45 Seconds

The new national debt machine on the web site, indicates that the US government is going into debt by a million dollars every 45 seconds. As a client of mine says, “I can hold my breath long enough for the government to run up a million in debt.” The two year fed note rate is 2.36% interest a year, and according to the US government also, we are having an official inflation rate of 5%.  In actuality, we are having more than twice that inflation rate, and you can check anything you buy in any sector, and it will have gone up at least 10% in the last year, or more.  The official 5% rate is a lie.  Actually, it is a damned lie, because the fake inflation rate saves Uncle Sam billions and billions of dollars each year, by not having to increase Social Security checks by the actual inflation rate.  Oldsters are getting screwed, in other words.  What can they do about it?  Nothing.  I know, I am preaching to the choir, but this must, or at least should, get passed around to those to whom it affects, namely those who save in dollars.

Look here, you dollar savers, and pay attention!  You ’invest’ a certain dollar amount in a fed T bill at 2.36% interest, and the official inflation rate is 5%.  You’ve automatically lost 2.64% of your capital, and you are going to pay taxes on the 2.36%!  The actual inflation rate is probably over 10%, but figuring conservatively at 10%, you have lost 7.64% of your capital every year.  Does this make any sense of any kind?  The feds stopped releasing the M3 figure, because it is so incriminating.  The inflation rate (CPI) refuses to use real, actual figures, but fakes them in just about all categories.  28% of the CPI figure is housing, and rather than use housing prices, they use “probable rental rates” for the CPI, a total lie and fraud.

Do you really think that the IRS is collecting a million dollars every 45 seconds?  Doesn’t matter, because the million bucks more in debt every 45 seconds, is after the taxes have been collected.  This is the debt after all receipts have been figured.   Where do the dollars come from to pay the constantly increasing debt?  The debt is sold to those 2.36% of you out there, sucker foreign nations, or simply printed on presses loaded with that special dollar paper.

Stott’s Law says that, “The more of anything there is, the less they will be worth.”  Ever hear of “Hemmings Motor News?”  It’s the Bible of car collectors.  A like new ’57 Chevy, can easily go for $35,000.  A fully restored Model A Ford can go for over $20,000, and it sold brand new for $350.  This tells you two things.  (1) The dollar has gone down that much since 1931, and (2) The more of anything there is, the less they will be worth.  No more Model A Fords or ’57 Chevys are being made, and millions of them have ended up in junk yards, and been melted down.  There aren’t many left, so they are expensive.  There were thousands of B-17 Bombers built in WW II, and there are less than half dozen left, which are lovingly cared for, so valuable are they…because there are so few left.  The same with one of the all time great planes ever built, the P-51 Mustang.

I feel panic in the air.  The Indymac bank failure and more to follow.  The Indymac alone is going to cost the FDIC 10% of its reserves, which are about a nickel for every $100 ’insured.’  Ever hear of an insurance company with those reserves?  I wouldn’t insure with one.  What happens when more banks go on the rocks and totally deplete the FDIC?  The presses will be oiled and run continually. Freddie Mac and Fanny Mae going to be backed by scrip dollars, with government officially buying their stock, which the Plunge Protection Team has been buying already, I am sure.  There isn’t an ounce of gold left in the US Treasury, and no silver either.  Ft. Knox is as empty as a drained Coke bottle.   The Congress has a 9% approval rating, and Bush about the same.  The thousands of lies, promises, and fake figures, have caught up with them, and no one trusts anything about government.  That’s why I feel this panic in the air, plus all the new customers we are getting.  Just a microscopic few are getting wise and buying gold and silver to save themselves, but that number will increase as the economy goes down, and the fear grows.  A few more will realize what to do, and then a few more, and a few more.  It’ll never be a flood tide, because there are so many non-thinking people out there, which won’t change.  Hey, you dollar savers, there is a $50 TRILLION unfunded and committed US debt, which is un-payable by anyone’s imagination.  Why do you remain in dollars?  Most civilizations died because of currency failures, caused by printing presses turning out endless bills, which became worthless.  Like Zimbabwe as an example.

There’s no shortage of gold or silver yet, even though a couple of silver products may take a bit longer, due to too small of manufacturing capability.  New Krugerrands are being made in South Africa, but by the time shipping, customs, and other nonsense is added, their cost would be the same as Gold Eagles, and the Eagles are much prettier.  The Krugerrand may eventually disappear, due to its cost, and the older ones we now have will run out.  The Credit Suisse 1 oz bar is absolutely beautiful and the same price as the Krugerrand, so you have a choice.  47,000 Silver Eagles came in, which filled the back orders, and more are on the way, so there is no delay there.  Johnson-Mathey can produce only 300-400 hundred ounce silver bars a week, so that may be backlogged a couple of weeks, but the ten ounce bars are the same price and a lot prettier, so you might consider these.

As an aside, when you see the big planes dropping that red liquid on forest fires, do you ever wonder what that stuff  is, and if it damages the trees?  It is liquid fertilizer, colored red, so the pilots can see where they dropped it.  No damage to trees.  It got so busy that I brought my son in, to relieve the pressure.  It didn’t relieve anything.  Just about doubled the business.  Lots of people must have been getting busy signals before, or better yet, more and more are getting wise.  Since 20,000 ’terrorism suspects’ are being added every month to TSA’s million already on the books, it makes one wonder if flying is a thing of the past.  Big Brother is watching, and can now even tap your phones without a warrant.  Rush Limbaugh says that Hillary will be the Democrat’s nominee, not Obama.  Can’t we write in Ron Paul?  Now it turns out that some of the huge dollars which Obama has been getting, are coming from overseas, and from sources unable to be traced.  For a bumper strip or poster, why doesn’t someone get pix of McCain as a handsome serviceman, standing next to Obama with a turban.  Both exist.  The caption could read, “Which will you pick?”  The ratchet continues.  Prices go up, and then retreat, but it seems never as low as previously.  Eventually, price retractions will be less and less.  We’ll see.