Question For Bob

Dear Bob,
What do you think about buying options in gold, silver and other precious metals?

Sarah Weissbard

 

Dear Sarah Weissbard,

Options provide terrific leverage and the opportunity to make great profits, but because the odds are against option buyers (three out of every four expire, worthless) I do not encourage purchasing options in precious metals. Instead, I prefer to hold gold and silver in my possession for use as a hedge against inflation and when the economy collapses and gold and silver is used for barter. The only exception is the Perth Mint. The Perth Mint is located in Australia. It is a 100-year-old mint owned by the government of Western Australia. In the Perth Mint Certificate Program bullion can be purchased at the mint’s spot market ask price with no markup. There is a service fee and administrative fee, but storage is free. Safety is assured because the metals remain on site and cannot be lent out.

Best Wishes,
Bob

The Folly Of Interventionism

The uprising in Egypt, a United States puppet state run for 30 years by an America-approved dictator, demonstrates yet again the folly of a foreign policy of interventionism.

Despite billions of dollars in aid to Egypt, the Egyptian people don’t view America in a favorable light. According to a 2010 Zogby poll, fully 90 percent of Egyptians viewed the United States as a threat. Other polls show that eight out of 10 Egyptians view America unfavorably, and almost half view America very unfavorably.

Egyptians, tired of tyranny, are protesting in an effort to build a more democratic country. For his part, President Barack Obama continues to walk the fence between supporting long-time U.S. ally Hosni Mubarak and trying to get out front of whichever force on the ground establishes itself as the leader of the anti-Mubarak faction.

That leaves the U.S. in a precarious position. On the one hand, if Mubarak survives, the Egyptian people will see his survival as the result of America’s meddling in the affairs of their country, and they’ll hate us even more. If the anti-government forces prevail — particularly if the Islamist group Muslim Brotherhood achieves dominant status — the new government will not be as friendly to the U.S. or Israel.

To top it off, other U.S. puppet states like Saudi Arabia, Kuwait and Bahrain may fall next. That’s many more billions of U.S. fiat currency out the window.

In the name of foreign policy the U.S. has spread untold wealth on nations throughout the Middle East and Eastern and Western Europe. It has propped up tyrants, created jealousies and hard feelings and supplied Europeans with nanny state-style benefits.

The money wasted over there could have been better used over here building a strong economy and improving the lives of Americans. Instead, it’s created enemies of the people who have suffered under the tyranny of America-financed dictators.

The current Congress is debating ways to cut the budget. Money to dictatorial regimes for the purpose of improving their military might and clamping down hard on their people should be the first line item to get the ax. Next should be money that funds U.S. military bases around the world.

President George Washington, in his farewell address, warned against establishing permanent alliances. He said:

“Our detached and distant situation invites and enables us to pursue a different course. If we remain one people, under an efficient government, the period is not far off, when we may defy material injury from external annoyance; when we may take such an attitude as will cause the neutrality, we may at any time resolve upon, to be scrupulously respected; when belligerent nations, under the impossibility of making acquisitions upon us, will not lightly hazard the giving us provocation; when we may choose peace or war, as our interest, guided by justice, shall counsel.

“Why forego the advantages of so peculiar a situation? Why quit our own to stand upon foreign ground? Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor, or caprice?

“It is our true policy to steer clear of permanent alliances with any portion of the foreign world; so far, I mean, as we are now at liberty to do it; for let me not be understood as capable of patronizing infidelity to existing engagements. I hold the maxim no less applicable to public than to private affairs, that honesty is always the best policy. I repeat it, therefore, let those engagements be observed in their genuine sense. But, in my opinion, it is unnecessary and would be unwise to extend them.

“Taking care always to keep ourselves, by suitable establishments, on a respectable defensive posture, we may safely trust to temporary alliances for extraordinary emergencies.”

It’s way past time for us to heed his advice.

Another Bush

The campaign to select the Republican to challenge Barack Obama in the 2012 Presidential election is underway and it seems the Republican brain trust has selected its challenger: Former Florida Governor Jeb Bush.

The neoconservative rag National Review — the champion of liberal Republican RINOs like John McCain and Mike Castle and mouthpiece for the Republican establishment — is touting Jeb’s credentials in its cover story this week, and on Monday, Editor Rich Lowry posted on National Review Online eight reasons Jeb should run in 2012 rather than 2016. His reasons: The GOP field is wide open, 2016 will be too late (twice), brother George W.’s legacy  is being rehabilitated, Jeb will always be a Bush, he’s not just another Bush, he can unite the party and waiting is a mistake (see Mario Cuomo).

I can think of as many reasons why another Bush would be bad for the country. But for the sake of brevity, I’ll mention just one: Perpetual war.

In January 1991, President George H.W. Bush launched a war in the Middle East that continues more than 20 years later. Started under the pretext of freeing Kuwait from a dictator — Iraq’s Saddam Hussein — the war was fought to ensure the free flow of oil to America from Bush the elder’s bosom buddies, Saudi King Fahd and his family.

While Kuwait is a free country compared to most in the Middle East, it is ruled by a king whose family has overseen the country since 1752. A monarchy is not a free country, so Bush traded one dictator for another he liked better.

After Hussein capitulated and retreated back into Iraq, American military bases established throughout the region remained. The American military presence in Saudi Arabia is one of the reasons cited by Osama bin Laden for launching the 9/11 attacks on America.

Throughout the remainder of Bush the elder’s term, and then all the way through Bill Clinton’s, America remained at war with Iraq. United States fighter jets patrolled the skies, the occasional Tomahawk missile was launched and American troops and materiel remained in place — ostensibly to keep Hussein in check.

Then came George W. Bush. After 9/11, Bush received carte blanche from Congress to make war where he pleased. And it pleased him to do what his father had not: Remove Hussein — a product of CIA meddling in the Middle East in the 1980s as a foil to Iran — from power.

Now Barack Obama continues the fight in the Middle East, and despite his tall talk that he believes all people should be free and should settle their own affairs, the fact remains that he continues to meddle in the internal affairs of the region and favored the Iranian regime over the Iranian people in their protests in 2009 and favors 30-year dictator Hosni Mubarak over the Egyptian people now.

If we have another Bush at the helm, guided by the war-happy neoconservative wing of the GOP, you can be assured the perpetual war will continue. The country cannot afford another Bush.

What Your Stomach Troubles REALLY Mean

If you frequently experience digestive problems like constipation, gas, bloating, indigestion and persistent fatigue, there’s a chance that the undigested foods in your colon have attracted parasites.

And this isn’t just a problem in developing countries. Recent medical studies suggest about 85 percent of Americans are infested with at least one type of parasite!

To protect yourself, consider using one of Mother Nature’s parasite destroyers:

  • Black walnut extract — Chinese and Native Americans have long used black walnut to protect against intestinal worms. Its antiseptic properties also help fight many fungal and bacterial infections.
  • Grapefruit seed extract — Louis Parish, M.D., an investigator for the Dept. of Health and Human Services, Public Health Service, Food and Drug Administration, reported that grapefruit seed extract “…is as effective as any other amoebicide now available, perhaps more effective…” It’s a safe and simple way to avoid parasites that contaminate drinking water. 

Is The Gold Market A Bubble?

People who hate the discipline of gold are creative in their attacks to discredit honest money.

They say gold is in a bubble. But it is paper money that is in a bubble and the world is in the blow-off stage. In fact, every passing hour there is created tens of millions of dollars in phantom money. This requires more and more gold to rebalance the escalating deficit of substantive money.

Gold is not in a bubble. The world’s governments and people need more and more gold versus paper money.

Confidence in government “money” is collapsing. People all over the world are suddenly learning that governments steal from their citizens by inflating their currencies.

My advice to you is that if you wish to return to the good old days when you could buy a loaf of bread for a dime, then you must have some silver dimes. The baker will understand the value of a silver dime when the time comes.

Also, you should get money out of the United States into the Swiss franc and investigate Swiss annuities. There is a $50,000 minimum now. For information call toll-free 1-800-331-0996, leave your name, address, and phone number for information. Please speak clearly.

Another offshore wealth protection strategy is offshore life insurance. You can obtain our free research manual, The Offshore Life Insurance Advantage, written by top attorney J. Richard Duke, to learn more about them. I outlined some of the advantages of offshore insurance in my recent column, Consider Offshore Life Insurance For Asset Protection.

The greatest problem the American people have is currency depreciation by the government. The government produces nothing. Government can only depreciate the value of the currency to pretend to pay debts and stabilize the economy.

Once again, gold is not in a bubble. It’s paper money that is in a bubble. Gold has been rising in paper money terms for 10 years because wealth holders around the world are increasingly seeing it as a more stable currency than their local currencies.

Gold is a more stable currency than paper money because of its scarcity; annual demand for gold exceeds its production. Annual demand for paper money does not. The truly damning phrase should not be gold-bug, but paper-bug. Many investors and media commentators resolutely refuse to understand gold as real money.

No, it is not too late to buy gold and silver coins. In fact, the recent correction makes now the right time. You must keep them in your personal possession, not in a bank safe deposit box.

Gold and silver stocks have broken out to the upside again. They still have a lot to gain in my opinion. I use Charles Schwab for a discount broker.

The following are gold, silver and energy stocks that I own. I’ve made tremendous gains with them and they still have a long way to go: BHP Billiton (I recommend this stock to everyone), Royal Gold; Kinross; Iamgold; El Dorado; Agnico-Eagle; Silver Standard; Pan American; CONSOL Energy; ASA Limited; Marathon Oil; Talisman Energy; Endeavour Mining; Industrias Penoles; Couer d’Alene Mines; Compania De Minas Buenaventura SA; Baidu Inc. (this is the Chinese Google, a high flyer and has a long way to go, in my opinion).

We are not selling yet: Newfield Exploration.

Some good funds: India Fund; Morgan Stanley Indian Fund; Vanguard Energy Fund; Fidelity Select Gold Fund; GAMCO Gold Fund; Tocqueville Funds; US Global Investors Precious Minerals Fund; US Global Gold and Precious Minerals Fund.

Rescuing A Broken America by Michael Coffman, Ph.D.

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While most Americans know that their country is experiencing deep political divisions, few understand how or when this came about.

Some feel this division first appeared during the 2000 Presidential election in which the U.S. Supreme Court intervened in Florida’s ballot counting controversy. Others believe it manifest itself in the election of Barack Obama and the passage and proposal of overreaching and possibly unConstitutional bills (like Obamacare and Cap and Trade) by a Democrat Congress. But the schism actually began long before, writes Michael Coffman, Ph.D., in his book, Rescuing A Broken America: Why America is Deeply Divided and How to Heal it Constitutionally.

America is mired in a war of world views, Coffman writes, between the axiom of freedom and mutual respect best described by John Locke (1632-1704) in his Two Treatises on Government, and that of Jean-Jacques Rousseau (1712-1778) in his Social Contract and Discourse on the Origin of Inequality. And the divide stems from the fact that America’s people no longer understand the principles of unalienable rights and self-government as envisioned by the Founding Fathers because public schools no longer teach the foundations of freedom and God-given rights that protect them from plunder by others and their government.

The Founders subscribed to Locke’s view that the government’s purpose is to join with others “united, for the mutual preservation of their lives, liberties and estate, which I call by the general name, property.” And most Americans would be amazed to learn that the free right to own property represents the foundation upon which life and liberty depend, Coffman writes.

This difference can also be summed up as a dispute over whether we enjoy “natural rights,” guaranteed by the Constitution, or “positive rights” granted by government.

The Rousseau model, subscribed to by socialists and progressives, is easily sold to a dumbed-down populace because it is based on emotions and feelings and spell out what the government must do for its people. But positive rights also spell out what the people can and cannot do and were the basis for the Soviet Union’s constitution.

Property rights are also addressed by Coffman, and he demonstrates how today’s progressives are attacking the rights of Americans to own property and decide its best use and how this is a play right of Rousseau’s plan.

Studies show that the lower the protection of property rights in a country the lower is its per capita gross domestic product. Conversely, the higher the protection of property rights the higher the per capita GDP.

Coffman’s research shows how the right to own property is fundamental to a prosperous citizenry. In countries where citizens are able to own property and decide how it is used — as in the United States — citizens can turn that property into individual wealth. But in countries where citizens have no property rights — third world nations — the citizens have no means of building wealth. The property tied up by those governments and denied its citizens represent about $9.3 trillion in lost wealth — which is 93 times as much as all development assistance given to the developing nations from the advanced countries over the last 30 years. This is just one of the many ways Rousseau socialism has harmed individuals in other countries, and is a precursor to what is happening in America as Americans watch their rights to own and control property be whittled away.

Additionally, Coffman covers the global agenda that is working behind the scenes to co-opt American institutions and set the agenda in education and through the media to profoundly change the way the American people view their country and think about its founding document. This insidious effort is behind the evolution of Americans from the natural rights to the positive rights mindset. And because it’s so entrenched through multiple generations of teaching and propagandizing it will be incredibly difficult to turn back, Coffman says.

Finally, Coffman offers Constitutional solutions that will help to stem the tide and steer America back on its proper course. These solutions range from the simple — pinning down candidates to ensure they understand Constitutional principles and are determined to abide by them — to the complex — using old, seldom-used laws to restrain the Federal government when it tries to assume authority it doesn’t have.

Rescuing a Broken America is a must-read for anyone considering running for political office or who simply wants to understand how we came to this point and what must be done to correct our course. It is footnoted and uses mainstream sources to prove its points, including the issue that explains how a global cabal is seeking to dominate the world for its own ends.

I read the first printing, which came out in early 2010, and it did have some typographical errors that must be corrected in subsequent editions. But the errors were minor and didn’t detract from the book’s message, that America is being subverted by progressive liberals in the Rousseau tradition who think that because of their education that they have a better understanding how the world should work than do the great “unwashed” masses living in what has become known as flyover country — middle America.

Egypt Kills The Internet, Elites Secretly Applaud

As the movement to topple the Hosni Mubarak regime in Egypt gained traction, Egyptian authorities took draconian measures to stop it in its tracks — it shut down cell phone services, the Internet and social networking sites like Facebook and Twitter.

Days later, despite insincere pleas from President Barack Obama, Internet services remained down even though some cell phone service had been restored.

But while Obama was preaching to Mubarak and his gang to resume Internet services, legislation to kill the Internet in the United States — that was introduced last year but never acted upon — was about to be reintroduced.

“My legislation would provide a mechanism for the government to work with the private sector in the event of a true cyber emergency,” progressive Senator Susan Collins (R-Maine) told Wired.com in an emailed statement this week. “It would give our nation the best tools available to swiftly respond to a significant threat.”

Nothing threatens the political elites like the free transfer of information. Having lost control of the message due to the declining relevance of the corporatist mainstream media, political elites are seeking to regain control.

Chameleon Senator Joe Lieberman (I-Conn.) introduced the legislation last year. In an interview on CNN, Lieberman said, “Right now China — the government — can disconnect parts of its Internet in a case of war. We need to have the ability to do that, too.”

When does China “disconnect parts of its Internet?” Not in times of war but when groups gather to protest their government’s abuses.

Lieberman cited a threat to America’s power stations and other critical infrastructure in defending his bill last year. But power grids and critical infrastructure are not part of the World Wide Web. And the threats to that critical infrastructure come from governments themselves, as evidenced by the revelation that the Stuxnet worm that brought down Iran’s nuclear program was devised and implemented by U.S. and Israeli government agents.

Don’t be fooled. The elites aren’t worried about external threats. They are worried about an informed populace. For as Council on Foreign Relations co-founder and Bilderberger Zbigniew Brzezinski lamented last year, the people of the world are becoming more aware of what’s going on than ever before, and this awareness is harming the globalist’s agenda.

While Egyptian citizens are trying to throw off the shackles of tyranny, U.S. elites are trying to transfer those shackles to Americans. The Internet Kill Switch Bill must be defeated.

For Winter Skin Care, Keep The Water Warm

Keeping your skin nourished during cold weather can be tough, but you should resist the urge to take hot showers or baths, says Alan Menter, M.D., of Baylor University Medical Center in Dallas. He suggests keeping your shower brief and lukewarm, and using moisture-rich body soaps. Pat yourself dry and apply lotion while your body is still damp to lock in moisture. This can minimize the toll winter weather takes on your skin.