Bloomberg.com: Worldwide

U.S. Stocks Tumble, Sending Dow to Worst June Since Depression

The above article is confirmation that there are tough times ahead for all those who insist on investing in the stock indexes. The American stock markets are all in bear markets. There is too much spendable media (i.e., Federal Reserve Notes and similar monetary aggregate) in the system, along with unserviceable levels of debt. Consumers are in too much debt, all whilst losing their jobs and income levels in ever increasing levels. Investors and anyone else who is exposed to these risks needs to hedge against these financial hazards.

Some Information on Suppressed Economics

I'm going to share some articles that deal with macroeconomics and how it interfaces with precious metals/hard assets and the larger investment markets. I won't write my own dissertation, but I will share a bit of commentary and offer some excellent articles that I've found (as usual). I haven't done my normal reading and research on the investment and precious metals lately, but something brought me back to these topics because they are critical if you want to have an understanding of what is really going on in the investment and financial arenas. I found the articles on the Gold Eagle articles web site. It's a site that's mostly for serious investors and academics interested in a different take on the financial world from what is offered on CNBC and other mainstream sources. They usually add articles/editorials from prominent people in the investment and financial arenas, so you may want to bookmark the above link and visit it regularly. You'll catch on to some of the technical jargon if you just look up the words that you don't understand. If you need an explanation, leave me a message or write the author.

Well, the first article is entitled Toilet Paper is Worth More Than USD's. I loved that title, even though it isn't good news for Americans. The basic premise is one that I've been trumpeting for a while. The US Dollar (USD) is being systematically destroyed by the US government. Policies that have been implemented by presidents and governments since LBJ (or even earlier) have all engineered these events. Public policy was implemented that strongly rewarded companies that utilized debt financing in relation to companies that used equity financing for capital investment. It used to be that corporations would use what was termed retained earnings to finance capital expenditures. The term retained earnings is just an MBA way to say savings from profits. But the bankers found that they couldn't earn interest on that, so they had the government agents change the laws to make it extremely unprofitable for corporations/companies to use the savings from operations. Now, virtually all corporations are indebted to (if not actually owned de facto by) the banks. This puts all corporations under the control of the bankers since the creditor is superior in authority to the debtor.

The article in question is brief, but the author gives out a lot of pertinent information on the USD, precious metals, and some of the dynamics of world finance and economics. He doesn't get too deep with the technical language of finance, but imparts the necessary information for laypeople on these issues. I don't claim that you will have a total understanding of finance from the article, but you will have a better understanding of it. Remember that the specialists in topics get paid by confusing laypeople so that they believe that they can't understand the concepts. But economics and finance are issues that ALL people should understand because these are the things that will affect every area of the lives of everyone, whether or not they are active in the financial markets.

The next article speaks more on topics regarding our understanding of the coming credit collapse and the study of monetary issues. We must understand that paper money (a misnomer/oxymoron) is relatively new on the scene in reference to the things that have been used as financial media (i.e., money). As much as I support the gold standard, it probably would not work (in its pure form) due to issues addressed in this article. But this article does give a lot of information that will greatly assist you in your understanding of monetary issues. It is longer than the first article, but I think that you will find it invaluable in increasing your financial intelligence. The author (a professor of science and applied mathematics) also gives an excellent explanation of how the use and function of bonds has been altered so that bonds are now financial instruments that are being used to steal from producers AND savers. This is a very interesting development that turns most mainstream financial theory on its head. I'll leave the rest of the article for you to discover at your leisure.

I'll go over the last 2 articles together as they are both covering similar topics. I found this article to be very succinct and direct. It is a quick, short read. The author gives his honest opinion about the future of the dollar, and the facts all point to the conclusion that there is simply NO WAY that there will not be a significant devaluation of the USD. The fact of the matter is that the USD (as are all other paper currencies on the planet) are all debt instruments. Go retrieve one of those things you call a dollar or currency out of your pocket and read what it says on the very top. It says 'Federal Reserve Note'. I just went to dictionary.com, and it defines a note as: "a paper acknowledging a debt and promising payment." The other pertinent definition states: "a certificate, as of a government or a bank, accepted as money." Notice that neither definition stated that a note is an asset, nor did it actually say that it was money! All this note business notwithstanding, the budget deficits and the trade deficits are wreaking havoc with the US economy, and unfortunately, we are in the terminal stages of the decline and failure of the USD. Just make sure that you understand that those 'talking heads' that you know and love on the television are paid six- and seven-figure salaries to keep you from learning the facts that are being presented in this information that I'm sharing with you! So if/when you wonder or think, "The financial experts on television don't say these things", just know that they are paid not to give out this type of information, even if they know the truth of this material that I'm introducing to you. They'll NEVER level with you!

So read closely, and make sure that you read with an open mind. Don't think of the information as being scary or pessimistic. The part that would be sad is if you had no idea of what the future holds for the financial condition of America, and the world. Would you rather have your head continue to be filled with lies, misconceptions and other drivel? There is power in the truth. The only way that you can prepare for the future is to have an accurate, complete understanding of things. The truth is liberating because it enables you to make effective plans for the future. If you don't know what's really going on in the world, how could you ever make any plans that work? Remember, your family, children and friends (and their future) are depending on you...

Dire Economic Calamity in Store for America?

I found more excellent articles that speak on the US economy. Most, if not all, of the news is bad, unfortunately. It's just a symptom of the economic policies that have been implemented by the US government. It is not the result of idiots or unqualified people because they aren't allowed to run things anywhere, unless they are placed there for a reason. Ignorance and lack of intelligence is not a prescription for success or influence.

The first article speaks on the conversion of the People of the United States from free to being debt slaves. The author speaks on the radical change that has gradually been implemented since the late 1960's. The bottom line is that credit cards and other types of debt instruments that used to be used sparsely have now become an endemic here. Just about all adults have some sort of debt. This means that the banking system has all of these people financial information at their disposal, which is also freely shared between businesses, thanks to the credit-reporting agencies and their ubiquitous presence. Even young students in college and even high school (!) are enticed to go into debt in just the same way that the experienced dope dealer tries to entice youngsters to try hard drugs so that they can make money on you for a long time. In addition, the banking system works hand-in-hand with the government so that they can both extract as much wealth from the people as possible. I know that I've covered that topic in depth in earlier writings. The bottom line is that this 'country' is operated as a for-profit corporation. We all should know (if we don't) that corporations have no morals, no code of ethics and no conscience. Its only purpose is to generate profits for the shareholder/owners, concepts of right and wrong be damned. This article is excellent, and is a short read.

The next article goes into depth about the insolvency of the United States. The bottom line is that the US is generating exponentially-increasing debt AND the trade deficit, while the income, manufacturing and assets of the country are shrinking. This sounds like a gourmet recipe for financial and economic disaster. But remember, the disaster is planned to hit the people because your fearless leaders understand exactly what they are doing and the results of it. Your fearless leaders have their contingency plans already mapped out, and they will not be affected as profoundly as the average person who is the victim of government-sponsored propaganda that is designed to keep you fat, ignorant and blissful in a babbling state of stupor. Just like the sheep that doesn't realize that it's about to be sheared and killed until it is much too late to stop it, the US citizen is being fattened up for the kill. All the hoopla about 5th grade-level television shows and other trivialities are engineered to be junk-food for the mind. The people are being entertained while the US burns.

Are you going to voluntarily walk to the slaughter, or are you going to work to save yourself, your family and/or friends from the clutches of disaster? It doesn't take a Ph.D. in economics to figure out that we're being duped, and that the present state of affairs is not sustainable. The country that we used to love and cherish has been put in a coma, waiting for the People to awaken and reclaim their country back from the swarms of foreign agents (also known as the government) that infest the land. Yes, freedom requires courage and intelligence, but it is so highly regarded as a prize that any struggle to attain and keep it is worth it. The alternative is a life of bondage, degradation, exploitation, victimization, and most other negative things that you probably don't want to experience. Remember the fable about the ant and the grasshopper? Connect the dots. You can do it.