[Money-matters] FW: [Money Matters Newsletter] Congress Spends a Penny Less. Silver, Oil and Foreign Currencies Skyrocketing. Update April 9, 2011
Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
bayareaprocess at att.net
Sun Apr 10 22:37:52 UTC 2011
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From: Money Management Radio [mailto:marc at moneymanagementradio.com]
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Subject: [Money Matters Newsletter] Congress Spends a Penny Less. Silver,
Oil and Foreign Currencies Skyrocketing. Update April 9, 2011
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Money Matters Newsletter: Congress Spends a Penny Less. Silver, Oil and
Foreign Currencies Skyrocketing. Update April 9, 2011
Marc's notes:
The Congress settled up on the new spending limit with an agreed upon 37.8
billion in cuts. With a 230 billion dollar deficit just last month alone,
and an estimated 1.6 trillion in deficits projected for 2011 (up from the
original 1.3 trillion estimate) you have to wonder what these guys think a
measly 2 % reduction is going to do to solve anything.
Oh, I got it, we will only over spend by 1.562 trillion. That will make it
better.
This ought to show you they will NEVER stop spending until they are forced
to.
We need a 2 TRILLION dollar reduction and that will barely pay off last
years deficit, let alone the 14 or so trillion we have amassed so far. And
that DOESN'T count what we have PROMISED to pay which brings the amount up
to over 100 TRIIILLLLLLLIIIOON!
Can we still have hope?
You look at the above numbers and tell me. I hate to admit it but the
numbers look so bad it's beyond ridiculous. I will tell you once again, with
the latest example of how much these guys are willing to cut (2 %!) we can
surmise they will never get the budget under control until they are forced
to.
When that moment arrives, the severity of the penalty will be almost
incomprehensible. Much like a household that runs up 20 million on credit
cards, it's just impossible to see a way out. Remember, a household can file
bankruptcy. A government cant. That is called a default and if the US
defaults, the world will change as you know it.
We approach the moment of rock meeting hard place and the US economy will
get crushed between them.
Rising interest rates will hit with massive inflation. We already have bad
inflation as you and I know. The FEDS say there is no inflation but everyone
else knows darn well its bad and getting worse. I routinely see 4 buck gas
all over town.
The last time we saw this the economy tanked. Interestingly enough, oil was
more expensive at 150/ barrel 2 years back and gas was under 4 bucks. Now
oil is 115/ barrel ( a full 24 % LOWER) but gas is HIGHER!
With oil soaring, remember high oil prices show up months later in prices of
everything. So the inflation we see now reflects oil prices 6 months ago.
The oil price we see now will show up in price 3 to 6 months from now in
almost everything we buy.
Soon US creditors will buy less and less of our IOU's as they are scaling
down now and have been for the last 2 years. They know the US cannot
possibly pay all this back.
So up steps the Federal Reserve to buy US debt. (Yep, that's how it works).
The Federal Reserve will be the buyer of US debt in greater and greater
amounts. They buy about 30% of it now and we can expect that figure to
increase. This is template for the "Banana Republic Economic Playbook"
coming to an economy near you.
As indicated in this newsletter in 2009, inflation cometh and cometh it did.
Now I expect MORE inflation along with rising interest rates. If the stock
market tanks, the Feds will buy even more US debt causing MORE inflation in
everything including stocks. The rising stock market will give the
appearance of a healing economy but it is anything but. Remember the
Zimbabwe stock market rose hundreds of thousands of percent caused by their
attempt to do what we are now doing but their economy ended up in shambles.
Look for even higher inflation, followed by talk about the Federal Reserve
pulling back, followed by a stock market fall followed by a new round of
money printing.
Either that or the Fed wont pull back at all and the stock market will rise
in response to another "announcement' of quantitative easing (QE3) which
will stoke inflation even more.
Yikes, it's getting uglier by the minute. Americans are being squeezed by
higher and higher prices while wages are now equivalent to wages in 1963
(inflation adjusted).
Lower wages- higher prices equals more poor.
Meanwhile the easy money from the FEDS go to the bank cartel where they play
with our tax money in the stock market, causing even more prices to rise in
everything you and I buy.
Did I say inflation? Oh yeah. I did. But I didn't have to! You already
know that!
Holdings:
All the same from the last newsletter. Some additional notes below.
Energy is skyrocketing, Conoco Phillips, Enerplus and Canadian Oil Sands
(mentioned in last 2 newsletters) and the other dividend players plow
higher.
The foreign currencies we hold are rocketing higher with both the Aussie
dollar, the Canadian Dollar and the Swiss Franc well over par with the US
Dollar. All close to all time highs and going higher.
Silver is going to the moon and I expect a pull back eventually but right
now it's on a supercharged blitz reaching almost 40 bucks an ounce. Wow!
When I started this show it was under 10 and gold was 350. Gold is now close
to 1500/ounce.
Swiss annuities are rising nicely with the franc. ADD before the window
closes (Send for a free info book here).
<http://moneymanagementradio.com/swiss_annuity>
http://moneymanagementradio.com/swiss_annuity
Gamblers plays:
Hold all from last newsletter.
Nat gas pulling back but looks better then the last year!
The short Yen play paid off well. SELL.
The Short Euro play is down- HOLD or ADD.
Interest rate funds are oscillating for now but our short term TBT play went
profitable so I sold my position and am looking for another play. I may add
to the short EURO play as that is eventually going to fall as they implode
over that there ocean.
The short term gold stock plays are doing well but HL is still lagging. SVM
and EGO ran nicely so put stops in to protect profits.
USO (oil) going ballistic as well. You should have taken profits or are
riding up with stops. PROTECT PROFITS at all costs. HOLD with stops or SELL.
Rare earth elements are going higher as they are . well.. RARE! They are
scarce elements but needed in almost everything we buy. China is gobbling up
supply while America is not securing its future as aggressively. Another
example of the US asleep at the switch. Not so dumb are the Chinese. Spend
their US dollars while they still can and buy the stuff which is hard to
come by and will get harder to come by in the future! I am looking to add a
few small stocks to participate in this rise. They are SHZ and REMX. (This
REMX is actually a fund that holds many rare earth assets). These are not
recommendations for you. I am adding these for long term holds of value.
These stocks have risen a lot already so they could see a pull back. They
also don't pay a dividend.
I will be adding these in small amounts over time for myself and others.
Gamblers only should even consider these. All others should stick with the
plan.
See Dream Portfolio for the "Plan". (Link below).
<http://moneymanagementradio.com/cart/dream_portfolio>
http://moneymanagementradio.com/cart/dream_portfolio
I am all done with the consults from the KVMR pledge drive. If you want to
meet with me, sign up on this site under "Lunch with Marc". (Link below).
http://moneymanagementradio.com/cart/consulting
The NO RISK EVERBANK CD is now available thru MAY so you must get in before
May or miss it. I am buying one for my family. The time is running out to
buy this CD so act now if you want to buy it.
I have received many questions about the EVERBANK Market Safe Cd so here is
the information again.
This CD is the one I have been talking about for NO RISK money, You cannot
lose any money as it is FDIC insured.
You have to leave the money in for 5 years with no chance of getting it and
they pay us no interest. We own this Cd for inflation protection as it
tracks 10 different commodities. If these commodities rise, we get a portion
of the increase. If the commodities drop, we don't lose any money but just
get our original funds back. The CD is capped at 10% a year so our maximum
gain would be 50 % on our money. Its more likely we will earn something less
then 50 %. I love this Cd for my family and people looking for a chance to
protect against inflation with no downside risk. I think its as WIN, WIN
scenario for my investing money as where else can we get FDIC US
Government Protection yet have the possibility to earn WAY MORE THEN an FDIC
insured savings account, Treasury or Bond? Bottom line is I love this CD and
will be buying one for my family.
If you are interested, EVERBANK has extended the buy in date on the new Cd
until May! Here is the link if you are interested. Click on it for the
application.
<https://www.everbank.com/personal/marketsafe-cd.aspx?referid=13286>
https://www.everbank.com/personal/marketsafe-cd.aspx?referid=13286
Everbank also offers gold accounts for IRAs and non IRAS. You hold gold thru
them. Here is a link below. I find this as another alternative to buying the
gold stocks and funds.
I am considering this for my family and will probably open up a silver
account and maybe even a gold account. I can hold gold in my IRA with an
allocated account and hold metal in a non IRA thru the unallocated account.
Hold, buy or sell designated bars and coins. Get your choice of allocated
and unallocated storage options. You can take Physical delivery option if
you like later on as an option.
https://www.everbank.com/personal/precious-metals.aspx?referid=13286
Wanna go for a mindblowing experience with me?
Take a ride in the backseat of a jet with a Blue Angel or Thunderbird Pilot
with me this summer? You will never forget it. See this link to see the type
of ride you will take. http://www.patriotsjetteam.com/
Click on the left menu under VIDEO GALLERY then choose from one of 6 videos.
Its costs some do re me but if you can afford it, you will be glad you did.
Its a lot cheaper then going to Russia to do it and this is the only place
in the US you can! You get to pilot the jet and ride with the best. Do flips
and rolls and 5 g turns. Serious inquiries only please. We can take up to 4
people as of today, one in each jet. Cost is under 3 grand and may be tax
deductible!
Want to give someone access to this newsletter? Forward them this link to
subscribe.
It's quick, easy, and free!
http://moneymanagementradio.com/user/3/edit/newsletter
The website will be updated with all the new shows and newscasts and
portfolios this week. A new FREE SHOW will be the TEA PARTY PATRIOT
interview show.
I will let you know when the site updates.
Need to buy some gold to hold? See the end of this newsletter for contacts.
Don't hold it at home but in a safe box at the bank. Its safer that way.
That's what I do!
That's all for now,
Marc
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Where I buy some of my gold and silver: 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.
I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas
Generic Rounds. Peace Dollars or Morgans.
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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