[Money-matters] FW: [Money Matters Newsletter] Euro problems persist. Markets in denial. Protect yourself. Money Update 11 8 2011
Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
bayareaprocess at att.net
Tue Nov 8 21:38:00 UTC 2011
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Subject: [Money Matters Newsletter] Euro problems persist. Markets in
denial. Protect yourself. Money Update 11 8 2011
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Euro problems persist. Markets in denial. Protect yourself. Money Update 11
8 2011
Marc's Notes:
Welcome new readers and old subscribers alike. We raised over $107,000.00 at
KVMR to keep us on the air everywhere! We now cover Tahoe and Truckee and
will soon be boosting coverage there if all things go as planned.
Those that pledged on Money Matters will be contacted soon for your classes,
consults, shows and portfolios. Thanks so much again.
Turkey Matters is ending now. Here is your last chance to cost me so do re
mi. Send in your checks to the Interfaith Food Ministry or NC Food Bank and
I will match your check. Drop your check at KVMR, 401 Spring St, Nevada City
with my name on it.
Bless you all and thanks again for helping feed the hungry.
The markets don't look any better nor worse since our last update although
with the Euro region in full melt down, you have to chalk our market
meanderance to complacency and denial.
Bond prices in Greece are dropping like stones and Italy is now on the block
for slaughter. Italy is MUCH bigger. Consider Spain is also in dire
straights and you have a recipe for a full blown banking crisis which will
rival if not exceed the 07-08 meltdown.
Governments bailed out banks. Now governments are in need of bailing. The
only way out is the usual way out. Print more money. But creating money, you
create nothing of value. Its just digits on a page. There is nothing we can
eat, consume or otherwise use when you create dollars. Dollars are only
receipts and you can make all the receipts you want but if there is nothing
backing those receipts in the form of tangible goods, you have done nothing
but created electronic digits.
That governments think they create value by creating digits on a page is
ludicrous. The only thing they create is more debt and inflation. We see
both. Inflation drives people down class notches. The wealthy can protect
themselves and can afford rising prices but the poor can barely make ends
meet and any inflation, even a small amount crushes them. With little or no
way to protect themselves, they slip farther down the income ladder. It's
why we see out just today the wealth difference between those older and our
younger citizens is the widest in history.
Inflation is creeping ever higher yet the FEDS keep interest rates in the
dirt saying we need to borrow more, (From THEM by the way).
Look for another bailout of gargantuan proportions to the Euro countries so
the banks holding their debt don't suffer losses.
Just out, Fannie Mae and Freddie Mac need billions more yet bonuses to their
CEO's are again in the millions. Forced to make home loans at ridiculously
low rates on houses that are going down in value, these government supported
(your tax dollars) entities lose money every day they operate. They will
continue to do so as housing plummets even further.
The new loan program announced won't help more then a few thousand and will
fail like the half dozen programs before it. They will try again in a few
months with another program.
One after another until they drive us all into debt hell.
The jobs bill garners billions more and our deficit skyrockets. The "Super
Committee" responsible for trimming a trillion or so from the budget has a
deadline of November end.
Look for more squabbling with a shrouded result claiming billions in savings
that will not materialize. Count on a trillion dollar plus deficit in 2011,
2012,2013 and beyond. Watch for another budget ceiling increase in late 2012
or early 2013, years before they said we would need it.
Add another couple hundred billion for a bullet train fiasco, more jobs
bills, more bank bailouts (ongoing as we speak) and billions more to the IMF
to bail out those Euro countries you keep hearing about and we see debt
amassing at breathtaking speed. Meanwhile unemployment will stay stubbornly
high and inflation will keep rising relentlessly.
Holdings:
As always, cash in savings accounts, I Bonds (pay over 3 % at
Treasurydirect.gov), Credit Unions insured by the US Government and short
term treasuries. Keep most of your money in these until further notice.
Add gold and silver always.
Add Swiss Annuities for offshore option. (Email me for a booklet).
Look at Everbanks gold and silver holding programs. (Link
here).https://www.everbank.com/personal/precious-metals.aspx?referid=13286
Collect income from a small amount of dividend payers. See Super Dividend
Payers List on the website.
Use gold and silver stocks for leverage.
Consider hard currency funds like the Merk Hard Currency Funds for further
diversification.
The storm is gathering again. They will try and delay it. They will succeed
for a while but when it hits, it will be like no other. Prepare through
education and proper placement of your assets. Eliminate debt.
All for now,
Marc
Chart of Fed Reserve Balance Sheet.
Debt they now hold. I would say they have increased their debt a tad eh?
Notice it is still GROWING.
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