SHOCKER: Fed set to print $1.45 TRILLION

Hi Larry,
I want to thank you for all the work you have done to make the information you share easy to use and understand. My question is based on your study of cycles. When do you anticipate this current market rally will end? How far do you think it will fall? 20%? 30% more?
Thanks again for offering this valuable service.
Debbie

What happened to your recommendations edu and npd. Are you still positive on them? thanks.
I love your letter and columns, by the way. I took profit in my gold positionsand am waiting to get back in. thea

I WANT TO KNOW WHEN TO BUY & SELL GOLD

Larry, of all the people I read YOU are my number one guy that I listen to. This is a basic question but I am a little confused on the impact of rising interest rates on the price of gold. If interest rates go up don’t dollars become more scarce and go up in relative value? Like we are seeing now with just the possibility that the FED will raise rates, the dollar is strengthening vs. gold. Is this just an initial reaction? What happens to the price of gold when rates do actually go up?

Dear Larry,

I’m all in gold, per your advices, but my worry?

When I’ve made some hundreds of thousands of US dollars through otpions on a US Options market, and have those dollars to reinvest — is there any way I can get those assets out of any US controlled form — no matter how Chinese or how gold, and no matter I can beat the decline of the dollar, I’d still like to put the money into some non-US form, where the money would NOT be subject to US taxes or control?

Yes?
Karl

I would like to know what are your thoughts on the dinar is it a good investment

Did you ever read the book “Creature from Jekyll Island” ?

Any books you’d like to suggest to your readers ?

1) IS THIS THE TOP? OR JUST A WOBBLE ON A CONTINUED UP MARKET. WHAT’S REALLY HAPPENING, LARRY. I TOTALLY RELY ON YOUR AND ATP ADVICE!!!!
2) PLEASE ADVISE MY WORRY WORT GOLD QUESTIONS:
A) I DUMPED MY GLD @ 100 BETTING ON A PULLBACK. AM I EVER GOING TO GET BACK IN?
B) IS GLD A SOLID, RELIABLE ETF? I HAVE READ ON THE INTERNET THAT ITS PORTFOLIO IS AN INVITATION TO FRAUD. CLAUS ANSWER TO THIS WAS NOT CONVINCING.
C) I HAVE A BUNCH OF GOLD MINES, BUT I HEAR THAT THE RISE IN GOLD MINES IS A BUBBLE AND THAT THEY ARE NOT REALLY PROFITABLE AS GOLD IS NOW HARD TO FIND
AND COSTLY TO MINE.
THANK YOU FOR ALL YOUR GREAT ADVICE THIS YEAR.
CELIA CURTIS
ROA, REAL WEALTH, ALLIANCE SUBSCRIBER

I would like to know what avenue to take to protect my savings in IRA’s and investment account that I have for my retirement. I will be 70 yrs of age and want to protect most of the savings. I am following Million Dollar contrarian for about 25% of my investment . I don’t know if that is enough protection?? I don’t want to put all of my savings in that fund as nothing is guaranteed that is the correct way or not. There are many thoughts of investment. I ahve another 25% in Vanguard funds but am not sure that is the best either?? the other 50% is invested in dividend stock and some gold stock. Is thtis a good way to go??? Thanks
Bill

Dear Larry,
While you are shouting “The Fed is set to print over 1 trillion dollars” (implying that INFLATION is inevitable, consequently gold prices will be sky rocketting), I would like to draw your attention to a completely different school of thought whereby “the U.S Government is getting all the money it needs by borrowing, NOT PRINTING. It does it at the U.S Treasury Department auctions. That’s where they sell U.S Government bonds, nots and T-Bills.” (quoted from Nick Guarino’s report “Gold is About to Crash”).
Mr. Guarino presented a chart entitled “Annual US Money Supply Growth - SGS M-3 Continuation” to indicate that the total US money supply is SHRINKING fast because bad loans are defaulting, They are destroying money, and that creates DEFLATION” .The implication is a full strength DEPRESSION for many years to come, During that period, gold is the worst investment one could make .

This reasoning is 180 degrees different from yours, and it is cause of concern for me and others who have heavily invested in gold following your advice . Is there any validity in Mr. Guarino’s line of reasoning ? Please provide your input .

Thank you, Larry

Mike

Hi Larry,

The topics you plan to address on October 6 sound as if they cover most everything that investors need to know. I do have a couple specific questions relating to precious metals (gold) ownership. First, Gold Money gets lots of plugs from web-based financial pundits, BullionVault very few. What are your views on the relative merits of the two? Second, what are Mocatta orders, how do they work, how do they differ (if they do) from PMCs, and what do you think of them as a way of holding gold?

Thanks,
Don Allen

Reference the pending collapse of the dollar which I have read about on numerous sites, please advise the very large action on the FXE 130 PUT Option Jan 130, 2010. FNKMZ. There does not appear to be any corresponding activity on the CALL side. As of this morning there are in excess of 48,000 contracts which is extremely large and unexplainable. Regards Larry

Larry,

In retirement, MOST of my income will be in fixed dollar amounts from SS and pension. Ultimately I don’t really have much control percentage-wise on my future income.

To compensate, should I be taking more extreme hedges against dollar declines with my SAVINGS AND INVESTMENTS at this point?

David

Particularly interested in your opinion on investing in physical gold & silver bullion and any expectation you may have on how high each will go. Not looking for profit, just preservation of purchasing power.

Larry, would you mind tayloring some of your insights and recommendations to your international audience, for those of us in Australia, New Zealand, Canada, etc. Basically, what are the implications for those of us not living in the US? Thanks.

Hi Larry,
My question is concerning currency inflation via a 1 to 10 split.
What happens to my debt? Would what I owe on my home have to be paid off in the “old” dollar or would I owe 10x more that would be paid off in the ‘new’ currency?

Larry, please recommend specific ways to get us out of dollar investments…..Thanks….

The printing of paper money will contribute to the next round of hyper inflation. Please explain why investmensts in real estate would not be a good hedge against this?

Will investing in precious metals (particularly gold) going to be advantageous, and if so, wouldn’t we need to own enough gold (taking market value into account) that would subsidize the value of our stock investments?

Thanks Larry for asking for our input. If possible, I would like to know about what were the best investments or ways to protect oneself in past inflationary periods. For instance what worked or didn’t work during the inflation of the 1970’s? And what about hyper-inflationary periods in other countries - like Germany in the 1920’s or some of the developing countries in more recent times, how did people survive? What about TIPs securities would they be a good investment in an inflationary period or would they always be lagging behind and suffer if there is a general concern over the government’s future ability to meet obligations? Also in the past there were times where wage and price controls were imposed and it was illegal to own gold. I’m concerned about that happening again and I’m concerned that if some of the commodity ETFs get too poplular the government may put an end to them because they are pointing out their failures. I would be interested in hearing your thoughts about those topics.

Thank you to give me the information about the Federal Reserve will print 1.45 trillions dollars.

I am 75 years old and my wife 67.Should we pay off our 30 year fix mortgage at 5.43% in the amount of $92,000.00. We have $110,000 in cash and CDs.

How should we invest our $400,000 in 401K.

Pls. help us

Greetings,
As you’ve reported Volker says the one thing he’d do differently now vs. 1980 would be to “CAP the price of gold.” What do y’all estimate the leverage these fools actually have on that vs. RAISING the price of gold as you estimate is another scenario. Of course it’s understood we’re dealing with probabilities here…so what would you say are the competing expectation values?
Best Regards

Larry

How does the average American with only a 401k retirement fund at work, which only has 15 or 20 funds to chose from, protect their retirement funds for when they will need it.

Thanks

ed

Larry
I have a few questions. When the dollar does collapse and is virtually worthless, what happens to the value of home/auto loans, 401K, pension? Say for example I owe 200K on my house - how is this impacted. Say I have a 401K worth 300K and it’s all in fixed income - does that become worthless. Say I am planning on getting a lump sum pension in 5 years that is expected to be 250K - how is that impacted.
Thanks
Bob

Larry - I like the questions others asked. They’re a big plate full and I think I’ll rely on you to do the talking. America is in the hands of socialists who care nothing for industry and society and they are moving fast to consolidate their victory while they can. Behind it all I suspect there are drivers who would love to see a train wreck so they can pick up the pieces for pennies on the dollar.

I don’t trust gold as a safe haven because Roosevelt called it all in in return for worthless scrip. I’d like other durable, not so monetary or volatile commodities better. I’m too old to fight the RE market again and I think an anemic, overtaxed, overcontrolled economy is going to forbid prosperity again for a long time.

The eventual goal is for one-world currency, just as there will be one-world order (New World Order)
This can be easily performed when the U.S. Dollar has little or no value. The Whitehouse administration and CZARS are designing this to fit into socialism, marxism, communism, and eventually NAZISM….

Hi Larry,

I pay attention to what is going on with our money/economy even though I don’t have a nest egg and still live nearly paycheck to paycheck. What, if anything, can I do to “shore up” against the declining dollar; or are those of us who can’t invest right now pretty much doomed?

Thanks,
Tracy

I AM TOLD TO BEWARE OF CURRENY RESTRICTIONS.DO I HAVE TO OPEN BANKING ACCOUNTS OUTSIDE THE USA? HOW? WHERE? WOULD HOLDING GOLD COINS IN USA BE SAFER? i PRESUME OWNING A FOREIGN STOCK HELD IN A USA BROKERAGE ACCOUNT DOES NOT SOLVE THE PROBLEM.

Re: College loans

Can you address student loans in a time of hyperinflation?

Should we pay those of now, if able, or pay back in ever-cheaper dollars?

Thanks!

What if Bernanke’s greatest fear is deflation. Is it possible that He can’t print fast enough to counter act the deleveraging that is yet to come. There is a lot of talk about the dollar these days. Usually when people get really concerned about the dollar it is actually approaching a bottom. If interest rates rise in the future, which seems to be inevitable since they are at a rock bottom low now, won’t the dollar appreciate?. Some contraians (believers in Elliott wave theory) say we are approaching the end of a primary counter wave2, which portends a substantial leg down in the stock market (Wave 3). Would this not be deflationary and cause the dollar to strengthen?

What can I do to protect the value of my stock and annuities?

Larry:
Lets suppose a person has a million dollars in cash in a safe deposit box, when this is over what will it be worth.

Jesse

Gold is so high, is silver a good choice?

Two things: how did GM file for bncrptcy and emerge just weeks later…how did that work and how many of their small guys, who provide so much of the parts that go into the cars but come from various states do? Did they come out ok or did many bite it? Any numbers on that?

Next, why do the banks hang on to distress prprtys vs. getting what they can? Asset mngrs. make huge errors, putting them on the mkt after they didn’t sell short, and often bring them back on the market at prices below what they were offered in short sale. Any idea what they’re up to with this strategy?

Ed

Dear Larry,
to round out the picture of what’s happening NOW would be on your part to tell people that none of the money the FED has given the megabanks, Insurance companies, GM, GE, etc is printed money in circulation at the retail level. Therefore there is no inflation.
All the bail out dollars are electronic dollars that the recipient s are using to shore up their declining capital base. They are losing their capital due to the declining value of their investments in derivatives (which only have a mathematical value , but no real value in the real world). Theses mega recipients are using their FED credit to buy US treasuries they then declare as assets to up value their capital base. These financial institutions are bankrupt in real terms. But this truth, if widely known, would bring down the house of cards and the big wigs would lose their jobs.
Therefore, people need to be told that:
1. We are in deflation, not inflation.
2. Deflation usually ends up in a multi-year period of economic stagnation.
3. The FED and the US govt have no choice but to devalue the US$ down the road, because the debt load per citizen is alread too large to be paid back in today’s $s.
4. Survivors in other countries in the past have been the people that owned hard assets and in particular producing assets ( like apartment houses, small factories, farms, essential services to their communities).
5. What will not survive are frills and non-essentials. People will have to think in terms of honest work and needed services, not speculating, gambling, hoping for handouts. Lay-away-plans are in, credit cards are out. You know the drill, Larry. Go tell them. We all need to prepare for the difficult times ahead.
George

I woulld like to know: How safe Chase bank is ? I would also like to know where Sterling savings and Loan banks are positioned? Also Federal Savings and loan in Oregon! I will be listening if I can possible do it.
Do you think it better to put our small amount of money in homes rather than Banks?
Thanks, Marie kLiewer

You can open a Canadian dollar bank account in the US. Look for Royal Bank, TD bank. TD Waterhouse is a Canadian brokerage with subsidiary in the US.
“Japan has a debt of 140 % of GDP” Doesnt the Japanese own 750 Billion dollar of US treasury?

Should we buy another currency? If so, which one?

“Mr. Guarino presented a chart entitled “Annual US Money Supply Growth - SGS
M-3 Continuation” to indicate that the total US money supply is SHRINKING fast
because bad loans are defaulting, They are destroying money, and that creates
DEFLATION””
Effect from money multiplier. Actual printing effect of money hasnt flowed into the American economy yet otherwise hyperinflation can be seen. It’ll take about a year to flow from the top down before the average American realize there’s too much money around and then raise prices to get a piece of the pie. You have to look at what the govt is doing such as stimulus in infrastructure, transfers to states like California thats being used in their budget. AIG, Big Banks, all these are payments out of the country. You have to ask what is the money supply floating around the whole world. M3 is restrictive and the US govt is limiting the info provided to cover what they are printing. The main objective is to reduce the value of the dollar to make America more competitive and pay back all the debt by printing money otherwise the govt has to raise taxes like Norway 80% tax???

WITHOUT THESE THUGS GOLD AND SILVER WOULD ALREADY BE AT $2500 / $30 AND OUNCE RESPECTIVELY

Hi Larry,

im an uneducated financial newby and have been attempting to get an education through Marty,s, yours, uncommon wisdom, etc., for this past year or so. i see that i perhaps should have followed some investing advice along the way as i made notes and watched recommendations that grew some nice profits. being new to investing is quite nerve racking to say the least. okay, my question:
im a Canadian, i dont have a ton of money, my investments are currently with the Royal Bank - some in a L.I.R.A., RRSP’s etc. how is the U.S. dollar crisis going to impact us hre in Canada?
thanks…..

Most of my money/savings is in employer sponsered IRA’s and 401K’s. I have a part time business that was doing well until the economy caved. It’s not bankrupt only becasue I refuse to allow it!
My wife has funds in IRA’s as well and in a number of other banking investments including CD’s. What can we do to prevent further decay in our savings? We were hoping that our balances would be sufficient for me to retire next year (I’m 67).

Is this massive printing of Federal Reserve bills the last ditch effort of those secret stockholders of the Federal Reserve Bank to raise more capital? [don't they get a % of every dollar printed - no strings attached?] If they now realize that their money is drastically deflating doesn’t it behoove them to ‘get more’ for themselves in an effort to counteract the deflated dollars they hold themselves? It’s like the dog chasing the rabbit hanging from a pole - if allowed to go too long the dog eventually tires or if he catches the rabbit he learns it’s dead, so really just a misperception, but he can’t learn that lesson without making some sort of effort. In the mean time some sit on the sideline cheering while others tear up their tickets in disgust and anger.

I would like to see concrete opportunities to profit–featuring both low risk and higher leveraged approaches.

How will the health care bill if it gets passed effect the dollor. My expectation is that it will make things worse for the dollar. Is this accurate?

As predicted by Nostradamus The great theft, The destruction of money.

Can’t the government stop all trading in gold, silver and precious metals?
Didn’t FDR do this with gold?
Inflation has been around forever; look at the value of gold when FDR halted trading; wasn’t it $35/oz?
My parents could buy a 3-story home for $3k in the 1940s. Too much fear.
I made $100/wk in 1956 in my first job.
Now, it really hurts the elderly on fixed income….unless they invest ahead of the curve.

Isn’t it possible that prices will decline (deflation). That would include gold and commodities because the government is getting the money it needs by borrowing, not printing. I would appreciate your comment on this.

Thank you.

Al Gardner

Couldn’t agree with you more, but not sure what to do about it. Frustrated that our voices don’t seem to be penetrating the federal government at all. Beyond continuously bombarding my reps with e-mails against government run health care and out of control spending, what else can just one person do? How can we get our collective voices heard in Washington?

I have tried to apply what I learned in the late 1960’s and 1970-’80’s to today’s environment.
Post WWII the U.S. was strong, with the recovery from WWII and population growth like wind at our backs.

In the late ’60’s we closed our gold window. Stocks still rose in value. And the “nifty-fifty” stocks went
to bubble heights. I bought a gold mutual fund (Van Eck) because I expected gold would have a
lot of inflation to catch up with since being fixed in price in the 1930’s. The dollar lost value and
inflation began.

In the 1971-1973 period it was time to reduce exposure to certain assets; mutual funds holding stocks, bonds and direct ownership of these assets and increase exposure to cash and gold.

Later it was time to add to real estate using Ltd Ptrships as a protection against inflation. These failed when interest rates rose and fast depreciation was taken away. The RTC was formed to
buy troubled real estae from S&L’s, banks.

Oil was very volatile, as I recall. Many oil investments “came a cropper” when the Saudie’s reduced the price of oil dramatically. The nascent wind and solar investments failed.

Now seems so much larger a series of events that complexity is greater. The US, while important,
has lost ground by exporting our production and training other countries workers to produce many
of our goods. Those countries have become our competitors, which will grow in significance.

Oil is important still; even more so in emerging economies and countries who’s economies are expanding.

So with this background of similarities and differences, how to build a balanced portfolio of assets?
More international? More commodities? For us, preferably more liquid for flexibility? We are in the conservative senior category so it would help if that segment could also be addressed as it is in “Safe Money”. Shorter maturities on near cash assets. Some oil income, gold, real estate income, as we hold now? In addition to the cash heavy assets which pay zilch now.

Is inflation the risk in your expectations, or still some deflation to go?

Thanks.

Mel Glass

I have read that the thing to do is to get money out of the dollar. What do you recommend to do that.
I have also read that one should chose a country that is appropriate for you and set up a checking account there. How does one do that - for ex. in Canada. I read that you can’t have more than 10,000 in the account if you want it to be non-taxable. So what is one is supposed to put in the account and what is one to do with it? Does one have to go to Canada to do that?
What are the best kinds of investment here in the US that will be most likely to survive the deluge that seems to be coming. How do we run for the hills?
Thanks

i have hundreds of thousnds of dollars in new york municipal tax free bonds due from 20012 til 2025 the interest rate is 4 and one half percent and i am ok with that because that is my pension and the money i will leave my children…how will this effect me i am frantic that i will lose the principle please answer this

Carole and I would like to know about conservative types of investments that will act as a buffer to those other investments that may have an opportunity to rally over a period of time. More to the point, we are retired and like to be diversified, however, I know that a certain percentage of our investments should be in those areas they may possibly keep up with inflation–at least. Thanks, Gary

hello- what about the “little people”? the ones that live paycheck to paycheck trying to support a family, paying off a mortgage, can’t afford to buy gold/ETF/ whatever hedge fund thingy, have old credit card debt and student loan debt they are still paying off, the only ’savings’ is employer sponsored 401K and IRA that dropped 70% once the market fell last year….make sure your report has something for them - THANKS!

I was just wanting to know your thought on silver being a good asset for the next 1-2 years and 10 to 15 years to protect your money value. Thank You J. G.

Hi Larry first of all would like to thank you for your dedication and information that is overwelming. Im your day to day guy that likes to think out of the box. What would you recommed for most american’s that due not have alot of money or much money to risk ..
The market is up and down so fast that anything can happen thanks to our leaders it’s breaking us to a point of poverty!!!!! Yes Martin has said his father made $$ with $500.00
but i believe these times are differant. Again thanks for all your advise And are looking forword to your seminar!!!!!

Thank you for your articles. I have been very fortunate, I predicted the 2008 crash and was able to shift most of my money into short term debt. The fourth quarter of 2007 was the worst earnings quarter since 1974. It was preelection and Christmas time; I could smell the smoldering. I am a Vietnam Veteran and spent some time working on the foundation of the World Trade Center towers and other buildings. I can relate to what happens to an economy after a war. 1971 and onward were difficult years. We are still in two wars and not to mention a housing bust. People forget that from 1964 to 1981 the market stayed exacly the same . Enouhg babbling what I am concern about is the value of my savngs. Should I move all money into commodities or what? I worked hard for my money and tried to protect it but I have a rule there is always someone out there trying to seperate you from your money.

1. Please talk to those of us who are retired and are NOT interested in trading but protecting what we have with some growth.

2. Adrress the issue of whether the dollar is so bad to justify paying penalties on a 5 year CD and Indexed Annuity Funds that restrict the amount that can be withdrawn with serious penalties.

Thank you,

Doug

I am 51 years old, will be working 12 years before retirement. What investment choices should
I make in my 401k with Vanguard? Choices are limited and do not include gold nor silver.
How safe are oil stocks during this crisis?

I agree.

I do not have a large money portfolio, anymore, so not interested in gold, high priced stocks, simply want to know how and where to conserve, maintain what I do have. Do I move to CD’s, Bonds, Treasurery notes—What ? Hopefully you will be able to help me in some way. Thank You

I’m an American living in Europe. How about some investment recommendations for EU folks that are denominated in something other than the US dollar so its continued decline doesn’t eat away profits. I’m especially interested in silver/gold stocks. Thanks!

Larry, I would really like you to bring out the corrosive effects of money supply expansion historically. Examples are endless: Louis XVI’s spending on Versailles causing the French Revolution, money supply going crazy in Germany after WW I during the Weimar Republic, when Germany was forced to keep printing Marks in an effort to pay its war debt. ( I understand that at one point, before Hitler came to power, it took a wheelbarrow full of Marks to buy one loaf of bread! ). These are just 2 examples from history. Look at Zimbabwe today!
I am 67 & have seen my investments drop horribly, & are now back up to about 50% of what they were 2 years ago. So are Brazil & India good bets? China is spending vastly in their “stimulus” package ( 60% of 6 months’ GDP, from what I hear), so is China an even bigger bubble getting ready to pop? I also don’t trust Russia as far as I can throw Vladimir Putin!!

What will happen to global industries that have based their products on the USD? Most have locked in contracts and smaller players in family run business’s that deal in USD based products? There seems to be a major correction on the cards; when do you predict this to happen?

Thanks,

PM

Our retirement is almost completely held in a 401K. The investment choices are very limited. We are approximately 80% in equities (foreign and domestic) and 20% in bonds. When inflation rears its head again what shall we do? Should we move it all to short term paper such as money market funds?

Also, please address the mechanics of the impact of a new currency issue on current debt and mortgages.

Which currency or currencies are the best to invest in at this time?

For months, I have been following your thoughts on the future prosperity of gold. I read with considerable surprise when you first predicted that the dollar would be replaced as the world reserve currency and the scathing comments from various sources which followed. Now all financial analysts seem to be saying the same and the only question appears to be WHEN will it happen?

I have transferred various savings into a fund, BlackRock Gold & General within the Skandia range of investments. To date, this fund has performed very satisfactorily.

From what you have said and are continuing to say, gold and other precious metals appear to have outstanding futures and so, I feel I am doing the right thing in holding on to this investment.

Keep you comments flowing i both the Weiss and the Uncommon Wisdom newsletters.

Best wishes,
Grahame Lock

What I would love to know as I am sure any of the Americans who have been watching TV in the Past ten Years. Where did all the Money on the Pallets that was Found In the Palaces of Sadam Husein go
That was all American Dollars and that was only one of the palaces where he got money from the United States to Stay in Power.

Second What Happened to All the Money that they Confiscated all these Years from the Mob for Drugs
Third where is all The Money That Goes into these LOTTERY because if you win 400million Dollars
You will only see 135 million Where is the rest of the money that is suppose to be used for schools
Now you take all that money and try to find the paper trail
You will find it in some Senators Pocket
and not counting out other places Washington hides Money
yet we are told that we can enjoy life less they say it is ok
And Why Does Congress get to Give themselves 135,000.00 a Year when there are people here in the US
who can not even get help with SSI if they are married
Yes I have facts and other things to back it up

Is this gonna be like the stock market crash of ‘29? Most people were dirt poor, but remember some did exceeding well. Is it because they got their money out, then bought stocks dirt cheap? Can you compare then and now?
Thanks for your newsletter, it has opened my eyes up! I sent this to a friend because he has lost over $250,000 cause he didn’t get his money out of his losing 401K. Keep up the good work.
GM

Larry,

With gold at neal all time highs, is it too late or too risky to get in now?

How safe are Gold and Silver ETFs and the like please Peter

Since I am about 3 or 4 years away from leaving my job this is very worrying. I have $250,000.00 in cash that I can only take out if I quit my job. I took out a loan against my 401K (also a very restrictive program) and used that and every penny I can scrape up to buy physical gold and silver. I’m waiting on your buy signal for more now. I could also sure use some unbiased advice on the ratios of gold and silver. Thanks for everything Larry.

I have one more question Larry, I forgot to ask. I have been purchasing gold through goldmoney.com.
The physical gold can be redeemed and sent to your home in 100 gram bars. You can also choose between 6 currencies to hold your money in. I am adding to my position by putting my dollars into Swiss Francs, and, waiting on your signal to buy gold. Is this a reasonable strategy?

Larry,

When the forecast for the Tsy Bill is so dire, why does Weiss, et al want one to place liquid funds in a all treasury only money market mutual fund?

Just because something is inevitable does not mean it is imminent. I’m not going to panic on any of these catastropic potentialities, but I’m sure as the devil going to pay attention to’em.

Larry, I appreciate your comments re the cyclicality of markets, and you have great insights which have been quite helpful to me…..when you have an opportunity, can you comment (as many others have) about the role that the large banks play in the futures markets and their effect on price-action?……..thanx in advance, JB

I think that your comments are very realistic and very good. Thank you

Larry
I would like to hear what you have to say on Tuesday, October 6, but I won’t be able to be online at that time of day, as my husband & I are small business owners. We have to be about our business responsibilities during that time. Our business is run from our home, where the computer is, not at our rentals. We are tired of the government intrusion in our business, telling us how to run our business, how & where to spend our money. We are really struggling to meet obligations because our local - city & county - governtment is constantly telling us how our rentals “have to look”. We get code violations for very minor chipping paint on the houses or garages, yet owner occupied property can be almost falling in around the owner and the city doesn’t care. We are amongst a group of landlords that the city drives by the properties on a daily basis, knit picking for maintenance issues. Many times, the city will say we are not going to enforce a code and then turns around and enforces it and expects it to be done in an untimely fashion. It is modern day persectuion at the hands of the government. We (the group of landlords) cannot speak out at city commission meetings or write letters to the editors about their feelings or we get hammered with violations the next day. We - the landlords - have learned that unless it is in writing you cannot trust what the city government tells you, because they will change their minds or deny they ever told you such, even then there is no guarantee that the government will do as they say. We are tired of do as I say, not as I do!!! We need relief. A large portion of our gross income goes to taxes: sales, city, county, schools, state, federal, payroll. We would like to sell our properties but cannot unless we do a 1031 exchange (sell & replace with similar property), otherwise we have to pay capital gains & recupe depreciation, therefore paying the government 50% of the profit that it has taken 20 years to create. I don’t know one employee that is willing to give 50% of their income to the government just because. The government spending & intrusion into peoples’ private lives must come to an end. Americans, the land of the free & brave, isn’t a free country, we are very quickly moving to socialism, maybe even communism, where the government knows best & controls every aspect of the citzens lives. I find it ironic that this is happening in America, and at the same time people of other countries are coming out these forms of government and people are gaining freedoms. Our local county government - Riley County, KS - has made federal headlines as one of the least economically stressed communities. The county has failed to share a very important fact, that about 80 - 85% of the income in the county comes from the government: Kansas State University, Ft. Riley, the public schools, the city, the county, Section 8, welfare, and there are several federal government entities in the county. IF our founding fathers knew where the taxation and control of the government has come to they would roll over in their graves. We have attended the TEA party events and several such events, using constitutional given rights, and now are considered terrorists. Only in America!! Our CPA knows of a MD that choose to not be in private practice anymore, was hired at Ft. Riley, but is only allowed to treat the low ranking enlisted because he attend TEA party events. What has happened to our freedoms???
Larry I don’t know what we can do, but please stand up for our freedoms. Can you email me a written copy of the presentation on October 6? Thank you!!

Larry, If you are correct and they do devalue the dollar aggressivly is it so they can take all these helicopter ben dollars back of the street at say half price.And if and when it starts to unfold will it again crush the stock market again to say 65,75,or just say retest the Dow 8500 levels before moving hire?

WHEN IS THE TIME TO INVEST IN TBT OR IS THERE A BETTER PRODUCT AND IF TBT WHAT LEVEL PLEASE. IT IS NOW AT 44

As long as the fed is pumping dollars out and credit is tight, the stock market will continue to rise, as one of the few avenues left that can accept the cheap cash. With inadequate fundamentals, that rise is not value, just numbers of eviscerated dollars. The stock market, built with shaky dollars and little foundation, will come down hard and fast. When? What will the warning signs look like? If Ben is saying he is now intending to keep buying mortgage and agency debt into 2010, will the charade be able to continue that long? The Emperor may start getting really, really cold long before Ben stops printing, raises rates, or runs and hides.

Are you still against the potential rise of silver vs. gold (I hold only physical PMs?) Do you still think ETFs for gold and silver are trustworthy? Many other advisers are recommending shorting the markets soon (one mentions to wait for a 10% pull back and then dive in)- what would you focus on in that regard?
Thanks

Hello Larry,

Thanks for scheduling this seminar.
What I would like to know:

How to roll-over money I have in a 401K at TRowe Price into a gold-401K?

thanks again, Don Fiegel in Pleasanton, CA

The previous submitters seem to have covered my concerns but I’ll state them anyway: I’m interested in timing of a long term gold buy as well as a long term non-US currency buy (e.g. money market or even shorter-term bonds). as in GLD or BullionVault, hard currency Merk funds, and FXE, etc. You have indicated that the dollar might make a short term partial recovery. Also, previously asked — how safe is BullionVault versus GLS. Thanks.
Don

What type of collectibles will survive the decline of the dollar and will the price of gold balance only between the differentiation between the US Dollar, Euro and Pound or bridge the gap between the Chinese and Indian stability?

Does buying some physical foreign currency (such as Australian or Canadian Dollars) make sense while the US Dollar still has relatively “good value” in terms of such stronger currencies from commodity-driven countries (especially ones dealing heavily with China)? If so, which currencies are best for this purpose and what is the best way to purchase them, and from whom?

Estimate the rate of acceleration in silver and other metals compared to the rate at which the dollar loses value worldwide. Thanks

The recurring questions seem to be the following:

1) How do I protect my money

2) How do I grow my money

3) If I have debt, what is the best thing to do? Should I reduce my debt or just focus on keeping the cash in my hands?

4) Will a new world currency be introduced or will someone elses currency be taken over as reserve?

5) What are the best ways to keep my money liquid while building wealth and reducing debt?

6) Should I be in the market, out of the market and what currencies should my investments be dominated in?

Thanks!

LARRY - I DID NOT RECEIVE THE EMAIL TO REGISTER FOR THE EVENT.

I AM MOST INTERESTED IN HEARING SHORT & LONG-TERM PROGNOSIS ON BRIC ETF FUNDS (IE - PEMFX), AND STRATEGICALLY INVESTED BOND FUNDS (IE PSRAX).

There are already several good questions on here that I would love to hear the answers to–mine would be similar–what do you recommend as the best way to buy gold and silver. I, like Anne, have read about getting out of the dollar but in a time of crisis I don’t want my money 2ooo miles away in Canada or Australia or the Bahamas! Also interested to hear your strategies for investments we already have. I have read a lot about diversifying to companies outside the US but not always sure what the best plan for that is as well given other factors.
Thanks for sharing your expertise!

Larry - I am presently diversified in stocks, municipal bonds and gold and silver stocks. How would the collapsing dollar affect each of these positions and how would you recommend positioning my assets at this critical time. Please mention recommendations and % to put in each asset class.

Thanks

Hi Larry - As someone approaching retirement, my assets are diversified into stocks, tax free muni bonds and commodity gold and silver stocks. First, how would the collapsing dollar affect the stock market? If you predict a decline would it be best to own reverse ETF stocks. Second, if the economy worsens, how safe are municipal bonds? I own New York and Connecticut bonds. Also, which currencies would strenghten and how do you buy them? Lastly, is it time to load up on gold, silver and or other commodity stocks and which ones? Thank you for your comments at this critical time.

Dear Larry, thanks for all the great info. I am uneasy about a fixed annunity my 90 yr old father has with Transamerica. Where is the best place to put this? ($113,000.00) He will have a 6% penalty
Thanks

I would love to hear what you have to say about the war on the dollar, but some of us have to work during the day in order to earn more dollars to counteract their loss of value. Is there any info for the working class?

I am fm India. The INR is losing against the US dollar, and the USD is itself falling against other currencies. I wonder what impact is the Fed’s printing of more USD i.e, weakening USD will have on India.

At the moment I have approximately $50K in Vanguard accounts which I would like to withdraw and put into silver and gold bullion and some mining stocks. The question I have is essentially related to the tax situation I would create with the addition of the
$50 K (from Vanguard) to my regular annual taxable pension and SS income (approximately $52K). I would in effect raise my 2009 taxable income to about $100 K. A lot of people I know are experiencing a similar dilemma. If 2010 taxes are raised would we not be better off to “bite the bullet” this year and get our money out of Vanguard (or other mutual funds) so that we could make our own choice of better and safer places to invest our after- tax money. Presently, we are seeing our mutual funds declining each quarter and have no way to stop the bleeding of our retirement income. This is obviously an important dilemma which many older retirees face– how to save ourselves from our own government’s, the Fed’s, and the greedy and crooked banking industry’ stupidity which precipitated the squandering of the worth of our once wealthy nation. Obviously, as Ron Paul and a small handful of others have advocated, the only true long range solution is that we must get back on the Gold Standard worldwide! I hope you will address this dilemma on your Web cast on October 6th.; i.e. ” What can we do to salvage our retirement plans if we are tax- locked into mutual funds and over age 72?”

the trouble i have when trying to convince my father about the coming doom, is that he feels safe with his money in cash. ‘Anyway most is tied up in mutual funds so i can’t do all the fancy things you talk about anyway’, he says. Thats why i came up with what i call the “hail mary pass” of shit hits the fan investing. So if the dollar collapses i want to be in a vehicle with 50 0r a hundred thousand that is so highly leveraged it will make up for your lose of wealth in R.E. mutual funds etc. So i thought getting a year contract on the silver ETF option. So if it goes from 16 to 100 in the next year you’d make a million or so. After hammering away at this for years,(I used to work as a broker and i studied economics so this has become an obsession) Whether its weiss, calente , shiff, soros I present it all but all i get is thats interesting i’ll have to do something about that. I can’t shock people(my family) out of their compacency and the feeling of’ it will all come around again” attitude. However, after putting in alot of work on how to create model porfolioes for these coming scenarios the only thing that creates a real interest is that wild gamble. so there is me: overeducated,underacheiving, obesesive sometimes neurotic son talking to Scottish Accoutant’ make money the old fashioned way” father. I give him what he needs diversity, flexibility but only gambling excites. I’m sure there is a whole other talk we could have on the pop psychology of the logic mind in most people is only in control for a short time especially in those getting on in years and then it reverts to emotions which is really a string of platitudes like; the u.s. is too big to fail, things always better etc 1. can you deliver this shocking realization so action is taken. 2. Can you comment on this silver strategy or similar highly leveraged vehicles.

Larry:

Thank you for your clear and concise analysis of situation. I look forward to your online briefing.

Bob Kuehn

PLEASE ANSWER ME ASAP AS TO WHAT TIME THE FREE SEMINAR WILL BE AT CENTRAL TIME?

THANK YOU
MARYANN

Why not take an ETF in an Asian Country to take advantage of both the price rise and the rurrencty rise relative to the USD?

What do I do with my IRA?

WHAT IS THE TRILATERAL COMMISION?
AND IS IT TRUE THAT THEY PLAY A BIG ROLE, IN THIS MESS.
THANK YOU
PHIL

Hi Larry, I would like to know more about the large banks that hold huge short positions in gold and silver and just what are the implications of this fact. How and why does that short position impact the dollar and what benefits do these banks gain from this position. Thanks very much for your interest in sharing your knowledge with your fellow citizens! Best regards, Kevin

Hi Larry
I have a question for you that maybe you can answer on your Oct 6 webcast. If I buy gold do I take delivery and store at home, or do I leave it at Kitco? If I take it home will I have problems selling it after once it leaves Kitco?

thx

I’m retired with an income of $2000.00 a month and going into the hole and how can I buy necessities and remain alive and healthy? will some of us have to die so others can live on this planet? I have no direction at this time and think many problems will have to be rresolved as too many people are poor and resources just do not go around-worried! My savings are about $150,000 and when that is gone I too will be a goner……..fearful of much crime and injustice to come and no one will be safe. Population growth does have to be controlled and how will there be room for all of these people? war has been the recourse in the past and what will it be in the future?

Larry, I would like to have your opinion on investing or holding agriculture land as a means of protecting yourself from the devaluing dollar. I own agriculture land in Michigan and it hasn’t lost value like other areas of our economy here in Michigan. Thank You.

I am completely upset by what I am reading. I am 59 yrs old and have 3 property investments. I can’t sell them beause 2 of them are underwater and I can’t foreclose because I will end up with bad credit. But not sure if that won’t matter any more since my properties are worthless and my money in the bank is also worthless. Looks like we all have to start over sometime in the future. All my yrs of hard work didn’t seem off. Thank you bankers and our well run government for spending all our money.
Please let me no if you have any positive things to say and what should I do with my realestate investments.

Thank you Larry

Larry,
Please instruct us on buying hard gold (kugerrands, bars, mapleleafs), and also buying on the market. Gold stocks have already been pushed out of sight, so what’s any other way to protect us from the depreciating dollar? Other metals?? Thanks,
Travis

As a Financial Consultant since 1992 and an investor since 1984; I am very interested in what others in the industry who are “Aware” are doing in preparation for what all of us will be faced with.

For more than 5 years I have chaired a Study Group of Independent Financial Consultants. In the beginning of each monthly meeting we hold an open forum and discuss industry related issues and share cases we are struggling with for qualified outside input.

There are maybe 3 out of 25 individuals in this “Think Tank” who are somewhat aware of the true situation we are all in and the circumstances we and future generations will be facing.

My conclusion is that there is a high degree of denial and fear that over rides any degree of common sense and logic.

Upon numerous questions as to what is the best investment strategy for the future - there has never been an offer to potential solutions, alternative asset allocation or product posturing.

Thus, strictly in the capacity of an individual investor and concerned parent for my family - I am interested in my unanswered questions listed above.

After reading some of your dialog, it is nice to know that I am not the only one thinking along these lines…

Just one more comment about our very low interest rate… I have heard that Japan also had a very low interest rate in the 1980-1990’s and found that many countries borrowed from them to fund their investments and purchases thus feeding monies around the world. Now that this is happening or may happen with the low interest rate in the United States (T-bills and government bonds). Thus these trillions of dollars are not staying in America but are going all over the world to feed projects. I.e. China investing in Brazil… Would be interested in hearing your views on this?

- Timely consequences on the prices of oil, gold and other commodities.
-Soon, I will renew my mortgage. My bank offers from 2.49% for one year to 4,19% for five years. What term seems the most adviseable?
-Cobsequences of USA position in world politics?

I would like to know what indicators to watch to track the deterioration of $US AND what are your specific investment recommendations to get/stay ahead of this situation.

I would like to know why the Federal Reserve have never been audited. I would also like to know why the auditors did not catch the off balance sheet finacing that the banks have been conducting for years has not been mentioned.

I would like to know what inpact the derivative market is going to play in the futrure. When is it going to emplode?

Thanks

ALL OF OUR MONEY ARE IN AMERICAN FUNDS, REITS, AND CASH IN MONEY MARKET DRAWING VERY LITTLE INTEREST. WE HAVE SAVED UP MONEY ALL OUR LIFE FOR RETIREMENT TO USE FOR ENJOYMENT AND HEALTH CARE. I AM SEVENTY NINE YEARS OLD. I DO NOT HAVE ANY MORE EARNING POWER OTHER THAN A SMALL AMOUNT OF INTEREST NOW BEING PAID ON THE MONEY MARKET WITH BANKS, AND MY PENSION PLAN THAT HAS ALREADY BEEN .REDUCED SOME. ALL I WANT TO DO IS RESERVE WHAT I HAVE, AND THAT IS THE DOLLAR RETAINING ITS VALUE IN PURCHASING POWER AND MY AMERICAN FUNDS TO REGAIN THEIR VALUE AND MOVE WHAT EVER WAY THE ECONOMY WILL GO. IN SHORT, MY FUTURE DEPENDS ON THE DOLLAR RETAINING ITS VALUE. SO I GUESS THE QUESTION WOULD BE WHERE DO I GO TO PROTECT MY INVESTMENT SHOWN IN FUNDS AND CASH ?
JACK

Larry I’m Canadian and 98% invested in Canadian investments We still are down anywhere from 60% to–10% — well some of our stuff is actually now above booking value . Mainly invested in banks with anywhere from two to 5 year term . We are earning dividends on some investments and on some will be returned our initial investment at the end of the term. . I know that you mainly are speaking for U.S. citisens –but we are affected Big Time by what goes on in your country . We have been thinking about using our RRSP’s and setting up a morgage to hold inside our RRSP plan which will mean selling what we now have in our plan –Is this a good idea ? What will the devaluing of the US dollar mean to us here in Canada Thanks Judy

What does one of MEAGER income do? Unemployed and no 401K/stocks ownership.

How do people who are NOT wealthy proceed?

I help my parents with their money management planning. They require very conservative (low risk) investments but need to be protected against inflation and devaluation. How can they achieve their goals without high risk to their principal? Normally bonds would be their best tool. Are there international bonds or bond funds that can be considered for their portfolio. They are borderline solvent with current income and expenses. There are millions of retirees in the same position. Easy access to their capital is also important if they have a medical emergency.

Larry,

What I would like to see is a head to head debate between opposing monetary views. Willam F. Buckley used to have a show on Sunday mornings (Firing Line), where he would occassionally have such debates. He would bring in experts from academia, business and politics. There would be a neutral moderator overseeing the debate (usually the dean of the university where the debate was being held). It would start with the moderator stating ie. “Resolved, The government’s loose money policy will lead to an inflationary depression”. Then each side would alternate having one of their members recite facts and give their argument as to what those facts represented. It was controlled, without interruptions by opposing views, by the other side (as on cnn and the like). I would think an open forum like that, with Austrian vs Kenesian or Inflationist vs Deflationist would be more enlightening than a one sided open forum. Even if it had to be done in seveeral installments.
Just my thoughts.

Blake

A review of data, available on IEA and EIA websites, shows that world oil production peaked in 2004, maintained a production plateau from 2004 to 2008, and is now in permanent depletion decline. World oil production is now forecast to decline by 1/3 over the next decade. What personal and national economic financial impacts can we expect from this development and why don’t we hear anything about it in the national media? It would seem to me that this rapid decline in hydrocarbon fuels production would dramatically reduce the world’s carbon footprint and obviate the need to impose crushing Cap & Trade/Carbon Offset taxes on an already financially strapped electorate.

What is your opinion about shorting the long bond as a hedge vs. dollar depreciation?
What do you think about shorting the DXY? Where do you see it going?

I know nothing about investing in the different currencies. Are there mutual funds available who could do that for me? Thanks.

Do you have any recommendations for your Canadian readers ?

I’m a disabled Marine veteran. I’m not wealthy at all, but have about $10 grand in savings which is important to me. What can I do to preserve the buying power of my funds?

What am I missing?
There appears to be a “Catch 22″ inherent in precious metals. As the dollar inflates and metals soar, it appears that a decision at some point to liquidate into currency would yield only a pocketful of inflation., i.e., optimistically a break even. Where is my logic breaking down?

Several, almost many, counties are running up their debt to GDP ratios. So their currencies will also be declining, that is their prices will be rising. So what are the countries and currencies which are WELL managed by their central banks and will rise against the USD.

Larry –

I’m guessing a big part of your advice is going to be buy gold in some form. I personally do not take it as an article of faith that gold is a bullet proof store of value. We have been too many years off the gold standard. And, up until the recent panic, it seems to me gold has behaved more as a commodity subject to supply and demand as a commodity. For me, gold today is pretty enigmatic. As a store of value it depends on how many true believers (or greater fools) believe it to be a store of value. Might we actually be experiencing the evolution of a gold bubble?

Great topic….Bravo !
Please go into the relationship of how us Americans, living and working here in the States, can get out of dollar based assets and still not be a target for the IRS based “witch hunt” now ongoing visa vie “offshore” accounts/investments……

Thanks much, M S

HI,
I have a few dollars in cash and would like to know how to put some in a stonger currency and /or commodities etc.
thanks

Larry How can we protect our capital while earning some interest to survive the next many years in retirement thank you Pete

we don’t have $ to invest but rely upon insights such as yours and others to be able to understand the times we live in and what to expect…we would like to have practical advice for those of us who are living O.K. but do not have wealth or large sums to invest…just good ol’ fashioned advice and someone who can help us understand all of the goings on in the financial world and how it relates to us…

Larry,
I hope to join your blog next week. I am a Canadian and we are watching our southern brother with much concern. Your success and ours cannot be separated. I see that there are many questions already from concerned Americans. If you have time I would appreciate it if you could tell me how Canadians can protect themselves also. Looking forward to your blog.

Regards, Doug

Hi Larry and Weiss team,

Based in the uk, please can you tell me what time I need o Log on to your seminar in UK time.

Also with the US government printing stacks of dollars…I guess gold oil,and other commodities are the safe haven???With Quantitive easing worldwide and the UK..what would the effect be holding FTSE,AIM stocks.Do you really suggest Gold,Oil Commodities instead of the likes of Vodaphone,Legal& General,HSBC?

I thank you in anticipation and best Regards from Manchester,England

Bill Milburn

Any information concerning option trading. With the devalueing of the dollar, how will this effect the markets. Will we see a world of “Put” trade?

Is now the time to invest the majority of funds in commodities rather than stocks?

Hi Larry, I especially like your video updates. Thank you. I’d like to know how to protect the $ I have, and grow it. I would also like to be able to understand what would happen when the dollar crashes. Does my money become worthless? Am I better off to enjoy it now? The more I read the more confusing it is. It seem like we’re headed for worse times - ?
Judy Shapiro

Hello Larry,
I was think of buying some foreign currency to help offset the slide in the US dollar. I am more into having the real currency in my hands vs a Forex account, etc. There are a few currencies, which have and are doing well vs the dollar. What percent of your assets would you invest in foreign currency? What are the regulations regarding how much foreign currency you can buy at one time? What are the regulations regarding redemption? Thanks Craig

I am probably overstating the obvious, but #1 would be wealth preservation and then #2 would be wealth creation in these dangerous times!

UNFORTUNATELY OUR PRESIDENT HAS NO CLUE. IF HE HAD EVEN ONE CONSERVATIVE AS AN ADVISOR WE MIGHT HAVE A CHANCE AT A LONG RECOVERY.

What should my maried children who are 40 and 33 know as they are paying their mortgages and
raising children under 5 years of age?
Thank You,
Elie

Knowing that everyones time horizon, risk tolerance, near term and long term goals and obligations differ, facts and circumstances are fluid etc., etc., what is your net investable asset allocation in this current environment?

Larry, is the Fed printing money or borrowing it? It appears to me they are borrowing through Treasury Bill auctions…..and not printing…..please respond because the difference is critical…..Russell

Larry, Thanks for your help. What is your best recommendation for a drop in real estate and when do you expect it to occur (i’m currently in SRS)? How do you recommend investing for the failing dollar? If you believed that Israel will attack Iran how would you alter your investments? Thank you,

specific trade recommendations

How can Mutual Funds invested with Brokerage-Bankerages and with (some) Corporation “strings” be effectively merged (and MOVED in large measure) with other cash in a plan that is not politically unpatriotic and has not only personal aims but intends to remain patriotic and expect/or hope for the US to return to fiscal< sanity? How forward and extensive do the “actions ” have to be for those for whom investing CAN’T be a time consuming , daily endeavor–help!!

WHAT ARE THE BEST VEHICLES TO SAVE AGAINST THE DEPRECIATION WITHOUT GOING TO FOREIGN CURRENCIES?!?
THANKS,
EWT

Mr. Edelson,
RE 10-6-9 Seminar Questions:
1. Will all banks not fully compliant with Basel Level 3 be nationalized in the very near future?
1A. IF several banks are nationalized, what would the consequences be for our money in those banks?
2. Will the G-20 and the FED now go ahead and create the AMERO as a way of devaluing all of our currencies leaving the EURO, AMERO, the Juan, and maybe one other currency for the entire world?
Thanks, LW

Larry,
I find these events very informative and helpful in our quest to beat the FEDs.
However living in Asia the timing is not always convenient. I do so appreciate the posting of the transcripts following the events. Indonesia prints 1K, 5k, 10K, 20K and 100,000 Rupiah bills. Do you suppose Bernanke and the US will move in this direction?
Bigger numbers mean less paper it could be considered a GREEN move!

Larry,
I am Australian even though I have only been home for 1 month in 3 years.
please tell me if it is effective to have gold when the alternate is Australain $’s.
My assumption is that the AU$ will not appreciate to the degree of the price of gold.
Mant thanks,
Russell.

Relative to the future of the $ as you see it, what would be the order of the top 10 country ETF’s and their respective weighting’s?
Thanks,
vr/

Hello Larry,

I enjoy the interesting comments and opinions of people and also your predictions. I agree the US$ will drop a little may be 10% but not more, because simply the Chinese and other Asian markets will not allow their most important export market to fall apart. I also believe the value of Gold will increase but not more than 25%……

I look forward to the 6 October conference!

Regards,
Gerry Schilling

I’m impressed Larry. This is an excellent review of the Bernake mindset and I agree with all that you have said. One thing that I don’t understand though is why the Central Banks continue to hold gold and yet do not recognize its potential role for monetary backing. They can’t have it both ways….can they????

nice post on Bernanke, Larry. Very easy on the eye and lucidly argued.

An unintended consequence may relate to the difference between now and the Great Depression. Namely, that the US was the greatest creditor and now it is the greatest debtor.

Larry:

I would like to know which countrys currencies will appreciate against the dollar. Then, once knowing that, which sectors within those countrys would be my safest haven for stock investment.

Thanks!

We are retired, 69 and 66, and are convinced we are standbys in a horror movie that is playing our before our eyes. People are mindless, like zombies, failing to see the reality of what is happening to America, our economy, and the dollar. The dollar will collapse! Not sure when, but it will happen. So, please keep us informed, as we don’t have the financial wisdom to make sound decisions to preserve our assets. Thanks for your hard work and
willingness to share.

wyn and diane

Larry,

Given the dollar’s demise, why is TBT tanking? Shorting 30 Year Treasuries should be an effective strategy don’t you think? Am I missing something?

What is the best way to buy gold? And how can you sell it with out broker fees?
.999 purity I’ve heard is what we are seeking whe buying gold?

How can investors buy 1/10 of an ounce per purchase?

Larry:
When Israel finally decides to attack Iran—what will that do to the U.S. markets?

There is no question that the Chairman will continue to print money as needed and keep interest rates low. The only safe haven is preciuos metals and other “hard asset things” that hold their value in inflationary times.

Promoting the weak dollar may be the ONLY realistic chance the United States has of becoming a leading power again (I say again, because we’ve already effectively ceded that position to China). Who cares if we can’t vacation cheaply in Europe? If we can’t buy $50 microwaves made in China and $2,000 cars made in India (eventually), it’ll spur manufacturing here at home, hopefully in the new, green, economy, which can only be a good thing overall. Remember, America in its prime - 1945-1985 was a the manufacturing capital of the world. No coincidence there. The more recent years were booms only in the speculative FIRE sectors.
I don’t know about your Gold forecast though. Gold is much more likely to trade like a stock (or, like an ETF - GLD, according to Business Week a year ago, makes up to 1/7th the daily volume of physical gold traded. The tail is wagging the dog). If GLD tracks the broader market, there’s no reason to buy it as a counter-cyclical investment, and other asset classes look competitive.

If I want to print out money, I will definately keep the dollar higher before I print it.

I remember that Pres. Nixon took us off the gold standard in 1971, meaning that we have been off the gold standard for 38 years.
If being off the gold standard did not prevent, I do not think it will cure. ER

I believe Bernanke’s plans will backfire BIG TIME - and start another great inflationary period!

I* have a question. There has been much discussion about replacing the dollar as the reserve currency. If that happens what are the consequences for the value of gold?

He has no choice but to let the US $ fall. It is the only hope to cut the US debt that is totally out of control. In this country we have a politicaly system that is totally disfunctional and does not represent the citizens of these here United States.

For the period from 1999 to 2009 most equity mutual funds (growth, equity index and international) lost money (from 10 to about 35% loss depending on the mutual fund) while bonds and especially inflation indexed bond funds nearly doubled in value. What do you see in the immediate (1-2 years) and longer term growth of equity vs bond funds (both commercial bonds and inflation indexed Treasury bonds)

Nothing like a dose of inflation to devalue debt. A bit of Zimbabwe style inflation in the US will pay off the national debt in no time.

Larry,
How will this latest debacle affect the insurance companies general accounts?

Thanks

What caused the Great Depression? I found three different answers. Which one is correct?

During the 1930’s government blamed business for the Depression. (Some things never change.) It was the fault of the capitalism! Keynes entered the picture and monetary policy has never been the same since. Additionally, “the Keynesian revolution…provided both an appealing justification and a prescription for extensive government intervention (Friedman).”

Milton Friedman says that the Federal Reserve failed to create bank liquidity. The Fed tightened credit when it should have eased credit. “The depression was a failure of government in an area in which the government had from the first been assigned responsibility – ‘To coin money, (and) regulate the Value thereof’ (Friedman).’

Douglas Noland, like Misses and Rothbard, believes that “Depressions are the unavoidable consequence of reckless boom time money and credit excess, rampart speculation and the resulting severe structural and economic distortions. At some point, bank reserves and ‘liquidity’ become virtually irrelevant to the greater issue of intractable economic imbalances and maladjustments, and the instability of debt structures. This was the case after the ‘Roaring 20’s,’ and it is once again the case today.”

My father and grandparents talked a lot about the Great Depression. I felt like I was there. Are we entering a Greater Depression?

Ludwig von Misses wrote, “Expansion of credit does lead to a boom at first, it is true, but sooner or later this boom is bound to crash and bring about a new depression. Only apparent and temporary relief can be won by tricks of banking and currency. In the long run they must land the nation in profounder catastrophe. For the damage such methods inflict on national well-being is all the heavier, the longer people have managed to deceive themselves with the illusion of prosperity which the continuous creation of credit has conjured up.”

In the 1960s Paul Samuelson and many other economists believed that the government could “fine-tune” the economy. Hogwash! The economy is not an engine. Consumers are not robots.

The Federal Reserve controls both the supply and the price of money. I visualize the Fed Chairman driving down the Interstate with one foot on the gas pedal and one foot on the brake. He is not concerned about staying in his lane, he just wants to avoid running into the ditch!

The beauty of the free market is that no one has to know how to run the economy. Unfortunately, the Democrats and the Republicans do not get it. Every time they open their mouths about bailouts, the value of the dollar falls.

Friends ask me how do we “cure” this financial crisis? I answer with a question, “How do you cure an alcoholic or drug addict?” The government’s drug of choice is debt. The first step towards today’s financial crisis occurred with the creation of the Federal Reserve in 1913.

This financial crisis will end when other countries no longer accept the dollar as the reserve currency of the world. When that day comes, and it will come, we will become a third world country over night. Additionally, there is a good possibility that we will also loose our sovereignty.

Jerry Ashley

Larry,
Many many thanks for the work you are doing for us especially your most current piece on Bernanke. This is nuts.

Larry, thanks for your well researched and thought out views. I agree with you on everything, except that I am totally convinced that the real motive behind this crisis is political manipulation. As most of us are finally coming to realize, the Federal Reserve Bank is neither federal nor does it have reserves, it was created and is run by a group of mostly European financial interests for profit and world economic control. It was created in 1913 by devious means and they have proceeded to remove over 95% of the dollars value from right out of our pockets. Their final aim is a One World Currency for the usage of a One World Government run by the Rothschild and Rockefeller interests plus a few other very powerfull financial cohorts. They have created the crisis and they aim to impose on us all their preconceived solution, One World Domination. The sooner we wise up and publicly expose this the sooner we can unite to stop this.

I believe the only way the fed sees us out of pension liabilities & negotiated contracts is inflation, & the gov”t mass deficit will eventually inflate everything. This is a repeat of Germany post World War1. I think Bernacke believes it is the only way out.

Thanks for your insight and commentary. Just a short nit-picking note; Nixon did not take the U.S. off the gold standard. It wouldn’t have mattered who was President–we couldn’t keep giving away gold to foreign banks at $35 per ounce. The first chink in the armor of the gold standard, guaranteed by the Constitution, was when Lincoln issued Treasury notes labeled as legal tender. The first case before the Supreme Court resulted in a ruling that it was unconstitutional, but Grant then stacked the court to gain a reversal. All manipulations after that were ruled legal.

In my view there are two things that have protected us from the consequences of our mistakes, being that (1) our debt is denominated in dollars and we own the dollar machine, and (2) the Bretton Woods Agreement which induced the world to accept dollars as “good as gold”. With no protection against inflation of the dollar (practically guaranteed by the existence of the Federal Reserve Bank, described by Senator Elihu Root in 1913 as “an engine of inflation”), we exported inflation to the world. The reason there was no financial meltdown when Nixon closed the gold window is that other countries were unwillilng to write down the value of their dollar reserves. Although the dollar has lost about 98 percent of its value from 1913, it has been a slow process which will be rapidly increased by Bernanke’s policies.

The analysis presented here, is of course accurate with one important exception. The America of the Thirties was one of Nationalism and manufacturing. What our collectivist masters are all designing is a blameless way to get the world to vote and agree upon a one world currency and government. No one with any serious background in economics believes for a moment that what is currently being done financially in our country will lead to more growth or even stable employement.

Yet even within the context of our amoral culture there are numerous opportunities to build serious wealth. None of them will be found in mindless Mutual Funds or the time honored buy and hold mentality of the past 40 years. Only those that study seriously there investment ideas, save as a lifestyle and actually stop listening to the government and relearn to thinking for themselves are going to have any sense of wealth in
the future.

Continue to warn your readers of what will assuredly come to pass..the collapse of paper money within the next 60 months. Encourage them to buy and hold physical gold and of course if at all possible, to keep those holdings outside the reach of the government.

Regards,

JPS

Dear Larry,
If gold is in an up trend, will copper follow or is there a different value standard?

Richard

Hi Larry:

I am entirely in a treasury-only maney market…what should I do with this?

thank you,

Larry

I agree, now what do we do with the liquid cash we have setting on the side-lines?

What else can the fed do to avoid a depression? After reading your article, and learning the reasons why Mr. Bernanke is using these measures, I find myself for the first time at least partially agreeing with the feds actions. Thank you for the extremely informative article.

Bernake’s conclusions and actions would probably work, if the U.S.A today duplicated the conditions of 1930’s U.S.A. They are markedly different. First, we have changed from a(n) agricultural/manufacturing economy to a consumer dominated one. That is a huge difference. Money has to be funnelled to consumers rather than to manufacturers in order to effect major change in GDP. Second, we were a mostly self-sustaining economy. Imports and exports played a relatively small role in the economy, and the value of the dollar was an internal concern after $35 gold was abandoned. Currency exchange values meant little. We had our own souces of oil and gasoline cost $.20/gal. Today, if the $ declines oil goes up; if the Yen declines, Ford will go bankrupt; if Israel sneezes and Iran fails to say gesundheit oil will shoot up. In short, today’s economy is far more complex than that of the 1930’s; there are many more impactful variables and their interactions to consider than does Bernanke’s too simplistic approach. I’m not clever enough to know what should be done, but I fear that what is being done will have severe untintended consequences that will stress us for quite a few years to come. There will be much human suffering before this economic period comes to an end. I will not be surprised if the end result is a populist revolution either electoral or violent.
This is my most optimistic prediction.
S. Becker

What can I do to preserve the buying power of my funds? What is the best way of owning silver? Is silver a good investment?
Thank you,
Looking forward to your web cast.

HI,

What would be the process for world governments be to stave off debt deflation? Thanu you.

It almost seems as though this current printing of money is not a means to a recovery, but a means to a completely new global monetary system. It appears that the collapse of the USD, is the only way out of this mess, and perhaps a hard asset backed currency will come fruition. I’ve also taken notice as to the behavior of foreign countries that seem anxious to take advantage of the situation and dethrone the U.S. as the monetary super power of the world. And none of this economic discussion is taking into account the turmoil taking place with Iran, Afghanistan and other countries in regard to the geopolitical conflicts taking place. If not for the sheer beauty and immortality aspects of gold, I’d like to buy more as the dollar will be worth more as toilet paper than to put food on the table, if things continue to decline. And let’s not forget to mention the natural disasters that are taking place that only further disrupt the economic situations of the countries that experience such disasters.

How can he base his every action on how money policy was formed in a very different world? It makes no sense not to consider how laws and the world has changed.

You suggest buying gold. But how does on go about doing so? Which trader can be trusted? I’ve read that you should always pick it up yourself in order to check your purchase. Knowing so little, what would I check???

Larry: Thanks for your comments. I receive other opinions about what’s happening, some of which concur with your analysis and others that don’t. I’m confused, to state it bluntly. As I understand the situation, there presently is no alternative to the dollar as the reserve currency and there likely will not be for some time because there isn’t enough gold or silver to back a global currency; the value of the suggested currencies to back a “basket” of currencies are all so volatile because of the economic crisis, this doesn’t seem plausible; and using commodities as a base for a global currency seems absurd to me due to supply issues. Because our interest rate is so low, people are borrowing dollars to buy higher priced assets, thus causing the dollar to be more highly valued, i.e., the yen. Isn’t it possible that this tactic ultimately will prop up the value of the dollar as it did the yen? Maybe Bernanke’s tactic will work. Also, it’s my understanding that the Fed is not a U.S. governmental agency but a privately held entity whose “owners” are unknown and whose activities Rep. Ron Paul would like to have investigated, or “audited”, so all of us would know who actually controls the world’s monetary policies, i.e., the Rothschilds, Rockefellers, the Arabs, etc. What are all the facts concerning the Fed? Are Buffett, Gates, Soros and others involved in behind-the-scenes deliberations regarding establishing a global currency? There are so many unknowns. I do feel, however, that whatever can be done to avoid another terrible depression should be done, and I give President Obama and leaders from other countries credit for even being willing to tackle all of the tragic mistakes and inadequacies of the Bush administration that resulted in this world-wide recession. We need to pray for God’s help and direction for all leaders of the free world, and especially our president and our country. At least he seems determined to infuse sanity into an insane world, ruffling the “feathers” of the rabble-rousers. And as for promoting and propping up a Communist regime - China - by buying their products and investments, I have qualms about doing that. Whether people want to admit it or not - the reality of the situation is that we are involved in an economc war with China. I love THIS country! God has blessed it so bountifully! It’s the best in the whole world - and I’ll be focusing on what we need to bolster OUR economy to save OUR country. There are so many great start-up companies in the U.S.A. that need OUR financial support right now. Why not focus on them? I’m going to do so - and maybe if enough of us do that, we can avoid becoming a third-world country subservient to a Godless Communist dictatorship. Keep giving us your highly-valued opinions, Larry. They are much appreciated.

Larry - your analysis of Bernanke’s thought process and subsequent actions as Fed Chief are well written and based on very sound logic. Agree with you fully. My only question is how should you play gold gvien this backdrop.

Bernanke’s study of 1929-1934 was limited. It did not include international geopolital forces. Even if it had, the forces are realigned, different and more powerful today. Today America is a bankrupt debtor with its debt expanding not shrinking. It is a feast for our powerful enemies who have joined forces. Bernanke and other officials have offended China while visiting there. China will write the music for America’s death dance. The United Nations, with a majority of its members now countries run by dictators, will be the orchestra playing the melody. Bernanke”s academic credentials are less relevant than present worldwide reality.

Gold, silver, metals and commodities may be the best lifelines

I think that Canada will follow USA as it is very dependent on exports to US.

My view is that since Germany and France have been the first to announce their economy has come out of recession. That the Euro is a much safer bet than stocks because if the US does nose dive where is everyone going to look for good business management and not bailing out their banks. Swiss have now been compromised by US some of the smaller countries have been dominated by Bernanke too. Congress has not yet understood what really happened in October 2008 as they are so nose deep in the trough of public money they think (oh I hope they are wrong) that they are immune from the effects of a serious devaluation of the dollar.

China is heavily invested in the US dollar and have today released their currency for investors obviously they are very concerned that their US treasury investments are diving into waste paper.

Europe is run with great and honest (as far as possible in this USA dominated fun and games they call economic problem) plus they have far more experience and knowledge than USA ever had in their culture and history Plus they have the measures in place to forbid not just wimpily fine the large banks from handing out those ridiculously inflated bonuses.

Some time soon the USA population is going to find the courage to do some really good hard work at destroying the moneied fabric of their serious problems when they do you had better be safely living in Europe and buying european produced goods.

It will all start to unravel in October 2009 and there will be no W or double dip this time it will be the final realisation that you cannot just print your money. Even Monopoly ends with most being forced to jump ship.

As the dollar tanks and stock market tenks, what do you think will happen to gold stocks?

As the dollar and stock market tanks, what do you think will happen to gold stocks?

Dear Larry,

Would MERKX be a good investment for liquid funds for self-employed people–that is, funds you may have to tap if your personal income decreases or is interrupted? It seems cashing out the ETF would be easier/quicker than trying to sell gold bullion.

Thanks for the history lessons and advice on how to avoid the pitfalls of another depression/recession. Few colleges spend much time dissecting the Great Depression.

Linda

I am an 81-year old CPA. I have spent my lifetime accumulating enough funds to retire on. What can I do to protect them?

There are two major factors that are different from what occurred during the Great Depression. Both of these factors will make Bernanke’s efforts inadequate.

1. All wealth originates from hard working men and women in factories, on farms, in construction, and from gathering raw materials. There is no other source of wealth. Today, we are spending far more wealth than we are producing. This will soon catch up with Bernanke.

2. The GDP, Gross Domestic Product, is a fraud. Gross Domestic Earnings, GDE, is more realistic. This is fooling government, including Bernanke, into believing the economy is far more robust than it is. They still think the are spending only 40% of GDP and “that’s not too bad”. Government spending will totally destroy what capital is left because they are spending 110% of GDE. Consequently, Ben Bernanke’s policy which might have worked for another 1930’s depression, will not work for our current circumstances.

Kean W. Stimm

2.

Larry,

Just a suggestion.
With the number of questions be asked it will clearly not be possible to answer most of them.
Can you set up this blog such that you can provide answers to questions posed - these answers will benefit those asking the question and those reading the blogs.

Thanks.

Based on your comments about the Fed I’d say that there isn’t a place for gold in any new currency as it makes them toe the line.
How do you see gold playing a part which would raise its price to $2-5000? Just the current money expansion? I thought I understood you saying it would change overnight in which case it would have to be part of the new global currency basis. Is there enough gold to be used?

I see the pound dropping and the Euro looks stronger so could they reach parity and make it attractive for Britain to adopt the Euro?

The problem with printing press money is that it seems to cause everything to increase in price; except wages! Then again, if they did rise proportionately with money printing the Rothschild cabal would lose control of the game of musical chairs and everyone would have a place to sit!!!!

Ben Bernacke is an idiot. The Great Depression was caused when the stock market bubble collapsed; which in turn was caused by ridiculous margin requirements (10%). People were placing bets with “bubble money” they did not have, and they couldn’t pay off when things went sour. Our current depreesion was caused when the real estate bubble collapsed; which in turn was caused by the ridiculous (or non-existant) down payments required. People were buying houses with money they did not have, and that they had no chance of paying back when things went sour. The current situation was made much worse by “new sophisticated” financial instruments, that no one understood, and that served no societal purpose other than letting numerous people and financial organizations siphon billions out of system while producing no tangible benefit to anyone.
And the clowns that engineered this debacle are the same people who are now engineering the “solution” to it. Forgive them, they know not what they do (don’t have a clue actually). If the government wants more of something, they subsidize it. We are subsidizing failure (banks, brokerages, insurance, autos, etc.) when they fail, and by subsidizing failure we will get more failure. That is Economics 101, which the Fed and Treasury need to retake!

I am deeply concerned with the falling US dollar. I invest in foreign stocks and munies but I question
Where should I put my retirement cash that is now sitting in a bank. I do not have a pension fund.

I think the greatest thing that caused the Depression was Hoot- Smalley. Actually they started tariffs in the 30’s, but the tariffs covered over 30,000 items, including steel, coal and other commodities, according to what I’ve read. Also countries devalued their currencies to promote exports further complicating trade. i understand that the FED at one point was describing trade and the markets and rtrying to devise a workable solution as “trying to push a wet noodle”; i.e. nigh on impossible.

do you have anything good, in silver. in mutal fund. to buy

Dear Larry, I have been aware that the dollar could plunge and gold will rise. I am confused as to exactly how to invest in gold. Is a gold indexs good or do I have to invest in physical gold. If so how and where do I buy it? Do you think interest rates will shoot up at the same exact time or just slowly go up over the years. Is tips a good way to invest too? Thank you for your very informative articles . Joan

Canada did not print money. Canada is also diversifying by selling to China see the Alberta oilsand and Bombardier. Canadian debt to GDP is 50-60%, about 14K per person. Canada is barely touched by this recession and will be barely affected if we diversify more toward the rest of the world. Its time for us Canadians to grow up and stop relying on the States.

Canadians hold almost a trillion dollars just in cash alone.

Dear Larry: In your seminar, could you please speak about:
1). How physically can the Fed devalue our currency overnight?

2). Won’t flooding the economy with cash ultimately lead to all investors demanding much higher interest rates-and how is this a good thing?

3). If it is not a good thing, then why are they doing it? Will their answer be because of their love of power and the nefarious desire to engender dependence via socialism at my expence?

Larry: in your October 6th on line meeting please address the alternatives to buying physical gold from places like Goldline and Rosland Capital. Are they rip-offs?

Larry,

What are your thoughts about holding real estate (investment properties and second homes) with the devaluation of the dollar coming and inflation going through the roof? I have had thoughts of selling primary and secondary residences, going to cash, and looking for an options play or selling the dollar short. Your thoughts on a strategy on that?

Thanks,

Dave

Pete
The carry trade is when you borrow money cheaply in one currency then use it to buy a high yielding currency in another country. ie borrow US dollars @ 1.5% to buy South African Rand yeilding 9.5% giving you 8% profit. This is usually done highly leveraged. For many years fortunes were made borrowing Japanese Yen @ .5% to buy Australian and New Zealand Dollars @ 9.5% yield in addition should the currency appreciate in value as happened with these currencies there are large profits made. The risk is that should the currency that you bought suddenly devalue you could be wiped out as you would not have enough money left to repay your US Dollar loan.
Large Reward = Large Risk, the law of economics. Best left to the professionals or those with deep pockets.

In addition to the above. Should one put money in a bank account of another country if so which one? Should one buy foreign currency if so which one and how do I do that? I What happens to the value of my house and any mutual funds I hold? These are alot of different questions. I do hope you can touch on them on Oct 6th . I’m looking forward to what you will be covering. Thank you again.

Hi Larry!
Last year in July I finished my book, Universal Numbers and the Number 9 Destiny of Humankind. In the chapter dealing with economics, I stated that a financial disaster should occur after August, and the BIG one occurred only 17 days later on September 17th (a key number for humankind that permeates the chapters of the #9 book).

Right now I have substantial reasons to project that the once-mighty U.S. dollar will collapse soon after November 7th of this year, and 2010 will be even worse than 2008 and 2009 so far. Based on the 54-year Neptune cycle effect on the Kondratieff Economic Long Wave (which I show in the #9 book), I changed Ian Gordon’s website display of the Long Wave from his 2020 projection for the bottoming of the present “Winter” phase of the current cycle to a much earlier 2010!

I feel that global conditions will become so adverse that it behooves everyone right now to invest their dollars in gold and silver….the only REAL biblical money.

Thank you so much for your genuine service to humankind.

Bill Maynard (Vermont)

MY DAD ONCE SAID:”THERE ARE THREE PRECIOUS METALS–GOLD-SILVER-AND LEAD WHICH KEEPS THE RASCALS AWAY FROM THE FIRST TWO”! I HAVE GONE FROM C.D.’S TO CASH ON HAND AND AM BUYING EVERY PIECE OF SILVER COIN OR SCRAP GOLD I CAN LAY MY HANDS ON–AND WAITING FOR A SHORT TERM DIP TO BUY MORE AND REDUCE THE CASH FURTHER–ALSO STOCKPILING SOME FOOD-GAS-AND AMMO–AM I THINKING RIGHT???

Wow! I just found this blog and can’t believe the great number of people posting here.
It’s obvious that we’re all scared and want answers. I’m amazed at how many are commenting.
All of us are keeping an extra close eye on our government & our money, more so than in the past.
Well, I believe and accept the fact that we will see hard times for many years to come.
This can’t be prevented. We are in a Kondratieff “Winter”. It takes time to get to the “Spring” phase. Richard Russell says that in this type of market, we are lucky to keep what we have. So, I will keep what I have in a safe, but low-yielding, place. I won’t try to get high returns. I will keep my money in the USA. I will not go offshore into some foreign jurisdiction. Return of my money is more important than return on my money.
I don’t think America will implode. I don’t think that Ben Bernanke will intentionally destroy our currency.
I don’t think that President Obama will destroy our country.
Because I intend to buy low and sell high, I look for value.
Both the stock market and gold are high now. Too high for me. Therefore, I won’t buy into them.
The U.S. Dollar is universally hated and is very low. That’s what I’m buying now.
Then, when it goes up, I will sell it.
Buy low, sell high.

Dear Larry Edelson, You are right to seek alternatives which must be considered to find Truth, otherwise one is subject to gross failure. We have no alternative, but we are sure there are other alternatives. Continue seeking. Kindly, John and Ruth

PS. We do not want to be the butt of the money carry trade. Read the minutes of the G-20 meeting and maybe some one there has an idea you prefer as an alternative approach for the USA, and take a flier. If the meeting minutes are incomplete, talk with someone who was there and is a creative thinker!

What should we do or what can we do with investments in a 401k? I have limited flexibility.

HI Larry
I have read Bernanke also - and I agree fully with your description of his thought. Especially on the results of the gold standard. Getting late tonight - hope to reply again with my thoughts from reading other authors as well.
best wishes
john sloan

When American’s savings become worthless with the dollars’ freefall, how in the world can that not bankrupt America and everyone in it?

To me cause and consequences are backfiring at each other. The FED addresses rightly the consequences but hardly the cause: living beyond our means. The latter is tough, it questions the objectives of society.

Regarding: Bernanke’s Grand Strategy …

Yes, everything Helicopter Ben’s strategy is working. Our dollar should be destroyed within the next 5 years. He thinks that he learned the lessons of the Great Depression, but he didn’t. He’s a Keynesian, who sees government spending and easy money and credit as the way out of a depression. We would have had a Great Depression around 1920, but intstead the government did the RIGHT thing (imagine that!) and cut spending. It was painful, but the economy worked itself out and roared back again. How can a government think that when it gets less revenue, that is the time to ramp up spending?!? No individual could do such a thing and make it work, so how could they. Time and again, when governments cut spending and taxes, they wind up with more money and a healthier economy. Why do we keep electing these people who don’t know history? Polticians, like investors, have short memories!

Your reasoning is very insightful and helpful. If the dollar will continue downward for several years, would it not be a good idea to invest in long term capital improvements — ie take on fixed debt with fixed interest in dollars that will get heavily devalued? If the improvements serve to control or cut possibly spiking energy costs, such as solar Pv systems, or take the form of equipment purchases that can generate more efficient income for several years or more, wouldn’t this be a good investment that is closer to home? Thanks for your perspectives.

Hi Larry,
Your latest Uncommon Wisdom article, “Bernake’s Grand Strategy” is perhaps the best summation of the Fed’s thinking that I have ever read - thank you. In your conclusions, you pose three questions: will it work, will it backfire, and what may be the unintended consequences of the current Fed policy. I can not help but wonder if these same questions were asked during the Great Depression. It seems to me that an extreme policy is very dangerous in times like these.
As to the first two questions, I do not have the expertise to speculate. As to consequences, I am indeed certain that the country will face serious inflation in the future. This inflation is a de facto tax on all Americans, hitting lower income earners and fixed income retirees most severely. Anyone who is connected to reinfaltion, either through sucessful business or timely pay increases, would seem to have the best chance of maintaining their lifestyle, albiet a more modest one.
Three caveats should be mentioned here. One is unemployment vs. consumer spending. Our economy is driven more by consumer spending than the 1920’s. Our workforce is closely related to this factor; thus unemployment may not subside as a result of Bernake’s reinflation. “Stagflation,” that dreadful condition of the late 1970’s, may be our lot. The only way out will be to raise interest rates.
Another is the fact that our taxes, right now, are fairly reasonable. President Regan had the advantage of reducing high taxes to stimulate risk. No such option in currently forseeable, the way the Fed is currently printing money.
Finally is the amount of US debt held by other nations, who of late seem skiddish about holding our currency. If they dump our currency for a basket of other world currencies, or worse, a new world reserve, then everything Bernake’ is currently doing will amplify, in terms of consequnces, exponentially. That, I suppose, would cause a backfire, in a big way.
John Egan

Hey Larry,
on October 6, could you provide some information on strategies for people in the Euro-Zone, and how the collapse of the dollar will possibly affect us here.

Thanks,
Chris

Hi Larry,

I have lived and worked in Bangkok for fourteen years and want to retire here. I’m 61 and am considering collecting Social Security at 62. What I’m really concerned about is the demise of the dollar and how it will affect my Social Security. Plus…as the Thai baht is gaining in value, the dollar is getting lower and therefore my payments will be less in Thai baht.

Query: If the dollar is no longer the reserve currency, how is the amount of Social Security going to be determined? Any suggestions on how to get the most amount possible on conversion of dollars to baht for my Social Security payment? Do I wait to collect Social Security?

I know there must be other expatriates in the same position as me.

Please help.

Thank you,

Rick Raines

Hi Larry,

I respect your insight and knowledge regarding the markets, however does it concern you that everyone is predicting that the Dollar is going to plunge? Also I can’t find one single person thats not a gold bull. Should we be contrarian investors or just let the trend be our friend?

Best Regards,
Tony

As an economist I believe that your conclusions concerning Mr. Bernanke are without question.
If your cycle results are acurate the outcome is beyond Mr. Bernanke’s grasp.
One certainity exists: Mr. Bernanke has wiped out the savings and retirement plans of millions of Americans.
The results of his meddling will be a totalitarian government and the ultimate splintering of the nation.

One certainity exists: Mr. Bernanke has wiped out the savings and retirement plans of millions of Americans.
The result of his meddling will be a totalitarian government with the ultimate splintering of the nation.

Crap!

I’m moving as much of my savings as I can to a bank in the Philippines, while I can still get 48 pesos to the dollar. Then as the dollar falls and the peso gets stronger, my million pesos (which is only about $20,000) can become a million dollars but I’m not sure that would be a lot of money in the US then. But no matter, because I intend to retire outside this country as the lousey politicians are slowly ruining life here.

Larry - Really appreciate your intelligent assessments and suggestions. I would only remind you that as Contrarian and TFA members, we need you to be very precise and clear with these new recommendations for our protection. I know you do this everyday, but people like ourselves, who have suffered devastating financial losses are shell shocked. It is not easy for non-economic majors to grasp new concepts/ sectors/ stochastics/ and P&E’s… We thought we had that handled through our Brokers… please do what you always do so well, and then “wrap it up” with a re-cap of SPECIFIC recommendations. Thanks, Marsha

Should we begin buying foreign currency ETF’s, which ones and when ? What action to take vs. US company high yield bonds, and long term treasuries. Neither have fallen as predicted yet. Thanks

One question that I would like answered is this: What are the great, wealthy, thinkers that control the U.S.A. trying to accomplish for the countries’ well-being in the next 100 years? These elite bankers want control over the entire world of global commerce. So, the more that other countries can become competitive with the U.S., the more trading will occur. The bankers will take a portion of all of these transactions & continue to rule the world. Profits = Control, Greed = Control, & Control = Stability. The Great Americans shall never be defeated, ever! Money controls everything & the U.S. shall always have the lion’s share of wealth in the world. No matter what other country tries to do, the U.S. economic machine will always have the most power from the most number of cylinders.

Excellent work, Larry, the economic complexities of the Great Depression were put into simple and understandable terms. Now, if the US is headed for a period of high inflation as a Bernankian strategy to get us out of this economic mess, then what future investments are best? Certainly, you’ve wisely hammered away at the value of gold and other commodities. But you’ve said little about real estate. Yes, I realize that the pricking of real estate bubble sent us into this spiral, but at some point, which may come soon, land and residential housing will come back, if for no other reason than rapidly increasing population growth. If you’ve got the capital, isn’t this a time to buy, creating another inflationary hedge?

Maybe you or one of the other Weissians could cover this arena in the next War Room session.

Thank You,

Bill

Larry, I am signed in for your seminar, in these days of low interest rates, shaky markets, falling Real Estate markets, how do we invest in anything, to assure being retired, you wont be a Greeter at Wal Mart? Failure, is not an Option ? Thank You Bob

What’s going to happen when ALL other currencies try to race the dollar to the bottom? All other G-8 countries have over spent.

If the great dollar decline is going to slash the value of my money - what does that mean and what should I be doing with my money? Does it mean goods and commodities will cost more than they used to and that, therefore, my money won’t buy much? What should I be doing with my money under those circumstances? Buy investments, put my money in real estate, short term or in long term investments such as Treasury bills, etc. ? Help - I don’t realy understand deflation….

P.S. should I pay off my variable (based on prime) 2.49% home equity line of credit in favor of getting a low (5% or so) fixed rate or keep it where it is assuming the Fed will keep mortgage rates low based on a low prime???

mary

Some of my concerns about the current problems of our economy are below:

The general state of the United States, with many of its citizens apathetic toward politics, yet with a tendancy toward the entitlement philosophy.

It is the sacrifice of others efforts and time to produce goods, not so much services, that has formed the foundation of our prosperity. Goods come from development of our natural resources and add instead of merely transfer wealth.

Our President adds insult to injury by promising to tax the “wealthy” more. A single person making $100,000 or $250,000 per year is not wealthy. Those that are wealthy have real property and control first and the millions or billions they have is a secondary consideration. You should know, although most do not, that they pay no taxes. Instead they have methods to charge others. The President does not have the power to change this fact at present.

Most consider their home their greatest asset, especially if their net worth is a negative number. The majority do not own their home, but have a mortgage. The major difference between them and a renter is the term of their financial commitment.

As more people retire they are being replaced by porportionally fewer workers. We will realize that the transfer of their wealth is not as substantial as anticipated, especially in light of the cost of their continued benefits.

Hi,
Is it a good idea to invest in credit notes issued by likes of Credir agricole and citibank and RBS that promise to give you interet of 7% as long as the 3 month libor stays in a range of 0-7%. These notes are for a ten year term and callable by the issueing banks .

I would like to understand how do I invest in my RothIRAs out of US Dollars. What is the best way to ensure you will have non-dollar based assets.

Hi Mr Edelson,
I am mainly a stock and option trader. I would like to hear specific recommendations, i.e. should we buy commodity ETF’s? Many that rely on futures, like the oil (USO) and natural gas (UNG), I’ve been burned on with the whole contango thing, and they trade one future for the next month, my holding loses ground.
So for us stock traders, what’s the best way to deal with this mess?
THANK YOU, Gerri Summe… looking forward to it.

Is there any hope for some smart person to suggest that market forces work both ways, exerting
positive as well as negative impact on economy. Is there any hope that anyone in Washington
will be informed that they should let these forces work in our favor and quit trying to micro-manage
every aspect of the economy. These forces work, and faster than government can print enough
money to take care of the families of the unemployed who incidentally will not have a job in the
foreseeable future because money being received by them is not creating jobs, only sustaining
their joblessness. In my eighty eight years of life, I have observed, our system works and works
well. JRR

keep up the good work. It is well appreciated!!!!!!

Hi,

I fully agree with your analysis of what Bernanke is doing and is planning for the dollar. However, you asked about unintended consequences and I see a number.

In a normal recession unemployment is seen as a lagging indicator and recovery comes fairly quickly and before employment returns to normal levels. However, we have not been in a normal recession. We are in a depression. The difference as I see it is that a recession is a slowdown of a system and after the repair of that system all returns to how it was and the system progresses to new levels. In a depression, there is a systemic breakdown and so we can no longer view anything from the standpoint of the old system. Everything has changed and it can never be restarted in the same format.

Bernanke either doesn’t realise this or doesn’t want to acknowledge it. When a recession occurs it is like a crack appearing in a building. It needs to be repaired before any more damage occurs and it can normally be done relatively easily and the building returned to normal function. However, when a systemic breakdown occurs it is like the building has collapsed into a heap of debris. It can never be put back together again as it was before. It has to be rebuilt from scratch.

Bernanke, I believe, actually knows this but his entire career has been directed to claiming to be the world’s leading expert on fighting depressions and he has made a fatal mistake. We all know that he believes that the Great Depression was actually caused by the misjudged remedial actions aimed at a normal recession. He has claimed that these remedies must never again be repeated and is now simply applying the remedies that he claims should have been applied back in the 30’s to the current situation without accepting that the two events are significantly different. I believe this will have very tragic consequences.

I will not detail the differences between our current depression and the Great Depression as this would go on for many pages but suffice to say that so much is different that it beggars belief that this simplistic approach is being applied. The US like other economies has a manipulated statistics machine that pumps out figures that are demonstrably incorrect and month after month these figures have to be “adjusted”. Nevertheless, just looking at unemployment which is currently officially running at 9.8% we see a major problem. The true figure is known to be massively higher and is more likely to be in the region of 16% but what is not taken on board is that in a depression unemployment is effectively a leading indicator and not a lagging one.

Sure, Bernanke is printing money as fast as the print machines will run and spraying it in every direction but this is generally only adding to the money supply. In a few special cases it adds to the velocity of money such as the cash for clunkers and the first time house buyers inducement but, in general, the velocity of money has plummeted and will, in my opinion, stay very low for so many good reasons. Without velocity, the increased money supply will not bring about inflation. Moreover, there has never (I believe I am right here) been an example of inflation without wage inflation alongside and that seems so unlikely as to be a non-starter.

I believe that in the US around 130,000 to 150,000 new workers hit the job market every month. Corporate profits are still low and the Dow’s so called recovery has been based upon the belief of future growth rather than current profits. The Dow recovery is a farce and based simply on increased P/E ratios and so must collapse unless there is a sudden and genuine recovery of world trade. Unlikely! With reduced profits, companies are simply not going to invest in new premises, plant or stock but are going to continue to trim employment expenses, space expenses and to pull out entirely from every loss making aspect and concentrate on those areas of their business that can be made profitable. Cash flow will also be the most important consideration for most businesses. How many profitable businesses in the good times go bankrupt because of poor cashflow? A lot! So, now with profitability on the edge, cashflow is paramount and yet it is being squeezed from every quarter. The banks are removing or restricting overdraft facilities, accounts receivable are being extended and clients are going bust! Hardly an environment where unions or individual workers can negotiate wage increases or better working conditions!

While these constraints remain on the workers and businesses, less tax revenues will accrue, less disposable income will evolve to the individual, consumerism will contract, welfare payments will increase and so on.

The banks and the government are not hurting yet to any great degree because Bernanke has effectively monetised everything. But it has not gone. Bernanke’s big gamble is that he will be able to convince or cajole every other central bank and government within the developed world to do exactly what the US is doing and to thereby devalue not just the US dollar but all those fiat currencies so that the US will not be relatively penalised by its gross mismanagement of its financial sector. This, however, is not a certain outcome and if it does not occur then the US dollar is doomed.

His only strategy now must be to keep interest rates very low for as long as possible, convince other central banks to do the same, pump cash into consumer schemes and government development schemes and to continue with this strategy until the banks have built up sufficient capital reserves that they may once again feel happy to restart lending. Then he has to hope that the masses believe the propaganda and begin again to spend against debt.

Only with increased profitability will companies start to increase working hours from the 33 hours per week average that currently pertains back up to say 38 hours and then and only then can re-hiring start. There will still be no leverage available to the workers and unions and with the ever increasing number of workers arriving into the work force even with hiring beginning again, the total number of unemployed will still continue to rise.

Accordingly, I do not believe inflation will appear in the near term and I do believe that this so called recession will continue for a number of years. If I am correct, then by the time the unemployment numbers start to decrease, the money supply will be so inflated that we shall not be faced by inflation but rather super inflation, if not hyper inflation.

In the meantime, there is always the chance that China, Japan and others will simply lose faith in the strategy and stop lending to the US. This would be catastrophic and could well cause a complete worldwide financial collapse.

Then there is the middle road whereby the lack of confidence may lead to Bernanke being unable to hold down interest rates for as long as he may wish. This would simply make the recovery period even longer and it would be the spread that would determine the additional time that the depression would continue. However, it could increase it by years!!

So, in short, I am not at all confident that Bernanke’s strategy is going to work. But even if it does, I believe that the world is in for a protracted period of depressed world trade without any marked inflation in spite of China and India building significant home markets while all this is going on. But keep a wary eye out for when inflation arrives because it will be VERY FAST and will steal every last cent of cash that you may still own!!!

Larry,

I fully believe your take on what is happening to the dollar. I do hope the seminar will not entirely concentrate on convincing members that the dollar is on the way down or out of favor. If others have been reading M&M output, they are aware of the situation.

WHAT WOULD BE REALLY HELPFUL IS TO HEAR EXPLICITLY WHAT THE VARIOUS AVENUES ARE TO PROTECT ONESELF FROM THIS COMING CRISIS. Tell us what you and the other speakers are doing with your/their money in this situation.

A lot has been said about what’s coming and almost nothing has been said about what to do to prepare for it. Please spend enough time to explain how we can protect what we have from the coming upheaval. And there must be more than one way to duck and cover. I would really like to hear several options, as one does not want to put all ones eggs in one basket.

Thank you, Valerie Henderson

Hi Larry,

Yes, I have a little confusion that maybe you could clear up in the webcast. First, has Martin switched his stance from expecting deflation to expecting inflation. Second, as much as I am impressed with the cycle work, it doesn’t seem to be working right now with gold. Are you still convinced that there is a good possibility of a sell off. If we do not want to be left behind, what should we be doing right now. From everything I have heard, we should be waiting for your buy signal.

I can spend only 45 minutes per day pursuing saving my wealth. Thousans of others are like me. How can we accomplish the goals you set in the time available to us? In following Martin, you, et al for several months I dont believe achievint the goal is possible in the time available to me. PLEASE HELP. Robert M Blizzard

Hi,

I like so many of your other respondents have tried to get a streight up learning curve on why and what to do now with my 401K restrictive fund choices and where to put what cash money I have to shelter. I have been looking at the Merkx fund for currency protection? I also remenber Gold deflating in the 1980’s stock market crumble. I pulled out of the Market when it hit 15,500 and did I miss the boat not going back in? I did take a gamble on an oil/gas fund that has done well. Should I get out and when? So many questions and so much uncertinty. I also wonder about my husbands annuity that he is supposed to get in five short years till he retires. HELP! WE NEED SOMEBODY.. as the song so aptly states.

I thank you for your free advise. I can’t afford to pay an advisor so your a GOD send.

If gold & silver continue to move up in value, and the dollar continues to move down, will metals upward move reflect real additional buying power, or will its real purchasing value remian unchanged?

We really need some answers here. What to do next? Yes, gold silver, sugar and foreign currency are obvious short term fixes. What else?

Hi Larry
I just read your advisory on methods of gold purchase. Again, thanks for this valuable information. However, I wondered whether there is a reason to be concerned about buying the small gold bars you discuss in case of government confiscation. I understood that was the reason to buy certain (semi neumismatic?) coins.

I think the Dollar will hold value, only because every other country needs to devalue their own currency to remain competitive, UNTIL -> the arab’s stop selling oil in dollars. Then the dollar will really fall, as most of the worlds countries will have to weigh up whether they prefer smaller industries or progressively expensive US petrol prices.

Larry, is this inflection point on gold you’ve alluded to in your last two reports? if so, is this the break to the upside?

Fred

Larry: You are scary. You and Martin sure make good twins. I am 10% in your first guess and 30% on a 401. Although the way the market is going I think it is not the right move after the fact. The future reminds me of Rome which was based on currency and not so much in homos.
I like your presentation regarding the direction to take in securing the future somewhat. Your service is good but too rich for my blood. I need money to make money. Making a number of trades and losing a couple is expected. I would be foolish to expect no loses. There is a lot to talk about regarding our country and the inevitable is difficult to grasp at my level. Thanks for the ear.

Hi Larry,

You had discussed in a past e-mail that the last gold surge was not the big one and you were right. Gold sank back to $990 as a correction. Now, with the decoupling of the dollar to oil, gold surged to $1045 an ounce and you had mentioned that the next big raise up is due to some event such as that. I was wondering if this IS THE big surge in prices or is it going to go down again. Please send another e-mail with your analysis. If this is THE next leg up to blasting off, I will buy more gold as it will probably not go back down. If it will correct, I shall wait.

Hi Larry,
Should a foreign currency mutual fund or ETF be included in our portfolios today? If so please give us some ideas to look into.

Appreciate your UW updates. Request, if possible, you rearrange the video output. Your image is over the graphs that you use for illustration and we cannot see the data. Thanks!

hello Larry,I subscibe to real wealth and watch all your uncommon wisdom.What this administration is doing to the dollar has me very concerned,I watched the video with you and martin yesterday and my main concern I have is that even though I am invested in metals and resources when I sell I will be given dollars,I was wondering how to truely get away from the dollar without taking delivery of foriegn currencies?I have physical gold and silver but i dont really understand if I sell in dollars am I not still gettting just more of the same trouble.I hope you can help me figure out how to truely get away from this nightmare. Thank you . jim

A big thanks!
Surely, God will remember you.
Even though gold price is rising, what will happer to its worth if we consider exchange rate change, say foreign currency to dollar? Please remember dollar value is declining.
Also, still the United States keeps the largest amount of gold, doesn’t it?.

Larry,

I have been saying for weeks, now, that the recent move by the Chinese government to allow its citizens to own gold and silver is just a guise to confiscate all that wealth “for the greater good of the country” when that wealth reaches critical mass, some time in the not-too-distant-future.

Your comments, please………

Hi Larry,

With the demise of the dollar and the games that Bernake is playing what wold be the best strategy for protecting the money that you have? Is real estate now a good deal and would you advise folks to buy additional property when value of assets are driven up?

- Phil

Hello Larry. When I am in hot water, i grab a bar of soap and take a shower. I am well vested in Gold. My idea now is to buy rental properties with good cah flow. Use the very cheap money and not so bad real estate prices. Why not get rich on somebody else’s money. if the dollar is tanking the real estate can not go any lower and will have to go up as the greenback falters
What do you think???

larry I too eventually want to buy coins I was not in on the rally, at this point would you just buy some or do you see a pull back in which a better place to get in and not chase>

rick

Can you show an update on Gold’s Cycles ????

Thanks Larry

what to be caught holding and what to dump / stock wise

Larry,
What is your advice about cash? Liquidate and buy gold coins, silver, oil, etc.? Invest in the Asian markets?

Larry,
I hope you will answer this question. I have some serious wealth denominated in US Dollars. As a US citizen, can I move this money to another currency base, and out of US Dollars for safety. How would I do that, and what are the problems associated with this transition. Would I have to move my brokerage account to a foreign brokerage? Is this a viable way to safeguard your wealth in $$$, besides following your portfolio structure. I can not easily place all the money that I currently have, in an investment portfolio and I do not want to be tied up in an institutional account that takes 3-4 months to get out of. I lost over a million dollars last year because I was in this kind of situation.

Thanks,
David

larry,
you don’t have to look any further to see whar will eventualy happen than to watch
the movie from the eighties called “rollover” with jane fonda and kris kristopherson

larry,
i would like to get your opinion on what stocks or sectors would be most profitable if there was a war in the middle east. i am not wishing for such a disaster, but it looks more and more likely every day.

your input would be appreciated

real wealth subscriber

roger

Larry,

I have been following your recommendations on gold. However, your stop loss recommendations have me a bit confused. I was just stopped out of my shares in Barrick and Kinross. If gold is going to 2,500+ as per your predictions, why are we setting such tight stop losses? It seems like we should be holding onto all of our positions. Also jumping in and out of these stocks will just drive up transaction costs. Can you please explain your thinking on this?

Thanks,

Marty R

GLD is not the etf representing 1/10 of an ounce of gold. Invest in SGOL, Switzerland physical gold backed by a reputable bank, verified independently twice a year, actually 1/10 of an ounce and it is physically safe in the vaults of Switzerland. FDR type action won’t take your gold away. Now pay me $1,000 for the advice or better yet, one ounce Golden Eagle.
The SGOL fee is .39, not .40 for GLD which I transferred to SGOL. Some people think GLD can’t be storing all their gold in vaults.

larry—last june you and the foundation came out with a big cycle report——-it stated that after a medium rally —-the bear would really take hold in 2010——–whats up with that?—–you never talk about it and your comments seem to contradict it——