HI LARRY, THANK YOU FOR INSIGHT UNAVAILABLE TO THE STATE SIDE BOUND. LARRY THE MILLIONS OF REAMS ISSUED ON “LIVING BEYOND OUR MEANS” PROBLEM STEMS FROM A VERY CLEAR BASE, THE ENEMY OF AMERICAN PROSPERITY IS IN A FEW WORDS GOVERNMENT, WAR, 800+MILITARY BASES WORLD WIDE, DEFENSE INDUSTRY, MASSIVE COMPLIANCE, AND UNIONS.
YES THERE WERE MANY OTHER WASTEFUL ECONOMIC FORAYS OUTSIDE OUR BORDERS, YET NONE IN TOTAL COMPARE WITH THE COST OF EGO DRIVEN CONFLICTS, THE LOSS OF AMERICAN LIVES. THE DISPLACEMENT OF USD OUTSIDE THE COUNTRY. THIS AGE OF AIRCRAFT, MISSILES, SUBMARINES, THERE IS NO NEED FOR MORE THAN FOUR BASES, EUROPE, JAPAN, DIEGO GARCIA, THE USA. NO BOOTS ON FOREIGN SOIL.
THANK YOU, JOHN ROSSI.

To protect and grow their nest egg Americans should buy all the silver they can afford. Sell all of it when the price of silver equals the price of gold. This should occur in 6 to 7 years.

Larry, I am reading your market comments from outside the US. The impact of the financial crises here is to strong to make jokes about it (like asians seem to do). The sentiment here is closer to disapproval and “hard to beleave”. The impression is that money (banks) rules the “world” (US) backed by politicians that try to save the system only for their own profits by sacrificing most of the population. Seems that the suggestion “we need patriots” instead of greed politicians is more than true.
This impression became even stronger when I heard about faked assumtions published by the USDA regarding supply of acricultural commodities. If true, it would trick farmers of their own country hard, especially since lots of differents pests (fungi, grashoppers…) produce already a lot of pressure. How can officials do something like this?
All this is surely not only a problem of the US, but here the excesses seem to be most dramatic.

All of the teams articles are excellent, but this is perhaps the best. I’m retired, on a fixed income. We have cut down on all but real neccessary credit purchases. We didn’t even take a vacation this year.
U.S. consumers can no longer drive this country’s economic engine at the pace we’re going.
I have been seriously thinking for a long time of gold/silver coins as an investment vehicle. That’s got to be better than Federal government securities.

WAKE UP PEOPLE!! Turn off your tv sets and tune into real news not spun by the major
propaganda machines like CNBC, ABC and Fox News. We have truly been living in the
matrix, in the sense that this American Government was hijacked officially with the passage
of the Federal Reserve Act of 1913. The elite, central bankers of the world are the
shadow Government and they operate in TOTAL secrecy! We taxpayers pay the debt
on money that is created out of thin air! Start by educating yourself on how money works:
read the Creature from Jeckyll Island By G. Edward Griffin. After you vomit, you’ll learn
who really rules the world. This is a deliberate terror attack on the dollar, perpetrated by
the money masters for complete control and servitude to them. Unfortunately, they own
the majority of the gold in the world. They manipulate the stock market, oil pricing, gold
and silver pricing and it was them who created the ultimate destruction machine: derivatives.
But the Chinese are fed up with the fraud we committed on them by selling toxic assets
and shorting gold ETF’s. They hold upwards of 2 trillion worthless dollars and want no more.
Don’t be surprised if China, Russia and India collude together to send the US on a long boat
ride to hell. We can look forward to another war, food shortages, high unemployment and
taxation through the ying yang. The dollar will be replaced with another fiat currency,
all the while wiping out the middle class in the USA. Learn how to grow a garden, raise
chickens for eggs and barter, have absolutely no debt and own physical gold and silver
and most importantly, get your spiritual house in order.
Learn to do without because the high times we enjoyed in America for 20 years was a false
sense of wealth. I don’t like to be such a pessimistic person, but before “I woke up”, I was
a republican and didn’t question the system. I did notice that some things just didn’t make
sense to me, especially after the 9/11 attack. It was 2 years ago that I did endless research
for the truth and what I found in the truth was downright disturbing.
God Bless

I think as americans we need to start making painful concessions time to put our hour in order instead of trying to take care of the world making donations while borrowing more money. Those 2 wars to start with are draining the country of so much and let’s leave the others who have no debts to take care of others and make huge donation. I wish our leaders would accept the fact we are broke they don’t seem to understand it the continue to spend like drunken sailors with no plan to sort this mess out

Are you serious when you say that they are not reluctant to accept the dollar? This is definately a sign that the gig is about to be up. Yes I know we are quickly becoming the laughing stock of the rest of the world. When the Chinese quote OUR founding fathers when talking to us about fiscal policy you know there’s problems:

“He who goes borrowing, goes sorrowing” said Mr Cheng -former vice-chairman of the Standing Committee and now head of China’s green energy drive.

This is just getting pathetic and I think those of us who are informed know that it’s pretty much over now and that we should prepare ourselves for a rough landing.

Dear Larry,

Our monetarist system is broken. It must expire now. You’ve described the situation in vivid detail. So, we junk the old and usher the new in.

First, close the banks. Put the insolvent ones through bankruptcy reorganization. Write-off all the “toxic assets.”

Second, cancel all residential and the coming commercial property foreclosures. Renegotiate the debt and subsidize when necessary.

Third, establish a new national bank. This bank will operate under a credit system, backed by the full faith and credit fo the United States Treasury. It will issue currency through the solvent banks for great infrastructure projects, ie, cleaning rivers, building and repairing bridges, and building and operating maglev trains.

Fourth, restart the Bretton Woods fixed currency protocol. End currency speculation. Have the four largest world economies, the U.S., China, Russia, and India agree on currency exchange rates. Other economies, ie, Japan, Germany will join. Together, they’ll finance the modernization of Africa and other countries and continents.

Fifth, let’s get to Mars.In the 1960’s John Kennedy lead the world to the moon. We need a great science project to spark human creatvity!

All this sound far fetched? What about the Renaissance!

Sincerely,

Harold S. Wittner

I will answer the question “what are you doing…”

I’m 61 and my wife is 63 and we started planning to live without SocSec about 3 years ago.
Our home is paid off. Never had a mortgage, built it myself, cash, pay as you go over a period of 15 years. (building dept gave me an award as being the “most persistent owner/builder for 2004) We never really bought into the home as ATM mentality so we never “cashed out any equity . On paper we have lost many thousands of home equity. I say, so what? Our home is still just as good a roof over our heads as it ever was!. Never lived beyond our means, thus no debt.

Had some retirement savings at market risk, in a 403, so in the summer of 2008 we used it to purchase a complete solar PV system for our home plus enough to irrigate our huge garden. We will have electricity for as long as the sun rises in the AM! Plus plenty of vegies from the garden. No more power bills and thus cap and trade will not affect us. (PV modules, largest expense of system, last 50 - 75 years)
We spent spent Bush’s “stimulus tax refund” plus other tax refund to purchase a small 30hp farm tractor.

In summary, we are WORKING to provide for our own future the best we can, not wanting or expecting gov’t help.

This is what all of America needs to do, live within or below ones means. The gov’t is on a road to self-destruction, the outside world can observe this and are laughing and steering clear.

However, as I told my neighbor the other day, I’m still optimistic, currently considering buying a foreclosing property on our street.
And when it is all said and done, the land and real tangible assets will not evaporate like the US dollar will.

Life will go on, no matter what.

Thousands of years ago the writer of Proverbs wrote that the prudent person will see trouble coming and take refuge, while the naive continue on and are punished. And also, “Much wealth is in the house of the righteous, But trouble is in the income of the wicked.” Our land is full of corruption and in due time we will reap the income, TROUBLE.

Be prepared. Don’t wait for gov’t to “fix” things. Gov’t can’t and will not because gov’t is the largest part of the problem.

Larry,
I agree with your assessment of the world and particularily the U.S. situation. For those of us who were once so called ,middle class, our only chance it seem, is to digitently save as much as we can. The question is how? Your e-mails are invaluable as to what is evolving in the finasncial world, for those of use who read you daily, we respect your financial prowess. I for one thank you and your group to lead us to safer financial shores, You are respected and greatly appreciated for your guidance, Thank you ,Ken of Silverdale,Wa.

your goverment and the uk goverment need inflation our should i say hyberinflation to get out of there stupid bets, are mr brown cant even create inflation but he will in a moment god help us when he does your dollar will not be the mother currency china will see to that you americans caused this and of course we followed why do you think china is buying your companys and gold i am afraid you and us have to wake up.

terry shead

I must first propose we gather up ALL our politicians from the TOP down and sell them into slavery to the Chinese as floor moppers using only their tongues.
Next we employ our citizens to mine resources of all types to create gold and silver and rare earth minerals to finance our imports.
We can employ millions to create natural gas burning autos for worldwide use and of course drill and use clean energy to power our electric grid.
We have solar power and wind energy for all households to create another massive job creation.
Then we can farm our own gardens to grow a portion of our needs to enjoy better health and reduce our health costs.This has an effect of getting us off our butts and in better health too and needing less meds.
But right now, take ALL money from banks and buy real money like gold and silver before it’s too late !
It is obvious by the number of people who responded to your request for answers that as God loving humans we can take better care of each other than the DAMN guvmn’t !

Larry
I firmly believe that the current debate about health care has little to do with health care. Instead it
if the middle classes saying that they have had enough. They are losing ground at a faster and
faster pace and see mandatory health care of any form is going to put them further behind. They
are tired of the 60% or so of working Americans supporting 100% of the population. Go to any
hospital emergency and what do you see; people on welfare and illegal immigrants lined up and you
just know they won’t be paying their bill so it falls on higher insurance rates and higher bills for those
willing and able to pay. We have to get a grip on subsidies and grants which do little to enhance society but keep adding to our burden.
Richard Tremayne Mesick, Mi.

If we could have avoided the eight Bush years, what shape would our economy be in after eight Obama months?

Excellent article. I am also dismayed…perhaps distraught. There is no way to fix this but to allow the dollar to collapse, declare a force majuere (sp) and then refuse any restructuring from the World Bank. We will need to provide our own new currency based on silver and gold. We have no choice but to decouple from the world economy and default. The debt is too formidable and beyond our ability to ever…EVER pay it back. The best we can do is resort to trade-in-kind and reestablish our own internal domestic manufacturing base.

Larrry,

Since the value of the dollar is sinking, shouldn’t we invest in foreign stock markets as well as commodities?

The only thing I can seem to do is to work hard to pay off debt, and to try to stock pile some canned goods and small appliances to be prepared for replacement. I plan to stock up on fire wood (we have a fire place with a fan), and am considerring making my upstairs into an apartment for family in need or crisis. I am trying to make wise, neccessary, forward looking purchases. ie bicycles for transportation, etc.

Since the govt is no longer going to back money market funds , where is a safe haven for $ in 401k’s

Proverbs 11:4 it says, “Riches profit not in the day of wrath, but righteousness delivereth from death.”

The words of The Honorable John J. Ingalls, Senator from Kansas who
> delivered the following in 1877:
> “No enduring fabric of national prosperity can be built on gold.
> Gold is the money of monarchs; kings covet it, the exchanges of
> nations are effected by it. Its tendency is to accumulate in vast
> masses in the commercial centers, and to move from kingdom to
> kingdom in such volumes as to unsettle values and disturb the
> finances of the world. It is the instrument of gamblers and
> speculators, and the idol of the miser and the thief. Being the
> object of so much adoration, it becomes haughty and sensitive-and
> shrinks at the approach of danger, and whenever it is most needed,
> it always disappears. At the slightest alarm it becomes to look for
> a refuge. It flies from the nation at war to the nation at peace. No
> people in a great emergency ever found a faithful ally in gold. It
> is the most cowardly and treacherous of all metals. It makes no
> treaty that it does not break, it had no friend whom it does not
> sooner or later betray. Armies and navies are not maintained by
> gold. In times of panic and calamity, shipwreck and disaster, it
> becomes the chief agent and minister of ruin. No nation ever fought
> a great war by the aid of gold. . Gold paid no soldier nor sailor.
> It refused the national obligation. It was worth most when our
> fortunes were lowest. Every defeat gave it increased value. . But
> silver is the money of the people.”

Larry - you are doing a great job. Thank you
Dave

Larry,
You are wasting your breath. I am an American living in Kunming, China. Any idiot could see what was coming in the states. I actually left 10 years ago, and have no plans to ever return. America is a corrupt circus, entertaining its housebound morons, who will never change until the rug is pulled from under them. The politicians should be strung up or shot, or both, but who’s going to do it? Not the American Idol watching monkeys out there in TV Land! I say good riddance to bad rubbish, and I’m sure most of the world agrees with me. Let’s all just pop open a bottle of bubbly, and enjoy the sinking of the USS Idiocasy.
Cheers and best wishes from Asia…the only place to be.
Scott

Answer to question on how to solve debt delema,Easy start buying american, look at the labels,china dont buy it ,foreign cars dont buyem put washington retirement on social security. Rope is cheap hang the wall streeters and bankers that received bonuses for gambling with our economy ,send em straight to hell. Get rid of the darn illegals[very easy.] fine the companies that hire em ,no money ,they will go home on their own, their causing to many problems ,put the people on welfare to work, they wont have time to be in a gang’ crime problem solved .Move to nat gas asap huge job gains thereafter, oil prices will plunge there after. As for the debt it will never go away it will haunt us for years like a ghost under our beds. If ever their was a time that the peoples money is being stolen it is now more than ever and the exctinction of the middle class and as our flag waves us goodbye so long seeeeya later sung like a sad song so good it hurts.

Liquidated:
Few years back sold house and stuff - good move.
Simplified:
Cut back to essentials only. Simple-living renter. No debt - always good.
Positioned:
Accumulated physical PM while seeking refuge abroad - good move.

Admit, some of my remaining paper positions did not fair too well last Fall = PAIN
Lesson learned.

The extreme magnitude of so many negative metrics are frightening enough. But what is more frightening to me is public tolerance of the lying, spin and propaganda meant to herd the public and money. The tolerance of rampant in-your-face corruption and racketeering throughout the system AND government - the absence of prosecutions for obvious crimes. Public tolerance of “royal” behavior of our so-called representatives who arrogantly flaunt their power and ignorance - behavior one would expect to see from a mobster. The extent to which so many in our country have become “good party members.”

I fear we’ve lost our republic to a systemic disease.
What’s left is some fascist beast that simply feeds on others.
If the country can marshal up perhaps 5 million people to march and fill DC, stay there - shutting it down until these career criminals all resign, then perhaps we have a chance to recover our government.

Until then, I’m getting out of this theater before they yell fire after locking the doors (cap controls).

Would be very interested to see some discussion regarding mechanisms by which the gov’t might implement cap controls, banking reorganization, currency/debt defaults.
Would they really shut down the electronic payment systems in a bank holiday to prevent capital flight - risking greater panic and a total shutdown of the economy?

hi larry. you asked about what the man on the street is doing.

i’m buying gold and ammo. i don’t have a family to worry about. i don’t have a home, i rent. i have student loans to pay back but i’m not worried about that.

i intend to sit right here where i am and protect my village.

The American people must rise up against the deceit our elected and un-elected officials that are pulling the strings over our eyes . Quite frankly, I believe it is too late to do anything about it. When I try to discuss what is going on to others, their eyes glaze over and don’t believe things will fall apart. Many people will loose their lives through the chaos during the free-fall correction period. I am not sure how America will rise up though the ashes after the fall. After we loose our freedoms, it will be very difficult to get them back.

Larry, the dollar will begin to collapse when the federal government’s revenue (currently $3 trillion in taxes) is less than 25% of its debt. Since our debt will be $12 trillion by the end of the year, that eventually is here. Foreign investors will soon reduce or stop their purchase of government bonds. The government will be unable to sell all of its bond offerings (this happened last month). The Fed will buy the unsold bonds; this is known as printing money. This will cause heavy inflation once this country gets out of the recession. The inflation will drive all bond rates up much higher than during President Carter’s tenure. This, in turn, will cause massive bankrupties, both of businesses and individuals, and will again lead to recession, if not depression. Our socialized economy will not change as long as the bottom 50% of our population pay virtually no taxes; these people will continue to vote for universal health care and lots of other bennies. The only realistic solution is to pass a balanced budget amendment and an amendment which would prevent the President from commiting troops abroad except upon imminent invasion. Ken

It really is simple.

Obama must go.

Not so fast on the USD Larry…

What do you, your mother, and everyone else’s mother have in common? You’re all convinced that a dollar collapse is imminent and have taken the same steps as everone else to protect yourselves - buy gold, gold shares, euros, bahts, rubles, whatever.

You’re all sleepwalking into a trap together. What’s really going to happen is that Trillions of dollars of debt will continue to collapse, and people will find that they won’t have enough cash to pay debts. Probably about 1 printed dollar exists for every 20 dollars of debt - not including medicare and SS debts. So we’ll soon find that inflation will not bail us out; rather there will be a massive shortage of dollars and most people/companies/governments will be forced to default due to the inability to pay.

Look at the dollar index again, Larry - but this time get a longer-term chart, and maybe an RSI indicator. We are still nowhere near the March 2008 low, yet the sentiment is as bearish as can be. This tells me the dollar is about to stage a very surprising and devastating rally. Devastating because it will hurt our exports and make everyone’s debts more painful, even impossible, to pay off.

So what am I doing? Pay off debts, save physical cash, get out of the stock market soon including gold stocks. When gold drops over the next few years, buy then because eventually hyperinflation will happen - when people are convinced 10 years from now that it won’t

Hi Larry,

understood you’re in Bangkok, I’m in Bangkok too (Rama 3). Would be an honor for me to meet you someday !

I believe G & S is one of the best ways to protect oneself from a coming hyperinflation. In history G & S has always accounted for money mismanagement and set the records straight at the end. So, what we see today and in the coming years is no different. Infact G & S not only provides protection, but an tremendous profit opportunity which I primarily focus on.

Btw, what’s your view on the impact of a falling dollar and a possible hyperinflation in the US to other parts of the world e.g. Asia and especially Thailand ? Would you recommend a different strategy ?

cheers,
stef

Wow, the preceding comments look like the biggest concentration of anti-dollar/pro-hard-assets sentiment I’ve encountered yet. A fascinating read! That said, I’d probably side with cautious contrarian voices of Bonnie Donaldson and ChrisP calling for a bone-crushing dollar rally. Just keep in mind that FRNs are nowhere as abundant as dollar debts and, broadly speaking, there’s no commitment to “print” them anytime for any collateral.
And while I disagree with legitimacy of intellectual property, I love the point made by “rudolph alvarado” - that the Chinese et al. have been given an easy ride. Now what if some political pressure was exerted on them to force them pay the license fees overdue? The flow of dollars seeking licenses could easily tilt the US trade balance back into surplus, save for other side-effects. The commodities game is getting old and boring while the intellectual-property game is relatively unexplored.

Larry,
Some say that precious metals are being overbought and will experience a retreat soon. What do you think?

Larry: What would be the status of Inflation Protected Securities under your scanario of a dollar collapse

The panic button! I just retired major debt along with the major tax write offs. Now the IRS is going to rip me off so bad I can’t afford to pay off my minor debts. I own my home only if I pay my taxes. Otherwise the local gov’t owns it. I’m just a renter down here on planet earth. I thought it was a free world and there was a U.S. Constitution to protect me and my individual rights but who is standing up for that besides the NRA for gun rights. You guys are great, informative, and knowlegably accurate. I may work my way out of this depressed state if i”ll just keep reading money and markets. My signature credit “is” good for about 30K. Maybe I should just borrow that and invest in some of your recommendations. I wouldn’t know my head from a hole in the ground about how to do it. But what have I got to loose? I don’t really own anything and don’t have any rights. Maybe I could outrun this China bear! I figure I might have about a six month window before they come get my wife and kids. Then I could just jump from a completey sealed 12 story window like Rockerfellas secretary. I know there is not a dime’s worth of gold in Ft. Knox also, and where it all went but I’m no major voice of threat. So I’ll just have to jump on my own and die with my own private illusions of grandeur. P.S. I think I may feel better tomorrow when I come out of this sedation from dental surgery and put some more business on the books!

I agree with several posts that USA needs to reinvent itself, take back manufacturing, return to self-reliance. Live within our means. We are given lessons in maturity and responsibility through this crisis and it is up to us to learn what is being taught.

Citizens didn’t cause this debacle. The people in Washington DC caused it and the corporations who own the members of Congress caused it - and they should be the ones to pay for it.

We should get out of all international trade agreements. The system is flawed and needs to be scrapped.
We can put an immediate tariff on all non-essential imports - use half the money to pay down the debt and half to finance the rebuilding of our industrial base. We should put a flat tax on the gross sales of corporations and eliminate the entire corporate tax system based on deductions - except for deductions for wages and property tax.

Actually, as I’m sitting here thinking, there are so many things we need to do that it would take all day listing them. The most important thing we need to do is to get rid of the wh*res and traitors in Washington DC who put us in this position.

What new industry can be started here in the USA?
Minimum wage was raised effective January 2009 Why? We now Have 10% unemployement. Its time to cut minnimum wage let the unemployed work for what ever they can get! They need Money!
Stop Buying Foreign Or Union Labor Produced Products!
With Tecnology Today We can Build It Faster Better and Cheaper Without Unions or Foreigners Building it For US. Or cut Union Wages and Benefits.
China is sef sufficent now and they can prosper within the free world without US helping.
We have done enough its time to get oUrSelves in order. United we can stand and be self sufficient.
We have become like the mother with so many children she didn’t know what to do.
We are so busy worried about the rset of the world we forgot about ourselves.
ACORN! In caes you don’t know they are the enemy within our country. They have sabotaged and
destroyed wealth and prosperity in our country.Congress and the Senate has helped them every step of the way. Are they suckers or just plain infadels. Fire all of them and cut there pay to match what we can afford to pay them based on performance.. Next our constitution needs to be restored.
Create a University for the Brightest and let them learn the constitution and all they can do with it to create the economy of the future. And the perfect goverment of the future within those confines.
We must act now tommorrow will be to late. Ihave been a small business man in tampa fl for thirty-one years and June of 2008 was they point of impact. We are stuggling like never before and will likely loose it all if we don’t see a turn around. The IRS has been auditing me for over a year now this is pure harrassment in an effort to bankrupt US . The Leftist”s in our government are out to destroy everything we are working for, don’t be fooled . we must purge our congress and senate and start over. we need new Management and fresh brains that are not corupt. Acorn and anything like it is poison for our republic. Stand for what is true and right for all Americans. An action must be developed. How will we create the economy of the future ? I have my ideas and at least 180,000 other people agree with me, If you want a new industry a new paradigm a new economy then follow the genius’s But without God and an once of faith we will fail! Be positive and believe we can make it happen for all of us.

I agree about the demise of the dollar. With the reckless spending in Washington and the feeling that the administration doesn’t seem to know what it is doing, it amazes me that the dollar is doing so well. I have some Chinese stocks and silver but the bulk of my assets are in natural resource companies in politically safe areas like Canada and Australia. I hope that the looming disaster being exacerbated by the current administration doesn’t destroy everything like a Black Hole.

The answer is simple but hard to achieve. Stop wasting trillions of borrowed money on PHONY WARS. Slash military spending of borrowed money and eliminate ALL foriegn aide.

The next step is to remove the 38million illegals from our soverigen soil and start paying local legal labor true market wages.

Next uop a 100% confiscation of Global Cooproration assets and revenues until the above problems are resolved.

Reasons:

We create balony wars to get increased non competitive markets to the global corps

the Global corps cannot grow without ever decreasing expenses IE LABOR and RAW MATERIALS

we change are economy form debt= groth to a trade system where, The value of a dollar is no longer determind from a guy guesning. Nor will it rely on loans for growth. the new system is to every resource produced per year= money - resource decline value. I will be posting everywhere as soon as my idea is ready.

a system should not fail because of a bank. Banks fault banks fail