Screams And Broken Dreams
by Roger Wiegand
The herd has
been through a nasty wringer of drastic social
and markets’ events since the fall of Lehman.
(1) First we experienced pure naked fear as few
knew what to expect other than the worst. (2)
Next, with crashing markets and broken banks
those in the know were in a pure panic as they
had the misfortune to understand what could
really happen. (3) Then, bankers and their house
pet Federal Reserve fought openly with
finger-pointing politicians (4) This was
followed by Lehman’s demise and the imposition
of TARP. (5) After the take-over of GM and
Chrysler and the crooked pay-offs to big busted
banks using AIG as a cash funnel, public anger
rose significantly. It’s still rising and
nearing the boiling point. (6) Criminal
political-authorities-bankers-cabal gang members
involved are so pleased with how this scam has
worked, they are doing it all over again.
Central and global bankers with their politician
partners have now seized control of entire
nations. Taxpayers have been victims of the
largest robbery ever in history and it’s not
over yet. There is no going back and “no new
normal” returning to the old paradigm recovery.
They would like you to believe this but we say
no way. The world is permanently changed
This is a new era as we have been irrevocably
Millions of citizens throughout the world have
lost everything they’ve worked and saved for
during their entire lives. This economic
terrorism, on a positive note, will take down
the instigators as they’ve wrecked what they
have stolen to gain power and control. We wish
no one ill will and are not vindictive, however
no tears will be shed in my house when these
paper billionaires go the poor house or worse.
Fiat money and central banking is headed for
supreme wreckage. It may not happen in a flash
but rather in fits and starts as pieces fall off
and this crappy on-going game of international
global theft is destroyed. The primary reason is
these crooks have destroyed the system they’ve
used to steal. They wrecked their own tools and
sources for robbery.
In America, it began when the Federal Reserve
was born in 1913 in a foolish reaction to
install systemic controls after the New York
Panic of 1907. From that day forward, the US
Dollar has been on glide path of slow
destruction from the imposition of inflation,
sloth, theft, and waste.
Those creeps with their fingers on the printing
press simply cannot control themselves. They are
in the political business to buy votes for
power. By printing cash and giving it away
through a host of freebies they instill voter
loyalty. There are no other reasons or
legitimate agendas. For those that did not
believe this or could understand their
subterfuge and crooked games, the current
administration has certainly made the mess to be
understood very clearly.
How would you have liked to have been John
McCain in that recent health care summit meeting
having to sit there and be rudely lectured to by
a 48 year old, smart-mouthed kid with no
experience and starry-eyed grand schemes of
socio-communistic power? If you do not
understand that this man is very dangerous you
are not paying attention.
My worry is I can see our enemies view the US
president as an easy mark and one to be
manipulated. He is a weak sister and not to be
trusted. I am not picking on one particular
political party. From my point of view, they all
stink. Some stink worse than others but
your-well-being is not at the head of their
Make no mistake there are power-hungry people in
all political parties. They sternly believe
their very existence is designed to take your
money, decide how to spend it and slam you with
punitive rules should you fail to agree and, or
snap into line. If you disagree you could be
fined and could be arrested. The end is nigh and
they are going to get a very rude awakening. We
wish them the worst. They have earned it.
I have read a lot of history and because of my
work am intensely interested in economic
history. The same things happen over and over
again as human nature and psychology remain the
same. Very serious and repetitive monetary
mistakes are made easily and often as the human
age spread widens between K-Wave Depressions
into several generations. Not too many
experienced bright people remain alive today who
were economically hammered as adults in the
Consequently, we continue to make the identical
mistakes under identical circumstances. Its lots
easier for politicians to do the wrong things as
the shorter term pain of doing the right things
hurts too much and of course gets you tossed out
of office. Expect more of the same until they
have lost all power and credit.
What do we get for the balance of 2010?
“The Spring Coming-Out Party Of Realism.”
What we have today is a handful of major
power-player countries that exercised their will
upon others to the extent they have burned out
their national treasuries created an immoral
political and social climate driven their
populations to the poor house destroyed any
realistic semblance of an economy loaded-up
their nations with an un-payable mountain of
debts and instigated a host of messy social
problems lasting over three or four generations.
This kind of crash and burn damage is not
repaired overnight and many times it cannot be
fixed peacefully as in the USA instance of the
Countries that did not gain a higher standard of
living before this mess are better adapted to
withstand what lies ahead. In other words these
people didn’t have as much to lose in the first
place so they are socially trained to get by on
much less. That is simply not the case in the
United States with its higher living standards
and over-zealous expectations. Spoiled brats in
the US are truly going to attend and endure a
negative religious experience of the highest
order. This one is going to be a rude awakening
of the worst sort. Many will not cope and simply
At the beginning of this discussion I summarized
six key points taking us to the next cyclic
event, which I shall call a “Spring Coming-Out
Party Of Realism.”
Between May, 2010, and July, 2010, we see a
convergence of several negative events arriving
to smash the markets, the banks, and the Sheeple.
These are: (1) $40 billion in credit card losses
will be reported by lenders. (2) Global banks
will be entering another nasty credit cycle (3)
Auto sales, which are normally mostly produced
in the first five months of the year will be
awful. (4) REIT’s and other commercial real
estate foreclosures and bankruptcies will
escalate. (5) The FDIC is going to have to
swallow and pay-cover $1 Trillion in failed bank
and savings and loan deposits. (6) Fannie and
Freddie (already bankrupt) have been given an
open checkbook to buy all the outstanding
residential crappy paper out there for the next
This means the F&F’s are a dumping ground for
all the bad residential real estate paper. At
the appropriate moment when this trash is
basically gathered and backed by the government
(read taxpayers), authorities will push the
handle and it all goes down the bowl. Presto!
all of those real estate problems are solved;
written-off so to speak.
Importantly, most of these events are all
reported within that 90 day window (May-July,
2010), which just happens to fall right on “Sell
In May And Go Away.” Think this isn’t going to
Hunker In The Bunker
Between now, March 4, and the peak in stock
prices, we are busy trading and recommending
shares investing to buy in the current rallies.
This week is slow as investors are waiting for
the phony jobs report coming out tomorrow on
Friday. You can be sure the dimwit pols and
their minions over at the Labor Department will
shake and bake those jobs numbers to
And if that isn’t enough, The Plunge Protection
Team S&P Buying Hit Squad will pump buying on
Sunday evening (under cover of late night
darkness) or early Monday morning before the
open. These dudes and dudettes are not going to
miss stealing more and selling into strength
while scooping-up big sales commissions.
When the selling and shorting arrives this
spring-time, we think it could be legendary. And
if this disaster is not deep enough nor bad
enough, the game could be extended into those
other serious selling bailout months of
September and October this fall.
Real unemployment is going-off the charts. Flint
and Detroit in Michigan have 50% unemployment.
California, (the main one to watch for disaster
cycle leadership) cannot be measured but you can
be certain its at least double what Sacramento
is telling us. The Terminator is $24 Billion in
the hole and he keeps digging right along side
Twenty million people collected unemployment
checks in 2009. The official claim was 10%
jobless when the actual was more like 24%.
Twenty-five states have paid out all the money
they have in their unemployment funds. The
Federal Government has already paid many more
billions in loans to those states to cover. It’s
going to get a lot worse.
The Labor Department officially forecasts 40
states will borrow $90 Billion for un-employment
by 2012. As per usual, doubling that number to
$180 Billion is more realistic. Puerto Rico has
had 25% of its population on USDA food stamps
for generations. It’s getting worse.
GM is on its third bailout and the current auto
czar operating that bankrupt company just
relegated their best car guy to “Advisor.” That
would be Bob Lutz who is retiring May 1, 2010.
Government Motors continues to screw-up making
more tragic errors. Somebody needs to throw the
dirt over them and end their misery.
One good easy measure of these disasters is
counting the Wall Street Journal’s number of
posted lawsuit pages. It’s growing
In Arizona, very hard hit by unemployment and
falling real estate prices (-30% valuations),
the Mayo Clinic has stopped treating Medicare
patients and 3,000 people have to go to cash
only. When the Congressional Reconciliation Vote
(now there’s an oxymoron) is completed and Obama-maniac
Healthless Care is invoked, the number of
practicing doctors will skid lower as they
retire and leave the country for better
opportunity. Would you remain a US doctor being
open to unbridled lawsuits and government
pushback taking your compensation and telling
you how to practice? I sure wouldn’t. Its not
only illegal but unethical for the patients
wellness and the doctors.
This doctor shortage will be a double whammy.
(1) 30 million more non-paying, non-insured
indigents are dumped onto the system for “free
care” in the middle of a doctor shortage. (2)
Then with a system already very short on skilled
professionals, many of those practicing today
will retire or leave. How is that supposed to
Ms. Pelousy is determined to pass health care,
cap and trade, while gathering in millions more
votes by giving freebies to the jobless and
minimum wage people. Next she plans to invoke a
new Value Added Tax (think stealth) VAT into the
system to raise-steal billions more from
taxpayers corporations. Understand tax
collections are off 30% and falling like a rock.
Unemployed people cannot pay taxes if they have
no job. States have to balance books so they go
down first. The Federal Government does not have
to balance so they have more staying power
printing valueless cash and bonds.
Pelousy’s next biggie is her plan to
steal-convert private pensions to government
managed pensions as this is the last big plum in
the overall political robbery scheme. This means
taking your pension savings and converting them
to US paper. I think she learned this one from
Mrs. Kirchner in South America. They are in the
midst of self-destruction too, but just further
down the track toward oblivion.
With all of these disasters of course Americans
are busily engaged in their favorite in-door
sport of lawsuits. The New York Times says there
are 4.7 million cases backed-up in the courts
with the pile growing by the hour. That would be
either New York City or the entire state we are
not sure which. It could be just the city
knowing what we know.
Our “Hope and Change” president with his “Crash
and Burn” game plan has managed to make millions
of our citizens furious on health care they do
not want. Others are wondering if he has a
patriotic heart pandering to the Middle Eastern
crowd and back-pedaling against Israel. We have
two wars going full bore and in our view we can
expect more in several new locations. The Iraq
war seems to be a daisy chain moving from Iraq
to Afghanistan to Pakistan. What’s next India
We forecast a long hot summer in the urban
streets of America. Despite massive food stamps’
aid and federal unemployment back-up for the
state funds, the process will be woefully short
of effectiveness. In our view, for every family
or individual person getting some help, there
are that many more who need it and are not
qualified, or who have failed to apply. This is
going to be a major disaster and portions of the
largest cities will have riots, fires and go out
While many are openly worried about a crash in
China, Japan is much further down the road to
perdition. We’ve seen reports about a possible
Yen collapse and their political discussions are
more heated than in many years. There is major
disagreement about economic policy and we think
this is unresolved as matters are coming to a
head. The bankruptcy of JAL airlines was a
wake-up call but there are more serious things
on the front burner. When a nation must pay
national pensions from their own bond sales
something is very wrong.
Japan’s GDP versus debt is about 2.5 times worse
than in the U.S. and ours is really nasty.
Moody’s rating service once criticized and
burned in the Lehman aftermath in the U.S. is
not about to get nailed again. They have been
busy working on a Japanese S&P downgrade and it
could be implemented at any time. Since their
economy is right near the top of the global pile
that would be a shocker to markets.
We could go on and on with bad stuff but think
it would better serve our readers to review
things that directly affect them and offer ideas
as to what they can do to protect home and
family while earning some money. If the U.S. has
a bank holiday or a bank run; or perhaps a U.S.
Dollar devaluation, the fallout would be
legendary. If something like this starts, you
will not have time to install a shield and would
just be another victim on the train tracks.
Here is a quick list of things to help.
Pay off your debts to the extent possible.
Cut your losses on debts owed to you. Take less
or write them off.
Have 30-90 days cash in the house in hand and in
Larger cash deposits can be invested in
gold-backed depositories or the Canadian Dollar
Have a bag of junk silver (90% silver content
pre-1964) for spending money.
Some have stocked-up on liquor and cigarettes
for trading and barter.
Own at least 10% of your portfolio in physical
gold; coins preferred.
Own a pick-up truck or a car and utility
Hold stored personal daily needs items in your
home. Thirty days worth
is mandatory and 6-12 months is better. You have
security, savings on prices
and you will need no shopping in an emergency.
Inflation is coming this year.
Grid failures are becoming more common. A
standby generator is handy to run
demand for a short while but a whole house
propane generator is better if you can afford
Store water for 30 days needs. Have ways to
filter it and obtain another source from your
The best way for most consumers to deal with a
potential temporary “moneyless” society is to
have the stuff you need in advance and plan for
an extended hiatus.
First easy solution: If you don’t have stuff to
steal including money, stocks, and other paper
assets, you cannot lose them. Out of sight out
Retirement accounts in foreign nations should be
ok especially backed by gold.
Security is always a problem but there are
several ways to manage this and we won’t discuss
them in this essay. You do not need guns if you
are inventive and creative.
Transportation could get troublesome if fuel is
difficult to obtain. Being in the right location
can avoid the need for longer trips. Small towns
with all their convenience (walking distance)
would be excellent.
Bikes, motorcycles, and old trucks are
excellent. The Amish use horses for most
Energy needs can be kerosene lamps, coal and
wood for heat back-up and propane for a variety
of things including off-the-grid propane
refrigerators and freezers.
Have a garden, learn to can food and learn to
trade. Quality is better than in stores.
Do not count on any municipal services for
anything. They are going broke.
Telephones and the internet could get
interrupted and mail could stop for awhile.
Food stores have 7-10 days inventory before they
are shut-down if not replenished. Plan ahead.
Farmers markets are great fun and have cleaner,
higher quality food.
Forget using credit cards. As long as possible,
use cash or a low limit debit card on a regular
basis. Utility bills can be paid at retail
stores in cash. No checks are needed.
While the advantages of paying bills on-line are
many, we do not do it and do not bank on-line
for security reasons. In rough times the
scammers multiply in the dark.
Keeping a strong positive attitude is essential.
Despite some problems ahead, we plan to be not
only comfortable and safe but to earn a good
living. This mess shall pass and life goes on.
Just do not be an in-convenienced victim because
of not being prepared. Start slowly but start
today. It won’t take you long to be fully
Our guesstimate for a nasty event is this spring
or later, but you never know for sure.
One of two top gold and silver trading cycles is
now open for business.
While the first and second quarters’ precious
metals cycles were tardy, get busy and get
investing and trading. We forecast a stronger
upside for the next 4-8 weeks followed by some
short selling on the obvious forthcoming
mainstream failures in credit and banks.
Traders and investors should be buying physical
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 12-15% per year. It’s not
going to stop any time soon. In fact, we predict
those annual percentages will rise even more and
this a chance arriving usually once in 25 years
on the cycles. Good trading! -Traderrog