The Economic Meltdown

Is in progress.

Jim Sinclair at Jim Sinclair’s Mineset and his group are doing everything they can to wake as many readers of his site up to this fact, and giving straightforward advice about how to save your ASSets, and preserve your financial future.

In the words of Mr. Sinclair:

Dear Extended Family,

This situation is financially critical, having no practical strategy or plan to intercede in order to save us from witnessing a total systemic meltdown.

Have you:

1. Taken delivery of paper shares of your investment companies of any nature?
2. Have you opted to become a direct registration book entry at the transfer agent of your investment where possible?
3. Have you protected your retirement accounts by doing number 1 or 2 with both your Trust’s name and your retirement account identification?
4. Is your retirement account held in true custodial-ship?

Plus, 8 more questions you must ask yourself about your investments.

Read and take heed.

Am I Rich?

One of the topics of the recent debate between John McCain and Barack Obama at Rick Warren’s church was “how much money do you have to make to be rich?” Predictably, the candidates differed dramatically in their answers. McCain said “$5 Million,” and Obama replied “If you’re making more than $250,000, you’re doing pretty well.”

Both answers were ridiculous. In a piece from NPR’s Day to Day, available via podcast here, Jared Bernstein points out that you can’t label someone as “rich” with just an income figure. Where they live makes all the difference. He’s exactly right.

At this point, our economy and culture is most certainly NOT in a position to start disincentiving high income earners from continuing to work. Let’s say a married couple is at the $350,000 income range, living in a city where it’s fairly expensive to live. They have children, and pay a LOT for after-school childcare, both in activities and nanny services to get the children to where they need to go. For the most part (after $5000/child, anyway) they have to pay for all that with after-tax dollars. Expensive.

At some point, as taxes for this “rich” couple go up, when taxes are raised, which an Obama White House and Congress will certainly make happen, the couple will reassess, and may decide that for economic and lifestyle reasons, it makes sense to give up one job and move somewhere less expensive. The end result will be one high-earning partner out of the workforce, and more importantly, one less Social Security contributor at a time when the Boomers are starting to retire in larger and larger numbers.

Good strategy, Barack. Straight out of the Clinton early 90s playbook. Thank goodness our economic situation in this country hasn’t changed at all in the past 16 years.

But then again, maybe the Democrats’ plan is to accelerate the bankruptcy of the entitlement programs the boomer generation have been counting on all along. Remember, big government politicians rely on a dependent population for their power. Congress has their own retirement programs and don’t participate in Social Security. They can bankrupt all the entitlements they want without ever worrying about missing a check themselves.

They’re immune from a lot of the damage Obama’s plan would cause.

But are you?

Corsi Book Slams Obama

The #1 seller on Amazon right now is a book that will hopefully end the Obama campaign’s chances for winning the White House in November.

I’ve made no secret about the fact that this blog supported Ron Paul for President. He was the only candidate who truly understands the nature of the crisis our nation is entering. At best, it will be difficult. At worst, it could end the dominance of the United States on the international stage, possibly forever. There is the very real chance that within a few short years, countless areas of our country will resemble the poverty-ridden third world villages you see in television infomercials asking for money to help feed their children.

But the media decided Dr. Paul was a crank unworthy of serious coverage. They love Obama. They tolerate McCain. A Presidency of the latter will not do a thing to move the United States in the direction it needs to go to address these problems. If the former wins in November, the Republic is in serious danger. Here’s why.

Barack Hussein Obama is an empty suit who is only a serious contender for the Presidency because of his race. He has 143 days experience in the Senate, and has not put forth a single idea or even the tiniest scrap of a note of what he believes should be done to put this country back on the right track. He will in no way have the support of the majority of the American people because he is the son of a African Muslim and an American woman who clearly had problems with mainstream American life and culture. Is he intelligent? Sure seems so to me. Is he a good man? I haven’t seen anything (other than the normal political dishonesty that seems to be almost a prerequisite for staying in the Senate) that suggests he is anything but an honorable American. Do I believe he is a danger to our country?

No.

But his Presidency would be. I think our country is a tinderbox of civil trouble waiting for ignition. The mainstream middle to upper-middle class American is besieged with a host of people who want what they have without having to work for it. From illegal Mexican immigrants who demand that we educate their children and give them public assistance and all the rights and privileges of American citizenship, to a thuggish, prison-life inspired class that prefers to take, rather than work for what they need to the middle-class youth culture who, because of the trash the commercial media produces, enjoys emulating that thuggish prison-inspired rap culture, we feel besieged. This is not the America of my childhood, and I feel sad that my son won’t be able to experience that America. Furthermore, I refuse to feel embarrassed that I wanted that same America to last, and I object to any who call me “racist” because I mourn the America of the 50s and 60s.

Because it’s not about not wanting a black President. I don’t care if the President’s black or white. I care that he’s capable, honest, has ideas and beliefs he is willing and able to articulate, even if I disagree with him. I DO care that there are those who want Obama to be the President BECAUSE he is black.

In my opinion, THAT makes someone a racist.

I think there’s a very good chance that the Obamas will move into the White House next January, and I dread that, because I believe it will get very, very ugly. And right now, America doesn’t need that.

Why Has the Price of Gold Fallen?

It’s been a tough week for gold bugs. Though I don’t give financial advice on this blog, I invest in gold and in the stock of companies that mine the stuff, and I repeat, it’s been a tough week. No, make that a tough month.

But, it hasn’t discouraged me. The bulk of my safely stored away in the hills of West Virginia treasury was purchased when the price of an ounce of gold was in the $220 range. So, I’m not worried. Even if you purchased gold closer to the $1000 price it was in the winter, you shouldn’t worry. Jim Sinclair is predicting a $1200/ounce price soon, and a $1650/ounce mark within the next 18 months. I believe him.

That being said, there’s a lot of speculation about what’s going on right now though. Sinclair linked to this excellent article.

Makes sense to me. The rest of the world has pulled ahead of the U.S. in the “race to the economic bottom,” so naturally, all things being relative, the Dollar looks better. But never fear, gold bugs…America will catch up. It’s an election year, and more trash is being swept under the rug than can be imagined.

The Banking System Crash: Not “IF” but “WHEN?”

This from the Senior Director of Strategic Planning at the Wharton School, University of Pennsylvania, as quoted on The Cutting Edge News:

The U.S. banking system is essentially insolvent. The Treasury, Federal Reserve, FASB, and Congress are colluding to keep the American public in the dark for as long as possible. They are trying to buy time and prop up these banks so they can convince enough fools to give them more capital. They will continue to write off debt for many quarters to come. We could have a zombie banking system for a decade.

How can our government lie to us like this? Well, unfortunately, we got the government we deserved. We put a higher priority on the pre-fab faux rich McMansion lifestyle, complete with 3 car payments, 4,000 square foot estate, 52 inch plasma tvs and lavish vacations, all on a family income of $65,000, than on electing a government that wasn’t interested in doing the political groundwork necessary for making millions of these pipe dreams a temporary reality.

The next several years (or decades) will be us paying for these mistakes. I’m afraid the good times are over.