Neo, sooner or later you're going to realize, just as I did, that there's a difference between knowing the path and walking the path. ~ Morpheus, The Matrix
It's no secret that the U.S. dollar — or Federal Reserve Note — is the world's reserve currency. It's been that way since 1944, when the dollar was backed by gold...
A time when the United States held more than 50% of the world's gold reserves.
A time when the U.S. produced more than 55% of the entire world's manufactured goods.
Of course, times have changed...
Since 1971, our dollar hasn't been backed by anything other than the fact that it is the world's reserve currency.
Today (2011), we only produce 27% of the world's manufactured goods. America also holds less than 25% of the world's gold reserves.
And on September 30th, 2011, our national debt will exceed more than 102% of our GDP.
An auto manufacturer in Korea importing steel from Japan must first convert Korean won into U.S. dollars, pay for the transaction in dollars, and the Japanese exporter — upon receiving the payment — must then convert the dollars into Japanese yen.
The need for dollars to buy international goods is the only thing that gives the dollar any strength at all.
And with an additional $80 billion flooding the money supply every month, the price of everything inevitably skyrockets...
It's a Mad Hatter monetary system that's literally crippling our very livelihoods.
And it's rapidly driving the middle class' and retiring baby boomers' purchasing power to poverty level.
Of course, the Fed — the guys who invented this Ponzi scheme — will never admit it.
In fact, recently Chairman Bernanke was asked on Capitol Hill if the Fed's policies were responsible for the skyrocketing costs of goods across the world...
He was quick to reply that higher prices have nothing to do with the Fed's pumping of more than $3.7 trillion into the global economy.
He states, “Clearly, what's happening [to food prices] is not a dollar effect. It's a growth effect.”
In other words, that's too bad that they can't eat... but it's not my problem. And to an extent, he's right...
So long as you don't drive a car, use electricity, heat your house, or need food to survive.
What Bernanke danced over, however, is that — thanks to the Fed's out-of-control policies — it's not just food prices that are surging.
It's commodity prices across the board — everything. In fact, over the past year...
Coal is up 33%
Gold is up 30%
Silver is up 118%
Oil is up 45%
Cotton is up 148%
Corn is up 76%
Wheat is up 44%
Rubber is up 86%
I could list these skyrocketing price increases for 20 minutes.
The point is, these drastic price increases aren't due to a sudden surge in consumption.
Rather, it's the Fed's constant devaluation of your dollar — killing your purchasing power with each passing day. For supporting info, check out the graphs in Illusion of Wealth, and you get the big picture.
You might not see it reflected in your grocery store right away. Marketers have been very clever at passing on these soaring costs to you in smaller packaging and fewer goods inside...
Again, I could go on all day. But the next time you're in the store, take a look at the weight and cost of virtually any item. Chances are, within a month or two, it's either going to be much more expensive, or the amount of goods in each package will get smaller... or both.
So, who do you trust? Our government leaders or S&P?
Maybe you trust PIMCO, the leader in bonds who no longer invests in US bonds? Instead, PIMCO is now investing in distressed real estate projects, just as I am doing.
Do I think the worst is over? “Absolutely not.”
Do I believe the New Depression has begun? “Yes.”
Will I do anything different? “Absolutely not.”
Will I continue to buy real estate at distressed prices and rent them to people who cannot buy homes? “Absolutely.”
Will I use debt to get rich? “Absolutely. At interest rates so low, I’d be a fool not to borrow to make money.”
Will I continue to buy gold and silver rather than save counterfeit dollars? “Absolutely. Especially after the state of Utah challenged the US government and allowed people of Utah to pay their bills in gold and silver. I wrote about that in the last COR update, stating that Utah’s actions were the first step in challenging the Conspiracy of the Rich.
If gold and silver is recognized as real money, which it always has been, this will mean the 28 percent capital gains tax on gold and silver may be removed. That will send gold and silver through the roof.
What if gold and silver prices crash? That would be good news too. Why? I’d buy more. Traditionally, gold and silver don’t do well during the summer months; nor does the stock market. If you pay attention, and prices fall even further, there may be some great buying opportunities in August.
So what should you do?
My answer is always the same, “Get educated.” Investigate further for yourself. Don’t just take my opinion or someone else’s opinion. Your future is at stake.
I believe the middle class is being crushed and the economy will worsen again. We are on the edge of the New Depression. If our leaders screw up, it will be here sooner than later. If they keep the world believing in their competence, it may be delayed a few years.
Your choice will be to get richer or become poorer during the next depression.
I keep studying, continue to take classes, choose my advisors wisely, and listen carefully to what our leaders are saying. Then, I make up my own mind and do my own thing. You should too.
Compiled from:
Luke Burgess, Investment Director, Underground Profits
Robert Kiyosaki, Conspiracy of The Rich
It's no secret that the U.S. dollar — or Federal Reserve Note — is the world's reserve currency. It's been that way since 1944, when the dollar was backed by gold...
A time when the United States held more than 50% of the world's gold reserves.
A time when the U.S. produced more than 55% of the entire world's manufactured goods.
Of course, times have changed...
Since 1971, our dollar hasn't been backed by anything other than the fact that it is the world's reserve currency.
Today (2011), we only produce 27% of the world's manufactured goods. America also holds less than 25% of the world's gold reserves.
And on September 30th, 2011, our national debt will exceed more than 102% of our GDP.
USD As World Reserve Currency And Inflation
An auto manufacturer in Korea importing steel from Japan must first convert Korean won into U.S. dollars, pay for the transaction in dollars, and the Japanese exporter — upon receiving the payment — must then convert the dollars into Japanese yen.
The need for dollars to buy international goods is the only thing that gives the dollar any strength at all.
And with an additional $80 billion flooding the money supply every month, the price of everything inevitably skyrockets...
It's a Mad Hatter monetary system that's literally crippling our very livelihoods.
And it's rapidly driving the middle class' and retiring baby boomers' purchasing power to poverty level.
Of course, the Fed — the guys who invented this Ponzi scheme — will never admit it.
In fact, recently Chairman Bernanke was asked on Capitol Hill if the Fed's policies were responsible for the skyrocketing costs of goods across the world...
He was quick to reply that higher prices have nothing to do with the Fed's pumping of more than $3.7 trillion into the global economy.
He states, “Clearly, what's happening [to food prices] is not a dollar effect. It's a growth effect.”
In other words, that's too bad that they can't eat... but it's not my problem. And to an extent, he's right...
So long as you don't drive a car, use electricity, heat your house, or need food to survive.
What Bernanke danced over, however, is that — thanks to the Fed's out-of-control policies — it's not just food prices that are surging.
It's commodity prices across the board — everything. In fact, over the past year...
Coal is up 33%
Gold is up 30%
Silver is up 118%
Oil is up 45%
Cotton is up 148%
Corn is up 76%
Wheat is up 44%
Rubber is up 86%
I could list these skyrocketing price increases for 20 minutes.
The point is, these drastic price increases aren't due to a sudden surge in consumption.
Rather, it's the Fed's constant devaluation of your dollar — killing your purchasing power with each passing day. For supporting info, check out the graphs in Illusion of Wealth, and you get the big picture.
You might not see it reflected in your grocery store right away. Marketers have been very clever at passing on these soaring costs to you in smaller packaging and fewer goods inside...
Again, I could go on all day. But the next time you're in the store, take a look at the weight and cost of virtually any item. Chances are, within a month or two, it's either going to be much more expensive, or the amount of goods in each package will get smaller... or both.
Great Leaders?
"There's no housing bubble"... "Fannie and Freddie are financially sound"... "The fundamentals for banks couldn't be stronger"... "We're experiencing amazing job growth"... I'm sure you heard at least some (or variations) of these filthy lies from our representatives in the past couple of years. We all have. And have you noticed that they always build up just before a major market let down? One that sets the everyday investor's portfolio back months — if not years. You could almost set your watch to it... |
| A few weeks back, a Fox Business television reporter asked Treasury Secretary Tim Geithner, “Is there a risk that the United States could lose its AAA credit rating?” The Treasury Secretary responded, “No risk of that.” A few days later, credit rating agency Standard & Poor’s (S&P) warned the world about the credit rating of the US, saying there is at least a one-in-three likelihood that they could lower the long-term rating of the US within two years, reducing the government’s debt from “stable” to “negative.” |
So, who do you trust? Our government leaders or S&P?
Maybe you trust PIMCO, the leader in bonds who no longer invests in US bonds? Instead, PIMCO is now investing in distressed real estate projects, just as I am doing.
Do I think the worst is over? “Absolutely not.”
Do I believe the New Depression has begun? “Yes.”
Will I do anything different? “Absolutely not.”
Will I continue to buy real estate at distressed prices and rent them to people who cannot buy homes? “Absolutely.”
Will I use debt to get rich? “Absolutely. At interest rates so low, I’d be a fool not to borrow to make money.”
Will I continue to buy gold and silver rather than save counterfeit dollars? “Absolutely. Especially after the state of Utah challenged the US government and allowed people of Utah to pay their bills in gold and silver. I wrote about that in the last COR update, stating that Utah’s actions were the first step in challenging the Conspiracy of the Rich.
If gold and silver is recognized as real money, which it always has been, this will mean the 28 percent capital gains tax on gold and silver may be removed. That will send gold and silver through the roof.
What if gold and silver prices crash? That would be good news too. Why? I’d buy more. Traditionally, gold and silver don’t do well during the summer months; nor does the stock market. If you pay attention, and prices fall even further, there may be some great buying opportunities in August.
So what should you do?
My answer is always the same, “Get educated.” Investigate further for yourself. Don’t just take my opinion or someone else’s opinion. Your future is at stake.
I believe the middle class is being crushed and the economy will worsen again. We are on the edge of the New Depression. If our leaders screw up, it will be here sooner than later. If they keep the world believing in their competence, it may be delayed a few years.
Your choice will be to get richer or become poorer during the next depression.
I keep studying, continue to take classes, choose my advisors wisely, and listen carefully to what our leaders are saying. Then, I make up my own mind and do my own thing. You should too.
Compiled from:
Luke Burgess, Investment Director, Underground Profits
Robert Kiyosaki, Conspiracy of The Rich
