Have No Fear
But Get Prepared
by Roger Wiegand
Now, as we enter
Phase Two of our years’ long precious metals
rally, markets get hotter and more irrational.
More than ever before, trading speeds increase,
global governments flail at their massive
failures and ever crazier stuff hits the news
and our markets. To get through this melee
without personal disasters, keep your mind clear
and hold firm to your trading and investing
plans. Hard assets and no debts is the right
Over the past decade, gold prices are up an
average of 15% per year confirming that the
longer trend remains in place. At a recent
Calgary Canada Resource Conference we heard a
top analyst tell us gold is up 34% within the
past twelve months. It is obvious a game-changer
is now in progress. Many new questions are being
asked to enable more accurate trading and
We think the key to most answers can be found in
the vacant minds-heads of those global bankers’
and within the tiny IQ scope of these junior,
elementary, genetic mistakes running our
governments, central banks, and the Federal
Our kid president has jumped into new and very
dangerous diplomatic waters by bowing to Russia
on nuclear matters, being wish-washy on Middle
Eastern mayhem and denying Israel a place at the
table. This inexperienced child leader is making
nice to our enemies in hopes of persuading them
to see his agenda. Foreign reaction is to laugh
in his face and consider the USA a paper tiger
taking full advantage using any methods possible
criminal or otherwise.
We suspect the recent Polish air disaster wiping
out that government was not an accident. We can
guess who was behind it but you can figure it
out yourself if you understand who benefits
most. Quite obvious isn’t it?
What does this mean for precious metals, the
general markets and international credit?
A clear path is open if we can surmise what
these evildoers want and see how they intend to
proceed. Let’s review these keys points:
Russia is on the prowl for foreign investment
cash as they are broke with the exception of
their oil and gas sales, which have been down in
the global depression. Answer: Steal, buy and
control more energy to become the global energy
king of the world. He who holds this power is
the ultimate winner. If you think your shares in
investments in Russia are safe I’ve got a bridge
to sell you.
Iraq is all about control of oil and the largest
energy users want in the game to the best extent
possible. Iraq and Iran with joint borders hold
4 of 6 of the largest known oil pools-reserves.
That is what that fight is all about. The big
oil men and their governments are not leaving
and they will fight to get more.
Afghanistan is a tar-pit of despair. How can any
outsider win when both sides on the local team
are into poppy growing, bribes and violence
Some of the best allies the USA has today,
intend to leave these current war
messes-yesterday. Pakistan has a nuclear-ready
arsenal complete with flyable rockets for
delivery. Think that naughty stuff is safe for
now? We don’t.
In Europe, Obama has pulled back the nuclear
shield signaling to Europeans “You are on your
own.” Further, these nations are sick and tired
of fighting in US military adventures as allies
and partners. They simply cannot afford it and
clearly understand its folly.
As the ugly reality of economic destruction
spreads throughout the world, it’s every man,
woman and nation for themselves. For example,
Israel understands they will get no help from
Obama regarding Iran aggression. Now that the
news is out Iran is nuclear ready by August 1,
Israel must deal with this problem by themselves
and, they will deal with it.
Imperious idiots in Washington, New York and
within other financial capitals of the world are
intent on keeping the game in play by kicking
the can down the road. We’ve got news for
them-the can hit the wall and is coming back at
them with full force in bond markets.
That full force is a rapidly decaying bond
market sinking beneath its own weight throughout
international bond land. It is obvious and clear
economic ministers and their liberal minions are
pushing and shoving to dump debts on others but
those others are doing the same. Each is
striving to sell their paper to outsiders while
continuing to sell products one neither wants
nor can afford. This is an economic circle of
As the Bernanke circus continues to print bonds,
bills and notes they have suddenly discovered
they must increasingly buy back their own crap
at the auctions where there are fewer takers and
suddenly no takers? Who will finance
We smell panic in bond-auction-land and it has
become every increasingly more strident and
frightful. The Pimco boyz are shedding US paper
and were recently prowling in Aussie land as
they have the good sense to raise interest rates
trying to get a lid on this nonsense. However,
their larger dilemma (Pimco’s) is trying to
place multi-billions in a market offering fewer
places to go. At least places that just might
return your capital and not dissipate it down
some stupid rat hole.
Asia is beginning to the feel the international
pain as their customers are going broke or are
already broke. The lifeblood of China, Japan and
Korea along with their neighbors is to make
stuff and sell it overseas. Problem now is the
overseas countries are out of buyers and out of
credit. Oh Oh.
Inflation in China is running hot at 15%. Hong
Kong real estate prices are up 23% so far in
2010 and the year is not even half over. To
their credit, new China rules demand less
leverage, higher down payments and face new
curtailment on usable building land. Despite
these new controls, the horse is out the
inflation barn and he is running full tilt.
Japanese companies are losing customers, have
too may retirees and not enough children coming
along to take their places on employment rolls
to become productive. Since Japan does not
finance their government overseas, most all of
their bonds are sold internally to the heavier
savers within that nation. Now, however, their
paper pile is out of control and is reported to
be 2.5 times larger (adjusted for size) than a
busted USA. Wow!
This simply cannot last and a truly religious
experience is to be the end result. It will not
Korea has grown considerably but also rose on
the backs of credit and paper piles. They too
are losing foreign customers and things are
In Europe, the situation is not just worse it
has turned dire. Germany is the last man
standing and all their Euroland neighbors want
handouts from Berlin. Greece is first in line
and they were initially refused. However, it was
reported this week that Germany’s Mrs. Merkle
caved into immense Euro-banker pressure and will
go along with the Greek-IMF bailout. This major
mistake opens the money door for other busted
Eurolanders like Spain (24 times the monetary
damage of Greece), along with Portugal, Italy
and a few others.
Ireland fell down so hard they went negative
-12% GDP and taxpayers are on the hook for
multiple billions they do not have.
In the U.K. Mr. Gordon Brown, the world’s
champion liberal giveaway artist after Obama,
who is the International King by far, has wasted
$5 Billion in British gold holdings and
continues to prop Zombie companies and banks.
Brownie intends to exaggerate the situation with
more of the same. His solution for being in the
hole is to keep digging. The U.K. appears to be
committing economic suicide just as in Obama-land.
None of these fools have the courage to stop it
and make central bankers behave. The can kicking
syndrome remains on page one and its going to be
a global disaster.
In South America, Hugo Chavez has literally
destroyed his country and is partnering with
Putin and other commies to arm all the rebels
within the southern hemisphere. He is
particularly encouraging the really Bad Boyz,
engaged in Mexican pharmaceutical sales, to take
over that government and spread disaster into
the southern USA. He is winning.
Meanwhile, our kid prez is planning to open the
Mexican border to all comers and hand over USA
citizenship to 12 million Mexican illegals, now
in the US to garner votes using his welfare
Our point in this discussion encourages the
purchase of hard assets for personal protection
including gold and silver coins, cash investment
into the best remaining currencies (temporarily
for the intermediate term) and steps to protect
your wealth by debt elimination and a drastic
reduction in spending. Savers and those with a
maintained depression income will be winners. We
are entering a lost decade.
Those living on credit cards, and a house of
debts, and in danger of losing employment, will
pay the price.
Now, more than ever, it is important to take the
immediate necessary precautions to protect
yourself and your families and friends.
Traders and investors should be buying precious
metals and shares right now. In our newsletter
we have a great list of trading and investing
ideas for you. Meanwhile, you can never go wrong
buying physical precious metals and holding them
for security. We’ve had a constant run of nearly
ten years in gold rising 15% per year so this
remains a good trade.
It’s not going to stop any time soon. In fact,
we predict those annual percentages will rise
even more and this offers a chance, arriving
only once in 25 years on the cycles.