[Money-matters] FW: [Money Matters Newsletter] Money Matters Update September 22, 2012

Marc Cuniberti bayareaprocess at att.net
Sat Sep 22 20:17:01 UTC 2012


 

 

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From: Money Management Radio [mailto:news at moneymanagementradio.com] 
Sent: Saturday, September 22, 2012 1:14 PM
To: cli perf
Subject: [Money Matters Newsletter] Money Matters Update September 22, 2012

 


 
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Money Matters Update September 22, 2012


Marc's Notes:

2 weeks into QE 3 or so and where do we find ourselves?
The market is higher and so are commodities and gold. Nothing new here. QE
of course is a fancy term for printing money and this is the 3rd round. Many
more "QE" is happening under the table and the amounts are beyond
comprehension.

We are moving into the twilight zone of confetti money and we have seen this
type of thing before, just not on such a grand scale.

Brazil tried this, as did post World War 1 Germany, France, Argentina,
Mexico, Peru, Rome and a hundred other civilizations and governments and not
one succeeded, or at least for long.

Its simple really, spend too much and the only way to pay for it is to print
paper bills.

Not really a solution for if printing paper bills could pay the bills, why
hasn't it ever worked?

Never mind that fact says Ben and the geniuses in Washington. "We have it
figured out this time" they say.

Uh huh.

We are not the first ones to think that. So did all the others. Until they
got in so deep, the only way out was to continue with the policy until
everything blew up in their faces, then most just changed the color of the
paper, knocked off some zeros, and began again. That usually ended with a
complete implosion and recovery didn't occur until the public demanded sound
money and a halt to the printing presses. French citizens actually burned
the plates the money was printed on to insure no more paper would be
printed. (Money Matters Show #16).

Ben Bernanke must have seen something in the stats that scared the "you know
what" out of him to initiate this massive program in the face of a stock
market that was almost at a new high. The last 2 programs were done during
plunging markets.

The reasons for QE3 is many fold:

He believes printing money will create wealth. Not that paper can do that
but he believes such nonsense. He also knows that his previous QE programs
didn't work, or he wouldn't have had to initiate another obviously. He
apparently thinks 3 or 4 trillion wasn't enough, despite the fact he
repeatedly said each round would solve things. Money Matters on the other
hand said this: "It wont be enough".

Any of you old Money fans remember that? You should, I repeated it for over
3 years.

Well now we find out Ben agrees with me kind of. QE1 and 2 wasn't enough,
and now he really opens the spigot and tells us he will never quit until it
is enough! (Or until the world tells him so).

That will happen when eggs go to 10 bucks and Starbucks to 8. Bacon is
already at 8 bucks a pack and I expect milk to soon be 5 bucks for half a
gallon.

Gas meanwhile can't be massaged for long so that's pushing 5 bucks.
Washington of course will eventually release another round of strategic
stockpiles to drive prices down. Only about the 4th time or so that's been
done. Obama did it a few years back when oil hit $150/ barrel or so.  Never
mind the fact the stockpiled gas is for emergencies like WAR or severe
drought. And give no mind to the fact that you have to eventually replace
that gasoline and will have to do so at much HIGHER prices! Talk about
eating your seed corn.

Consuming like a flesh eating virus, the US economy is eating everything in
its path and paying for it with debt. The simple truth is ALL OF THIS WILL
HAVE TO BE PAID BACK and you can lose your lunch. The other famous Money
Matters cry of "you aint seen nuthin' yet" comes to mind.

The other reasons for QE3 is the Feds have to buy US Treasuries as world
investors are saying enough! They also have to take that toxic mortgage off
the banks hands. It's still rotten and the banks are still suffering. The
banks control the Feds (they own the Federal Reserve) so it's not such a
stretch to see why this is happening.

Back on the farm the Euro problems are still with us but the central bank
over there has also said they will print UNLIMITED quantities of money until
it "is enough" but it will never be. Paper does not equal wealth and it
never will. Sorry to break the news to you folks, but it really is true you
can't get something for nothing.

If you could, all of us would have a whole lot of something. Instead we
can't find jobs, food and gas prices are soaring and starting in 2013, all
of you will pay HIGHER taxes to boot.

Ouch.

So the Euro Central Bank will also add "unlimited paper" to an already
paper/ debt soaked world and world wide inflation is baked well into the
proverbial cake. Many will starve because of these policies. Watch for food
riots in 3rd world countries soon.

For us though, no worries mates. Free markets rise to the top even in
manipulated ones and "she" has the solutions.

Inflation cometh and interest rates WILL RISE but protection is fairly easy.

Just follow the same old Money Matters Portfolios, skew them to your
particular situation and you should be fine.  

Fine unless they confiscate your IRA, which is a remote possibility I
suppose but we will cover that another day.

They talked about it in 2008 and Argentina did it a few years back so they
know how it's done.

For now, gold is first and foremost, as well as silver, foreign currencies
and moving money offshore. All are easy to do so hop to it. That's why we
are here; to help you do the things you need to do. Email me if you need to
skew!

The stock markets should be off and running for a while so dividend payers
are in play. Check out the Nuveen Multi Currency Fund! It pays 9.4 % last
time I looked and appears very stable. I will be adding this and more to the
new Dividend Payers List soon.

Our "beaten up" stocks on Twitter were EDU, SLW, MCP, PBI, GGN, and all are
way up. I am adding a new "all beat up" stock called Skyworks. (SWKS). I
added call options on it on Friday. Always investigate before investing and
don't use money you can't afford to lose.

We have a Money Class (Class one) this Friday at 11:00 am at Alta Sierra
Larry and Lena's Pizza off highway 49 at the Alta Sierra Exit. You can see
it from the highway. I will bring the checks I already have to check you in.
Some are paid thru KVMR already. You can also just show up with a check
book. The cost is $199.00/ person and we will feed you salad or pizza with
drink.

That's about all for now; I have included another article for your
enjoyment. Also if you like the UNION articles, please tell them so, Email
the editor there. Here is the link.

brianh at theunion.com

Keep the faith and spread the word!
Marc

 

Truth in Numbers (Penned before QE3 was announced)

The employment picture hasn't improved much with the economy adding only
96.000 jobs and unemployment remaining above 8 %   for the month of August.

The major news media (being controlled by Corporate America) and Wall
Street, jumped at the chance to suggest this anemic jobs number will force
Bernanke's hand at the Federal Reserve and initiate yet another round of
monetary stimulus.

The Republicans jumped on the number as well with House of Representatives
Speaker John Boehner, the top Republican in Congress, saying "This report
underscores President Obama's failed promises to get our economy moving
again. Wages are stagnant, gas prices and health care costs are up, our
national debt has surpassed $16 trillion, and millions of Americans remain
out of work or underemployed."

Boehner has it right but it isn't all Obama's fault. Most of the economic
problems we see today were brought upon us by an out of control Federal
Reserve trashing our once great American dollar.

The Federal Reserve has one trick and one trick only.  Borrow money and then
print some more and then throw it into the banking system.  They've
performed that circus act with incredible hubris printing up over 5 trillion
dollars and hurling into the board rooms of the mega banks. They in turn
throw that money into the stock market, evident by the new highs on the Dow
Jones averages in the face of incredibly bleak economic statistics
worldwide.

The greasy facts are that Wall Street and the banking oligarchs need federal
money to continue to pay themselves obscene profits and juice the markets
they play in and anything short of full employment gives them the excuse to
scream for more free funds.

The public doesn't seem to mind too much as we don't have much of a voice
anymore and the Feds are going to do whatever it is their banking masters
require anyway.

With the November elections rolling around, Obama needs better employment
numbers to help stay elected. Couple that with the banks needing new cash
infusions and a dirty handshake deal is soon to be made in the ivory halls
of Washington with the top employees of the Federal Reserve, mainly Ben
Bernanke. (UPDATE- THE DEAL WAS DONE AND IT WAS QE3)

Disgustingly, America's once free markets have become the play thing of Wall
Street and Washington with the rest of us being the board pieces. Very
little remains of free markets, neither in our stock or credit markets. Even
private industry has glommed on to a joystick and now move the pieces around
in their favor. (Think GM bailout to name one of many).

Joe Sixpack meanwhile believes what he reads and does as he's told and
parrots their masters mantra: "Capitalism must go" for the good of the
people. Reiterating calls reminiscent of Stalin's Russia and Mao's China,
private property must be gleaned and wealth "redistributed" in the name of
fairness.

Never mind the fact that there has never been a successful socialistic
empire to survive more then a few decades, and those decades prove to be
miserable and uninventive where private enterprise ceases to create and the
citizens suffer from poverty and scarcity of goods. The only one profiting
are the ruling elite and their crony friends.

The masses are always fooled into relinquishing their freedom under the lies
told to them by their masters and idols. Always for the "good of the people"
are basic rights first encumbered then taken outright.

Josph Goebbels and Adolf Hitler, monsters wearing human skin, did have some
astute observations regarding politics and persuasion of the masses. Compare
there beliefs in what you see and hear around you today:

"Think of the press as a great keyboard on which the government can
play."Joseph Goebbels (Think Washington controlling the few corporations who
control all our media).

 

"Education is dangerous - Every educated person is a future enemy"-----
Hermann Goering <http://www.whale.to/b/goering_h.html> . (Think of the
"dumbing down of America" through outright lies, the subversion of truth and
our mindless media entertainment).

"The most brilliant propagandist technique will yield no success unless one
fundamental principle is borne in mind constantly - it must confine itself
to a few points and repeat them over and over." Josph Goebbels (Think the
repeated calls for "tax the rich, pay their fair share, tax big
corporations, we need more regulation").
 

"Through clever and constant application of propaganda, people can be made
to see paradise as hell, and also the other way round, to consider the most
wretched sort of life as paradise"  Adolf Hitler. (Think our great free
society moving closer to Socialism and the people actually requesting it).

"Make the lie big, make it simple, keep saying it, and eventually they will
believe it". Adolf Hitler (Think of the lie "Capitalism doesn't work").
"The lie can be maintained only for such time as the State can shield the
people from the political, economic and/or military consequences of the lie.
It thus becomes vitally important for the State to use all of its powers to
repress dissent, for the truth is the mortal enemy of the lie, and thus by
extension, the truth becomes the greatest enemy of the State." Josph
Goebbels. (Think search without warrant, wire taps, the TSA, the terrorist
act, seizure with cause, confinement without trial, murder by decree,
Presidential executive orders, the IRS and the fear and power they wield and
the continual erosion of the basic rights allowed in the Constitution).

All of these things bear the resemblance of a society in decline and
becoming ever riper for take over, and it all starts with the money supply.
A nation's wealth must first be transferred to the oligarchs by stealth at
first, then by outright theft. The stealth part is taking place as we speak.

Look for Sir Ben to announce another program soon under the guise of helping
the system and spurring a recovery, a recovery you will never see. UPDATE-
WE WERE RIGHT ! HE DID AND IT WAS A WHOPPER!)

What will materialize is you, your friends and family will get ever poorer
by the destruction of your wealth by the continual inflation caused by these
actions. That you don't understand it or believe it is the way it is
SUPPOSED to work.

Remember: "All propaganda has to be popular and has to accommodate itself to
the comprehension of the least intelligent of those whom it seeks to reach".
Adolf Hitler.

 

This article expresses the opinions of Marc Cuniberti. Mr. Cuniberti hosts
"Money Matters" on KVMR FM 89.5 and 105.1 FM on Thursdays at noon. He has
been featured on NBC and ABC television and on a host of made for TV
documentaries for his economic insights. His website is
www.moneymanagementradio.com <http://www.moneymanagementradio.com/> 

 

 

 

 

 

 

 

 

 

 

 

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