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Protect Yourself From Economic Crisis

June 13, 2012 by  

Protect Yourself From Economic Crisis
PHOTOS.COM
The global economy is imploding.

The Occupy Wall Street leftists may have a lot less square footage to trespass on, given the way the global economy is imploding. Stock indexes around the world are down and commodity prices are in their worst slump since 2008. If the trend continues, the Dow Jones industrial average could be valued at half its current price in 24 months.

That will mean that Wall Street fat cats could soon look more like feral felines. That wouldn’t be a heartbreaker except for the fact that the destruction of Wall Street would bring suffering to tens of millions of Americans.

Global markets took it on the chin this month in the wake of unemployment numbers that underscore the weakest U.S. economic recovery in decades.

The Four Horsemen Of Deflation

Not once in the 30 years that I have been researching the markets have I witnessed the troubles that the world now faces: a stock market slide, falling gross domestic product, rising unemployment and waning confidence.

In just the past few weeks, Big Board U.S. stocks have erased most of the gains they made during the first five months of this year. Only because of a 287 point rally last Wednesday — its strongest single day performance this year — the Dow is now comfortably over 12,000. But the Dow Jones Industrial Average is not immune from Europe’s problems, and a break below 12,000 could soon push the index below 10,700. The next support for the Dow would be 9,000.

Big Board stocks have been responding to the likelihood of a double-dip recession. U.S. GDP has been slashed from 2.2 percent to 1.9 percent. The U.S. economy is not adding jobs. As stagnation has spread into manufacturing, consumer confidence is beginning to tank.

American payrolls increased by just 69,000 last month, far below the 150,000 that analysts had expected. The unemployment rate rose to 8.2 percent from 8.1 percent, while revised estimates show that fewer jobs were created in the past three months than originally expected. The Obama economic recovery has run out of steam.

Then there is Europe. Crises in Spain and Greece have sparked a bank run that has pushed yields on relatively risk-free assets like U.S. Treasuries and German Bunds to record lows. The two-year German Bund has even dipped into negative territory. Yields on the 10-year U.S. Treasury have fallen to 1.40 percent. Those are yields not seen since the Great Depression. (See Treasury chart further below.)

Nervous investors are throwing money into the U.S. and German government bonds knowing they’ll get back a negative return when adjusted for inflation. This is becoming a panic — and for good reason. Europe’s wholesale funding market is broken at a time when Spain’s banking system is teetering toward bankruptcy.

Worse Than 2008

My old friend and Personal Liberty Digest™ columnist Chip Wood signs off each Friday with this phrase: “Keep some power dry.”  Unfortunately, the people who run the Federal government don’t read Wood’s columns.

When the economic calamity hit four years ago, governments around the world began injecting money into the economy. The Administration of President George W. Bush and a complacent Congress immediately shot $700 billion with the Troubled Asset Relief Program. That plus other bailouts left the United States with a Federal budget deficit of $1.17 trillion in fiscal 2012.

Last week the Congressional Budget Office (CBO) released a report showing that the national debt will soar over the coming years.

“The growing imbalance between revenues and spending, combined with spiralling interest payments, would swiftly push debt to higher and higher levels,” the CBO said in its 2012 Long-term Budget Outlook. “Debt as a share of GDP would exceed its historical peak of 109 percent by 2026, and it would approach 200 percent in 2037.”

Gross Federal Debt In 20th Century

The Federal government has not the means to inject another trillion dollars or more into the economy because they have burned all their powder. If Washington were to try another rescue like they mounted four years ago, the U.S. Treasury market would implode.

The result of that would be higher interest rates. The bulk of bidders at U.S. Treasury auctions these days are foreign powers, particularly China. However, if China and other nations begin to think the United States is another Argentina, they simply won’t throw good money after bad into U.S. Treasury bills, notes and bonds. The result is that America would have to go begging to get buyers of its debt. That would mean higher interest rates because if the marketing of U.S. debt securities slowed, the U.S. government would cease to operate.

Higher rates forced on Treasury auctions would send interest rates across the board higher. Higher rates for mortgages, car loans, credit cards, you name it. And that, my friends, would be a death knell for an economy that is struggling with interest rates at their lowest levels since the 1930s.

10-Year Treasury Constant Maturity Rate

Crude Is Crashing

The price of oil is in its worst retreat since 2008. Crude fell 18 percent in May. In fact, oil prices traded down in 17 of the 22 trading days last month, the worst single monthly performance for oil since 1997. Given the poor prospects for the U.S. economy, China’s economic woes and the debt disaster in Europe, oil could give up 50 percent of its value. That would put crude around the $40 per barrel mark. This would throw petroleum stocks into a devastating bear market.

Keep Only Your Core Gold And Silver Holdings

Gold is off its highs, but it is one of the few real assets that has held its value. I wouldn’t recommend the purchase of additional gold just yet, because I think the bullion bull has stalled. But it is impossible to predict what crisis might erupt, including the collapse of the greenback. If you can put a few dollars away — something that is getting tougher to do these days — you should keep at least 20 percent of savings in physical bullion. More than 25 percent of your savings in gold is not wise, because I think it will correct further downward. Long term, however, gold will rise well above $2,000 because of the bleak prospects for the U.S. dollar.

What to do? I think anybody holding from a small nest egg to a fortune should get heavily into cash.

If you have $10,000 or less, and given the poor rate of bond returns, I think you should find a good safe and lock it up along with your gold and some survival silver. A safety deposit box is another alternative. Even if your bank fails, I think you will have access to your box.

If you have more than $10,000 saved in a safe or a bank safety deposit box. I recommend you buy three-month to six-month U.S. Treasury bills. Most banks will sell you U.S. Treasury securities. You can also buy U.S. Treasuries in paperless electronic form from TreasuryDirect. You can go online and research more about them and more about U.S. Treasuries by clicking here.

Don’t buy Treasury instruments that have maturity longer than six months. Interest rates cannot stay at these historic lows and once they rise, longer maturity debt instruments such as notes and bonds will lose a significant amount of their value.

Yours in good times and bad,

–John Myers
Editor, Myers Energy & Gold Report

John Myers

is editor of Myers’ Energy and Gold Report. The son of C.V. Myers, the original publisher of Oilweek Magazine, John has worked with two of the world’s largest investment publishers, Phillips and Agora. He was the original editor for Outstanding Investments and has more than 20 years experience as an investment writer. John is a graduate of the University of Calgary. He has worked for Prudential Securities in Spokane, Wash., as a registered investment advisor. His office location in Calgary, Alberta, is just minutes away from the headquarters of some of the biggest players in today’s energy markets. This gives him personal access to everyone from oil CEOs to roughnecks, where he learns secrets from oil insiders he passes on to his subscribers. Plus, during his years in Spokane he cultivated a network of relationships with mining insiders in Idaho, Oregon and Washington.

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  • Third_stone

    The nation has dry powder, but we are wasting it on war. Continuous war the world over.
    You are lamenting the results of “conservative” economics, which have been driving down wages and driving out industry since Reagan’s time, and today we harvest the results.
    End war and we can bring our nation back from the brink. End corporate looting of our treasury, end tax cutting for the very rich.
    Our congress is sold to the highest bidders, and can never fix the economy and serve their sponsors. Throw the right wing out before they ruin us.

    • Robert Smith

      But wait! The trickle down will be here any decade now.

      Rob

      • Jon

        There is a trickle-down now from our royalty (oops– politicians), only it’s yellow and smells like ammonia.

      • http://gravatar.com/dawgbisquit1 Tom W.

        There is ONE thing different about this crisis, it is totally GLOBAL in scope. God’s Holy Word prophesizes a GLOBAL financial melt-down in the “Last Days”!

        “Go to now, ye rich men, weep and howl for your miseries that shall come upon you. Your riches are corrupted, and your garments are motheaten. Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days. Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth. Ye have lived in pleasure on the earth, and been wanton; ye have nourished your hearts, as in a day of slaughter. Ye have condemned and killed the just; and he doth not resist you. Be patient therefore, brethren, unto the coming of the Lord. Behold, the husbandman waiteth for the precious fruit of the earth, and hath long patience for it, until he receive the early and latter rain. Be ye also patient; stablish your hearts: for the coming of the Lord draweth nigh.” – James 5:1-8 (KJV)

        Revelation 18
        King James Version (KJV)

        1 And after these things I saw another angel come down from heaven, having great power; and the earth was lightened with his glory.
        2 And he cried mightily with a strong voice, saying, Babylon the great is fallen, is fallen, and is become the habitation of devils, and the hold of every foul spirit, and a cage of every unclean and hateful bird.
        3 For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies.
        4 And I heard another voice from heaven, saying, Come out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues.
        5 For her sins have reached unto heaven, and God hath remembered her iniquities.
        6 Reward her even as she rewarded you, and double unto her double according to her works: in the cup which she hath filled fill to her double.
        7 How much she hath glorified herself, and lived deliciously, so much torment and sorrow give her: for she saith in her heart, I sit a queen, and am no widow, and shall see no sorrow.
        8 Therefore shall her plagues come in one day, death, and mourning, and famine; and she shall be utterly burned with fire: for strong is the Lord God who judgeth her.
        9 And the kings of the earth, who have committed fornication and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning,
        10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
        11 And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:
        12 The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,
        13 And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.
        14 And the fruits that thy soul lusted after are departed from thee, and all things which were dainty and goodly are departed from thee, and thou shalt find them no more at all.
        15 The merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing,
        16 And saying, Alas, alas that great city, that was clothed in fine linen, and purple, and scarlet, and decked with gold, and precious stones, and pearls!
        17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
        18 And cried when they saw the smoke of her burning, saying, What city is like unto this great city!
        19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
        20 Rejoice over her, thou heaven, and ye holy apostles and prophets; for God hath avenged you on her.
        21 And a mighty angel took up a stone like a great millstone, and cast it into the sea, saying, Thus with violence shall that great city Babylon be thrown down, and shall be found no more at all.
        22 And the voice of harpers, and musicians, and of pipers, and trumpeters, shall be heard no more at all in thee; and no craftsman, of whatsoever craft he be, shall be found any more in thee; and the sound of a millstone shall be heard no more at all in thee;
        23 And the light of a candle shall shine no more at all in thee; and the voice of the bridegroom and of the bride shall be heard no more at all in thee: for thy merchants were the great men of the earth; for by thy sorceries were all nations deceived.
        24 And in her was found the blood of prophets, and of saints, and of all that were slain upon the earth.

        9/11 and New York City come to mind EVERYTIME I read this chapter! Is not the resemblace uncanney?!! IT’S COMING!!! Knowing Jesus Christ as your personal Lord and Savior is the ONLY way to be READY for what is comin’!!!

    • Sirian

      LOL!!! The endless argument continues. . . It’s Bush’s fault, no, it’s Reagan’s fault, no, it’s the corporations fault, no, it’s Congresses fault, no, it’s Wall Street’s fault, no, it’s the bankers fault. . . Come on guys, can’t you find a new one to blame? You keep beating the same old dead horse over and over. What reality is your preference? Are you striving to achieve the wonders of the EU? Russia? China? It should be interesting to see what type of “return fire” will come next.

      • Deerinwater

        So? Are you suggesting that there is no fault and no fowl? That what we see happening is nature occurring events? What are you attempting to offer us besides your scorn Sirian? All you have done is shown us your a$$, I’ve got one too.

        As for myself, I seen such news coming months ago, ~ where it be true or contrived it makes little difference. People reacting to such talk it will make it true.

        The GOP and GOP operatives and supporters will be spreading as much fear as possible in the run up to November elections. Fear is the tool of choice by our conservative friends as “Hope” is the tool of choice by the progressives.

        Two different mindsets, two different views of the world we all live in together One seeing the glass half empty and the other half full.

        The Conservative mind is filled with dark and unkind thoughts and believes others are just like him and think these same thoughts. This belief creates a predisposition among conservatives that is indicative of adversarial behavior. ~ They see themselves as victims of the left (of everything really) they scheme to screw you before you screw them so to keep things even in their mind.

        The progressive mind does not think of themselves as victims, but at life being a gift and to be enjoyed as much as possible in spite of hardships, Conservatives don’t like that much. Conservatives believe life is to be endured , suffered, pay taxes and that they are the only ones that do because the progressive are far too happy and having just to much fun. It’s seen as being impossible to work, pay taxes and have fun all at the same time.

        After Father’s death last December, I’ve pulled all the families holding out of the markets that I could without penalty, finding I can buy mother a new Cadillac every month for the rest of her life. I expected to see huge loses in the markets in the coming months.

        You folks do what you will with yours. I could be wrong but just sharing some thoughts.

      • MAP

        You folk don’t want a free market system. You want everything controlled, manipulated, and engineered. And by whom do you trust to accomplish this great task to the benefit of everyone? Why to the shysters, scoundrels, and incompetents in the Federal Government. Controls, manipulations and engineering are just names for tyranny, the only thing the left has ever created. You dream of Peter Pan and end up with Stalin. You are fools. The main emphasis in a free market is ‘free’ , a word that completely unnerves the totalitarian left. But keep believing in hope and change – the irrational and lofty dreams of delusional liberal loons.

      • http://gravatar.com/dawgbisquit1 Tom W.

        I’m telling you that it’s prophesied in God’s Holy Word Deerbonehead! So who’s fault is it?! It’s all of our faults and let me tell you something else there prophet Deer, those of us who have been blessed enough to live in the lands of plenty are gonna have some SERIOUS splainin’ to do as to how we could let children, or people in general for that fact, starve ANYWHERE in the world!!! We call ourselves a Christian nation?!! Have MERCY Jesus!

      • http://gravatar.com/dawgbisquit1 Tom W.

        “When the Son of man shall come in his glory, and all the holy angels with him, then shall he sit upon the throne of his glory: And before him shall be gathered all nations: and he shall separate them one from another, as a shepherd divideth his sheep from the goats: And he shall set the sheep on his right hand, but the goats on the left. Then shall the King say unto them on his right hand, Come, ye blessed of my Father, inherit the kingdom prepared for you from the foundation of the world: For I was an hungred, and ye gave me meat: I was thirsty, and ye gave me drink: I was a stranger, and ye took me in: Naked, and ye clothed me: I was sick, and ye visited me: I was in prison, and ye came unto me. Then shall the righteous answer him, saying, Lord, when saw we thee an hungred, and fed thee? or thirsty, and gave thee drink? When saw we thee a stranger, and took thee in? or naked, and clothed thee? Or when saw we thee sick, or in prison, and came unto thee? And the King shall answer and say unto them, Verily I say unto you, Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me. Then shall he say also unto them on the left hand, Depart from me, ye cursed, into everlasting fire, prepared for the devil and his angels: For I was an hungred, and ye gave me no meat: I was thirsty, and ye gave me no drink: I was a stranger, and ye took me not in: naked, and ye clothed me not: sick, and in prison, and ye visited me not. Then shall they also answer him, saying, Lord, when saw we thee an hungred, or athirst, or a stranger, or naked, or sick, or in prison, and did not minister unto thee? Then shall he answer them, saying, Verily I say unto you, Inasmuch as ye did it not to one of the least of these, ye did it not to me. And these shall go away into everlasting punishment: but the righteous into life eternal.” – Matt, 25:31-46 (KJV)

    • http://None Mike C

      I agree we should cut war spending.

      But… did you know we spend more on Medicare/Medicaid/Welfare and Unemployment than on war? (source wikipedia 2010 federal budget)

      When is there going to be a tea party event to challenge the entitlements? Everyone acts like we are stuck with these costs.

      When the people dump something in a harbor and say “No Taxation for entitlemens” then maybe we can move forward.

      • Deerinwater

        “we spend more on Medicare/Medicaid/Welfare and Unemployment ” (then on war)

        That is an interesting statement, and worth review for two reasons.

        1. Employees and employers pay into a Unemployment insurance fund, now if the fund requires federal assistance in meeting it’s purpose ~ that’s an issue that needs address.

        2.War cost can be calculated in many deceitful ways to craft any picture you wish to present, not to even consider protracted VA costs and disablement.

      • http://gravatar.com/dawgbisquit1 Tom W.

        No this is a time when we should spend as much as it takes to keep our military the world’s #1 power! You two don’t hear the sabre’s rattlin’?!! That tells me that either stone deaf or teaitors who are workin’ to bring about the downfall of the Land of the Free and the Home of the Brave!

        • Deerinwater

          Tom , that is exactly what we are doing now.

    • http://None Mike C

      There has been no conservative economics Third Stone. We are talking about a modern day federal budget of roughly $3.5 trillion in the Obama term. What exactly is conservative about that? Yes both parties are to blame but look at the lionshare of the spending and where it goes… programs started by the democrats.

    • Stuart Shepherd

      Actually y’all having been blaming the rich, etc. since the 1800′s! I agree with you about the cost of warfare (Ron Paul- “Welfare or warfare”), but I think it’s pretty safe to say that the demise (permanent) of America was due to the rise of the radical left and the left since the 1960′s. Sorry- it’s pretty clear if you analyze all the relevant facts!

      • RichE

        Please list relevant facts.

  • GALT

    When the Dow lands at 3000, when the last foreclosure has been refinanced or sold at auction and the 78 Trillion in derivative financial instruments have been settled, this will be over………of course this last bit may be difficult, as some of these things are written up for a hundred years……….

    If deflation has actually arrived, or is coming…….then the prudent course of action is the elimination of personal debt as quickly as possible………

    None of this actually matters if this is treated as just another aspect of the business cycle, and it begins again………because the next time…….will be the last time.

    While this is unwinding, the debt that has been denied, will become more obvious, and the choice between sustainable and extinction will be made…….whether this is done with reasoned intelligence or by default will be crucial. ( and the former does not look promising )

    So let us look at what is hopefully the last chapter of the elaborate con game of “economics” and the myth of free market unregulated capitalism…….and let me be clear here……….I am not talking about the “ownership of the means of production”….I am talking about “money from money”……and eternal debt from the practice of usury….and everything that has come with it………..corporations which are immortal, and unaccountable……..except to the mythical market forces that comprise the basis of this mythology.

    That this is a MYTH should finally be clear….even to the most ardent supporters, who have made their last line of defense…….with the feeble rationalization of describing
    those created the conditions of this unregulated free market and then proceeded to crash it……..as crony capitalists……….

    That the MYTH should be clear……is the history of this last evolution….which begins with the Blackford Scholes model………whose claim was that a means had been “mathematically derived” to eliminate RISK………..for anyone who actually understands
    what mathematics is………..this should have been the first clue and warning…….

    But it is not critical…….for this claim is immediately visible as self contradictory to the primary claim and core of capitalism and free markets……..wait for it…….

    RISK = REWARD………..therefor NO RISK = NO REWARD………

    What then was the GOAL of this magnificent discovery?

    If true, this was the ultimate zero sum game…….but the myth should have been clear
    at the outset……….

    “A man must live by his work, and his wages must be at least enough to maintain him.
    They must even on most occasions be somewhat more: otherwise it would be impossible for him to bring up a family and the RACE of such workman could not last beyond the first generation.”

    These words express the extent of the concern of the father of the myth of economics and it’s actual intent………Adam Smith, who has long been dead……it is time for his myth to join him……..R.I.P.

    • Void1972

      Galt

      Socialism does not work, Communism does not work and now Capitalism does not work!

      Why? Because anything controlled by man will be corrupted, and that is why we have our Constitution because our founding Fathers knew this and foresaw the tendencies of man.

      As we get deeper and deeper into this banker created worldwide mess, we see more and more blame going to every area except to where the blame should be pointed. Our governments!

      Republican and Democrats alike allowed this mess to be bought and paid for by the corrupt bankers and we have even rewarded those corruptors with bailouts that paid them a reward in bonus money for destroying the entire world economies!

      What an incredible system of fraud when you are rewarded for failure and reelected for corruption!

      We have the media to thank for being the backbone of fraud and keeping the sheep in the dark from reality!

      I don’t have an answer to this insanity, but I would think that mass trials and long prison terms and executions for treason would be a good start!

      God bless America and those who fight for her!!!!

      • MAP

        You are entirely correct Void. Most legislation is to the benefit of a select few at the expense of everyone else. It is a system of pure corruption. We need the government completely out of the marketplace. Government IS the problem.

      • DaveH

        We haven’t had Capitalism, Void, for at least a hundred years. So it isn’t Capitalism that isn’t working.
        Read this book, Void, and learn what Capitalism really is:
        http://mises.org/books/capitalism_kelly.pdf

        • RichE

          DaveH,
          You’re confusing Capitalism with Free-Market. Capitalism is self-wealth.

      • GALT

        All is not hopeless………and we are very young as a species, far more driven by our
        biology than we would care to admit…….and from the beginning when we began to ponder the nature of our existence our first step was to deny our nature, and separate ourselves from and place ourselves above, that which makes our very existence possible……

        Thanks to our innate curiousness, we have been confronted by evidence, that demonstrates that we are not above nature nor can we be separated from it, and
        if we are lucky, this recognition will take hold quickly…….so that we can begin to construct
        an intelligently reasoned response to the limits placed on us by that which sustains our existence and all the other life forms who are irrevocably locked by nature into this mutual and unavoidable interdependence.

        There will be resistance to the recognition of this common thread, and they will use words like freedom, and property, and ability, and hard work, and fruits of one’s labor……to avoid
        both the recognition of the ever present reality that we have denied……..as well as the understanding of the atrocities this denial has been responsible for, and their own culpability in their attempts to perpetuate these myths………

        The ultimate hypocrisy of claiming to recognize the sanctity of life and seeking to protect the life of the fetus……..demanding it be born, and then having nothing further to do with it………is simply another example of immediate contradiction that becomes obvious when
        one takes even a few steps of analysis in examination of such moral claims.

        The failure to accept that we have an obligation to meet basic needs common to all, is to deny the actualization of the common benefit that will accrue to us all…….for we are fundamentally NOT the selfish, uncaring creatures that the mythology of the rugged self reliant individual would have us believe………for if we truly were, we would not have survived as a species long enough to create such a mythology…….nor would such an
        recognition dampen our curiousity or desire to excell, nor would these efforts go unrewarded……….it would simply mean that true achievement would not entail a reward
        that resulted in the denial of the basic needs of others…….and that the goal of all citizens
        in return for this…….would be the individual and collective obligation to “First, do no harm.”

        In the scheme of things…..this would be the first true step on the path of universal morality
        that we have ever attempted………..if we can indeed survive long enough to take it.

      • Void1972

        DaveH

        Thank you for the book!

      • dcjdavis

        Bingo!

      • Deerinwater

        GALT says:
        June 13, 2012 at 12:00 pm
        All is not hopeless…

        Sometimes in my weaker moments, I truly wonder about that after reading some of these knuckle draggers postings and then I think,,,, that’s the downside of personal freedom at work and to be expected. To measure ones own words with care is a gift not all are blessed with.

        Ones hopes are connected to ones own aspiration, as a younger man I aimed high and fell short many times considering it defeat, but I was young and didn’t consider defeat as a part of success.

        Now I’m old and know ~~ and don’t aim so high. Knowing one’s own limitation offers some assurance to any success and then too, there is nothing that breeds success like success. oh! the years I wasted in my hurry to succeed, finding the secret in small old man steps.

        We lie and deceive ~ too much, too often to ourselves, making lying to other’s a standard practice. How can one honor the sanctity of life and defend the death penalty or deny care?

        Man is a “social animal” by design like all herd and pack animals, their very survival depends on it. For those that might not enjoy hearing that and refuse to accept, they need help with a few things that would be in their best interest to pursue.

        Trying to remove any traits of socialism from government would be like separating a pig from his squeal, it’s not possible.

      • Deerinwater

        DaveH book written by a Gard student in his final year that became impress with an older book written by an Austrian and became a disciple of the truer right and understandings of economics.

        It must be one hell of a book! ~ but what does a Grad student actually know? How to keep a high grade point? Just saying, where is the track record?

        and page 69,”Why Sweatshops, Child Labor, and Dollar-aDay Wages Should Be Embraced ” sounds something less then “pro-labor”

        and 74# “The Notion of Inequality: Our Achilles’s Heel ” The notion?

        That sounds like a real , Ebeneezer Scrounge character set to “It’s a Wonderful World”

        I guess I’ll try to read it, ~ at the moment I’m engaged in “Custer’s Fall” The Indian side of the story by David Humphrey’s Miller . Custer was blow off his horse Vic as he headed his column cross a deep stream without ever getting a shot off. He had burred his hair and out of uniform but dressed in buckskins. June 25 1876 while the world expo was taking place in New York.

        I’ll read your book, if I can hang with it long enough.

        “Chapter 1:

        Labor: Workers Of the World Unite —
        and Shoot Yourselves In the Foot 35
        What is an Economy and How Does it Work? 36
        How We Progress as an Economy 39
        Real Wealth 44
        Profits Don’t Really Exist 47
        Capitalist Exploitation of Workers: The Myth 51
        Capital Structure as the Driving Force of Rising Wages 53
        How Wealth Redistribution Harms the Poor 55
        How Government Creates Unemployment
        with Minimum Wage Laws 58
        How Government Creates Unemployment
        by Sponsoring Union Coercion 62
        How Other Government Regulations Create
        Lower Wages and Unemployment 68
        Why Sweatshops, Child Labor, and Dollar-aDay Wages Should Be Embraced 69
        The Notion of Inequality: Our Achilles’s Heel 74

        Chapter 1: Labor: Workers Of the World Unite —
        and Shoot Yourselves In the Foot 35
        What is an Economy and How Does it Work? 36
        How We Progress as an Economy 39
        Real Wealth 44
        Profits Don’t Really Exist 47
        Capitalist Exploitation of Workers: The Myth 51
        Capital Structure as the Driving Force of Rising Wages 53
        How Wealth Redistribution Harms the Poor 55
        How Government Creates Unemployment
        with Minimum Wage Laws 58
        How Government Creates Unemployment
        by Sponsoring Union Coercion 62
        How Other Government Regulations Create
        Lower Wages and Unemployment 68
        Why Sweatshops, Child Labor, and Dollar-aDay Wages Should Be EmbraChapter 1: Labor: Workers Of the World Unite —
        and Shoot Yourselves In the Foot 35
        What is an Economy and How Does it Work? 36
        How We Progress as an Economy 39
        Real Wealth 44
        Profits Don’t Really Exist 47
        Capitalist Exploitation of Workers: The Myth 51
        Capital Structure as the Driving Force of Rising Wages 53
        How Wealth Redistribution Harms the Poor 55
        How Government Creates Unemployment
        with Minimum Wage Laws 58
        How Government Creates Unemployment
        by Sponsoring Union Coercion 62
        How Other Government Regulations Create
        Lower Wages and Unemployment 68
        Why Sweatshops, Child Labor, and Dollar-aDay Wages Should Be Embraced 69
        The Notion of Inequality: Our Achilles’s Heel 74ced 69
        The Notion of Inequality: Our Achilles’s Heel 74

    • RichE

      GALT,
      Is your point, “We all try to eliminate risk and in so doing we’ve become trading daredevils? Falsely shielding ourselves with unrealistic risk zeroing mathematical trading?” I like it!, Trading Daredevils.

      • GALT

        No…….

      • Void1972

        Galt

        Every living thing on this planet is currently here because of survival of the fittest.

        The only different factor in the human race is greed.

        Humans are the only animal alive that has the trait of greed and it will probably be our demise!

      • GALT

        Interesting…….part of our “arrogance” and the denial of our connection to nature…..is actually illustrated by your misstating what elements comprise the theory of evolution…..

        Evolutionary success is determined on the species level…………

        The social darwinist attempt expressed as survival of the fittest…….lends itself to the
        elevation of the “individual” effort and achievement as being superior to the group…….and was responsible for the breeding and culling approaches of the eugenics movement….and the present mythology of “sperm banks”…….

        So even though I understand what you intended, I offer this as an example of how insidious this arrogance is, and how easily we allow ourselves to be seduced by it,
        even though we consciously know better……….

        • RichE

          GALT,
          You’re mixing quantum and relative ideas and I don’t think you meant to direct your reply to me. My post referred to man’s arrogance not his evolution.

      • GALT

        nor did you make reference to survival of the fittest,,,so you are correct…..however as a precaution in the future……..I will attempt to be more specific….my apologies RichE…
        although I had not considered the substance of what I was attempting to illustrate….would have raised objection …..since it was not intended as a criticism…..

        • RichE

          GALT,
          It’s difficult to tell if you’re critical or not. Your writing style is a cross between Shakespeare and Faulkner.

          • http://boblivingstonpl.wordpress.com Bob Livingston

            Dear RichE,

            I was thinking more Chaucer.

            Best wishes,
            Bob

          • RichE

            Nah, GALT you’re not that risqué.

      • Deerinwater

        “Humans are the only animal alive that has the trait of greed and it will probably be our demise!”

        To accurate that is not so, many animals display greed and jealousy. I fact just about all herd and pack mammal do. And it does create “problems” that leads sometimes to death now if it could lead to ultimate demise of a specie , I doubt it. That is something only man might pull off and I question if even he could.

        http://youtu.be/r-14bBhHCMU There is bigger buggers to fear than man.

      • GALT

        Actually RichE, it becomes rather difficult to understand why you would actually have confused my response as being to you…..as my response to your question appears immediately below yours…….I said ….NO! As does my next response, which again is to the post it follows, By Void……………and admidst this one is prompted to inquire the meaning of the mixing of “quantum and relative” ideas……but not really……still this seems to be a board function……where after two responses…..everything lines up….so one must exercise a little contextual awareness……..

        For example, your last post is clearly addressed to me……and should not be.

        • RichE

          GALT,
          You said, “…and should not be”. Why shouldn’t it be? If you were to provide a quote from the post it would be a helpful reference …bread crumbs… enabling one to find their way back to the safety of hearth and home after trans versing your mind.

    • dark angel

      Interesting observations. While I don’t always agree with everything you write, I must admit you are very thoughtful albeit a bit cryptic in your replies. I would very much enjoy a chance to talk to you privately. Please do not feel obligated, but If so inclined, email me at shawnballowe@msn.com. Here’s hoping to a positive reply.

  • jcgaunet

    Americans are feeling hopeless because the middle class can no longer expect to achieve a decent living, hold a job, or prepare for retirement. Wealthy bankers and CEOs have managed to control government, the media, and the flow of money and bail-outs all to their benefit. The current election is bought and paid for by the wealthy. Why did the bail-outs go to banks, Wall Street, and large corporations and NOT to the people who lost their jobs and their homes? The “stimulus” was a blatant bail-out for the rich while the middle class suffers and will only get worse.

  • FreedomFighter

    1,000 oz silver? maybe.

    Laus Deo
    Semper Fi

  • FreedomRules

    JC
    Only libs are are feeling hopeless, the rest are still working to/or are acheiving a decent living, holding a job and are preparing for retirement and preparing to fight to take our country back to its roots of freedom and true capitolism. That’s what got this country to greatness and that’s the only thing that will get us back. Stop blaming everyone and everything on your unwillingness to win in life.

    • jcgaunet

      Actually conservatives are feeling hopeless. Even the ones holding jobs, paying taxes, and still making the mortgage. EVEN if you don’t support Ron Paul, the 2012 media black-out of him should concern all of us– left and right. No the middle class did not choose the president, and for the first time in my life, I don’t think I’ll be voting in this election. Oh, one question: are you a winner?

      • Deerinwater

        LOL! he’s a victim! that want to be a winner would be my guess. I agree , RP didn’t get the play that he deserved from media outlets ~ all of them!

        It’s like George Carlin told us years ago

        http://youtu.be/rsL6mKxtOlQ

  • oldbill

    The problem with Treasuries is that a Bill can become a Bond by Act of Congress. In the 1930s, gold was confiscated (I don’t really like the word, but to avoid confusion, I use it. The gold was bought at nearly twice the going rate.) The value locked up in Treasury Bills can be “confiscated” by extension of the refund date. I don’t trust the Treasury not to do this under some “emergency” order. This has been done in many countries by locking up savings and checking accounts and then giving an “allowance” each month that the money can be removed. If you don’t like gold and silver, especially “junk”, I would suggest holding cash in a concealed safe at home. Better yet, use the money to pay off debt or prepay known expenses, like utilities (water, electric, gas, not phone and cable TV.). The savings on postage will be greater than the taxable return on T-bills, with less risk. Debt repayment has a guaranteed return. My new wife and I have saved over $10,000 in the last year and a half when I paid off her credit cards, car loans, personal loans, and a student loan on one of her daughters. This is a tax free savings. I cashed in EE and I Savings Bonds (paying an average of 2%, Federally Taxable) to pay off these items. She has paid me back $10,000 of the $30,000 loaned (I didn’t ask her to, she has pride). The Sheriff won’t come knocking over these things if jobs get too scarce. I like silver right now, especially Silver Eagles and “junk”. Avoid bullion and rounds, unless they are for really long term, multi-generational assets.

    • Gordon

      Halllelujah, someone with common sense.

  • FreedomRules

    Yeah, I am a winner by my own doing. I don’t rely on anyone except myself. People can do that you know despite your precious governments intervention to try and stop them. Don’t vote JC, it shows what a lacky you are? You could write in Ron. By the way, his son endorsed Romney. RP didn’t get the play he deserved, see …the blame someone, something else goes on and on …

    • jcgaunet

      Freedomdude: you’ve insulted me twice. I’d just like to point out that I haven’t insulted you but I do disagree with your naive ideas. LOL. There ARE people to blame for what’s gone down in this “great country” of ours. Believe it!

  • FreedomRules

    And Deerinwater, you couldn’t be more wrong about conservatives. They see in reality, not through fog filled liberal utopian glasses as you. Real problems need real solutions of which you and your liberal cronies have none. A real conservative could and would straighten this country out, if the people had the smarts to elect one.

    • MAP

      You are correct Freedom. There is NO conservative party in this country. The Republican is the party of crony capatilism and has been from inception. To blame conservatives is a farce.

    • Gordon

      AH, that’s the proplem. The vast majority of the age eligible voting population has little common sense and even less knowledge and understanding of what government is and how it works…… and they flunked their economic class in h.s. too. Few can balance a checkbook, if they even have one. I listened to 40 yr old age college graduates discussing how the senators and congressmen get re-elected every 4 years, and draw full salaries for a lifetime….. duh. Educated “box-of-rocks”…… but they received awards in SPORTS, which is more important in this society. I zip-it now.

  • http://None Mike C

    Has anyone else noticed that the closer we get to the election the more we see liberal posters here. Obama viral marketing team at work. Masters of manipulation, perception, and deception.

    • Deerinwater

      Well, Sir. I’m not a liberal and been here for sometime now, a year or two, close to three.

      I just don’t share all of your views. Some of them, certainly!

      Today’s GOP office holders are not Conservatives and Conservatives will never hold complete power under the current form of government we have today or ever had in the past.

      So to think such things and claim to be a champion of “reality” is simply bold talk and nothing more. ~ it’s ~rather Windy ~ someone full of hate for any opposition

  • FreedomRules

    And one more thing, the problems we face are our OWN fault. We have allowed the government to do these things. WE are to blame, OURSELVES ! It didn’t have to be this way but we (the people) have become bloated and lazy. We are reaping what we sown.

  • http://johanraft.wordpress.com johanraft

    facebook.com/CommitteeToRecallCarlLevin

  • http://PersonalLibertydigest Patricia

    It seems to me that you have forgotten that the Dems were running congress for 40 years. They implemented all these big give aways and then sit back and blame the Repubs. The conservatives have been the party of get a job and earn your own way, but there are so many people that want eveything given to them that they have lost sight of the right way to live. I was taught all my life to work hard and never ask for anything. That’s how you live a life of satisfaction. Don’t take what you don’t earn.

    • RichE

      So for forty years the Republicans did nothing to stop it. Waiting were you waiting for?

    • Deerinwater

      ” I was taught all my life to work hard and never ask for anything. That’s how you live a life of satisfaction. Don’t take what you don’t earn.”

      Surly you don’t assume this is a unique conservative virtue?

      • Nadzieja Batki

        It is a solid conservative virtue, but it doesn’t follow that the Lefties won’t appropriate the virtues (values) if they find that “gee whiz our lives are much better if we are nice” and claim the virtue as their own.

      • Deerinwater

        No it’s not silly person, but it is very clear that you are attempting to claim it so for some purpose that offers you some sort of pleasure.

        I had it explained to me at a very early age by a yellow dog democrat.

        ” It not important to know ‘what’ belong to ‘who’, that you ‘know’ it’s not yours is all you need to know. ”

        I don’t think that can be stated any clearer.

  • Gordon

    Most of these columns and replies are bull excrement. Facts of life are that until manufacturing returns to the USA and we become self sufficient, there will be no middle class, the rich will get richer, the poor will get poorer and become slaves, and the intellectually and financially lower classes will vote for charlatins who will give them FREE SCHIT. When Obama gets re-elected by a substantial margin this November the excrement will strike the rotating airfoil and civil unrest and marshall law will overtake the nation, starting in the poverty ravished inner cities. Keep your powder dry. Maybe just maybe the revolution will delay until the next administration and they will be blamed for the fall…… That is… IF there is another administration.

    • Gordon

      added= People we cannot have a Nation that works at McDonald’s so that they can eat at Burger King. We actually have to MAKE something.

  • FreedomRules

    Deerin headlights;
    Oh but the liberals can hold complete power like they did from 2008-2010 and manage to screw this country up worse than ever. Let’s try something bold and new and give conservatism a try.

    • jcgaunet

      Freedom: you don’t get it. Is Mitt your savior? The ONLY good thing if Obama wins is that we only have 4 more years of him. Most people don’t realize that the middle class wants the same things whether they are left or right leaning.

      Most of the news we get either pits lefts and rights against each other so we think one party or the other is the answer OR it is a distraction so we forget how the middle class is getting the SHAFT by government and big business.

      There is a ruling class in this “Free” country of ours.

      • Deerinwater

        Exactly jcgaunet,

        “Freedom” has got lost in the fight and all the programming intended to polarize and divide American so that no opposition might be mounted against the ruling class and all of their lap dogs.

        Four more of “O” a fair trade off to 8 of Mitt ?

        I can’t find myself able to fathom the size of the boot on our neck by 8 years end of Romney crafting policy.

        It’s not as clear of a choice as some wish to believe. Like I offered months ago, Conservatives will be voting with one in 2012 and holding their nose with the other.

    • Deerinwater

      If memory serves, ~those 2 years you speak, ~ The nation was in the tank and had been circling the drain since September the prior year, we had a new administration in the process of filling positions and appointments and crafting policy while enjoying “flaming” opposing the day after his inaugural address.

      But you see it anyway you wish, feeling free to ignore the record setting use of Senate GOP filibuster and their accepting Nancy Reagan policy of “Just say No”

      It’s a small wonder we’ve fared as well as we have.

  • DaveH

    Keep our savings in cash? Surely you jest, John.
    The money is out there, and now the Fed is floating yet another Quantitative Easing balloon (QE3):
    http://mises.org/content/nofed/chart.aspx?series=TMS

    It’s just a matter or time before the people start spending it in a frenzy to beat the impending inflation of the consumer price index. No one can predict exactly when it will start, but when it does it happens fast. Your cash could be devalued by 10%, 20% or more in a very short time. Even short term 6-month treasury bills could be prove to be too long in maturity. Besides that, you are giving support to Big Government Largess when you purchase their debt instruments.

    • DaveH

      The best thing people can do for themselves is to learn as much as they can about the dynamics of money and inflation.
      Here is a good start:
      http://mises.org/books/whathasgovernmentdone.pdf

    • http://boblivingstonpl.wordpress.com Bob Livingston

      Dear DaveH,

      You write: “Keep our savings in cash? Surely you jest, John.” The advice to keep some cash (I’d say 3-months worth) on hand is sound. It is good preparation for a bank holiday, which will come prior to devaluation. Those who depend on the ATM and keep only a few dollars in their pocket will rue the day they have no cash on hand.

      Best wishes,
      Bob

  • Michael Willemsen

    This message predicts impending disaster — a major depressdon and a great decline in oil prices. It seems to me that in the last month or so I have read messages in this blog predicting a different kind of major disasater — runaway inflation and sky-high oil prices. The common theme is “something awful will happen, but you can protect ourselves by buying our product or paying for our investment advice.”
    Mike W

    • GALT

      As Mr. Livingston has said the goal of business is to make a PROFIT.

      P.T. Barnum was claimed to have said: There is a sucker born every minute.

      George Carlin said: Nail two things together, that have never been nailed together before……..and some schmuck will buy it from you.

      Taken together these things represent the highest level of intellect and morality we have achieved and which distinguishes us from the rest of the natural world.

      • Deerinwater

        Artificial Intelligence is no match for Natural Stupidity

        There are three kinds of people in this world. Those who can count and those who can’t!

    • http://boblivingstonpl.wordpress.com Bob Livingston

      Dear Michael Willemsen,

      Yet it is free for you to come here and you are free to leave.

      Best wishes,
      Bob

      • Michael Willemsen

        I submitted a comment pointing out that two Personal Liberty Alerts predicted absolutely opposite calamities. Your reply was that I am free to leave the site. Of course I’m free to leave the site; am I also free to criticize the Personal Liberty alerts?
        I enjoy the site with its freewheeling debates, and occasionally enter them. But I am concerned that some of the Personal Liberty Alerts and other messages are advertisements disguised as political commentary — advertisments that seek to frighten and alarm readers into purchasing the advertisers’ good or services. I am particularly concerned with the occasional messages advertising secret cancer treatment, because if that treatment is ineffective the cost is lives as well as money,

  • lester sutphin

    I am a 62 y/o man , veteran, disabled by back problems and osteoarthritis and because of the economy rents have gone sky high and I cannot find anyplace I can afford to rent.social security disability doesnt go very far but I thank God for it.My idea of personal liberty is to have a safe clean decent place to live

    • Deerinwater

      It’s not so much the economy Lester as your local taxing authorities and what values they have elected to place on property coupled with the demand for property in your area and the greedy bloodsuckers inside local government that take every opportunity to tax.

      That said, that your needs are small yet unobtainable is saddening . You might consider moving to a more “friendly” environment. I would suggest maybe Arkansas or South Carolina. South Caroline is a mecca for seniors according to the state stats. While taxes are high in Arkansas, Arkansas state government leans to the socialistic side. Both are beautiful states with warm hearted people while So. Carline the toughest of the two on people with little means.

      At 64, all days are not the same i have found. Everyone needs a support system preferably one you have made investments during your younger years. Family, church, SS, property, retirement instruments, etc.

      If you find yourself alone at 62, we are left to assume you could have done better for yourself but failed too for some reason or have had some very rotten luck in life and love.

      Check out the VA medical services offer in Arkansas and housing.

      And a sincere Thanks to you for your service to our great nation. .

      • lester sutphin

        Thank you for your comments.A combination of things have put me in the fix I find myself. Divorce, losing my job in 2005 due to becoming disabled and not planning for retirement when I was younger.

    • Void1972

      Lester

      If you live in the NY area, please reply!

  • FEDUP!

    deerinwater says what was the point of that comment and then continues to say democrats are better people than conservatives. Well I disagree and think the opposite is true. Thanks for NOTHING!

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