[Money-matters] FW: [Money Matters Newsletter] Happy New Year! Money Update. December 31, 2010
Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
bayareaprocess at att.net
Fri Dec 31 23:16:16 UTC 2010
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Subject: [Money Matters Newsletter] Happy New Year! Money Update. December
31, 2010
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Money Matters Newsletter: Happy New Year! Money Update. December 31, 2010
Happy New Year to all of you.
I hope everyone had a great holiday season.
This is the last update for 2010!
Notice:
The website is now updated with all the latest shows and newscasts and
portfolios. Go to www.moneymanagementradio.com for all access.
Marc's Notes:
I expect 2011 to be the year of realization. Investors learn the truth
behind government's massive money printing scheme and its ramifications on
the world's economy.
Shoots are sprouting everywhere but they are far from green.
In news items lie the canaries which will tell us where we go from here.
First let's tackle inflation. Spice prices, food prices and textile prices
are going thru the roof followed by skyrocketing oil prices pushing north of
90 buck/brl.
If you recall, 150 dollar oil set off the 2007 crisis and recession. Like I
said in 2007, the world could not take a 200 a barrel oil price shock and it
only took 150 buck oil to bring the whole enchilada down in a flaming cheese
melted mess. Now oil surges again and is on its way past 100, probably to
125 in the next year. This will again cause more inflation as all things
made use some oil somewhere. This rise in oil pushes our energy dividend
payers higher partially offsetting our grocery bills. Good !
Natural Gas will eventually follow and I bought some Strike Price 6 Nat Gas
2013 calls in my gambling account besides holding tons of it in GAZ, UNG and
UNL. My bet is uranium will also follow as all things energy move in packs
eventually.
Groceries are skyrocketing yet the government still tells us there is no
inflation. From Iowa corn to Chinese rice, look for continued higher prices
as all the bailout money and QE2 money filters into the markets. The
government can print and give away all the money it wants but cannot control
where it goes and right now it is flowing into commodities and foreign
countries as investors throw hot money at hot markets.
Inflation will rein in 2011 and stagflation (anemic economic growth) will
meld together to make for an ugly situation for all those unprepared.
Unfortunately the low income will suffer the most as they wont be able to
afford higher prices. The FEDs continue to throw the lower classes to the
wolves with low interest rates. These lower rates foster higher prices in
everything and entice those with no cash to borrow even more. These low
interest rates also benefit the banks with cheap money and make mortgage
resets affordable. With literally millions of mortgages resetting in the
next 3 years, these lower rates are the only way the FEDS can attempt to
stop the largest reason for default, being underwater on ones house
mortgage. (Owing more then the house is worth). This negative equity is the
biggest threat to a housing recovery. A new home loan program will forgive
mortgage balances all together and is coming but it wont stem the flood.
Already millions of homes sit with unpaying tenants and millions of homes
sit in limbo as the banks delay foreclosure. A bad situation all around
making a home recovery all but impossible.
Lower rates meanwhile hurt the elderly on fixed income and worse yet, is
fostering the biggest bubble of them all, the DEBT bubble. As forecast in
Money Matters Show #55 "The Biggest Bubble" January 2009, these low
interest rates caused the dotcom bubble and then the housing bubble. They
are causing a repeat of the commodities bubble and now blow the baddest one
yet.
DEBT.
Prepare for a bond implosion. We are already seeing it now in bonds
everywhere. Look for news on MUNI bonds, bankrupt cities and states and even
entire countries going belly up. The central banks will attempt to bail out
these as well, but it's just too much money. Hark my call from 2007 on, "It
won't be enough".
Foreign countries are trying to stop the waves of US DOLLARS sloshing around
everywhere with capital controls but the crests of dollars are just too big.
These trillions you have been hearing about are permeating markets
everywhere and the result will be higher prices world wide. Once these
trillions are everywhere, the drain will suck them out and the FEDS will
embark on QE3, then 4, then 5.
"It wont be enough".
Eventually the world will say "STOP" by refusing to buy our debt or hold
dollars. In fact they are doing it now as evident by the rising interest
rates despite the FEDS attempt to keep them down. Just look at RRPIX or TBT.
Google up the chart on these funds. From the low in late August when
Bernanke announced his QE2 to drive rates DOWN, rates have risen. Investors
aren't buying it. Bernanke is printing money to buy US Treasuries because
the demand for them is drying up. Without QE2, we would have seen a Treasury
Auction failure, or at least a rout. Now that rates are rising signaling
these Treasury failures, he is forced to print more, and at a faster rate.
Watch for more announcements that we need MORE STIMULUS. This will
temporarily halt the failure of sales but only for a day or 2. Then rates
will continue their ascent. A stock market fall will temporarily cause a
demand again for US Treasuries but only briefly. Then the inevitable will
manifest itself in higher rates, causing more money printing and so on and
so forth.
Something wicked this way comes.
Stay in US bank accounts FDIC insured but add TBT and RRPIX steadily to
offset dollar weakness. Foreign currencies verify our call as the Swiss
Franc, the Aussie dollar and the Canadian dollar are all setting record
highs with the Swiss Franc today at 106!
Those following my recommendation to hold FXF, FXC, FXA and Swiss Annuities
denominated in Francs are reaping profits hand over fist. You're also
getting interest to boot. And let's not forget gold and silver. Physical
metal is at all time highs and gold stocks are soaring. Our gold funds just
gave us a HUGE Christmas present as those holding our favorites USERX and
UNWPX got HUGE dividends last week! Check your statements! Many year end
payments are hitting your accounts now. Wow!
Good job to all those who followed the recommendations.
Other news:
Look for a new Money Matters Union article this Monday and a Money Matters
show kicks off this Thursday at noon, PST.
A Margarita Dinner is in the works. Dinner with me and consulting all in one
sitting.
Cost is minimal and I buy the meal. Email me. Spots are limited and I am
planning it soon so don't delay. Enjoy STRONG Margaritas and good food and
great advice.
Above all PREPARE your finances and you can do so with minimal cost by
meeting with me. Don't delay! I want to help and can only do so by talking
with you. One on one consults are also available and I can do these on the
phone for those living some distance away.
Money Matters was picked up by another station again so the word is
spreading.
Thank you for all your support, Now go have a great New Year!
All for now,
Its going to get interesting.
Marc
PS: For adding gold or silver, see my contacts at the end of this
newsletter.
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Where I buy some of my gold: What I call "Possession Gold".
Blanchard and Company, Inc.
P.O. Box 61740
New Orleans, La 70161-1740
Direct toll free number: (888) 727-7537
Rick Baugnon
I have probably purchased the most ounces of gold and silver from Blanchard.
Not only do they sell regular coins and bars, they are the only contact on
this e-letter that also can provide you with graded coins and collectible
coins. Although I usually recommend only standard coins, I do own
collectibles as they may help against a confiscation scenario and we need to
be prepared for everything. Please call Rick Baugnon and tell them you are a
Money Matters Listener and he will give you special consideration and he
knows my preferences. Use his direct line above. Rick and I have discussed
Money Matters needs and he knows what to provide.
Monex Deposit David Feldberg x 2216
4910 Birch St., Newport Beach Ca 92660
1 (800) 949 4653 (GOLD) ext 2216 You may refer to Marc Cuniberti and Money
Matters and David will know what Marc recommends.
Take delivery and store in a safe place. You may have 25 % of this amount in
silver and the remaining 75% in gold. I usually buy only generic 1 ounce
rounds or ounce bars, no collectibles. You may buy any 99 % pure gold or
silver assets but pay no more then a few percentage points over spot. Again,
buy NO Collectibles, No Margin account, No Commodity accounts. Take delivery
of standard coins only.
JH MINT
13241 Grass Valley Ave.
Grass Valley, Ca 95945 (530)273-8175
(Near the Grass Valley Airport off Loma Rica Road)
Tell the salesperson you are a Money Matters Listener and you will get
special discounts,(market conditions permitting). Normal Gold prices are
anywhere from 6 to 11% over New York Spot price. If you are selling, you
should get close to spot when you sell. Buy only standard, or popular gold
or silver coins. I do NOT prefer the generics but would rather have you buy
Silver Eagles or bars. When buying silver, the mark up will be a bit higher
than gold. JH Mint posts prices on its board over the sales counter so you
can see spot at any time. I have dealt with JH MINT myself and found them to
be easy to work with. You can pay in cash and you will remain anonymous.
I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas
Generic Rounds. Peace Dollars or Morgans. You may also use my web contact:
Follow Marc and Money Matters on Facebook
<http://www.facebook.com/topic.php?uid=225256048565&topic=11908#/pages/Money
-Matters/225256048565> .
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