Gold just broke $970 up 8% in a year and over 15% in 30 days. Stocks are down yet again, and many economists that predicted this crisis 2 years and as long as 10 years ago are saying the bottom is still far off. I read an article today outlining the multiple reasons of why the DOW could see 6000 this week.

I cannot believe the aversion some people in America have to owning gold. It is amazing to me how people prefer the debt issued currency and paper backed assets over the tangible and intrinsic value of real money….gold.

I now use a persons opinion and knowledge of gold and money as a barometer of who they are. It really tells a lot about their education, gullibility and inability to question the reality they were raised in or taught.

Just think, if you had $100,000 in the markets in 2007 and left it all in there, today you would have around $56,000 (DOW, NASDAQ and S&P are off by 44-46%).

If you had taken the money out at the first signs of this crisis and listened to the likes of Peter Schiff, Roubini, Gerald Celente, Max Keiser and so on you could have bought gold for around $700 per ounce. Instead of losing around $44,000 you could have prevented the loss and “made” or increased your dollar value in gold to around $172,000. Wow, the worst year in investment history and you could have MADE $72,000!? Yes. Many did. Holding stocks now will only continue to lock one into the decline of US markets and the US dollar. There will not be a rebound. The inflationary spiral that economists have shown us will reap catastrophe on any marginal gains you see in your portfolio. Even if you made 18% per year, the fees and inflation would destroy it and you would gain nothing. All the while the strength and ability of the dollars to purchase goods will decline.

Get out, get gold and breathe a sigh of relief. While you still can.

Want to join a political party that values maximum freedom with principles to defend it? Join the Objectivist Party! http://www.objectivistparty.us/  I am the Montana state coordinator. If you have any questions email through our facebook page.

Montana is a great place to visit, but with no jobs, it’s no place to live. Time to move on down the road!

Dearest Whatever Moron Thinks Bailouts Work,


History of the Meltdown…
   
March 28, 2007   “The problems in the subprime market seems likely to be contained.”
— Ben Bernanke, Federal Reserve chairman, March 28, 2007
This unfortunate collection of words by Bernanke has been quoted over and over again as proof the Fed chief did not grasp the gravity of the subprime debacle.
He made this comment as part of testimony he gave to the Joint Economic Committee of Congress, and it came back to haunt him when the financial sector began to collapse.

July 31, 2007   Two Bear Stearns funds that invested in mortgage securities file bankruptcy.

Aug. 9, 2007   French bank BNP Paribas freezes three funds with U.S. mortgage exposure, helping to spark a worldwide credit squeeze.

Oct. 11, 2007   The Dow hit its all-time high of 14,279 during the afternoon. It’s all downhill from here.

Oct, 30, 2007   Amid mounting losses, Merrill Lynch CEO Stan O’Neal resigns.

Nov. 4, 2007   Citigroup CEO Charles Prince steps down. 

Dec, 2007   US recession officially begins (but won’t be announced until Dec. 1, 2008). [link]
   
Jan. 11, 2008   Countrywide Financial insolvent. Bank of America agrees to buy them out, saving them from bankruptcy.

Feb. 1, 2008   Exxon Mobil posts the largest annual profit by a U.S. company in history of $40.6 billion — a record that will not be broken for decades.

Feb. 12, 2008   General Motors announces losses of $38.7 billion last year, the largest annual loss in automotive history, and offers buyouts to 74,000 hourly workers.

Mar. 12, 2008   “We don’t see any pressure on our liquidity, let alone a liquidity crisis.”
Alan Schwartz, former CEO of Bear Stearns, March 12, 2008.
Schwartz was fending off speculation that the investment banking giant was in a cash crunch when he made this statement, trying to reassure investors that Bear Stearns was doing OK.

March 16, 2008   Bear Stearns dies. JPMorgan Chase snatches them up at firesale price. The Gov’t coughs up $30 billion to sweeten the deal.
Gold & silver are hitting new highs every other day.

March 16, 2008   “We have more capital than we need, so we can say to the market that we don’t need more injections. We can confirm that we have tackled the problem.”
John Thain, former CEO, Merrill Lynch, March 16, 2008
Merrill Lynch would become insolvent Sept. 15.

July 11, 2008   IndyMac Bank dies, becomes the third-largest bank failure in U.S. history. Check out this video of angry customers from Encino, CA on TV station KTLA [link]

July 11, 2008   Oil prices reach all-time high of $147 a barrel. Gas at the pump over $5/gallon.

July 15, 2008   “I don’t think the government ought to be involved in bailing out companies.”
George Bush, President of the United States
Bush made this statement in a press conference where he reiterated he felt the economy was basically sound. By the end of the year the gov’t would be involved in the bailouts of AIG, Fannie Mae, Freddie Mac, CitiGroup, GM, Chrysler, Ford, every one of the 10 largest banks (through TARP and the Fed loan window).

July 16, 2008   “I think the system basically is sound, I truly do,” Bush said. “And I understand there’s a lot of nervousness. . . . But the economy is growing, productivity is high, trade is up, people are working. It’s not as good as we’d like, but . . . to the extent that we find weakness, we’ll move.” George Bush, President of the United States
With three more financial outlets collapsing under the economical meltdown last week, queues of angry people outside banks with no access to their money, inflation at its highest rate in 27 years and scores of economists predicting a recession may tip into a full blown depression, president Bush reacted by declaring that the economy is still fundamentally sound.

July 24, 2008   Ford Motor Co. posts worst quarterly performance in its history, losing $8.67 billion, and plans to quickly change focus from trucks to small cars.

Sept. 5, 2008   Silver State Bank is closed in the 11th bank failure of the year.

Sept. 7, 2008   Fannie Mae and Freddie Mac on the ropes. The government seizes them at a cost of $200 billion.

Sept. 11, 2008   Sudden $550 billion drawdown in money market deposits. (This unexpected event was revealed to Congress in secret on Sept. 15, 2008 and not made public until Feb. 6, 2009. This may have been the “trigger event” for the US banking crisis. [What You Weren’t Told on 9/11/2008].)

Sept. 15, 2008   158 year-old Lehman Brothers files bankruptcy. At $630 billion it’s the largest bankruptcy in US history. This sparks a chain reaction that sends credit markets into disarray.
Merrill Lynch in trouble, Bank of America agrees to buy them out for $50 billion.

Sept. 16, 2008   World’s largest insurer AIG insolvent. Government takes control of them for $85 billion. AIG is replaced by Kraft Foods as a component of the DJIA index.
The nation’s first money-market fund collapses when it “breaks the buck” and is frozen. Two days later Paulson & Bernanke extend federal insurance to some $3.4 trillion in money-market funds.

Sept. 17, 2008   Stock market down 9% in two days.
Gold posts its biggest 24-hr gain (percentage and actual $ amount) in history.
Russian stock market is closed for two days after it dives 25%.

Sept. 18, 2008   Sec Treasury Paulson proposes the biggest financial bailout in US history. It grows from an estimated $300 billion to $700 billion in three days.

Sept. 19, 2008   SEC temporarily bans short sales of 800 stocks from today through October 2.
Sec Treasury Paulson asks for unprecedented and unrestricted authority to use taxpayer money to bailout any financial entity.

Sept. 21, 2008   Eager to be eligible for the Fed’s bank-only billion dollar handouts, Goldman Sachs and Morgan Stanley suddenly transform themselves into deposit-taking banks.

Sept. 25, 2008   Washington Mutual, the US’s largest S&L, becomes the largest bank failure in history. It is seized by the Feds and sold off to JPMorgan Chase.

Sept. 27, 2008   “Legislative” Martial Law is declared by the Speaker of the House in an effort to ram through the $700 billion Bailout Bill. This attempt fails.

Sept. 29, 2008   Wachovia, the nation’s 4th largest bank, in trouble. The FDIC brokers its sale to CitiGroup (eventually Wells Fargo beats out CitiGroup).
The DJIA suffers its biggest point-drop in history; the VIX “Fear Index” sets a new all-time high at 48.40.

Oct. 3, 2008   House passes $700 billion Bankster Bailout Bill. President immediately signs it into law. The Executive Branch now has unrestricted control over who gets what for bailouts.

Oct. 6, 2008   The VIX “Fear Index” sets another new all-time high at 58.24. Dow drops to 9,955, first close below 10,000 since 2004.

Oct. 7, 2008   Russia, Brazil and Peru suspend trading when their stock markets fall nearly 20% at open.
Prime Ministrer of Iceland warns of impeding bankruptcy of his country.

Oct. 8, 2008   The Federal Reserve, European Central Bank and four other central banks lowered world-wide interest rates in an unprecedented coordinated effort to ease the economic effects of the worst financial crisis since the Great Depression.

Oct. 9, 2008   Iceland suspends trading on its stock market for the rest of the week. Its three largest banks have failed.
European Central Bank announces “unlimited” amount of cash available to banks.

Oct. 10, 2008   The Dow had its worst week in both point and percentage terms and is down 40.3% since reaching a record high close of 14,164.53 on Oct. 9, 2007. In the last 8 trading days alone, the blue chip index has lost a staggering 22.1% of its value. The past week’s (October 6 - 10) 18% decline “and Friday’s 1018.77 point swing from low to high were the biggest since the Dow was created in 1896.”Britain was just three hours away from going bust today after a secret run on the banks. This wasn’t revealed until Jan 24, 2009 by one of British Prime Minister Gordon Brown’s ministers. [link]

Oct. 13, 2008   Dow chalks up its biggest-ever one-day point gain to close over 9,000 after last week’s devastating losses.
US Fed authorizes unlimited dollars for distribution by European Central Banks. The flood of new dollars is estimated at $2.3 trillion worldwide.

Oct 15, 2008   Monday’s huge Dow gain is countered by today’s huge loss of 733 pts.

Oct 16, 2008   Oil prices fall below $70 a barrel, less than half the July peak.

Nov 6, 2008   U.S. Stocks Tumble in Market’s Worst Two-Day Slump Since 1987 (Bloomberg.com). S&P 500 down 10%.

Nov 7, 2008   Unemployment jumps to 14-year high of 6.5%.

Nov 19, 2008   Dow dives under 8,000 — lowest close since March 2003.

Nov 23, 2008   Citigroup, once the nation’s largest and mightiest financial institution, has been brought to its knees by more than $65 billion in losses. Citigroup’s stock has plummeted to its lowest price in more than a decade, closing Friday at $3.77. At that price the company is worth just $20.5 billion, down from $244 billion two years ago. Waves of layoffs have accompanied that slide, with about 75,000 jobs already gone or set to disappear from a work force that numbered about 375,000 a year ago.

Nov 26, 2008  
With the gov’t bailout of Citicorp, US bailouts now total almost 35% of GDP. First it was the banks. Then Fannie Mae and Freddie Mac followed by AIG, Citigroup and now possibly auto companies, the home builders and the legacy airlines. Increasingly, the American government is becoming Corporate America’s largest investor. The U.S. government now owns or operates 35% of the entire economy’s production or gross domestic product (GDP).

Dec 1, 2008   Announcement: US recession officially started in Dec 2007. The National Bureau of Economic Research declared, “The committee determined that the decline in economic activity in 2008 met the standard for a recession.” The 1.2 million drop in payroll employment so far this year was the biggest factor in determining that start of the contraction. [link]

Dec 17, 2008   A panicked Ben Bernanke cuts the Fed Funds Rate to zero, it’s lowest in history.
From Bloomberg: “The Federal Reserve opened a new era in U.S. monetary history, cutting interest rates to as low as zero and pledging to buy unlimited quantities of securities, after conventional policies failed to arrest what may be the worst recession since World War II.”

Dec 23, 2008   Median home sales price fell 13.2 percent — the largest amount on record — to $181,300, from $208,000 a year ago. Biggest drop since the Great Depession. [link]

Dec 30, 2008   Consumer confidence hits all-time low in Dec.
The Conference Board’s Consumer Confidence Index fell to 38 in December from a revised 44.7 in November. [link]
2009    

Jan 2, 2009   US manufacturing shrinks as orders hit 60-year low. [link] Things haven’t been this bad since 1948.Billionaire Warren Buffett’s Berkshire Hathaway slumped 32 percent last year, the worst performance in more than three decades. [link]

Jan 8, 2009   Bank of England cuts interest rate to lowest since 1694. Yes, that’s the lowest rate in 300+ years, since England’s central bank was founded. [link]

Jan 9, 2009   US: highest job losses for year since WWII.
Battered by the worst housing market collapse in the country’s history and by an ever-deeper credit crunch, the US economy shed 2.6m jobs in 2008, the largest decline since a 2.75m drop in 1945, when the dole queues were briefly swelled by servicemen being demobilised. [link]

Jan 16, 2009   RIP Circuit CityAfter filing for bankruptcy protection in Nov 2008, Circuit City throws in the towel today and announces it will liquidate all its remaining inventory and close its stores. 35,000 to lose jobs. [link]

Jan 19, 2009   Royal Bank of Scotland announced the biggest loss in British corporate history today. The news triggered fears the bank would be nationalised and caused a bloodbath in shares across the sector, overshadowing the Government’s latest financial bailout. [link]

Jan 21, 2009   Iceland sinks further into economic oblivion as violent protesters are gassed by police (1st time in 60 years). [link]

Jan 22, 2009   Toyota overtook General Motors in global vehicle sales for the first time, bringing to an end GM’s 77-year run as the world’s largest automaker. [link]

Jan 26, 2009   Bloody Monday: 71,400 job layoffs announced in US. Seven companies announce massive job cuts in a scary start to the week. [link]

Jan 27, 2009   US consumer confidence hits all-time low.
The Conference Board’s index of consumer confidence fell to 37.7, the lowest rating since records began in 1967. [link]

Jan 29, 2009   US unemployment checks set record.
The Labor Department reported that the number of Americans continuing to claim unemployment insurance for the week ending Jan. 17 was a seasonally adjusted 4.78 million, the highest on records dating back to 1967. [link]

Jan 30, 2009   The FDIC closes 3 more banks today, bringing the total to 31 since the start of the credit crisis. The failure of Utah’s MagnetBank was different: it became the first time in five years the FDIC was forced to directly refund depositors after being unable to find another institution willing to take over its operations. [link]

Feb 5, 2009   Credit Suisse posts largest annual loss ever.

Feb 13, 2009   Four U.S. Banks Seized, Bringing Total for Year to 13. Banks in Florida, Illinois, Nebraska and Oregon were shut by state regulators, boosting the toll of failed institutions to 13, as a worsening economy and slumping housing market pushes home foreclosures to records.


I want you to think about this, the government and bailouts, essentially began in March a year ago, with the $30 BILLION in taxpayer dollars given to JP Morgan to buy Bear Stearns.  There has been over $3 Trillion, thats three million millions in bailouts since then as well as injections of liquidity and other Federal Reserve loans, estimated to be in the neighborhhood of 8 TRILLION DOLLARS.  All the while the markets have worsened and showed no change in trajectory.  Government intervention will not save us and DOES NOT WORK. 

Look at this time line and remember, from the year 2000-2007 Peter Schiff and Ron Paul told us this was coming.  Gerald Celente, Max Keiser, Bob Chapman, also warned of this.  Those who listened were able to get their money out of the markets early enough to stave off tremendous loss of capital.  How come people still refuse to listen to those who were right and yet demand to listen to those who continue to be wrong?  History will prove my position. 

I am just glad they haven’t been able to take any of my money.  What a racket, what a scam!

Almost forgot.  Today the DOW closed at 7552.60.  Do you know where it closed on its absolutely worst day back in the dark days of the fall of 2008?  It closed at 7552.29 at its lowest in 2008. 

So you mean to tell me that in spite of the first stimulus, and the $700 billion dollars in TARP, the BILLIONs in fed loans, the dropping of the interest rate to 0%, the halting of foreclosures, the bailout of Auto companies, the millions of millions the Multi-Trillions of fake money PUMPED into the system, we are right where we were 4 months ago?  AND STILL DROPPING?  How can any person believe Baucus and these morons in Washington. 

Gold is the only safe place for your wealth.  Gold is once again, outperforming every single asset class and investment vehicle out there.

Thank you Citizen, that was incredible.  I copied it and e-mailed to everyone on my e-mail list.  It is time to stop this fiasco!  Again, if everyone in the US refused (everyone!) to pay taxes, it may help end this problem..it would be a start!

And Max Baucus tells us “... a depression is not even close”.
My goodness look outside the window the Depression is here! All the millions of unemloyed, the rate of inflation, the decrease standard of living- If those are not proof of a depression then i don’t know how to tie my shoes!

DOW:  7465.95

Lowest close since 2002.  Lower than the lowest of lows in November. 

All this after TRILLIONS of bailouts. 

Wow. 

Insanity:  Doing the same thing over and over and over againd, each time expecting a different result.

still falling.  7200 and dropping.  critical support is shattered.  DOW 5000 by May.