Today GM … tomorrow America: Will we survive?

No question it is sad. But take the emotional away and GM should not have been offered government money, nor accepted when offered. I believe GM was run with great incompetence. As you stated debt killed it. Where is all the cash from the haydays? Not only the debt but they are burdened down by the unions.

GM should have filed bankruptcy 9 months ago. That would have been the proper capitalistic approach.

Us farmers are so happy with the inflation that we can’t stop giggling, everyday we see the grain pices go up. It’s one big party and it’s about time fiscal irresponsibility kicked in, haven’t seen times so good since 1973 during the great russian grain robbery!

Crop rotation then was, corn, soybeans, florida! Now it is corn, soybeans, mexico!

HL seems to be having a lot of attention lately and I wanted to know your thoughts. With Gold and Silver seemingly going up and up, this seems like a good play. Cramer doesn’t seem to think so though?

Just curious….

vp

The answer is … we don’t know the answer! People like me who don’t spend all their time studying the markets are relying on people like you (who do!) to shed light on what we are seeing. The key question right now for me is ‘what is driving everything up right now?’ If I can identify these drivers (which are a mystery to me), then I might have better insight into the future. Thanks a lot!

Martin: The financial situation is truly bad in many sectors (Financial Services, Airlines, Retailing, Insurance, Government, etc etc). But what is the real issue is truly poor management, terrible decision-making, high risk investments, incredible egos combined with magnificent personal payouts to those who took risk with the assets and the people, to benefit themselves. Your continued negative prognostications may be correct; but you might think about what drives markets, stocks, and also commodities. It is pure need and also (perceived present or future) VALUE. Responsible advisors, such as yourselves, would be better for America and the world to advise of POSITIVE investments and also POSITIVE ACTIONS for managers and investors.

Regarding the 3 ways to buy short-term U.S. Treasuries (3 mos. or less), which are: directly from the Treasury, a U.S. Treasury-only Money Market Fund, or an ETF, I wondered which is the best vehicle for parking new money when the price of Treasuries is going down and interest rates are rising? Do you risk losing principle in this environment?

Of course America will not fail, we will just be put into a downward bear market spiral that will last a decade or so, but I think we will come out of this a better country. almost 15 years ago when I was in college (studying political science) we always talked about how the world hegemony would change from the US to China in 20 years. And it would not take a world war or nuclear catastrophe to see this transistion through. Even in the field of political science it was always economics that would drive us down to a point where we would end up making drastic changes to our lifestyle to survive. We are already seeing signs that the Asian markets will likely come out of this thing long before we do, and will probably not pull us out with them. Instead we will end up depending on what it is we do.

Without being said the money being spent on R&D right now in this country is staggering, almost 20 billion just for smart grid developments. Although it is a mountain of debt the investment will likely yield dividends in the future. As we will likely be the country that takes technoligies like this to the next level. We will have to in order to survive. And that is the real strength of America, we will do what is neccessary to eventually survive. The problem is how much money are we going to waste refocussing, because no one likes to see others suffer, so how bad will it get, probably pretty bad unless you are smart, pay attention to whats going on and of course be flexible, it is indeed the dawn of a new world.

Suggestions for investments for short-term (6-7 months) might be GOLD,. SILVER, commodities that are consumable (food, water, etc) and also cement. Why cement ? OPbama and the Chinese Administrators have collectively allocated over US$1.5 trillion in INFRASTRUCTURE projects that mostly have cement in common. The market on cement and (possibly US Made steel) could be much higher later this year. Second, after a modest correction of less than 20-25%, the price of oil will (again) doom past US$100 a barrel in the next few years, therefore driving up the prices of oil, gasoline, and plastic products. Again, here is a possibility for a longer term (2-3 years) hedge against inflation and also a gain !

Martin - Are you taking into account the tremendous amount of “money” that the Treasury Dept. and Fed Reserve is injecting into the economy? By all rights, the stock market should have continued going down on March 9th, but “mysteriously” began it’s shocking and unsupported move upwards. There are folks saying that the government, in collusion with some of the banks and investment houses, is manipulating the markets for bank reliquification and to give the impression of recovery. Given that I have no idea what is going on “behind the curtain”, I am absolutely mystified about what to invest in, but have a number of short ETF positions in which I am being clobbered.

Dear Mr. Weiss, I’ve enjoyed your comments as well as those of your staff and have greatly increased my wisdom as a result. Presently, I am retired and depend on investments-but not Social Security yet for my income. I am a resident of Florida and I own two homes-one in Nebraska, and one in Naples, Florida. Both are debt free. In the current economic environment, would you recommend selling both homes (to cut the costs of maintaining two homes) and moving into one house in Florida, or would you recommend waiting until the economy improves before moving into one larger home? Do you see the residential housing market weakening considerably from what it is now-particularly in Florida? Keep up the outstanding work-all of you! Sincerely, Douglas

I am based in the UK, and tensions in the Euro Zone are mounting. Covert protectionism is rampant (particularly in the aftermath of the GM debacle) with Germany for example saving German car plants at the expense of Belgium. You have already recommended an inverse ETF in the US financial sector - but doesn’t the European sector have farther to fall?

For the last couple of decades GM has designed and manufactured extremely terrible vehicles that were inferior to Toyota, Honda, Nissan, etc. Management learned nothing from the auto industry crisis in the 1970’s/early 1980’s. By sinking so deep in debt in making dreadful trucks/suvs/cars, GM deserves to be bankrupt.

Yes, America will survive, but it will take a lot pain and suffering for the American people before surviving.

Rising interest rates and money printing (or inflation) will reduce our buying power. So I am positioned already for this 2 things going forward.

Profit opprtunities:

1. Bear mkt funds already in place but would like to incorporate (especially Weiss Bear Strategy) still waiting for the program to be in our platform (hopefully very soon)
2. Inverse ETF on troubled asset class.
3. Precious Metals, Energy, Agriculture

Thank You and Good Luck to everyone………….

Martin,
Thank’s so much for your letter’s. As for your question; “Will America survive?” I feel that we are heading towards another big bubble crash in the commercial real estate sector with all the recent clousures & bankruptcy’s of fairly large businesses like GM, Chrysler, General Growth, Levit’s Furniture, Wick’s Furniture, Basett Furniture, Circuit City, Linen & Things, CompUSA, Joe’s, Mervyn’s, etc, etc. I just don’t see where in the near future there will be enough new business starts to fill all these empty stores along with so many smaller empty spots in the Mall’s in my area of Portland, Oregon. Now looking at this and the other place’s that have been hit even harder like Detroit I feel when this finally hit’s home we are in for a real rough ride making the housing crash look small in comparison. I hope I’m wrong and all this Goverment Stimulus will turn it back around, but I’m not to encouraged so far.
Thank’s Again,
Mark Clark

It’s terrifying to me that “government” is going to “run” some of this country’s largest businesses, when “government” cannot run “government” with any responsibility and efficiency. To the naysayers, it’s not Bush’s fault or Obama’s (soon to be) fault…the blame goes to Congress…the ONLY answer is to vote against EVERY incumbent (we can’t get any worse) and, as Donald Trump would say…”you’re fired!”

America will survive, but our kids and grandkids will be paying for all this…we’re spending stimules money to reward the crooks…maybe we all should become crooks!

What about Gold? I have dropped totally out of the market except for GLD. Today, in the mail, I received an unsolicited report from a guy named Nick Guarino who states that Gold is about to crash! What say you?

Martin, Larry and co.,
My concern is that Uncle sam will be in bankruptcy. What court handles that? What becomes of all those who earned retirement in gov service et al? And US obligations worldwide? Truckloads of dollar bills to buy a loaf of bread
ala 1923 in Germany? And end game? Options, futures, inverse funds? Who pays for the gains expected?
- A curious 80 something old…
We might own a print shop ourselves.

I am based in Canada and a subscriber of the MCP of Martin and Claus

Vogt. I bought the recommended US stocks in Canadian dollar but because

the US$ is depreciating compared to Cdn$ my portfolio is getting more

negative results because of the exchange rate. I sold my Kinross Gold

and El Dorado US stocks and bought it here at the Toronto Stock Exchange

(TSX). Is this the right thing to do? Do you have other better alternatives? Thanks.

With interest rates at historic lows, money is piling into the world’s bourses at the moment, as usual looking for the best return available.

But that money cannot be in two places at once, and as the stock markets look an increasingly attractive place to be, government bonds, paying ridiculously low yields given the risk of sovereign defaults, look increasingly forlorn.

The truth is that all that has happened is that the debt burden has moved up the food chain from insolvent home owners, via insolvent banks, and has come to rest with insolvent governments. But the debt is still there, and will somehow or other have to be financed.

As the song goes: “who will buy my sweet red roses, who will buy my sweet junk gilts” Not enough people methinks, and certainly not enough Chinese people. If government’ are to sell their bonds then they are going to have to offer very much higher rates of interest with the destructive knock on effect to the wider economy.

Inevitably, with the huge injection of liquidity that governments have pumped into the system, there had to be a reaction somewhere. It turns out that it manifested itself in a stock market rally, and before long, no doubt, in a commodity boom. But the fundamentals have not really changed. It seems to me that the financial system is rather like a company which is teetering on the edge that has miraculously found a new investor to pump fresh money in. For a while, to the outside observer, things look better. The chairman has ordered himself a new car, suppliers have to wait less time for their money, and the broken neon sign on top of the company headquarters has been fixed. But the company’s business operations which brought it to its parlous state, are not fixed, and when the cash injection runs out, normal chaos is resumed, only this time not only is the company bust, but so too is the benevolent investor.

The banks have not fixed their business. The toxic assets that nobody wants are still out there, unrealistically valued. The huge infusions of cash that they have received inevitably give the semblance of new found prosperity, but the huge credit bubble that fuelled their enormous profits will not return for a generation. Even if they had the funds available to lend, who is going to want to borrow at the previous level. In the same way that our parents and grand parents had a total aversion to debt developed as a result of the 1930’s catastrophe, so too will our generation follow. The credit card junky will become a piece of history, and the consumer boom fuelled by the borrowing habit will not return for a very long time.

What are the prospects or probability that the Up-Tic rules will be restored so as to have protection against volatility caused inability of brokers to honor stop loss and limit Forex orders?

I agree with most of your assessments in the American Economy.
We are obviously in trouble but. . . there is a hope in the horizon and that is:
America will rise and surprise it’s critics once more. . .
Our future is in our resolve to fix what is broken and never lose hope.

All this is a shame and a show of force of arrogance. That goverment is smarter than we and they have the solution. I wonder how much time do we have before we, THE US, implodes. 24 months? 18 months?
What is the end game supposition of the regime ?

I di not see that we, the people, are being given the information we need in order to be able to even guess at what is REALLY going on in our government.
We hear a great many stories..most of them differing points of view, and all spoken as absolute fact. We have a “secret” group of “world Billionaires” who now dictate world population, as weel as other unknown matters thet we are not allowed to share. We have a president who determines in the religious capacity for us.
It appears to me, that our ideas for the future of the country lie, not in the constitution, or in what we understand of the past, but in a new plan for our future, but not with us…a path being designed for us, without our help, but not with our input. or any recognition of our needs or desires, or freedoms. The government is taking over private business..What happened to “Free Enterprise”.
And everyone is accepting all of this as “just fine”..! Well..I am not accepting any of this hokum..!
My family arrived on the Mayflower…America runs deep in my blood. No one is big enough to quiet my right to speak out against wrong..! I may go to jail for what I say..I may die under the jail..
but I will die an AMERICAN…
Abraham Lincoln said thet America would never fall from the outside, but might fall from the inside. Well..What do you think we are looking at..?
Where are our REAL leaders..They are out there somewhere..It’s time to find them…or…else.
The economy.? Well..do you want this nation to stand..or don’t you..?Frankly, I do..! We can do it, but in order to do it, we need to regain what we have lost and are losing…SOMEONE DOES KNOW HOW..and I say..elect that person..! KICK ASS..!
Mia Archer..for America..!

In 1912, General Motors published an advertisement that began “The Penalty of Leadership” and ended, “that which deserves to live, lives!” The people who have no higher skill level than assembly-line work are in for a very bad time in the next couple of decades, but with a population of about 300 million people, about 10 million new cars will be sold or leased each year, and people will still buy, lease, drive and maintain used cars. Life will go on, but without GM and its nameplates. That’s called life, and it does go on. If a “new” GM can go on, good; if it can’t, other nameplates will take its place. If the United States Constitution ends up on (or in) the ashheap of history, life will still goes on. My money is for China to become the world’s dominant economic power for about half a century, with the U.S. as one of its client states, and then it’ll be succeeded by another dominant economic power. America doesn’t have a divine right to worldwide economic dominance — it only lasted from the end of World War II until 2008, and now it’s somebody else’s turn. Entrepreneurs will just have to adjust to changing economic conditions — “that which deserves to live, lives!”

I believe the markets will rise on pure hype, manipulation, and false hope until the end of the summer. Then rising rates, surging unemployment, a more serious round two of swine flu will finally collapse this market to deep new lows. If you still want to play long in the market at this stage of the bear rally still, I’m doing it with covered calls in case I wake up one morning and the market is down 10% over-night just because it should be. Good luck and be careful out there.

I live in CA Bay Area. It doesn’t appear to be hit so hard here. I read lots of doom & gloom on websites, but when I get around outside and talk to people it’s no different then the recession of 1991-1993 era. There are people unemployed, but this economic situation still hasn’t really left significant impact on most. I am taking pay cuts at work about 15%. I read a good book called “High Wire: The Precarious Lives of American Families” that preety much describes the vibe here. People are just finding other means of supplimenting their income–sometimes illegal (but that’s business as usual here).

The government is faced with the following prospects
1. Cut spending - highly unlikely
2. Raise taxes - too unpopular (and too much would be required)
3. Turn to socialism or fascism (would probably cause an open rebellion)
4. Borrow and print more money and inflate to cover it all up
Guess which one they’ll choose? The Republicans criticize the Democrats and vice versa, neither one will change the game
Nothing seems to have changed since the days of Caligula and Nero and through to the Weimar Republic and now us. Since we don’t seem to learn our inflationary lessons from history I guess we’re doomed to repeat the same mistakes over and over again.

Geithner is in China, he was taking questions from students, they laughed at him when he answered a question that he thought US and China assets were safe.

I expect to spin off my U.S. Stocks, as I do not own any of the others listed.

Lets see, in 1960, three silver dimes bought a gallon of gas, Today three silver dimes buys a gallon of gas, In 1862 Henry firearms sold their first rifle for $40 two gold coins, and Today the similar rifle is $1895, wow two ounces of gold. Protect your savings.

The market will re-crash over the next three months, load up on the shorts. Now we have GM the peoples auto….. you know like in Germany with the VW. Good luck, stay protected and the ammunition dry..

I think we should have let GM die on its own instead of propping it up, it will eventually fade away anyway. We should not be propping up all these companies, let them fail, in the short run it will be painful, but in the long run we will be better off. Alexander Hamilton is probably rolling over in his grave as our capitalistic society is slowly turning into a socialistic society. As for current investments I like some of the biotecs as DNDN and a MLP exchange traded fund TYG w/ 8.5% yield. Have a good day all.

I think that the market is going to go straight down …thats what this administration wants so they can rebuild us as a marxist/socialist country so i bought so far 8.4 shares of DXD its a double inverse etf

I am very concerned at this juncture. I often wonder will my Social Security survive the ordeal.

The USA will not survive, massive societal collapse will lead to civil war, and international subjugation at the hands of foreign economic and eventually military invaders. So sad so bleak, but a new dawn will open in which we will have learned some lessons, it always does!

Bananna Republic management tactics, will lead to Bananna Republic results. The 536 elected (misrepresentatives) officials in DC, our President and Congress, obviously have no concern about ever paying back the mountains of irresponsible debt obligations they have inncurred. As long as buyers of our Treasuries continue to support this agenda we will continue to dig in deeper. There is no mathmatical way to pay this money back, unless the dollar is substantially devalued, and even then it may still be impossible. This country would be well served if Treasury investors would stop buying US Treasuries and perhaps that would restore some common sense to our elected officials.

Blaine Savage
SLC UT

It is just a matter of time. At one time I thought holding on to my dollar (cash) would be safe, but nmow I know even that is no longer true. This is not just about economice conditions, but rather man’s inability to control their greed. Civilizations have come and gone, and one day so will ours, but this time “its a global thing”. I’ve taught my children to hope and pray for the best but consider and perhaps expect the worse. I think we (USA) will all need to learn how to be hungry, like so many other people in this world.

My question ,, how do we as citizen make it (survial)? We need a bail out. I think the white house (DC) need to rethink how and what they are doing when it comes to spending money. Is there any money for colleges/education for our youth?

I would think the precious metals and Asian markets would be the most secure right now, but then who would’ve thought Grandpa’s GM stock would be worthless!

The United States as we know it is economically, morally and spiritually bankrupt. We need to forgive all the debt and start all over. We need to elimate the current federal government and revised the government based upon the 28 principles of our founding fathers. We are a failed nation. We truly need to term limit all elected offices to one term only. No more career politicians and bureaucrats who think they know better. Regarding education no tenure for college professors and public school teachers. We also need to elimate the unions as well. No more social security, medicare and medicade, no universal health care for all. We need to closed our borders and not allowed any more immigration into our country for at least a decade.

Dr. Weiss, I started to deleate your letter before I ever read it because I have so little to invest, I can’t see it mattering, plus I know very little about the market, if anything. However I do know whar rezileance meanseven if I may have misspelled it. This week I’m supposed to come into some money to buy a car. I want a Cadillac. I probably won’t get enough money to buy a new one, but I want one none the less. I know how I have made, won gambling and lost millions over the last twenty years. Things look pretty bleak for me right now, but I’m not willing to give up. I’m 55, and feel and look half that. Every month I have to buy medications that cost a bundle, until I stumbled upon Rite Aid. Rite Aid is the only pharmacy I’ll go to if at all possible. We, as Americans, in the capitalist society have to be a little greedy and hungry foor more to survive. Rite Aid on the other hand charged me close to a hundred dollar savings on 2 name brand medications. I called every pharmacy within fourty miles of where I lived, they all had raised their prices dramatically in one month. I was prepared to take a hit from them too, but because I became a member of a Rx Savings Card, I got a great break on 2 name brand med’s. I was also surprized that one of the medications in a liquid form was factory sealed and full strength. Wallgreens on the other hand has prices that should be illegal, they’re back at the same thing that had them suspended from selling name brand med’s because they were charging insurance companies for name brand and giving their coustomers generic. There Is a voluntery price match program most pharmacies go by, e.g. if I know a store twenty miles down the road charging 300 and you’re charging 335, you’ll match it to keep from losing a coustomer. Wallgreens won’t hear of that. If General Moters could somehow, even if they lost money for a couple years did something similar, it could still possibly come back, somehow someway! Pharmacys know people will starve before they will go without their medications. I will wear old but clean cloths to drive a Cadillac, not to show off, but but because I know it’s the safest car on the road, and On-Star, only a fool would drive a car without it. How can we as Americans come together and save General Moters as though it were a cat falling fromm the 22 ND floor of a building? If is a big word, but if every man, woman, and child in America started putting money into G M, even if it meant we were going to take a loss at first, and if G M’s emploies agreeded to take a big pay cut, the most highly improbable thing on Earth could happen. And Uncle Sam needs to start fining pharmacys that are robbing people blind and use that money alone, it would be enough to save GENERAL MOTERS. I’m just a dreamer, but you’ve got me going today. Nobody would listen to a fool like me, but you they would listen to. Just a thought Dr Weiss, but I know who’s crippling the economy,at least my economy anyway. Thank You for listening. DrMike

It just amazes me how ‘random’ events, from ‘out of the blue’, seem to promote stated Council On Foreign Relations agenda items. Honestly, I am less concerned about the fate of the ‘republic’, the Dollar, or our ‘values’, than I am about the fate of HUMANITY… as the CFR proceeds along their oft stated depopulation agenda (’Sustainable Development’ - NSSM 200).

The way I read my Bible, our circumstances will get much worse. I lived through the Great Depression- this one is going to be worse (In my opinion) The bible speaks of people throught their silver and gold to the bats and the moles- figuratively that is what has been happening far too long. I have been investing in silver and gold for many many years.- Perhaps I can ride through some of this inflation. But I think we can also expect our wonderful Gov’t to confiscate these- when times get even worse.

It seems like most of our manufactoring was delibertly sent out of this country. Why is the big question. America has lost too many jobs, period. In 1967 when I graduated from high school, I had many jobs, with several good companies to choose employment. In this area, Middletown, Ohio, there is literally no choices now. The middle class numbers have fallen, and poor people just survive, and do not buy new cars, etc.
Ronald Reagan wanted a service type economy, and maybe he now has his wish.

Thank you for your accurate analysis and insight into the current world financial turmoil.

In the midst of the current volatile conditions I am keeping out of US, UK and European stocks and concentrating heavily on cash and Far East funds, which have been showing very nice consistent returns over the last 7 months. I believe any uptake in the world economic picture, is going to be led by China and the Far East economies, long before we will be able to see a more stable picture in the US, UK and European economies. Like you, I believe the worst is still to come, so I am keeping out until further notice!

I believe the most secure area to invest your money is in real estate. If you can purchase at today’s bottomed out prices just think of what you can sell for in an improved market with rising inflation. The dollar is shrinking therefore it is going to take alot more of them to create purchasing power.

Dear Martin ,
Though I am British I have been following your warnings and advice avidly. Every thing you have warned about and predicted seems to have happened and though things are a little different in England I use your advice and warnings to stay clear of trouble here where the problems appear similar. I think that it is not just the American people who have a lot to thank you for with your experience and uncanny knowledge of the markets.
God Bless
John

Martin - I understand clearly the concern about the US Governments debt and the ramifications it has on the future. That being said, it appears that there are signs of a recovery and with both India and China working with the US, I feel more confident. If I would have invested in some of the reverse ETFs like you had recommended, I would have lost a fortune. Please let me know if you are beginning to change your position with respect to the economy.

Hi Dr Weiss. You have covered almost all potential financial money pits in your forecasts- THANK YOU. But you have not to my knowledge commented about market market funds linked to brokerage accounts or the brokerage accounts themselves….are these monies safe with the brokerage insurance of SIPC??

This is a country in Moral breakdown. All of this is caused by a change in nature of Americans, caused by an internal propaganda attack of over 50 years. Did Americans lend money to people who could not pay years ago? Did we buy houses when simple math reveiled we could not make the payments? Did we live above our means with credit cards and home equity loans? Were our hero’s Paris Hilton and Britney Spears?
Did companys gamble with complex financal instraments instead of good products in order to make money. Do people want independent strength anymore, or someone to give them something? People could think back then and had morals, now we do not. Until that changes, no, we will not survive.

Dr Martin,

Can you please tell when will bear market rally end? According to economist they
think stock market is going to robust rally this year.What is your opinion about
this. I have some energy stocks in Canada which is paying me Dividend of 12%
should I sell them or keep it.

Thanks for What you do for American people.
Regards
Capt Sandeep Sharma

We are witnessing the fall of Rome (America) I’m bearish and I’m positioning my portfolio accordingly this bailout bubble will pop and when it dos watch out below. l

I AM INTERESTED IN INVESTING BUT AM VERY CONCERNED ABOUT WHERE AND HOW. ALSO I WOULD LIKE TO CHANGE BANKS, AS I AM BANKING WITH BANK OF AMERICA RIGHT NOW. PLEASE ADVISE. THANK YOU.

This stage is considered dangerous for that I do not have any idea about what is required to do for profit or investment, and what the next step and how
Please help.
Thanks.

In our efforts to make the world a democracy. We forgot that we should be making everything and selling it to them instead of us setting them up to sell it to us. As it turns out all our enemies we have had in the past we have helped to kick our butts now. Remember when all the photos from China were people riding bicycles in the streets? Well thats probably us soon, while they drive G.M. China Buicks and look at pictures of us riding bicycles in the streets. By saving a few bucks sending all our capabilities to another country and not caring about fellow Americans and only about the bottom line. We got sold down the river many years ago. Our country is weak getting weaker. I just aired up the tires on my bicycle…oh yeah….it was made in china.

The approprite question is what will the surviving USA look like? We are resource poor except for Land (food and trees), Natural Gas and technology. We will able to buy fewer natural resources from the world so we will have far fewer of them. Our homes will be dramatically warmer in the summer and cooler in the winter. We will drive and travel less. We will build much smaller homes. Many, many many will return to rural settings to raise food (fortunately they will be able to keep in touch with communications technology). We will sell the world technology for the goods we import one for one no more credit. Therefor on a relative basis we will import far fewer good and have a lower standard of living. Will this happen dramatically in a few short years or over decades? -NO ONE KNOWS, TIME WILL TELL

I retired from active duty in the USAF in 1970 after having served 20 years in the hope of living in freedom in a wonderful country; however, just a few short years ago when our congress went nuts - each party vying to exterminate the other rather than keeping an eye on our government - I began to lose hope. Now I know that our congressional representatives have only themselves in mind when they THINK, if they think at all. Our capital no longer exists and I believe that only precious metals will suffice as mediums of exchange in the very near future.

I should have panned for gold instead of trying to protect those who represent us today.

I think it will be several years before US Treasury yields increase substantially. A Japanese deflation is possible in the US where they don’t increase for decades.

In the near furture,
Metals down
Market down
Dollar down

Also
Safe Money Portfolio has been down a lot. Will it recover? I have $100,000 in it and holding.
Contrairion Portfolio - where are the stops??

I first would like to tell you how much I enjoy, appreciate and respect your articles and opinions! I think more men like you should be running our country not the clowns currently running it into the ground. I guess that statement foreshadows my opinions on where this Poor Proud Country is headed. I feel the lazy left and blissfully unaware “Republicans” (I consider myself to be a conservative but don’t particularly feel tied to the previous “conservative party of Republicans) have let apathy, greed and self centered blindness lead us into allowed leadership by men/groups that didn’t have America’s best interest at heart but rather filling their own pocketbooks. Bleeding just enough cream off to the general public that wouldn’t be aware of the Socialistic noose being tightened around their necks. I think the move towards killing America and creating a more unionized social entity started with the first Bush administration and continued until the obvious hangman arrived in office now. Look at who we ran for President????? McCain????????? Please that man can’t put two sentences together and make sense. There is so much more at play here than we even can begin to know. I think guns, gold and dry goods are the best investment in our future because its going to take a revolution to turn things around take America away from the World Finance Forces/Wall Streen and return her to the true American People. One more question though??? How did a radical muslim “black” man with duel citizenship and ZERO experience become the President of a Nation founded on Christian beliefs and principals? God Bless and Good Luck!

What I do not understand is this market rally; both it’s intensity and it’s longevity.
There appears to be no underlying strength but some say the simple fact of all the money being created is the reason for this season of the market inflating. Can that be true?

Martin,

I’ve been getting your e-mails for a while. To be honest I haven’t done much with it as I don’t have much to invest but I feel the window you open up to look at what’s going on under the surface is invaluable information. Thank you.

My answer to your question comes from a military background and from living in the middle east for the last several years (duing the school year) as a civilian volunteer with a non-profit education organization.

Here is my answer: “If we don’t get the bulk of our military back on our soil ASAP and continue in intense indigeonous training cycles to defend this country and our constitution, none of this financial stuff is going to matter. If we do get them back here, we have a chance and at that point we should bite the bullet and receed from the world markets in certain areas and get back to the basics. As much as I believe in our missions overseas, we must abandon them in large scale and rely on special ops or long-range and large scale destruction of infrastructure. If America goes down, all of it is going down. I don’t think any of us can imagine the evil that would prevail if or when this happens.”

Sincerely,

Doug Bryant

Yes, I do think America is suffering, and even more so at the hands of the banking industry. I truly believe the banks should not have been given all that money without some accountability. Each American could have received a check and spent it more wisely than they have. They are just interested in making more money. Some of the banks even went out to try and buy more banks and expand, rather than taking care of their own backyard, so to speak. They are not helping those that put their money in the banks. They have tightened regulations even further and are loaning less money than ever. I have not seen interest rates drop at the bank, even though the prime is very low. A banker told me that the interest rate goes along with risk and that is why some of the customers’ rates are so high. That says to me, let’s keep raping the small guy, not help him out at all, just try to break him and take everything he has.

Americans are disgusted, disgruntled, defeated and are working hard to just survive and take care of their own families. I do applaud the President and his team for trying and I hope he can help save this country from Bankruptcy. GM should have filed the big “B” at the beginning of the year and then they would have been back on the road to recovery by now. It’s easier to play the game and get all the money you can before.
Any little business or individual would not have been able to do that.

Being older Americans, we are indeed concerned about America, the viability of the dollar, price of energy/commodities of all sorts, food, etc. We are staying in energy and natural resource funds, as well as cash. The cash is a big concern since we see the very real possibility that it will be devalued. We own our home and we have seen a considerable value decrease from the purchase price. However, it is less expensive for us to own in California right now as opposed to renting. Thank you for your newsletters and your on-going guidance. S. Simonson, Corona, CA

Will America survive?
Of course America will survive. It will be at a lower level of economic output, though as consumer spending cannot support 70+% of GDP any longer. In the face of rising unemployement, lower wages to those who remain employed, and the end of the home cash machine will keep the American consumer from recovering anytime soon.

How do YOU feel rising interest rates and record-shattering money-printing will impact your income and investments in the weeks ahead?
I am not concerned at all about inflation overall as an important piece is missing from the inflation puzzle: aggregate demand. That should remain well under capacity for some time to come. On the other hand, a relatively weak dollar will spur some commodity inflation.

Which investments do you expect to spin off substantial profits next? Select U.S. stocks? Foreign stocks? Currencies? Precious metals?
On US stocks, I am bullish on BA and GE, select ‘green’ companies as well as agriculture. I remain bullish on Eastern Europe and Russia as well as Canada and China. I really like global agriculture companies as well as non-precious metals (copper, nickel, steel) as signs of economic stabilization begin to appear.

P.S. GM was not able to make a profit since 2004 even in the face of record auto sales, not because of unions, recession, etc., but because of poor management. They let foreign automakers essentially take over the car market so they could focus on trucks and SUVs. When demand shifted back towards cars, they were not ready but shoul’ve been.

Dr. Weiss:
I would be very much interested to open a bank account in a safer country than the US. Do you have any suggestions?
Gerda

The EV1 was an innovation and GM was the first ‘large’ manufacturer to venture down this route. The car turned out to be robust and popular, yet it was scrapped in 1999, with much of the remaining stock going through the crusher. Its replacement was one of the biggest 4 wheel drive gas consuming cars on the road. It appears that someone with a lot of clout in the oil industry, who was about to loose a lot of money, if the electric car had taken off was able to influence GM to make a 180 degree turn almost back to the kind of car it would have built back in its hay day in the 1950’s. There is one thing for certain and that is change and GM failed to change! Follow the money! Who stood to make the most money when the EV1 was scrapped? If a companies success is judged only by its profits, the laws of the universe tell us that each product has an optimum point and output and that going beyond this point, as a capitalist system forces the manufacturer to do, can only result in a cheaper product or production. PERHAPS sustainability, service to the community and quality of product ought to be some of the new ways to judge success in a world of fast depleting resources?

I don’t see brutal honesty in the financial news like you have displayed for years. I am a God fearing senior that thinks America’s press is hiding behind what liberal editors and journalists must print or say to get paid. There is much more economic shock that America is facing and the continued deception will bankrupt the next generation.

Martin,

I think the things to be in are gold, oil+gas and the Canadian $. Please comment.

Eric Cunningham

GM bankruptcy is a tragedy. However, I believe GM was not building cars most Americans wanted to buy, and GM management failed to innovate and control costs. I think Americans have a right to be angry about executive pay and bonuses — even as they drive their companies into bankruptcy. Even union pay and benefits had gotten way out of line relative to most working people — where they are payed 90% of their pay to sit at home during plant shutdowns. Maybe I’m wrong, but I am still optimistic about the resiliency of Americans, our businesses, our innovation, and our future. Yes, we are going through a steep recession that may last for some time yet. But, I still believe we are the best nation in the world and we will come out of this. If we pull together, I think our people and our country can overcome this.

I would have like to join your web meeting but I’m behind a firewall at work.
I don’t understand Treasury bills, notes or bonds. What is the right time to get in and how do you know they won’t pay off with inflated dollars? Thank you for your time.
p.s. I am invested in low end rent houses.

I believe that both our short and long-range futures look very bleak!
1- If things continue as is, there is no way in which many Americans can be on the winning side in any national election.
2- The larger (doomsday) problem which we have is with the devaluation of our currency. Even if we have dollars, will they be worth anything?

I think you are being too pessimist.If you have been following the Indian markets you would know they have gone up by abt 80 per cent since March.Yesterday when G M was preparing for the chapter 11 the Indian markets were up abt 3 per cent.The G M india said we are not affected and you are asking if America next.?
NO WAY.
Things will come around sooner or later. I suggest take a holiday and come to India for a few days.
God bless
Amir

I work in High Tech in the Software Industry. Most of my friends are quite bullish now …. with the Trillions of Dollars being thrown into the Economy through QE that eventually banks will be forced to lend again and the consumer to consume again .. however, if the inflation comes into place, then our cost of living will go up .. but all this depends on the psychology that is created .. the good times are back or there are bad times ahead … personally, I feel that by Monetizing our debt … printing money out of thin air is a gamble but it is necessary … classic chicken and egg story … we need to start somewhere … however, the market is rather cruel … I think that in the end we are going to get a massive rally into next year starting from now (with a correction in Fall) … everyone is going to feel that everything is back to normal and then watch out below … I see no reason why the DOW wonly hit 12,000 by Spring next year and Nasdaw 2400 …. then it will all implode … we go down 50% …. and THAT will be the buying opportunity of your life time ….

I have given up on all US stocks except for SLV. I purchased 20 contracts @ 2.20, since silver is scarce and is hopefully going higher.I have an expiration date of Jan 2010 (Leaps) I also have invested in currencies w/ EVERBANK and so far so good. That is the extent of my investments. Robert Griffin

Retirees need to find a secure investment for their grandchildren, but the question is where can one find a relatively safe future plan in the present environment. I am thinking that waiting is best because everything is so unstable. No one can predict the outcome of our precarious economy today.

I agree that debt killed GM, and I also think the present overall economic crisis we are in is because of too much American debt (at all levels). Our government’s response is to borrow even more money and go further into debt. What am I missing?

John Boyes

sorry, forgot to include:

Is there any chance with a weak dollar that a new world currency could emerge? If so, what would that do to gold and the dollar?

My sense would be that going forward from this point, only two investments will preserve capital:
1. gold bullion and profitable, commercial gold producers and
2. large cap equities in consumer staples in the EUR zone (where with the exception of the U.K. - which is not in EUR currency - governments have not taken on the kind of debt the U.S. has)

Martin, I must say that you and several other pundits are all seeing the demise of GM as some signal that the sky is falling, that America will sink into the sea. I am sorry for the loss of so many jobs but, truth be told, GM has been consistantly running on fumes (no pun intended) for the past fifteen years, borrowing its operating cash, borrowing to maintain a sense of obligation to its retirees while continuing to pump out a stable of “has been” vehicles. Drive down the freeway and count the number of Buicks, Oldsmobiles and Ponitacs you pass–I did so last Saturday on a 160 mile roadtrip and the count was zip, nada, zed for all three. To me that says a thousand words about a company’s sales, marketing and, most of all, vision. I don’t think the market sees any DJIA “icons”–it just sees the facts, pure and simple and the fact of GM is that it has been dying for a long, long time and this whole affair is nothing more than the coup de grace–I only wish that it had happened before the government put our hard-earned money into this beached whale.

Based on what’s reasonably and evidently forseeable at present, how long into the future does it appear likely (probable) that major inflation will come to dominate the currently prevalent deflationary conditions? And how soon, after this, will the country begin to experience a multi-sector systemic breakdown? Finally, what plausibly probable counter-measures loom (economic, social, political) that can prevent or at least thwart this economic and social disaster? [I know this is a crystal-ball kind of question, but any opining on your part would be appreciated!!!]

stupid, corrupt politicians have given our money to corrupt financials, thereby keeping their lock on power and money. this crisis has given us massive debt and spineless leaders. this total lack of vision for the long term will assure our demise as a world leader. i hope my assessment is wrong.

THe whole world is in trouble; not just the United States. As we slip into the Greater Depression, people have to wake up and realize the government is not going to help you. Gold and Silver, Energy Resources and Agriculture wil protect you in the future. Invest in emerging markets. Water Resources is a must; less water available; more desalination plants have to go up! God willing; no depression will occur but you can minimize the devastating effect it can have on you. Better to be prepared if the inevitable occurs.

Big money, big investments, big risks put the right places will either survive, break even or prosper..conversely money put in the wrong places will bust and people will survive collectively by trade craft and trade or offering new human services guided by networks or situations. Is it worth it to look for investments in Water, Wind Power, and Non-Hybrid seeds, for instance, if you no longer have but a few thousand dollars in American cash and a little in small gold coins and a little in silver coins. In some ways, it might be just as well having little to lose because you don’t have much, instead of having much and being obligated to risk a lot and lose a lot by shear weight of circumstance in your own effort depending on investments instead of community networks etc., which could hold life saving value. Your thoughts?

We’ve been recent readers of your emails and like what we read. We think worse times are ahead. My husband is self employed in the construction area where people have no money or have lost their jobs. What advice do you have for a large family with limited income and minimal retirement? Also, how to keep our home when things get tougher? What is the minimum amt. to be able to invest. Unfortunately, we couldn’t afford the contrarian option.

I don’t think the United States will prevail. It’s a shame that such a dynamic society could deteriorate so rapidly, but here we are. There’s no fundamentally good reason for the stock market’s strength. Denial, I guess.

On top of the fearful economic problems we face in America is my concern that the fellow in the oval office is a Trogan Horse. A man of mystery who has never run a 7/11 store and is now leading the U. S. economy? Sounds more like the blind leading blind than true leadership. A sign of his wisdom and leadership - put a 31 year old recent graduate of Yale in charge of the auto industry. Don’t worry, the fact he has never been in the auto business is no problem for Obama. After all, he has never run a business either. Perhaps that adds to the Presidential comfort level?
Grab your wallet and any asset you can tie down!
With friends like those leading us in Washington, who needs enemies?
ARJ

GM needs to go. They have relied on past efforts at innovation for too many years. They have had major stumbels: Cad 8-6-4, Cad Cimeron. They put a Chevy motor in the Escalade. They haven’t kept up with overhead cam designs. In the eighties they produced a lot of inferior products that gear heads such as me resent them for. They design parts to fail intentionally. I am gloating at their demise, buhaa ha ha ha.

What impact will China’s swith to short term treasures, setting up for a rapid exit of buying U.S. treasuries have on our econimy? Ansewer that and you will have your ansewer.

Dear Mr. Weiss:

Beautifully and powerfully written!!! A classic piece of writing.

What I think…while I’m not an economist, I’ve lived a long time and I think that
the America that we once knew is dead, being replaced with a European type
Socialism.

The Islamic issue is not settled and will come back to haunt us when we are most vunerable and like GM we will need to go thru our own form a bankruptsy and
reinvent ourself –if its not too late.

Otherwise, I see a nation broken up with little enconomic and social principalities
like Italy during the middle ages and the rest of us mindless peasants, worth only what we can spend on a credit card.

Tom Whittingslow

A new money could be possible; word out there of the Amero. I think the new money backed by gold in silver would be great. With all of the world debt, all of the gold and sliver on the surface cannot back it up. We need to start from scratch all over again.
There could be a problem of supply though; not enough gold to back up the money or will there be a gov’t confiscation? I don’t think the people will stand for that.

Drat! A lost opportunity. It’s all a case of being in the wrong place. We practice bankruptcy in California. I am almost tempted to look at the 2016 on pacer for the GM filing.

On the other hand, this economy is beyond sick. Printing more money, especially in the quantities of late should lead to a major inflation. Thinking back to the oil shock of the 70’s and the resultant inflation as well as the other 2 or 3 inflationary events of my life, I find myself amazed that the currency hasn’t wound up repudiated and replaced. I suspect there is time yet for that event to materialize.

Good old Arthur Burns loved the idea of zero being the perfect inflation number, and who can forget Elliot Janeway advising households to have 6 months of reserves on hand? Great advice, but shall we say a dollar short and a day late considering the events of the day were already causing unemployment to rise?

Usual strategy for surviving an inflation is to invest in hard assets with prices rising in tandem with the economy, but that idea relies on lower than average interest rates. If the prevailing rate of interest is much higher than the rate of inflation there is a disincentive to invest in the assets in question.

As for the future, I am now getting old enough to consider retirement and perhaps I will be spared having to deal with the problems we fear, but I doubt it. That million dollars we were all supposed to have tucked away in our retirement accounts by this age might just buy me a cup of coffee.

Dustin

Personally, I think America will survive, but as far as I can see the whole financial system, as it is set up right now, has no chance of survival. It is only a matter of time before we’ll see its total collapse.
The madness we are witnessing right now are the last desperate attempts to rescue the status quo of those who would lose the most if the fractional banking system would cease to exist.

I hope and pray that the collapse and abolishment of the Federal Reserve will be the final result and as a consequence be replaced by the birth of a more equitable monetary system, that is not based on debt anymore…

Martin,

I have spent my entire career, nearly 30 years in the financial services sector. I knew of you and your firm early on, as I was a “beat the street” life insurance salesman. I remember how you had a “contrarian” view of finance even back then. I was too young, naive and impressionable to fully understand the significance of your ratings but I knew I respected your opinion very much.

I have watched in absolute disbelief the dismantling of our nation’s financial institutions and wondered where the voices of opposition were. Who was crying aloud in horror when we witnessed our government shove trillions of dollars of debt on the backs of an ever shrinking “earning” tax base? Why would anyone assume that our US Government, filled with its bureaucrats, with virtually no hard real life business background and “if its broke I can’t spend enough to fix it” mentality, could possibly solve the problems.

As a nation we had become so bloated with our sense of entitlement, that it only seemed fitting that we should never have to realize anything but our ever increasing portfolio’s, nearly 20% annual home appreciation and job security for life followed by a retirement befitting our status as Americans.

It never occurred to us that any/all of this was nothing short of smoke and mirrors, and if in the end it proved to be so, well we’re just so narcissist, we’ll just dump it on future generations of Americans to fix, “please pass me the sushi.”

No Martin, we’re done. We have a government that will not be restrained, we have a citizenry whose male presence has become emasculated, a judiciary that has an “anti family/anti God/anti Good” mandate, and they mean to fully implement their liberal bias to our ultimate decline as a nation while obliterating our culture in the process.

Count me as one the many who feel there is no place left for this experiment called “America” to come but, to a whimper less halt, followed closely by the “goose stepping” heals of Socialism. You’ll recognize me, I’ll be the one who is trampled to death while still clinging to my Bible and my Freedoms, while doing my best to protect my birthright to them both.

When your largest international creditor has people Chuckling/laughing at your Treasury Secretary, one has to know that our status in the world has suffreed greatly as a result of our inability to control spending, act prudently with our allies and the lack of much economic and financial expertise on Capitol Hill. Perhaps more importantly those in DC just seem to have lost their hearing at the same time

Dr. Weiss,
I have read your book, ordered another for family faithfully been reading your e-mails, however. We have done what we could to prepare, getting out of debt, paying off our house, etc.
I however want to know what families that don’t have a large chunk of money to invest can do? We have one son starting college and another to follow in about four years. Our savings are slim. We don’t have the large amounts of capital to work with. So my question is, what can the middle class American’s do that are struggling but doing all we can. If we don’t have tens of thousands of dollars to invest?
Next I had an idea cross my mind. Recently I was reading an article on the current crisis for all small businesses. They cannot get capitol even when they have a solid business plan because the banks are in such bad shape. I’m curious as to what a group of folks like us might be able to do to help some of the more deserving entrepreneurs out. It seems to me like a golden opportunity laying there…
Well thanks for considering what to advise the more average folks out here to do. Maay the Lord bless and keep you!

As each day goes by, we are getting closer to finanical collapse. Will it happen this year, or 3 years from now? What will it look like when we hit rock bottom? Will it be worse than the Great Depression or will it look more like something we see in the movies - like Mad Max?

Martin;

If the voters in this country continue to support the character of the current administration we are ultimately doomed to socialism and it’s dictator posture. Our only hope is to vote in a new and Godly contingency of a majority control of our nation. While there are pockets of opportunity for the knowledgeably elite the masses of this nation will suffer the agonies that go along with socialism. Thank you for portraying the reality of our fiscal marketplace. David Bryan, Houston, TX

Dear Martin,
At the age of 84 I don’t have too much concern about what our Gov’t is doing to our economy, but for my kids and and grandkids I am scared to death about their future and the effect the Gov’t will have on their lives and quality of life. As I see things this current administration is going to ruin the entire country.

The US economy has been hollowed out by the loss of its manufacturing base. Witness the last vestiges of the once mighty auto industry in shambles and bankrptcy. This dislocation can’t be fixed by service industry jobs which traditionally pay less. Nor can it be concealed for too long by covering it up in a massive spending spree with fiat money. The long term outlook is grim and few “experts” are openly discussing the problem.

Martin:
Our economy is made up of the good (google), the bad (aig)and the ugly (lehman brothers). The sooner we get rid of the ugly the better for all of us. The market is insane, as bad stocks are up for no reason.
For the average joe, trying to invest is tough.

I always hear 70% of our economy is consumer. I don’t understand, how could we consume more that we produce?

I think, the real problem problem is politics and policies, when more than 50% voters doesn’t pay tax (I don’t consider government workers Tax payers, 50% maybe too high, but I believe that number is high and rising.) The system has no intrinsic interest for economic growth. The majority’s interest is how to grab other people’s money through government machine. Tax without representation is wrong, what about too much representation with out paying tax? Here is a radical thought, maybe the solution should be weighing someone’s vote according to if they pay tax or not. The government workers and welfare recipients should have no voting rights, or count as half a vote.

On the opposite side, how do we contain the greed of the money, if we did give tax payer more rights?

All we can hope is that pendulum will swing back, we will not reach optimum, but never too far away from it. As you said, the government can not hold gravity, they can push against it, but they can not prevent the inevitable.

Dear Martin: What we are witnessing is the engineered destruction of America. Nothing more, nothing less. If you are in denial to this fact, I suggest you visit, http://www.AE911truth.com. I flew military NORAD missions and have 30 years flying experience with a major airline, and the facts are clear, OUR LEADERS ARE LYING TO US. They are stealing our Republic in large chunks each day, and the only question remaining is will it be deflation or inflation? Please keep our retirement money safe. Sincerly, Kirk Miller

Hi Martin,

I have been a subscriber since 1998. Thanks for all the great advice, you are the only one I have ever listened to with my hard earned dollars. On balance I think we will see a substantial increase in inflation, much higher gold and quadruple higher silver, a re-inflation of housing prices as evidenced on the local florida news here last week that median housing prices have actually ticked up approx. 9% last month. Currencies should do well if you short the US dollar short term. Some thoughts on the dollar and deflation/inflation argument,,,, In 1932 the US was on the gold standard and a net creditor, leading people to believe the dollar was strong and safe, therefore deflation occured. Flash forward 77 years,,,,, now most people walking the streets of America know that the dollar is funny money, not backed by anything, and an extreme net DEBTOR. Hence, a far weaker dollar and rampant inflation will occur. People want their money to be REAL,, thats gold/silver. Even my pool guy with a 10th grade education is out buying silver coins on the weekends. By the way thru out history ALL paper currencies go to zero eventually, again thats ALL paper currencies go to Zero. Good Luck to all of us and keep listening to Martin as he is our best bet to weather this storm.

The economy wet down the tubes long ago, but our attention was averted elsewhere. We let down our guard and were subverted by self interest away from principals. The principals of our founding fathers, bought with blood. The evidence is everywhere ! Property, money and power ever more concentrated in the hands of a few. Quality of life going down ever since the early sixties. The value and durability of what we buy steadily decreasing with an ever greater personal price to pay. With two income families and dying communities. What is left is the community of misery and discontent. Unrestrained capitalism as surely leads to oligarchy as any corrupt government. The big have gotten too big, the rich have gotten too rich and the powerful too powerful. Now it has come time for the predators to feed on each other in seeking ultimate dominance and we are left in the dust of their battles. Yet there is a way out, though I see ONLY one. A return to principals where “rights” are viewed by all as “other’s rights and my responsibilities”. We need to sterilize Washington of all its corruption and start fresh with only people we know and trust. Then we need to make sure they stay honest.
The only investment today worth anything a few years from now will be the reputation of a good character.
(comments welcome eddy@impanis.net)

Well put Estevan!!
It still boggles my mind that the government thinks the best way to get out of our debt crises is to create more debt! That only makes sense to a politician. Unfortunately, our generation has grown up as coddled, spoiled children who think we are all owed something. There is nothing of the sacrifice that paved the way for prosperity that was the hallmark of the former generation. We have spent, spent, spent, and partied, partied, partied. Now that the party is over and the bill has come due, the first thing we look to do is to go borrow some more of someone else’s money so we can start the party again! Shame!
I don’t think there are many safe investments out there except for maybe gold and silver. Even foreign funds are overbought right now..

I believe the best situation right now is the Currency and
Precious metal fields. I have been investing for 48 years
and business and the economy is the worst I have seen.
It is not just my company but the builders I do work for
are really desperate for work. The government has to get out
of peoples business. Let the weak fall.

Thank You.

As one of your writers said, Japan used this ‘qualitative Easing’ strategy before with much success. However, Japan had exports to fall back on. We don’t for a variety of reasons including that world trade has just about stopped in its tracks. I try to look for what America can fall back on and all I can see is what they can’t fall back on. We can’t fall back on cars because history appears to be done with them. We can’t fall back on agriculture because Peak Oil is starting to take it’s toll in the form of reduced yields every year for almost a decade now. I had to laugh out loud when I heard President Obama’s speech where he said that there is a calm in America now since the bailouts. Who’s telling him this? Certainly not anyone I know.

Martin:

I need some help in understanding how to invest in a period where it is not clear if we are heading for spikes in inflation or deflation of the dollar. I know you have taken the position in the past that we are more likely headed into a depression characterized by a deflationary period. I have and will protect myself by shorting the market in certain sectors as bubbles continue to burst. Nonetheless, I cannot help be be confused as to whether we will see rampant inflation if the printing presses continue to roll. On the one hand you have advised that (gold aside) the safest money is in cash or short term treasuries and this is where you want to be at the bottom to take advantage of opportunities as your dad did. When should we become worried about holding substantial cash in money markets for example?

Thanks,

Mark

This all started with one word “GREED” The current generation was brought up with the notion “it is all about ME” The only way to bring back our once great nation is to rewire our current thinking. The time that this takes will determine how fast we can recover.
This type of mentality is why the people and the government of the people should not have any part in assisting institutions that run themselves based upon poor management and greed. Let them reorganize them self or fail. This is what I had to do.
I currently have had to consider the option of bankruptcy but have decided my best course of action was to negotiate with the lending institutions. Much to my surprise only the institutions that had the most to loose were interested in negotiating a good solution. My mortgage company is unwilling to negotiate, told me that I made to little for assistance. Even before I was having troubles I contacted them to see what my options were. I was told there are no options for assistance unless I was 30 das late. Assisting in my current downward spiral. I haven’t hit the ground yet, but have gained a lot more control.

Dear Martin,

YOU need to be running this country! We are on very thin ice and I fear the cracks in
the ice (GM & Chrysler) are going to spread like a raging fire! I purchased your most recent book, (Ultimate survival guide) and I hope it will pull a guy who is disabled with
a wife who sells real estate from the bottomless pit this administration has created.

In fairness past administrations have indeed contributed to this mess and I seen it
coming but ignorned the warnings. I will no longer ignore the warnings and God
willing we will prevail and prosper once again. Are you ever going to be in Pennsylvania?
Looking forward to meeting you in the near future.

I want to thank you for your advice and help over the last half year. I learned a lot but, at almost 89 years of age, I cannot risk much of my limited nest egg and still keep the family island paradise I’ve developed with my own blood, sweat and money for the benefit of my family LLC. I would like to have participated in your million dollar program but with a $5000 account. Not even including including Broker’s fees, I figure that in following your market moves we would have to gain about about 30% just for me to break even.

Thank you again and God Bless you, too. I really believe you are honestly trying to help people.

The GM plant at Spring Hill, Tennessee is only 16 miles west and in a few months, it will be idled. It currently has @ 2,100 employees but as important, it has 8,000 employees that work in sister businesses that serve the plant. Counting spouses and kids that affects a lot of people. And that puts additional stress on a state that relies on a Tennessee Sales Tax to fund its’ operations.

The green shoots that we were suppose to see sprouting are brown and wilting away… More foreclosures, more bankruptcies, more unemployment, which begets more foreclosures, and more bankruptcies and soon the business sector begins to tumble, and then the commercial foreclosures and bankruptcies grow and then more unemployment, and the circle goes round again and again…….

And we understand why students at Peking University in China break out in laughter when our Tresury Secretary Geithner speaking about U.S. bonds, of which China is the biggest foreign owner of U.S. Treasury bonds. says:

“Chinese financial assets are very safe,” Geithner said. His response drew laughter from the audience.

It was very embarrasing for the United States.

The market is being manipulated and those that buy into this Conjured Rally will be devastated when reality comes calling. The green shoot reports are fabricated and when no one is looking or listening, they adjust the reports later to reflect reality, long after the controlled and biased media has reported “How Great Thou Art”.

P.T. Barnum said, “There’s a sucker born every minute”. I hope each of you hold true to yourselves and let Martin and staff guide you through troubled times. Hey as Bob once said, “The times, they are a changin”

I response to GM, come meet the new boss, same as the old boss…………..

I drive a Toyota…….

Let’s get some things in perspective.

All gold that has ever been mined amoumnts to $ 5 trillion. US toal debt amounts to conservatively $ 600 trillion - ten time the world GDP. Even the massive amounts of the government bail out package ($ 13 trillion) are peanuts when compared to the total problem. There is no elixir for this terminal disease - the USA will not survive in the immediate geopolitical world as a nation.

Bloomberg recently had an article saying that the US will be emaciated like Zimbabwe, how sad. What have we done wrong???

We can expect breakdown in societal systems leading to massive civili strife - actually civil war, total breakdown from within, and then milatary occupation from without. After all the world wants its money back!

We “the people” are in DEEP do-do ! The present BUNCH in Washington are inexperienced,inept,impressed with their power,shoot blindly from the hip,don`t consider any consequencies,……I could go on and on…..gets` right back to the DEEP DO-DO!!! Gov`t can`t save GM…They`ll run out of the $70BLN before people start buying cars again….and when they start buying cars again….they won`t be made by GM! Most of the GM`s bailout $ is going to their underfunded pension plans….who are they trying to fool? JERRY SHISLER

79 years old, reasonably healthy, retired last June, (wife still working part-time). No pension, just savings and good investments. Barring a catastrophic event, we can make it financially. Planned on no SS or Medicare but taking advantage of them while they last. Thought seriously of moving out of the USA but all family & friends are here, so no go. Crime increasing despite the media saying it isn’t. Live 40 miles from the heart of a major city and hoping no one else wants to move to the ‘burbs. After the last election results went & bought double “O” buckshot for my 12 gauge in case the predicted “civil disorder” happens. We are hunkered down, cautious but still viewing the glass as at least half full.

Government Motors! Obama could care less about the American worker or it’s citizens. He is strictly in the prower broker business. What message will he deliver in Cairo, Egypt this thursday? My fear is that he will sell out the U.S.A and Israel to gain favor from his Muslem brothers worldwide. I am 70 years old and have gone through 3 corporate bankruptcys in the Airline Industry during my working lifetime. I have lost most of my retirement and now what was left have lost over 40% of that due to the economic meltdown. Do I feel sorry for all the UAW Union employees that have lost jobs or are going to lose jobs? No! Noone tooke care of my wrinkled old butt when it happened to me but I did and am surviving. Will they survive? Probably, but Obama could care less how they accomplish that. My gut feeling is that Obama is more interest in converting this once great nation into one of governemt dependency and political power for him and his. “Change We Can Believe In”, Pure Bull Crap. We will soon see $5.00-10.00 dollar per gallon gas, unafforadable home heating prices, food shortages, 10-%+ inflation and 20%+ tax increases. This I will not be able to survive as well as many citizens. This will cause REAL change which will get very ugly! In my view, Obama’s policies regarding running our country are about as worthless as a screendoor on a Submarine.

If I had not read your recent book and all of your helpful newsletters, I’d be trying to decide how to rebalance my protfolio - bonds, large cap stocks, small cap stocks - and the proper mix of domestic to international. I now look at diversification in a new way. Your information on ETFs has been extremely helpful - what great tools for all markets. Using ETFs I’m shorting long term treasuries, buying gold and silver, playing currency trends, and owning a little bit of China. I have a good store of cash and I’m ready to start shorting the stock indices as this rally fizzles. It takes more time and attention, but it is definitely worth it. Thank you for valuable advice.

I am invested primarily in Gold. For inflation deflation or political risk, I think it has proven itself historically.

The dollar and the stock market seem to work inversely. Market willgo up with Goldman Sacks manipulation.

I am not a day trader. I bought food etf’s MOO Dba, etc. They have done well as has a wheat futures contract. We do have to eat as they say.

Stock up on cans and store a years supply of food. It may come in handy. I also bought a good handgun and ammo, I know it sounds paranoid, but……. who knows.

G d Bless America!!!!

God, you Americans overreact. It’s not the end of the world. It’s the end of America thinking that they are the only game in the world. A new realism of thinking is required with some damn optimism. The USA has been living on credit for decades. Find ways to earn your living in competition with the rest of the world. GM ignored the rest of the world with regard to motor manufacture. It was always going down without fresh thinking. But look at ExxonMobil, the most successful corporation in the world. The most successful US corporations are those that are able to move freely and comfortably in the rest of the world.The US was the home of innovation and it can still be so.
By all means be prudent with your money (a good rule for all times) but don’t climb into your bunker with your egg-laying chickens just yet.

Considering all the tinder boxes associated with the current national and international political, social and economic environments, should any one or a combination catch fire it seems that the unthinkable(financial collapse, loss of faith in governments ability to control and stabilize, widespread social unrest and the dire consequences of each) happening everywhere grows stronger with each passing week. I just can’t get my mind around what this means for our lives in the relative short term i.e. next couple of years. Certainly some riots, martial law, social and moral degradation, deprivation, civil wars, etc. have and are happening in some places around the world but is it really realistic in our own backyards? Those that embrace the spectre of economic and social collapse do present compelling arguments for the potential of it happening in the short term and even some voices that had been advocating recovery have now begun to express concerns and doubts. There are some scary opinions about what could happen! Would be interested in hearing why an imminent collapse will not happen.

I understand that we all feel a little sense of dread about the unknown repercussions following the GM bankrupcy. My question is, leaving the feeling of dread and fear aside for a second, how do we answer those journalists/analysts that say that the debt level per unit of GDP is still way below that of other countries? The number for the US would have to double approximately, for example, to match the problems that the UK is currently going through, and even for them, the credit rating agencies just downgraded the outlook and not the actual rating itself. Bigger point - totally agree that we in the US are headed down the wrong path, but how much more time do we have compared to other countries? Having said all that, my feeling is that, even if our debt level per GDP ratio is not as bad as (say) the UK, the effort required to reverse the situation may be more difficult and have worse side-effects than just hastening the process of bankrupting the USA. The author seems to be brought up more and more, these days, but really, I think Ayn Rand’s Atlas Shrugged concept is still 100% sound and relevant to today. Do we want to hasten the inevitable bankrupcy and deal with it in our generation, or leave it for our kids or grandkids to sort out? How do we hasten bankrupcy? In some perverse way, maybe it is, in fact, moral to max out all credit cards, and then default. Feel free to flame me, now, but I’m just throwing ideas out there.

The bail-outs are, simply, madness.
America learned nothing from the oil panic of 1974 - we still have no viable energy policy. We remain at the mercy of OPEC.
Now we beg the Chinese to not stop buying our bonds - translation: buy something that will be worth much less next year and every year thereafter.
To base the nation’s future on the goodwill of the Chinese Communist Party is beyond stupid, it is sedition and treason.
As for GM, it two years it will in desperate need of funds. Since ‘the taxpayers’ now own it, we’all will be expected to bail it out again.
And it five years it will again face bankruptcy and reorganization.
And in five years I will be afraid to write such a letter as I am sure the thought police will be watching me.

good morning,

I have been following your reccomendations except shorting the dow/s and p and nasdaq after listening to Larry who so far is proven correct. he states the dollar with have a short bounce-do you agree and if so what is regarded as short? also euro dollar when do you feel it will turn-1.45 or 1.50?
also have you changed your view on the markets and expect it to keep climbing or collapse as Klaus has described.

Lastly, I have bought SRS a inverse on the real estate market. I bought at 24 and is now 18. Is this the correct way to short real estate and the next shoe to drop. It,s high was 300 in november. Will it go back there? Would you play srs or another choice and will the real estate get worse.

Also, sorry for the long letter. I would like to come over from London and meet you guys one day and give you my thanks as I enjoy your articles and have enjoyed the journey of TBT thanks to you. Is it possible to meet you and discuss the future with you at some stage?

My brother and I were searching for a uk product to take advantage of the uk gilt market but tbt was the only inverse bond we could find and so chose that route.

All the best,

Andrew Hart

Martin,

I have some of my investments in ETF’s, specifically, SRS, SDS, FXP and DUG (just to counter the recent run up in oil recently) but I have taken a major bath, especially with SRS and FXP. Thoughts?

Thanks,

Leo in the DC area.

Face it - America is on its way down the tubes. But, there will be many who profit by it, as there always are during catastrophies. Sometime we have to fall in order to pick our selves up. The question is not “ARE we falling?” but “WHEN will we hit rock bottom, and will we bounce?”. There is a fundamental law that governs “bounce” that has to do with resilience. The question, then, is “Does America have enough resilience to bounce back?”. It’s happening. I told my insurance broker back in 1996,the year I retired (young!), that we would see a HUGE financial calamity early in the 21st. century. He merely smiled - so did I…

My basket is full with gold and on the inverse side etf FAZ. At 3X the inverse of the index I believe FAZ could be a big winner.

Invest in Guns, Food, and keep your money in a safe place protected by your guns! Be self sufficient and depend on no one! Let the monkeys in the White House fling poo on us until we are sick of it and the whole zoo collapses. Then we must open our safes, take our money out, and start over. Everything else mentioned is just a best effort of what “might” happen or what should we do.
Sorry, I am just a 28yr old dad who for the first time in my life started to care. My father-in-law and my grand father-in-law both subscribe to the Money and Markets news letters. I get the daily emails and buy the books Martin and his crew put out.
From what i gather, Martin advises to save safely, wait for the collapse, and then rebuild it the right way…….
Until then,
Remember what matters most and what you can take with you when you die.

No Martin,
We are not going to survive as the nation we know today.

We are going to be a second rate nation as the Bilderberg Group wants.

We were the final obstacle to the formation and consolidation of the One World Government.

In contrast with what they did in the formation of the “European Nation” they had to destroy not only the sovereignty and the currency but what was left of our financial independence with debt that could not be paid back.

To add insult to injury, they managed “to dummy” our people to the point they were no longer capable of having a discerning capability any more.

Hi Martin,

Yes, America will survive, but survive is it. America will never be the great economic giant that it was in the 50-70’s. We have become a nation of consumers, and have given up being the best at intervention, manufacturing, and being producers. We have become a nation of users, and I don’t think there is much brightness in the future.

My hope is that the Obama Administration and Congress take a look at the 1921 Depression (Yes, the 1921 Depression, the one no one likes to talk about), and get some direction in what would really solve this Recession/Depression that we are currently in. Spending more money will not solve the problem. It did not solve it in the last great depression, it didn’t solve it in Japan’s recession, and it will not solve our problem.

If we are truly capitalists, then we should act like same. If you invest in a business and run it poorly, and end up owing more than you own, then you lose, then you fail, and you should be allowed to fail. Not one of these banks, not one of these corporations should be allowed to continue. They should be allowed to fail in order to make way for new innovators to come along and continue, and maybe do it right the next time around.

As to the investors side of all this, I can only say that I do not think there is one stock on the entire exchange that is worth risking your money on right now. The only thing that is real right now are the commodities, the items the world needs to continue to function, ie: oil, foodstuffs, metals.
The best investment I believe should be silver. It is currently being manipulated to keep the price low, but if owning 37% of the above ground silver is good enough for Warren Buffett, then I know it is good enough for me.

Silver, gold and some other commodities will be the only thing worth owning, especially if this administration continues to print money out of thin air. Where is it going to stop? Will we stop before we end up with another Wiemar, Germany fiasco? Will we stop printing the money before it becomes completely worthless, as it did in Germany in 1919-1923. I really hope that someone in this Government will see the disaster for which we are heading unless we curtail spending, and fairly quick at that. We do not have much time to make a change that will correct the madness that we are now involved in.

I made this as short as I could, but could have written hundreds of pages if I had to.

Best to you, and may God bless your work,

Harry

Dear Martin,
In reply to the question YES,but the real question is how will they pay for this debt.
I belive that we will see tax increases of every sort inclueding a Vat tax which will
raise taxes for every american. This will be presented as nessary in light of the
historic events ( that they caused ) “They inherited “and you did vote for change.
Keep up your good work.
Best Regards,
Pat

I am a manufacturer. Being able to borrow is extremely important to my survival. Red tape expenses are unbelievable. I think most of the voters are on payroll for 3 or more generations and have no idea what their employers are facing in red tape or they would vote differently. Now that unemployment checks are running out more will be forced to become entrepreneurs. That is when, I hope, they will discover that the ‘there aught to be a law mentality’ should go away.

Time to buy Gold, Gold stocks, and OIL

Will America survive?
Years ago I read a little book named, How To Cash In While The Other Guy Goes Under.
It stated in every crises and every calamity there is a window of opportunity to win and win big. I love winning and know that whatever happens, just position yourself to provide the running herd a direction to you and your concepts and opportunities. Give them an answer to there fears and passions and they will shower you with money. Soon the herd will be jumping out of the stock market again and this time after the dust clears the best opportunities will be available to those with wisdom and direction.
Yes for sure we will survive, I know I will.

By the way excessive Red Tape does not prevent crooks from operating, it just prevents honest folk from operating.

Please answer whether your advice to convert most stock holdings into Treasuries still stands. If not what else?

Dear Dr. Martin,

The fall of America will be the 8th wonder of the world. And I dare to say that the US is too big to fall. Of course, we have started a global economy, and nobody knows how it should work.
I dare to say that only after those 9 trillion dollars announced by the government we could have the real crisis.
But a real crisis, will start when the US will have no immigrants. Could this happen? Yes, but hard to believe, in my life. The US will no more have immigrants when another place to attract them will develop, or when the people will have no reason to immigrate. Again, hard to believe. Conclusion: the whole world will change.

Dear Mr Weiss,
I`m writing you from Germany and the financial situation is a bit different for the individual
( social securities …..`).I prefer some gold, gold Etf`s, corporate bonds with short terms, and some stocks. For hegding a knock out put.
Your money and market is so fascinating, but it`s hard to get some American investments
here.
Thank you for all the work you do for this letter .
irmi

I am very concerned that by year end we will be in a very deep depresion, one that will last for 5-6 years. We are also heading for total government control over everything we do and own. I am 63 years old and have never seen such blatant corruption in every part of our Government, starting at the very top. I am very scared for our Country I have written both senators and my congresman many times, but have never received a reply. I am very angry and frustrated. I am at a loss as to what to do except vote for “honest” change in 2010. I only hope it is not too late. This Country has no legitimate leadership.

your advise has been to get out of debt: house, cars, credit cards etc. For 99% of the public that will tend to be very difficult as we have been raised to buy on time, save a portion of our income and make payments on time and to trust the financial system. the jobs are gone, the morality is gone, the character is gone and so is the money. In this economic environment is it impossible for the average person to stay solvent. Any one with a 401k has been ripped off by the system they trusted, now they have nothing to invest with. we all do not have hundreds of thousands of dollars to invest. the nation is broke. people are not stupid they are ignorant and uneducated about money. Ask 20 people who owns the fed and 19 of them will say we do or the government. Until the population understands money a recovery will be difficult.

Martin, I appreciated your June 2 letter and forwarded it to my 150 or so friends thusly:

“Hello All,

Martin Weiss’ father was a successful investor/advisor dating back into the 1920’s & 30’s. Martin picked up the baton in the 50’s-60s. For years he has issued a very respected service, rating insurance companies and banks, along with market advisory products. I have subscribed to his service since the late 90’s.

Currently he has an actual one million dollar account, “The Million-Dollar Contrarian Portfolio”, as a model that subscribers may follow. It is administered by a noted German advisor, Claus Vogt.

Please scroll down for a brief communication he sent today that reflects reality in the midst of a current wide-spread false optimism.

Most of you, on my “e-mail list”, honor the God of the Bible, who wrote of these very troubled days to preceed His Son’s return to this planet to straighten things out!

Martin’s appraisal should cause us to pray and take what action we can to preserve our “plunging dollar”, defined, nest-eggs for sensible, administered, investment in His/our heavenly storehouse!
Speed the Day!
2 Peter 3:11-12, Duane G.

P.S. You may click here for a current picture of your “dollar”!”

Interest rates will have to increase due to massive amounts of dollars being pumped into our country.
The people runing our major corporations were taught at Harvard and other business schools to increase their prices based on the forward assumed inflation rate so they can earn money in real dollars. They will atill try to do this even in a market environment where the demand is significantly less. some will be bankrupt.

We must all write to our congressmen to stop this nonsense of bailing out failed banks and businesses that are not capable of using our tax money to recover. We should not help those that caused this problem and continue to bleed our money system.

We need to ask congress tro stop this nonstop effort by the exective branch to put us so far in debt that we can never hope to recover.
I vote for investing in Agriculture, food, precious metals and key industrial commodities like copper.
We need to fire the Federal Reserve. They are not in our government anywy and they primarily serve big money interests. Who has received all of the stimulus money?
When do we get an acounting of these funds?

Hi Martin. I am not sure if you subscribe to the Kondratieff cycle but I feel that there is a good deal of truth in this theory. Simply put, according to this theory, after 70 or so years since the last winter (depression) we are once again in winter and the investment of the moment is gold, but in particular junior gold mining stocks. I take the view that the oil/gold relationship that seemed to drift apart over the past few months is likely to be back with a vengance, seeing both commodities move higher. I would be interested in your comments on this. Kind regards, James

Hi Martin, Claus and Friends,
I would like to start by saying it’s about time! Inefficient giants have been ravaging public funds for years. And we all know, that NO bailout money should have been forwarded to any of these Car Companies or Banks without some very obvious list of changes to infrastructure and operations, enough said!

I am very interested in the possibility of making money with commodities, precious metals, oil and gas, etc. But Every time I hope to make 20-30% gains on a stock in USD, the very real possibility that I will lose ground on a depreciating USD now looms large? Which means I might need to make minimum 50% profit on each investment to reduce this risk, but that doesn’t seem realistic?

Thanks Michael
(Vancouver)

You are my most trusted source of financial common sense in these increasingly destabilizing economic times. Thanks for all you are doing!

I do not believe the question of America’s survival is in our hands but I do believe that our elected leaders’ moral character and therefore decisions they make will be pivitol in our immediate future. If knowledge is power than it follows that lack of knowledge breeds powerlessness. When we see the incredibly self-serving moves our leaders are making, virtually spitting in the face of informed decisions and common sense, we have only ourselves (collectively speaking) to blame. I believe the current administration gained office by appealing to the self-serving interests of the masses - basically their greed and penchant for government handouts. In this country we generally get what we want in terms of the government. So we have voted ourselves into impotence.

I think the lightning strike of the debt crisis last fall was the shockwave that started an avalanche. It was given a push down the mountain by President Bush and with the coronation of Obama the slope of the mountain has increased an order of magnitude. I for one do not intend to get buried by this avalanche. I so appreciate your urgent clairion call to get our money to safety. As of yeasterday I could take no more sleepless nights and have moved all my retirement accounts to what you have said is the safest investment - T-Bill money market accounts. I plan on sleeping well as the avalanche gains momentum and pray I can stay at least one step ahead of the coming inflationary devastation. I have also gotten completely out of debt and have reduced discretionary spending to the minimum. I can do no more. Thanks for being the voice of reason in these troubled times!

Will America Survive?

As with Greece and Rome, history is due to repeat itself. The American Economy as we know it will change. But the spirit of America will live on! America is only a thought in our minds and in our hearts. Whatever happens in the future, only God knows. Don’t be afraid of what the future holds. As Americans we will never give up, and we will never surrender.

Hi, thanks so much for your prior report on the 100 safest n most dangerous banks. With the GM failure I worry how that effects our banks and specifically whether JP Morgan and/or CitiBank will fail. I echo you, I believe in not expecting BOA to fail. Any comments ?

Bush/Obama & whoever the next crook is that we elect, are one in the same, make no mistake about it. A politician is a politician, and they are all (or 99%) corrupt. It is all about money & power - no matter what country you live in.

With regard to investments, my position is get out of the U.S. dollar while you still have one. Our government is purposely debasing the dollar. Get into gold, the only investment that has REAL value. Get into foreign stocks that are high dividend paying stocks. The next bubble or bubbles may possibly be dollar-denominated cash assets and U.S. bonds. I read an article from an online foreign newspaper recently that stated the U.S. is at best going to resemble the Weimar Republic or at worst, Zimbabwe. I tend to believe this due to all of the fiat money our government is printing. The U.S. may survive this economic tornado, but we will be VERY different when the dust settles. Our children & grandchildren will NOT know what the real America was like. They will have a new reality & will be fascinated by our stories of things like free speech, respecting the individual, and the crazy notion of life, liberty, & the pursuit of happiness.

I appreciate all of your advice, but as a 40 year old resident of Michigan, and barely keeping my job, I’m resigned to the fact that retirement investing may be to no avail. We are all pretty much wiped out in this state, property values are worthless, people leaving in droves, no jobs, gun and ammunition sales are on fire. My retirement will basically be when I die….what little is left the kids will fight over. As for Social Security…its a pipe dream for people my age, we will have to work forever. Get ready for socialism…

The ruling elite control us all via the banking system. As I see it, they are not about
to relinquish that control. They will do anything they have to (including trashing of
currencies) to fix the leaks in our ship of state , and I believe they will keep us afloat.
What America will be like after their operations is anybody’s guess.

I have my escape plan in place. I am one of the fortuante ones. I own 2 properties outright in Brasil with my beautiful wife and lots of precious metals. I’ve been accumulating gold bullion since 2003 and most of it is outside of this country. My gold CANNOT be confiscated which I am sure is coming in the future. When the lights turn out in the good ole USA, the mantra will be, “I got mine, did you get yours?” Sad but true.

Dear Martin,
Do you still feel T-Bills are the best place for cash to be placed?
It does not seem the Gov. is too reliable or depndable at the present time.

Thanks , Jim

I am afraid America is being sold out to foreign countrys. Selling Chrsler to Italy etc and getting in debt to foreign countrys. They will soon own America.

in my opinion the thing to do is to let the market handle the break downs of any and all companys. if there is no interferance from the federal government, the market will began to fix itself and we will start to recover that much sooner.

I have seen your dialogue on short term deflation and long term inflation and dont really understand how this and the devalueing of the dollar all fit together or maybe its when they fit together. The most frustrating is how does Washington think we can pay off debt by borrowing. Taxes will have to increase or have a federal sales tax on everything that will be higher cost and have nothing left in purchasing power. Will the conversion of the dollar into the yaun do anything to pay off the debt.?

America will survive but in very different form. The next great depression is a given, but I am more concerned about the proliferation of nuclear weapons and our inability to stop it. Though we worry about terrorism, our retreat from the world militarily has horrific imlications. Our military leaders have yet to speak up on this matter as opposed to overseeing the gradual dissapation of our armed forces.

Frightening indeed.

Ray

Because of our U.S. Constitution, Bill of Rights, Congressional balance of power, our natural resources, our acknowledged worldwide know how and our past history of being able to overcome whatever comes along, I have the belief that the United States will survive and prosper …… although not in the near future. Until our President and the forces in our country begin to recognize the need for quality and integrity in all things, the light at the end of the tunnel will continue to remain invisible.

I have joined with you in you Contrarian Portfolio until I see the light in the tunnel.

On the dollar versus gold

GOLD THE US DOLLAR

ALWAYS HAS INTRINSIC VALUE JUST A FANCY PIECE OF PAPER
IT BACKS CURRENCIES IT BACKS NOTHING EXCEPT CREDIT LINES
HAS NEVER GONE TO ZERO ALWAYS GOES TO ZERO
SAFE HAVEN IN BAD TIMES YOUR KIDDING,,RIGHT?
CAN’T BE MANIPULATED MANIPULATED EVERYDAY BY THE GOV.
CHINA IS BUYING CHINA IS SELLING OR SOON WILL BE
JAPAN IS BUYING JAPAN IS SELLING OR SOON WILL BE
CAN BE TRADED WORLDWIDE YOU’RE KIDDING….RIGHT?
ULTIMATE RESERVE CURRENCY NOT FOR VERY MUCH LONGER

By the way, if you think our economy is bad now, just wait til the US dollar loses it’s reserve currency status. Take Care.

What would happen if someone (say Mr.Sorros, or some other person) decided to create a new currency backed by gold, or some other commodity? Of course only governments are currently allowed to print money but if confidence in the $ fell precipitously then I would expect that there would be very little they could do to stop such a process. When people are pushing round wheelbarrows full of $ notes & theives steal the wheelbarrows & leave the notes then such a new currency may take off? What do you think?

The world - not just the US - is restructuring and I do not believe any nation will come out of this rough financial period without significant change. The nations that increase debt to ’solve’ a debt-created problem will most likely come out weaker. Too much debt, be it on a personal, corporate, municipal, state or federal basis is always a harbinger of future weakness or collapse. This story has been played out enough times for all of us to have witnessed its result. The only real question is what is ‘too much debt’ in a given situation.

The US government appears to believe that it has been backed into a corner and sees only one ’solution’. This solution is the problem just moved up the scale (ie trying to solve a debt crisis at the personal and corporate level by creating more debt at the federal level). However, federal debt IS ultimately a personal and corporate problem - the main concern is that it weakens everyone instead of just a few. This does not add financial strength to a nation. That is the unfortunate consequence of where the US is now headed. There is still hope that it may change course.

Perhaps collapse is necessary in some form for a meaningful restructuring to take place. I do not believe any person, corporation or government can spend its way out of a structural problem. We shall see.

No real surprise with the GM’s demise. They started on this road back in the 70’s when they started going against the grain of what people want and legislation that followed asking for better mileage in autos. They resisted all the way until yesterday!
GOOD BY GM, hello Government Motors..Unfortunately we don’t have a say in what they build…copy Toyota, like you should have 30 years ago!
Thank you GM for adding to the demand for oil guzzlers and ultimately ruining this great country. Thank you GM for helping cause the latest wars and contributing to the thousands of young US service people.
Now Hummer will be sold to the Chinese, great…more transfer of military technology.
Where does that leave us now…will the new GM be worth investing in or like so many that have had bailouts just go belly up again.
Should we invest in China and forget about the US??
thanks

Mr Weiss - I am a long time follower of yours, bought your recent book. I trust what you say. My husband is more wishy/washy. At my urging he moved his 401 into save harbor, but with the upswing of the stock market, then yesterdays jump, even with GM filing…he is ready to hop back in. Please help, How do I explain this to my husband?

Heard some place that Einstein was quoted as saying, “The 2 most common things in this world is hydrogen and stupidity”. This last election helped prove that saying one more time. As a School psychologist I know that intelligence is the basis of all actions, especially when you recognize that you can make people dumb, but you can’t make them smart. What’s all that got to do with the premise we’re dealing with in the market? Everything, We just got a lot more dumb people around than smart ones, and as long as they got the same vote, without the same ambitions - we’re doomed. The sad thing about this all is - people are people regardless of where you go, so there’s no getting away from it all. Let the market go up - buy the inverse ETF’s make some money and then go fishing. Chaos WILL reign. Larry, you’re one of the smart ones!

I feel our nation is in dire danger. There is a Sataic movement trying to destroy our beautiful country. Glen Beck on Fox News has been trying to unite those of us who know this. I pray that soon people will wake up and listen.

Most people are not aware that the Federal Reserve Bank is not owned by our government but that most of the less than 10 owners are European! Those people have made millions the last few months while others are losing their jobs!! We, as americans, must unite to protect our country! Only GOD can defeat the devil. We must turn to GOD for his help!

Believe me, I am not a finatic, but am an american who feels so blessed to have been born in this great country. I hope you will lend your hand to help save our country!
God Bless,
Sandra Martin

I hold about 50% in treas.bills and notes, 30% in reverse etfs,and 20% in gold and gold mining stocks.

Will America Survive?

Of course it will.

While countries like companies can go broke, they can not be wound up and cease to exist. The US will survive and the real question is what will life be like in the America of tomorrow?

Well, not unlike the way life will be in the other developed nations. Unlike the crippling inflation in Germany in the 1930’s the USA is not alone in the world facing the fact that the country is financially broke and it’s citizens will have to change their view of the future

Many Things will change and here are my thoughts on some of them: -
1. The power of the political lobby will reduce.
2. The power of trades unions will reduce
3. The power of special interest groups will reduce
4. Fervent Nationalism will resurface with both positive and negative aspects.
5. Patriotism and self interest will influence personal and political agendas.
6. Good old fashioned values of hard work thrift will re-emerge.
7. International corporations will become an even bigger threat to the sovereignty governments.
8. Weaker Governments will lead to more local conflicts.
9. People will stop looking to government to resolve personal issues. The “I want it all and I want it now” syndrome will disappear.
10. We will all learn to be grateful for less.
11. More families will have to have more than one adult working to survive.
12. Education will be more important in a jobless society.
13. There will be a backlash against immigrant workers who will be seen as taking American Jobs.
14. A more Xenophobic population will emerge
15. More extreme religious groups will emerge
16. Crime will increase.
17. All aspects of law enforcement will be stretched to the limit.
18. Local Corruption will become more prevalent.
19. The gap between the “haves” and the “have nots” will increase.
20. Governance will become more inward looking
21. Resurgence of self sufficiency as a goal for the country.
22. International Goals like “Reduce Global Warming” will be put on hold.
23. Space exploration and technological advancements will slow.
24. Funding for pure research will disappear.
25. There black market in anything and everything.

Let’s get all this Democrats and present Administration OUT and send them same place else. They all should serve only two terms: one in office and the second one in jail.! ! !

FIRST - T H A N K Y O U so much for this venue !!! Read all above comments with great interest. Your messages and and your SAFE MONEY publications have tremendously enlightened those with open minds to see beyond the mainstream media messages. Your message is truly “REAL” - that is, see what is based on the facts you well reference; and then be ready for what’s coming based on historic references that clearly shout, “economic decisions have consequences.” This I do not think is Negative as some above have expressed. Your advice is well taken to sell stocks now on bear market rallies. This latest 2000 point rally from the early March, 2009 lows is so obviously orchestrated since the fundamentals are all in conflict with an up market. Your advice is well taken to buy only 3 and 6 month Treasury bills and avoid bonds so as not to lock into a lower coupon rate which will lead to declines as prices will go below bond face value. You have prepared us well to protect principal and be ready to receive the eventual higher interest rates that the global investment community will demand on our debt.

Yes, I agree debt brought down GM and debt is and will for some time be bringing down America - but will not bring down Americans. In a Democracy even though we have a representative democracy we Americans will restore America. We do NEED TO VOTE and make each one of our voices heard to our Representatives and Senators in Congress. Basic civics lesson: the President proposes but the Congress disposes.

I’m glad I’m in complete safety at the moment. I, for the life of me, can’t imagine how the markets can be so UP on the day GM goes belly. Can someone, please someone, explain that to me????
Signed,
Clearly uneducated investor

We are a small holding company comprised of various investments and have been in business since 1975. We’ ve not seen anything like this. There is no where to turn for income and appreciation.

hi, martin–we will survive, but america might well be just a teensy bit different than we are used to! or maybe a whole lot different!!!!! i’m just a bit less pessimistic than are you–maybe somewhat more hopefull would be better. we are in deep do do–all capitalistic societies which have the kind of debt that we have are in the do do along with us–many more than us. what will happen to the dollar? god knows. should be buy the canadian dollar etf? australian?? or how about the brazilian real??? maybe even the philippine peso??? where will it end? gene

LET THE REVOLUTION BEGIN.

Start a new holiday. Beat the crap out of a bankster day. Make THEM afraid to walk the streets. Make them shake in their shoes at the idea that they can make unrelated parties take the fall$$ for their misdeeds.

The USA faces huge challenges, yet remember we are the innovator of modern capitalism. The strength of our citizenry resides in our resilience and ability to adapt our way out of difficulties. Our nation has always risen to challenges extremely well. Our work ethic is still one of the highest. After having traveled and seen how some other cultures think about work, I believe it is a mistake to bet against America. Our spirit and creativity is unmatched, the world over. China will give the USA a run for its money, to be sure. But I don’t know how many other nations will.

I am invested about 1/3 in gold and the rest in conventional stocks, some of which are ETFs in Chinese growth companies, others are in green tech.

I’d say the US (and other nations in sympathy) are setting the conditions for bull run in commodities such as oil and especially the precious metals. We haven’t had any interest in gold or silver for a full generation. Most investors today haven’t experienced the 60’s and 70’s rise in inflation. Real estate and tech have run their course. The next bubble will be somewhere no one is expecting right now. Once all this money printing and inflation hits the broad public’s mind, my guess it will be a repeat of 40 years ago.

Basic logic precludes that going from 16m to 10m a year results in a 40% drop in not only car sales but also the parts that go into them. It looks that when our new order closes thousands of dealerships and when all the parts suppliers tank or downsize we could probably have at least another 100k unemployed. Tie this to the shadow housing market and the upcoming commercial RE market melt down I find it hard to see green shoots. The only green I see is that touted by the banking sector as they jury rig the books to turn toxic assets into paper profits. Get real, the other shoes has not fallen yet and please tell me where those 3 m new jobs are. The green shoots are black in my hood.

how can the U.S. A. go broke ? they have 8000 + tonnes of GOLD. CONVERT THAT TO MQNEY.

dear martin, how america has become a land of bankrupt persons and corporates when people like you are living, why don’t you sue persons like allen greenpan

Because (I guess) we can have deflation in our future I am 50% cash in an A- bank,and my brokerage account. and because I believe that we will have hypeflation by the 4h qtr. the other half is physical gold and silver eagles. 5% of my cash is not in the bank.
Do you think I should do differently?
Regards: RAY

Martin,
I’ve followed your recommendations for several years now and been able to ‘weather the storm’ thus far. With the U.S. economy continuing to tumble I’ve found several bright spots in Asia - many involving commodities. Irregardless of what our President and Mr. Bernanke keep telling us, things are going to get a lot worse before they turn the corner and true recovery begins. I also believe that the “green energy” recovery is necessary but no where near the “quick fix” many folks believe it to be. Oil and natural gas will undoubtedly remain the primary sources of energy for many years to come and I’m betting on DXO and UNG as long-term vehicles to get us through the mess we’re currently in.

Jon

Dear D. Weiss, Many of my friends and business associates are losing hope, homes and long time family businesses including attorneys, dentist, car dealers, retailers, etc.,etc. Most of the banks are treating their longtime customers as enemies and loans are impossible to comeby. Many have discussed with me that their financial cushion might last another 6 to 9 months. Truly I have always prided myself in solving my financail problems overthe past 35 years but it appears that all levels of government are working against their citizens and compounding the crisis thereby eliminating my attempt to help myself. It appears that most folks are living in a dream world as to the seriousness of this finanical dilemma. I receive a daily email from a free site called Patriot Post which gives great insite to the beliefs, intelligence and hopes of our forefathers. I truly believe that the level of statesmanship, honesty, intergity, etc. of almost all our present elected leadership from local to federal is noway near the level of our forefathers. This situation is mostly due to apathy and major interference from the media with critism directed towards those who have the qualities mentioned who might would lead this country but refuse to be involved. May God give those of us that care the insight to protect and defend this wonderful country.

I don’t see a recovery anytime soon. I think the banking industry is in serious trouble, and I don’t think our children should bear the burden of irresponsible government. My heart goes out to all citizens who have worked hard their entire life only to be left short changed by our so called leaders. GM will recover with time as a much leaner corporation,with new technology and a place in our future.

“Will US survive ?” Yes it will. But our future is probably similar to the track taken by Great Britain after WWII - more of the population wants socialism or a socialist leaning government - so = declining industries due to expensive regulatory compliance, increasing taxes, more government in all areas of life, less personal freedoms —- a nanny state.

Cynde and I believe the dollar is headed to zero value. We also believe that precious metals, copper, nickel and foreign currencies may be options. China is looking forward to buying tons and tons of copper for it exploding ‘modernization’ plan. We are looking at land out of the city and building a house as fast as possible (partially underground) with food storage before all *&^% breaks lose, using some of our dollars before they lose their value completely. We need a way to generate something of value to just pay the taxes. This government buyout is fascism. They are trying to usurp all water rights, giving huge parcels of our land to the U.N. and next will be the North American Union. Finally - the new currency for this union. Thousands more will be out of work, if not millions. They are undermining the constitution. Next is population control….in any way they can achieve it. You have offered us a way to capitalize on this terrible situation, and we thank God for that - but in the end, they will take everything away.

Bill

Gold, silver and oil.
Survival time is just beginning.

Martin,really sir I don’t know which way the economy is going and or whether G.M goes down and never comes back,the lession in their case is their foresight or lack of.Their design people must have noticed over the last two decades what and why people have been buying more japanese/korean vehicles and their market share was dwindling.This actually goes for all american vehicle makers,this has been on the horizon for many years ,it hasn’t just happened.You stay in business by making what sells,simple really.It took me two years of looking before I decided to replace my large car and buy an all wheel drive vehicle that didn’t handle like an APC, I looked at every domestic maker with no success, I really tried hard not to buy foreign but it came down to german or japanese.If G.M ever does raise it’s head again I hope for the peoples sake they bother to take into consideration what the future holds and what others are doing…….Des

I believe that the end game is for the US to be folded into a World Government, Economic authority and military, and the currency will be debased by at least 100 fold if not more. This will occur within the next 2 years or prehaps over the next 10 years. The US will exist in a sense, but not the US we all know and loved for years. There is no totally safe anything. It might be smart to hedge with commodities and gold, buy a farm and become as self sufficient as possible, join with other like minded individuals and create your own informal government by and for the people. Resist fiercely all and any attempts at a World Government and Economic Authority. It will be the biggest mistake possible for eternity.

Dr. Weiss:

I value your comments about the economy, but the market is currently on a bull run. We don’t know how long this will continue, but its been advantageous to play the long side, with, of course, some caution. Do you use any technical analysis in forming your outlook?

Thanks,
Al

Martin,

All of this is unchartered ground for most of us and the building fear as to truly what to do with any money that we do have is getting to be an overwhelming fear. Personally I cannot believe how so many companies and institutions have, I guess, run their businesses so poorly. What ever happened to the “basics” of income vs expenses?
What happened with your / our petition that you were taking to Washington? Did you get an audience with anyone with any kind of political influence? Please let us know that status!
On the personal side, I know your company has investment opps which are great. For me and many others I am sure that committing funds that are required in those programs is as scary as the current crisis… so what should / could we be doing with any of the monies we do have? I don’t even feel good with my current banking relationship in paying my bills. I am fearful that ANY bank could be in the news at the drop of a hat so where do we turn for the basics of everyday life with our finances? Do we keep all in cash, not even invested in short-term treasuries etc and keep the cash “under the mattress”?
As my father used to say… “its pretty hard to remember that your objective was to clean the swamp when the alligators are biting at your ***!
Thank you for any good basic help and here’s to some more optimism returning to it all!

Visiting Walmart today all we saw was spanish speaking minorities and other welfare recipients . Add these people and others receiving government assistance or income of one form or another and what do you have left ? There is no question that this country is in a world of hurt and only a question of time before this country collapse’s !
In 1959 when I started my business I told my wife how wonderful it would be to some day retire and make $100 a week ! Do I need to say more ? prayers to all working people . Paul

If you and I (and numerous others) recognize the impending economic disaster coming if our government stays on its present course, how come the so-called “best and the brightest” (including Obama) don’t seem to recognize that the light at the end of the tunnel is an oncoming train? How can we stop the insanity and encourage a change in course?

Martin,

Everyone has an opinion including me! My hopes are that our country make good decsions moving forward. If we rely on our short term history we’re in trouble. What I need to do is protect my family which includes protecting the capital I still have. I read most articles from Money and Markets which I find extremely stimulating. My recent investment strategy include precious metals, basic materials, energy and foreign markets; all currenlty producing positive growth. I plan to stay this path paying close attention to changes in the market. I have considered Inverse ETF, but not yet at this time. I will be listening June 3rd “Weiss Management” Webcast which I hope will give my a better understanding of things to come. The one and most important strategy that has benefited my most is to make sure I maintain a strong cash position relative to my portfolio. Thank you!

I want to comment of my more dramatic prediction that our economy will totally collapse by NLT late 2010 resulting in riots and eventual anarchy. When this happens, IMO, Obama will declare a national emergency thus “temporarly” suspending the Constitution and resulting in martial law.

I 100% appreciate your investment philosophy. I have too questions:

1. Is getting a Reverse Mortgage on my home an alternative I should seriously look at? The objective would be to have a fall back place to borrow money only IF needed but really to hopefully never draw against the allowable equity? Or would it make more sense simply to take out a line of credit on my home as a “fall back position.” The major difference I see is that with the former, if I draw against my equity, I don’t have any monhtly requirement to pay on the loan but wait to pay when home is sold.

2. IMO, we who love our Constitutional Republic and a true free market system have no chance of winning either of these through the normal political process. I will share with you how I arrived at this conclusion during 2008.

It seems to me that our only hope is to form Local Homeland Secuirty Units in every USA County, working directly under or with Sheriffs. The long term mission would be to retosre our Constitutional Republic, with short term goals of letting the PTB in DC KNOW that We the People are ready to resist them in a meaningful way if they attempt to (1) confiscate our ammunition/guns and attempt to take we “radical” free market/Constitutionalists into “protective custody because we are potential terrorists” and plasce us in one of the numerous, well documented FEMA Reeducation/Retention Centers.

IMO, unless there are 3-4 million folks ready to use force if necessary to keep our liberties, it makes little difference how effective your investment stratgies are. In fact, I could make a strong case that you are UNPATRIOTIC given your recommendations to buy foreign bonds, no American Treasuries/Long Term Bonds, get out of dollar denominated investments, and even buy gold/silver and other metals. IMO, you and your great collegues will be in great danger of being on the top list of those neededing “reeducation.”

Your thoughts on this?

Doug
2.

Physical silver is the way to go.

Geesh, with all the bailouts, the Fed’s printing out all that worthless money day and night, American companies closing up shop, all the unemployment, etc…. why would anyone think that they would be investing in anything American? Are there really that many American companies left here, and what’s left is owned by the Government? It seems that only the foreign companies in America are immune to failure?

Solution? Investments in precious metals, Swiss Francs (FXF) and the Canadian dollar (FXC).

WE HAVE GIVEN TO MUCH MONEY TO BANKS WITHOUT ANY REGULATION. GM, CHRSLER,AND FORD HAS BEEN THE LIFE BLOOD OF THE USA.

i suspect the g.m. bankruptcy is similar to the fall of saigon in 1975. it portends structural changes in the economy and society that are more than a secular bear market.
it is similar to the problems in health care. everyone needs a car and a doctor, resources are lost in finding them and much life is wasted. can we afford these loses?
t. parker,m.d.

In reference to the debt that the Obama administration is building I believe it is absolutely an act of financial suicide. Government money is one-sided in that it does not come from a demand for goods from a profit based source that can generate jobs and product. Government money comes from taxes and taxes do not generate jobs or a product that can be sold at a profit to generate and support jobs, pension and health plans, and capital for company growth. It’s really that simple. The thought that taxes can be used as a “stimulus” is simple minded, foolish, and very, very dangerous. Perhaps the goal of the administration is a covert attempt to bankrupt the nation so that taxes can be levied at extremely high rates giving the government complete control. This is certainly where all of this financial foolishness is headed so is it by incompetence or design? Either way there is only a very short time left to stop this runaway financial mess before it cannot be turned around. Hopefully the American public will recognize the dire consequences of this administrations actions and truncate its power base in the upcoming senatorial races.

My biggest concern is that I don’t want to lose anymore of my hard earned money. Do I bite the bullet and take my money out of my IRA now and bury it in my backyard? or do I roll it over into a gold IRA? Silver? Coins? Copper? What do we do to keep what we have left? By guns and bullets and barter with them? Help!! I’ve heard that even gold will be worthless, is this true?

I am trying to do my part to “wake up” America to our 80 plus years of socialism. Some people are listening. But now I am asked the question “What can I do to take my country back”? How can I stop the politicians (Democrats and Republicans) from destroying our country with their spending programs? There are many apathetic voters because it seems that activist groups and lobby groups are running the show. Working people like my wife and I have their paychecks taxed and pay sneaky fees placed on phone, cable and other bills - all in the name of “This is good for America and good for the People”. Please give me some insight on what to do to stop the gov’t spending programs and force the gov’t to live within its means.

I believe that the US government is headed for complete collapse. The government’s spending spree will lead to devaluation of the dollar. This in turned can lead to starvation, rationing, crime sprees. Is it to late to turn this around?

The president is talking about socializing healthcare. We cannot afford this! He is talking about raising taxes! Isn’t that the worse thing you can do during a recession/depression??

During the Great Depression people lived on farms. They knew how to feed themselves off the land. This generation does not know how to do without a grocery stores.

I find it incredible that the market has baked into it the GM bankruptcy. Or has it? The market has not fully felt the impact of the unemployment that will result with the bankruptcy not to mention the negative impact on GM retirees with their pensions and healthcare resulting in considerably less disposable income for those people.

I have been saying for a couple of years that this country is like a loaded freight train that is headed at a marble mountain, and the people at the controls will argue over who has the right to pull the brakes until the collision happens. When I look at the condition of this country as a whole, I suspect we’re very close to a collision.

I’ve calls on TBT-Long on GLD- Sept calls on DIA. I need more timing insight on the
new currency. What timing signs should we be lookiing for?

I believe that you have hit the nose on the head. Awhile back you recommended putting cash into Treasury bills, which I have started doing–I hope that I heard you right, since t-bonds seem to be in no-wheres-ville–Don

Good day Martin;

Ok try this on for size….the US $ gets devalued, high end manufacturing returns to the US, the US exports become more competative and the US exports their way out of this mess.

Joseph

Hi,
If Japan and Germany made it after WWII, I am sure US can get up and run again, with its best asset educated, research oriented and entrepreneur minded people.
Important thing is to look where you made a mistake and not to repeat it.

The question really is how deep US economy will fall before realizing that old ways don’t work anymore. US created a global new economy, geometrically growing based on consumption increase. The big problem today is the more waste we produce, is better we are financially as a whole.
Environmental impact became a real problem..I for example imported 30Cent USD toys from Europe, Europeans received them all the way from China, then they came to Turkey, Than I distributed them, a kids parent bought it from a vending machine and children played with it for a few minutes and down it goes to waste… OK we all made money and wealth on it but at the cost of polluting our world only…The more we succeed, the more we all pollute.
Similarly electric cars were around for decades but which government will accept to live without the tax they receive from gas sales.? In Turkey 1/3 of all tax collected is from cars and gas related sales.
I am personally very happy this current global crisis happened as we gave the world a pollution brake for a few months, maybe years..
My point is even if this economic system recovers, it is not sustainable at the cost of our biggest and only real physical investment ….A breathable WORLD.

I also want to share an excellent joke about debt driven economy with you:
A rich Russian arrives to a Town Hotel. Wants to check and see the rooms first..leaves a 100USD at the desk and goes upstairs… The hotel owner quickly picks the 100 USD and pays the butcher what he owes…Butcher pays the grocer, grocer pays money he owes to hooker, and hooker takes the 100 USD bill and pays the hotel manager what she owes for a room…
Russian comes down and says he will not stay at the hotel and gets his 100 USD back and leaves the town… But everyone is happy as they all paid their debts…
Does this town sound familiar??

Hello Martin:

I listen to a LOT of US radio, and see a lot of US news. I feel so helpless, because I want to help. Your Money and Markets, are the first I read each day; I have tremendous respect for you and your firm. I no longer have funds in any markets, but now only in term Dreposits with Credit Unions.

It’s as if I’m watching an ongoing afternoon “Soap Opera”. My common sense has always seen me through, and my opinion is a dire dilema ahead.

I thank for opportunity to make a comment…. the fact is this counrty is lost and is already bankrupt….. We have very limit options as a people and a country, and very little time to turn things around…which saddens me deeply for all my countrymen.

Dr. Weiss,

I was thrilled to see you on the Glenn Beck show last night! Glenn and his audience need to read your new book. I think they would better understand the “craziness”,
as Glenn puts it. I hope they give you more air time having you back in the near future. I will email Glenn next! Keep up the good work! You were great!
I personally am investing in ETF’s. Your book has been a great help to me. Thank You!

I’m very concerned as a Senior Citizen that there will be no Social Security or Medicare for any of us that are on these two programs now. I am disabled, have a handicapped daughter, and my husband is retired. We can we expect in the coming weeks, months, and years. We are concerned that we and everyone else that are in the same boat as we are in will be in the soup line within the next year. We do have a little 401K but it is in an annunity and can’t be taken out for 1 1/2 yrs. but we feel with all these years of paying for Social Security and all the other things we paid for that we would be taken care of the rest of our life. We want to know when Medicare and Social Security will be reviewed and fixed like everything else needs to be done. The people in the USA have gone to Hell in a Handbasket. Obama and his cohorts including some Republicans are nothing but (Left Wing Radical Muslim Communist). Obama is trying to take the US to the bottom of the barrel and will not stop until it is done unless we as Americans stand up to him and his evil scoundrels. More TEA PARTIES and more standing up to the Governors and Senators of our state and at the White House.

Martin-
1. Will America survive? Yes, but not as we have known it.
2. Rising interest rates and money-printing will negatively impact my income when people get so scared they stop spending on all but food, clothing & shelter. I’m almost all in gold/silver & short t-bills so that has best chance of weathering the coming storm.
3. Investments I expect to spin off profits next are gold & silver, metals stocks and companies with strong balance sheets that own assets you can touch in inflationary times, including oil & gas stocks.
I am keeping it simple, living cheaply,and preparing for hard times. We have gone soft as a nation to the point of following a demagogue over the cliff…

I am 87 yrs old so do not worry about future investments. I have counseled my two boys though to buy gold/silver and emerging nations stocks. I also like microsoft long! Study and observation of current events will help investors of future!

I admire your research and if younger would subscribe.

L.Averill

should i keep my currency in U.S dollars or convert to other currencies say the canadian dollar

Martin,

I was born in 1934, the son of a US Army Air Corp three striper, who enlisted in 1928, when he didn’t know where breakfast was coming from that morning. He retired 30 years later as a colonel with a Command Pilot rating, after which he worked as a stockbroker long enough to put together a solidly profitable portfolio of municipal bonds. Those years were America at its best.

I grieve for America’s future. I am a committed Christian believer and Bible student. I have witnessed the prophetic return of the Jewish people to their homeland, and have spent some time there. I recently finished my third reading of the Bible, concentrating on the prophecies now being fulfilled in Israel. The enemies of Israel in the prophsied battle of Armageddon are easily identifiable by anyone familiar with the history of Israel. The U.S. was a major benefactor of Israel from 1948 to very recent times. Obama and Clinton are rapidly erasing that relationship. I have searched diligently for any mention of the U.S. in their future, and found none. And now Pravda, with accuracy, is ridiculing us for our rapid left turn into socialism.

For the last eight months my investments have consisted entirely in precious metals, rare coins and mining stocks.

4 oz. of gold for a 100k portfolio ain’t nothing. should be at least 10. today GM, tomorrow, America. goodbye U.S.A.

I just read Nick Guarino’s multi-page article which states that gold is about to crash to
$300.00 by 2010. He states that housing, autos, and many other consumer items are cheap and getting cheaper as the current depression deepens. Also, there is little chance for inflation in this environment. Do you agree/disagree? Thank you.

I’m heavy on precious metals looking for high inflation which will be provided by our president and his gang of fools.
As subscriber to Safe Money all I can say is I wish everyone did. Thanks

Welcome to the NWO,
Constitutional America was the last speed bump on the road to world government and it is now being taken apart piece by piece. The unconstitutional “Federal” Reserve Bank has over time bled America white, and now wants to become the “World Bank”.
As long as Congress is in session no one’s life,liberty or property is safe!
This phrase has more truth today than ever before.

Support Ron Paul’s HR 1207 (with 179 co sponsers) to audit the Fed, & expose it’s role in this criminal take-down!

Gold/silver has always been valuable.
Fiat currency, in time, will always become worthless.

Dear Martin,
I expect America to survive even its government!
Specifically, I expect certain sectors to do very well.
Namely, agricultural products and supplies, energy and drillers etc., precious metals (gold, silver, platinum, and uranium), WATER, and eventually good farm land.
The banks, brokerages, and other cheaters will suffer some big setbacks. At least, I hope they will.
There will be exceptions. Wells Fargo will do well. Annaly.
Retailers that sell cheap like Costco, Walmart, Kmart, Dollar Stores will do well.
Chocolate makers and booze distillers should do well. Same with tobacco sad to say.
Big and little bakers and grain deals should do fine.
BUT
all bets are off if our money fails…meaning hyperinflation becomes rampant.
With no means of transaction available to replace the dollar America can not survive.
Even a Euro or Yuan or Yen or a basket of currencies is better than a dead dollar.
I understand Obama’s postion. He and his party believe they have a mandate to
save the bastards who caused this mess. Wrong! We all were completely sick of G. W. and his criminal behavior and his secret governing techniques. While Obama is open he is making some wrong moves I fear. I like the guy. But he is bankrupting the Treasury to save industries that need to be in bankruptcy court.
Finally, I see no way that America can survive if it keeps living beyond its means..either individually or as a government. What I do see is the government seizing private assets to pay for public bailouts. I am talking of IRA’s and 40l’s. Don’t think it can’t happen. Think Brazil, Argentina, etc. It can happen. When governments get too desperate they will do anything to survive. Never mind that they caused the situation. They will survive even if private funds don’t.
So.
Gold and Silver and stashes in Switzerland will not survive if Uncle gets desperate.
It is for the greater good. Yeah.
Panama and Austria are beginning to look very inviting.
Your advice from Weiss is only valid if the government does not change the rules.

One last thing: What I see next is that to ’solve this crisis’ we will need a BIG war to put everyone back to work. It worked before with WWII. It worked for a while even with a little war, Iraq and Afghanistan. Will it work with N. Korea and/or Iran?

Keep in mind that we are broke as a nation. What happens if we try to fight a big war with no money or credit? At some point we get defeated big time and have to leave
hundreds of billions in war materials in some far off place. And America is then left unprotected. That is not good. What’s worse is having no way to get our troops home again. Think Dunkirk. Ooops!

All this is just a big theory..based on historical precedents.
What will happen is just a guess.
What I hope will happen is that our government will awaken and see that throwing good money after bad is not good for the country or business.

Aloha, Tom

would you be a seller of irish banks….bank of ireland and allied irish banks

Transformational times. Creditor nations questioning the U.S. Dollar as a reserve currency and /or Americas strength to offer fair value on it’s debt. I have no confidence the Fed isn’t in addition to it’s Q.E. , also purchasing directly or indirectly contracts or derivatives in the equity markets. Politically, traditional alliances are challenged and dangerous olive branches are being offered to adversaries. America is being fundamentally altered under the guise of crisis intervention. World bodies and agencies are going to trump domestic authorities. The IMF, G20, & Creditor Nations will call the shots. Elections have consequences, sometimes catastrophic. I think globalizing ones portfolio and investing in things that hurt when dropped on your foot will outperform. I would also like to understand more how to succeed with currency market investments.

PRECIOUS METALS WILL PROBABLY BE THE COMMODITY THAT WILL PULL AMERICA THROUGH ALTHOUGH WHEN YOU GET DOWN TO IT, THE ONLY THING THAT WE REALLY NEED ARE FOOD AND SHELTER BUT THE METHODS BUY WHICH WE EXCHANGE THE FOOD WOULD PROBABLY BE GOLD AND SILVER EXCEPT IN THE CASE OF BARTERING OR EVEN EXCHANGE FOR GOODS THE GOVERNMENT NEEDS TO GO BACK TO OUR ORIGINAL CURRENCY TYPE WHICH IS GOLD AND SILVER COINS. IT WORKED IN THE PAST AND IT WILL WORK IN THE FUTURE

Folks,
Martin is right. Socialism is wrong. The new administration is clearly practicing socialism in its finest form. See Wikipedia.com and take a look at the definition of socialism and note not the similarity, but the exact roadmap upon which the new administration is relying. You have to own GOLD and SILVER. The equity market bubble will pop. We are witnessing a classic suckers rally that will end at some point, who knows when, but it will end. New lows are in the future and when they come, all the talk of green shoots, a bottom and the end of the recession will end until the next suckers rally. If these were normal recessionary problems, the pundits would be right. The bottom would be in. But this is not an ordinary recession and it is going to last 10 years no matter what they finally decide to call it. Remember, the experts in 2007 said there would be no recession… they were wrong then and the 90% of economists who are predicting the end of the year 2009 as the end of the recession are WRONG… just like they were in 2007. I must be getting old as this is becoming so obvious…

I truly believe we have lost our way as a country. What saddens me most, however, is how few see the freight train coming that will forever alter our way of life. Call it perpetual optimism, call it denial, call it projecting the past into the future - whatever you want to call it, it is sad that so many are so oblivious to change, and by default are letting it happen. God Bless what used to be America.

The only element of our capitalism today that is not relatively dishonest is the entrepeneurial sector. The public companies, major industries and unions cannot compete and make a profit unless they cheat by misrepresentation, lying and stealing. The financial sector is at the acme of this fraudulent pyramid and, oh yes, the government permeates every level of fraud one can imagine.

Hype has worked well in duping a naive and insulated American public but it will not wash - especially in the Far East. More and more we are left with nothing but hype to sell to others and I stand in amazement of the brazen emmissaries we send overseas to peddle our faulty wares. Hype is what we know best.

We have neither the gumption nor the moral fiber to check our excesses or scheming ways. Our dishonesty has become a way of life - economically, socially and politically.
Anyone care to guess where we are headed?

M Merhige Miami, Fl

Martin, you have got me throughly confused. There is all of this negative comentary, then yesterday you come out with buy recs. on two stocks. I am well in the hole with your ETF recs. and you’er now saying you are ready to sell them. How about a better game plan?

We will survive. General Motors will eventually be Ford Buicks, Ford Cadillacs,
etc.etc. Ford is already and happy to compete with G M .
A EXCERCISE IN FUTILITY by Our Government.

Martin:

When do you suppose that Limbough, Hennity, Beck and the rest will finally realize that Obama cares nothing about the USA and is running for the presidency of the world, and have the fortitude to say it?

Dear Martin W., Let us pray, and let us use the Spirit of intelligence to make a difference by doing. 1st by identifying the repairable problems: High Credit demands from Banks and Retail Companies. (Standardized interest and payments must not be forgiven, but paid back with reasonable and honorable agreements.) Think “American”.
2nd, the five day work week: Computers have made work simplification tools. Look at the European vacation. The US has not improved because of greed.
3rd, money: let work and the Social Security Trust fund be the new Dollar Standard by allowing/creating a Credit system to compete with lending institutions: THE Answer!!!

I feel that America will collapse very soon!

Folks it’s all part of the plan, bankrupcy of the US of A. The printing facility in Denver , co. is printing Amero’ as fast as it can go 24/7/365. The money will change to Amero– maybe, just maybe one will receive 50% of the value of the present greenback. All part of the plan for One World government, One World Tax base and reduced population by a conservative 45%. When the money is moved by shipping containers how much more does one need. Just suppose the that a dollar bill is .010 thick, 6.125″ long x 2.625″ wide. stack then 48″ high on te stand shipping pallet 42″ x 48″ . The distance is un-imaginable in length as to our present US debt much less 3.8 billion a day. folks we as a Nation won’t survive. Things are not getting better and if our President has his way, he’s got a big truck headed down hill at high speed, and the “T” at the bottom and no hope of making a turn, strainght into the ditch…. Folks understand it’s not ‘Our President’ the rules, those above are the ones that don’t care about the little man. Those of us the earn the normal yearly wage of$35k to $500k aren’t even on the playing board. Even those earning millions a year aren’t on the board. Forget hanging on, not a happening. Enjoy while you can……..
Coneger

I certainly do not have an extensive grasp of economics, however, I was always under the impression that “free market capitalism” provided extensive opportunity AND extensive risk. Since it seems that there is very little possibility of a company truly “failing” (because in most instances the government,ie, taxpayers) are picking up the pieces and the concommitant bills, where is the motivation for directors, CEO’s etc, to run their business prudently, not take on extensive debt and run a profit-bearing enterprise?
Why is our government in the business of rescuing failing banks & businesses at the expense of the taxpayer, who has essentially had no voice in these decisions?

If America goes, there will not be a sufficiently stable currency to allow for much international trade. Practically speaking, there is still a truly massive value in what American produces each day. The human capital factor per capita far exceeds the great depression. Dire and painful adjustments - no doubt. A worthless dollar and destruction of America’s economy - very unlikely. Should we liquidate everything and buy gold or silver? By itself, that won’t produce much. Seems like a good time to really prepare for a radically different and far more efficient economy. That requires a fair degree of downtime and retooling no matter what trade or profession one is in. Now is a good time to do that and to anticipate the future in whatever industry one finds themself. The need for goods and services cannot diminish forever. Thanks for your thoughts.

When this country is ridiculed by Pravda for falling headlong into Marxist Socialism, you’ve got to know we’re in some serious trouble. Unfortunately, under the current management, it looks to me like the United States has two wheels over the brink of the cliff, and the brakes are gone…
When the government establishes a practice of voiding valid contracts, all the while telling us how important it is to follow the rule of law and giving sweetheart deals to its political supporters, we’re cooked. It’s plain to see that unless we stop thinking for ourselves and join the rest of the sheeple, we’ll be slaughtered next!

I heard the Dollar is going to be obsolete between Aug-September of this year.

Its scarey to think of what can happen. I do not understand the printing of phantom money and then accusing N. Korea of counterfeiting our $100 bills.

Obama is guilty of counterfeiting trillions of dollars - With this type of spending spree - I guess there trying to break in that Amero! Scarey whats going on - everything is happening so fast!

Money is the root of all evil

I am surprise that your blog posted Ed Anderson’s comments. We are all concerned about the economy, but do we really need to read these moronic and bigoted comments by Mr. Anderson?

Martin, let’s all stay calm, and stay secure in mostly short-term treasury bills and some FDIC insured CDs. When long-term rates rise, you will give us the signal to get into intermediate and long-term treasury notes and bonds. After the eventual pullback in equities occurs, you will let us know when to get some good corporate bonds and dividend yielding stocks.

My impression is that “shorting” in this volatile market is very tough. Maybe best to sit in short-term treasuries, CDs, and some gold.

Martin, thanks for all your sound advice; and let’s keep the “haters” and “conspiracy freaks” off your website—please!

GM’s downfall is harbinger of American businesses falling like dominos due to the Obama administration’s actions.
Personally, I believe Pres. Obama will use the fallout to move toward a definite socialistic style of goverment and the nationalization of any business he thinks will pull his fat out of the fire.

What chance do you feel , that american currency , goes the way of the mexican peso , and makes all middle class people poor ?

Yes, America will survive. Rising interest rates will curtail purchases of hard assets, such as homes. Yet unsustainable government programs, such as social security and medicare, should be phased out over a the next 20+ years.
Well chosen Home Health Care Services may offer good profits in the future; foreign stocks in countries like Brazil may also offer good opportunities. I recently met two Australian couples; while they said their country was in recession, their banks were in good shape. Another opportunity?
I’ve read your recent book, but find it hard to invest in Treasury Bills, especially with the falling dollar. I need safe investments that will offer solid growth and dividends. I wish you would address retiree needs also (many lost thousands in their retirement accounts and home equity). Many of us no longer trust our government.

I have read and agree with some of the comments. We are sadly in a worse financial crisis than the Great Depression, possibly. No company is to big to fail, the government should have let them all go under. I feel for the people who would and some still are losing their jobs, but now the whole contry may go under. Natrue abhors a vacuum and someone would have come along to fill the void. I believe the initial stimulus was more to save the powers that be: the rich who would have suffered way more than the average American if these institutions would have been allowed to go under. It may have shaken the world economy, instead of just destroying the USA in the not to distant future, but so be it. I am mostly conservative in my beliefs and don’t believe in the redistribution of wealth, but I am sorely disappointed with all of Washington. I’m sure we have a few good ones in office, but all indications are showing that the barrel is full of mostly rotten apples, not just a few. Over 60% of Americans were against the stimulus package and they passed it anyway. It seems as the people or majority no longer have a voice. The word politician has become another word in the vocabulary of profanity. They tell you what you want to hear to get elected and then do as they please or the big financial interest dictate. In this day and of information almost immeadiately available we finally get a look at what is going in Washington DC, almost in real time. Maybe the rest of America will finally wake up and hold their representatives accountable. I have been joking with a few friends at work about the collapse of society and whether they would be able to survive or not, being they were raised as city bred folk, so to speak. I was country and grew up hunting, fishing and trapping and can survive off the land and it’s bounty. Can most of America? I doubt it.

I am a merchant marine (professional sailor) by trade and have been to some of the most impoverished places on the planet. We may have been in a dire situation letting these companies go under, but it would have been survivable. The rest of the world may have suffered also, there is suffering happening every day unrelieved. If the debtors come to collect will we roll over and allow them to take parts of this country from us. Obama already sent Hillary to China and agreed to allow them to take land in lieu of what we borrowed if we fail to pay. Some may, possibly even a majority. Then again maybe not, :). I did not sign this loan agreement or any other that our government is holding us all accountable for, therefor I do not feel obligated to honor them. I proudly served our country before and during the 1st Gul War and would do so again. It may be in view of what I think is the right way and not coincide with Washington. If things don’t turn around soon we may have a revolution on our hands and they are never pretty or civil.

Any hope of salvation lies in massive cuts in spending on anything that is not absolutely necessary. Foreign aid, sorry 3rd world but we have to take care of our own house first before we can help you with yours. Research, if it’s not economically viable then let private funding drive it. Infrastructure, yeah some of it needs to be put on hold until things are settled and moving in a positive direction.

I was once told, “If you have to ask…..You already know the answer.”
So, with that in mind, to the Question (Is the US Next?) the answer is YES.
If I were to write checks without money in the bank, I’d go to jail.
These bastards are killing us, with only their hunger for power to drive them.
When did it become us and them……This is one country, we are on the same side right?!?!
Or maybe, People without morals….
some kind of guide lines of what is “Right” …………Can Justify anything.

Did anybody catch Mary O’Grady’s interview with Richard Fisher, President of the Dallas FED in the Wall Street Journal last week? If not please see the below link. That interview together with Dr. Weiss’ et al. analysis of the current US fiscal situation are the most accurate and sobering of all. According to Mr. Fisher’s numbers the unfunded liability of the US “gubment” is $99 TRILLION. That is what the Dallas FED has calculated, not some right-wing-out-of-work-banker-conspiracy-theorist (me) cooking up propaganda. Assuming 300 million US citizens, our equal share of this unfunded liability is $330,000 each. Will the US survive? Doubtful in its’ present form.

http://online.wsj.com/article/SB124303024230548323.html

Hi,
America has built a house of debt cards that has finally fallen. I go to America on business once or twice a year, and all I saw was the growth of America financed on debt, at the personal level, at the city level, at the state level, and the country finances of wars, etc. Ever where I went and looked, America was spending money hand over fist! It simply could not continue! If I ran my business like that, I wouldnt be in business, yet the very people that might loan (or not loan) me money didnt see it coming.
All those mortgage brokers of sub-prime mortgage SHOULD GO TO JAIL! Or all the people they put out onto the streets should be allowed to go live at the mortgage brokers house.
Deriatives, not sure I understand them. My best explanation I heard, was I borrow money from somebody to ‘gamble’ on anything and everything, and If I lose, that is somebody’s else problem. Deriatives should be made illegal by the government and all ‘financial experts’ that used them should be FIRED, on the street, or In Jail. If I gambled the equity in my house in Las Vegas and lost, Las Vegas would come and take the house! Same should happen to all those companies as a warning to future gamblers!
Did you hear the internet joke on how to solve the financial crisis in America? 40 Million people over age 50 get $1 Million each as severance pay, they must quit their job and create 40 million jobs, unemployment solved! Each of them must buy a new house, housing market solved! Each of them must buy a new car, auto industry solved. Mathimatically is would cost $40 Trillion! However, America saved the big shots and bankrupted everybody with $52 Trillion of debt? America spends $2 in debt for every $1 it creates?
As for GM, Chrysler, Ford, they have ignored the world producing energy efficient vechicles, If they dont compete with Toyota, Honda Hybrids, German efficient Diesels, they Close up now and cut our losses. Let GM and Chrysler Fold! Send the message loud and clear to Ford, compete or Die!
As for the world, the world will soon abandon America $ and re-establish other currencies based on trade and commodities, or other REAL assets, not Toxic assets. Definitely Gold will continue to be a hot commodity, Oil and Gas will boom (and Peak Oil is happening), and Water resources will become hot! The oil and gas boom will eventually bring the entire market down.
As a Canadian, I am now looking to buy 25% on the $ CHEAP real estate in America and rent it back to Americans, wait for the housing market to eventually level out or increase and take the money and run.
Just my opinion!

Hi Martin,

Do you still feel that stocks are headed for another big plunge?

Thanks

I recently signed up and have been following your newsletters. I’ve always had a positive outlook, with the market down…it’s on sale, if you have the x-tra money now’s the time to invest. Is this the wrong mentality? We still put money away for saving.

Good Day,
The staggering debt is alarming to me, I have not been in the stock market for three years. I know I have missed some growth opportunities, however being 70 years of age I have stayed in cash for a measly 2 percent return; however, i have sustained no losses. My retirement funds can only be moved one time a month, this is the primary reason I have stayed in cash as a lot of damage could ensue in a month long time frame. What do you suggest I do or have I erred on the side of safety?

Ralph

i see nothing but a disaster looming when the kid clowns in washington dabble in anything. commodities, gold and shorts are the only thing happening in the mkt. as long as the big o is in charge.

2 comments—-
1) I have (had) 100,000.00 in in the weiss bear strategy. It is not doing
any better than my fidelity or franklin templeton junk. He is hung up on in and out of rydex.
2) I am loosing my shirt holding all of the inverse etfs you recommended–commercial property,etc

My bni. fcx, ge, gold and silver are making me money!

My wife and I are depression kids who made it by working hard in academic life here and abroad, and playing by the rules.

We are fighting a dual battle - preservation of capital with modest gain to pass on to a large family - by using the Martin-and-Claus program - and selling our older house from which we moved to newer one.

We have a “double whammy” wish - that the bear market rally will hold long enough to see hopeful buyers for our house, and that Martin and Claus are right - soon!

Thanks, but we could certainly use a hopeful sign.

Robert L. Poorman, Ed.D.

What is amazing to me is why the market keeps going up. The report of leading economic indicators is released. The talking heads say “It didn’t drop as far or as fast as projected” Then the market goes up. GM declares bankruptcy another 100,000 unemployed and the dow goes up appox. 220 points on June 1. I have been trying to get a refi and I noticed that the mortgage interest rates are up 1% from last week. What possible logic can people be thinking when they buy, buy, buy.

Dear Mr. Weiss,
I have only recently become familiar with you and have found your information
very important.
Cash and Gold seem to me to be wise looking forward.
Mr. Obama, Mr. Geithner, and Mr. Bernanke what experience do they bring to the table.
When was the last time they paid out of the money from there own company the salary of an employee?
Mr. Weiss all you need to do is look at the Debt vs. the Assets and that tells you the truth. What does our balance sheet look like?

Dear Martin,

You and your colleagues are doing a great job and the real financial situation in the usa is much clearer because of this. However, I live in the UK and cannot get similar information (to what you provide) for my country to help me make good investment decisions. Can you please help by:- a) either providing your views on what a UK investor should be doing or b) providing another appropriate source of information for people like me.

Thanks and keep up the good work.

Irvin

2009 to 2012; The same time period as 1929 to 1932, and the one which followed the “roaring 20s”. Not surprising at all; just 80 years later. Even the last digits match. Could be the dooms-dayers be right. After all, the Mayan callendar ends in 2012. Personally, I think the Mayans just couldn’t find a larger object to put one on, and still be able to take it from one place to another if they had to. In case nobody has noticed, we are not in a recession. I saw it as a depression from the beginning - it’s just that the wave of repercussion is larger than all of those little recessions since 1932. The guys who were running the Fed back then would never have thought that something created as “fail-safe” as the FDIC could actually fail: but then they also would never have let this country have all the debt it has as a result of things like “sub-prime”, creative financing, loans made based on creditworthiness that has been blown out of proportion and much of the time just plain falsified. We’ll get through this; it is just going to take longer than it has for the recessions of the past 80 years to run its course. Look out though, it has a big engine and is going to destroy a lot in its path.

Nothing is stopping the Fed from expanding its balance sheet and printing unlimited amounts of money, which will destroy the dollar. This is how we get to the Weimar hyper-inflationary depression that Jim Rogers, Marc Faber, Jim Sinclair, Jim Puplava, John Williams, Peter Schiff, Glenn Beck, Ron Paul, Stephen Moore, Gerald Celente, et al. (all Austrian School thinkers) have been predicting for several years - at least. Until the Fed is audited and the Federal Reserve Act is repealed so we can have sound, free market money, the central planners, bureaucrats, and economists at the Fed/Treasury/Goldman Sachs that believe in the insanity of “inflation-targeting” will give us the worst of all worlds - a collapsed currency, a collapsed economy, a collapsed bond market, a collapse real estate market, and a collapsed stock market (in real terms) making our transition to a banana republic complete. We will then have to issue debt denominated in foreign currencies. That’s when Celente’s riots start. I am a Safe Money Report subscriber, as well, and highly recommend the material.

This country is probably ‘too big to fail’! Ha! We are having socialism/facism stuffed down our throats, whether we want it or not. I almost think we are too far gone to recover - unless, ALL government spending stops immediately. The only exception would be to run the government (with no pork) and to pay for the military. Everything else gets cut and the monies used to pay off whatever our debt is now. Most folks I know are disgusted with Washington.

I have bought sizeable positions in precious metals mining stocks and ETN’s(AGQ, SLV, GDZ, IAG, LIHR, AU, GOLD, SSRI); ETF’s denominated in Canadian and Australian dollars; a basic commodity ETF(UYM); Market Vectors Coal(kol); Market Vectors Steel(SLX); and sizeable positions in Lukoil, Petrobras, Suncor Energy, Schlumberger, and Transocean, and all are up sharply since I got in in late February/early March.

Thank you for your article. Yes, I am worried about America’s future. I worry about my children and grandchildren’s future DEBT obligation that they will have to pay. I think I worry more because there doesn’t seem to be any positive information. I am in a bad position as well. I am a college graduate with a Masters Degree in Business; however, the condo market flopped and the company that I had employed me for the last 6 years had 9 (NINE) layoffs! I had little credit card debt and some savings (6 months worth); however, I have ran out! I have cashed out of my 401k and took a 30% tax hit…ouch! and the unemployment has ran out. All of the top headhunters have said they have no leads yet. What should I do? Go back to college AGAIN? That is what worries me. I felt as though I made the right decisions and yet….??

I am an investor in the Contrarian portfolio (if I remain we should at least get 2010 subscription free) and also have been following the “safe money” reports??
Secondly I sold off my equity investments “on the opportunity of any rally” as you guys have recommended??
Thirdly I am an investor that have like other investors asked the question regarding hedging the $ as we are not US investors??
I don’t want to, but honestly I am losing faith in most of the Money and Markets predictions except that the DOW can run up to 10000 before it does a normal correction.

I am a 57 year old professional, college-degreed woman; conservative and quite middle class. My husband and I put our kids through college without loans and paid our house off 20 years ago. We are debt free. I started IRA’s when I was 28 and have two 401K’s with a past employer (20 years) and my current employer (10 years). Three years ago I took my 401K out (previous employer) and put it in a CD and I feel pretty good that I did the right thing. I still contribute 8% into my current 401K with 8% matching dollar for dollar. My husband has contributed to his SEP since 1991. We are not the type of people to buy gold but we would definitely barter if the opportunity arose. We live on 16 acres and planted our first vegetable garden this year. I believe our country will default. When this happens you will see the many poor and unprepared middle class folks riot in the streets. I believe we are headed for anarchy in the near future. This will be due to the greed, dishonestly, and blatant disregard for the values and beliefs that made this a great country and that allowed it to govern itself for more than 200 years. I personally have never felt such utter distain for our government officials. Senators, Representatives, the current administration, our judicial system and other powers that control us have no regard for it’s citizens. My husband and I are survivors and will take care of our children and their children but most people are not like this as they have always depended upon someone else to get them by. It is a sad time but it will surely get much worse.

I have no doubt about a negative impact of the bassive bail-out (with money created as an accounting entry in my opinion) on the value of the US dollar. It may be unamerican, but I think it is financially sound to invest a lot in currencies and metals (not the russian rubel and iron of course).

To understand market sentiment and trends you must know what the populous believes. As quantum theory suggests we can become what we believe. There are a growing number of christians world wide that believe we are seeing signs from revelations. We then have Amadinajad on the other side who believes he is here to usher in the muslim mesia. What comes first the chicken or the egg? Will mankind recreate world war three according to the scriptures they follow … How will these fears affect the investing decisions of the growing christian belivers? When the market retraces and breaks its lows sending the dollar up, gold and commodities will take a last beating. We still have major DEFLATIONARY forces ahead. I will be loading the boat on gold but not until it has a big pullback. As the market continues to rally as it did in 1933 I will be watching my entry point for the SRS [ will soon fall into the teens] and other short ETFs. At the right time as our market tops out I will also be shorting the Japanese markets. My grandfather, father and uncle followed Martins father.. the apple lucky for us all fell close to the tree.

I do agree that we are in tough economic times indeed, but don’t you think that GM failed not because of the global downturn, but more a symptom of poor management? Ford has not failed, nor do I think it will. I know that this is in stark contrast to what you’ve said in your presentations/interviews. I’m seeing Chase signs popping up left and right on the front of WM banks. This is not a sign of a bank that is folding up. Not to say that they are not going to fold up in the future, but that future is looking further down the road than I would want to make investment decisions for today. Could it be that treasuries have plunged, sending yields higher because people’s appetite for equities risk is increasing. As a tax payer, I don’t want to own AIG, Citi, BofA, and least of all Chrysler or GM. I would never buy a GM car because they are junk let alone own stock in the company that produces such junk. They are failing because of mismanagement and an unwillingness to produce cars that consumers actually want. All this is bailout money was the largest heist in World History. Both Republicans(paulson/Goldmansachs/bush) and Democrats(Geithner/Goldmansachs/UAW/Obama) have conspired since the Clinton administration to strip America(you and me) of our hard earned money, all of which we have yet to earn. Power breeds corruption and absolute power IS absolute corruption.

It seems to me that the government is growing at a time when ‘everybody else’ is shrinking. I think that there are private companies ‘acting as government affiliates’ that will secure some of the bailout monies. These companies will soar in their profit margins.
These would be the companies to follow for huge gains, or least ‘gov’t guaranteed’ gains.
What are your thoughts? I would like to know.

America will of course survive - unless an asteroid the size of Australia hits the continent right in the middle. Even the USA will likely survive for another hundred years. Yet, things will change in our country - that much is obvious. Things have always changed, sometimes a little, sometimes a lot.

Let’s take an inventory of the REAL assets of the USA: 1) A huge amount of land, much of it suitable to produce enough food for every citizen in this country. 2) Water, not everywhere enough, but overall enough to quench our thirst and grow our food. The ability to make it clean and safe to drink. 3) A government that can be changed through the will of the people. 4) A military and weapons strong enough to defend us against an invasion. 5) A good educational system. 6) Lots of existing buildings and roads that make it possible to distribute goods and services.
Those are the foundations on which we can rebuild what is broken.

The biggest danger is not the loss of money, but the loss of patience and the loss of ethics and civility. We have seen it in many other countries: When the going gets tough, people run to extreme political figures who promise them a quick end to their problems, and crime and violence grow.

We are going to inflate our way out of debt. Our debt as a % of gnp is lower than after ww2 or civil war. We have already begun the process of inflating the economy so we will pay back the debt in inflated dollars. Unless there is a collapse (possible but unlikey) we will let inflation go until people scream from pain then tighten credit an choke the economy as Carter did in 1980. The real question is how high will inflation go and maybe how soon.

I believe America will survive but not in its current socialistic form with everyone feeding at the public trough-that will collapse of its own weight as it has every time its been tried in the past. We will have to revert back to an era where you alone are responsible for how well you do-no more free lunches. As Lincoln put it-You cannot help the wage earner by pulling down the wage payer and you cannot keep out of trouble by spending more than you earn, nor can you help the poor by destroying the rich.
I believe commodities such as food, oil, and precious metals will all preserve wealth as the dollar finally goes the way of all fiat currencies before it. Currencies of countries with large natural resource components should also do very well.

For forty years we have understood and known that this was going to be an outcome. No matter how many people we warned few take notice and some still cast aspersions at this truth.
Where has all this been revealed , not Naustradamus but the Bible prophecies. This time of chaos and collapse has been long told for our peoples.
Look at the chaos in Government and Britain is in the same boat as America.

I like to read your articles which have insights of independent thinking. My guess is the inflation will wipe out debt.

Well, you have warned us many times, and for the most part, you were absolutely right. As to whether our country can survive? Not if we keep going down this ridiculous path. The global warming hoax is enough to do us in if we allow it to. Our country has lousy management, just like GM had. The only thing that will save us from going down eventually is for people to wake up and elect some real leaders. Stop spending money on foolish things and allow private enterprise to work. Keep the government the hell out of business, it is not capable of doing anything but spend money we don’t have, and create money by printing it. God help us.

What I do not understand is what the impact of printing money out of thin air is. How is it possible that the FED is buying debt with newly printed money ? Is that legal ? Or is there an other instrument which keeps the system in sync , balances this new money ?

Martin,

While I agree with your assessment of the state of this Union and the rough times that lie ahead, as an investor I let the market tell me what it wants to do. Since the end of March, my portfolio has increased 15.4% (12.2% up since 12/31/08) primarily by shorting long term Treasuries, playing the re-inflation trade in commodities (oil and base metals), gold, select alternative energy plays, short term stock breakout trades and certain China trades. I have maintained generally a 30% cash position. If I had followed your instructions I believe my returns would have been negative. I am not optimistic about the future of the economy for several years to come. I am optimistic that an investor can make a decent return whether the market direction is up or down. I just keep some powder dry and watch my basket of eggs VERY closely. November 2010 won’t get here soon enough and I sincerely hope the American voter will realize what they did on Nov. 4, 2008 was One Big *** Mistake America!!!

The loss of GM is the loss of Unions and pension plans across America and the hope of workers around the world to have a better life. The American dream of a good wage and a retirement plan goes by the wayside as one of the last strong holds dies. The underlying demise of the union worker and the ability to raise the scale for worldwide workers has been lost. The money changers have won the battle and the level of America’s work force will now have to compete with the world work force. Unless we take drastic action to cure the ill’s of America, we are destined to become a second rate country with China producing goods and Europe producing technelogical advances for the world.
America has become complacent in this battle and it is just a matter of time before we as a nation discover that we are behind and cannot catch up.
These are competive times America, wake up.

I AM ALSO LOOSING FAITH IN YOUR COMITMENTS AND SINCERITY. I HAVE ALREADY SENT IN QUESTIONS THAT WERE NOT ANSWERED … AND YOU HAVE BEEN USING UP MOST OF THE “GUARANTED FULL REFUND” TIME WITHOUT MAKING ANY HEADWAY WITH the Contrarian portfolio WE PAID FOR. WHY ASK FOR INPUT IF YOU DON’T WISH TO RESPOND?

I don’t know what to expect - keep thinking I shouldn’t buy and it keeps going up so—
Sent in for your new program on Saturday and am puzzled as to why I haven’t heard a confirmation from you. Was in Elkins, WV on son’s computer and we lost electricity twice - am wondering if you received my order?

I don’t think Klaus is doing a very good job on stock picking, the last thing people are going to be doing in a market bust is renting tv’s or going to the dollar store, both of those stocks sport pretty high pe’s. I think you should concentrate on really defensive issues or wait until there is a downturn in the market.In your newsletter a suggestion was made that LINE was a good buy and it has turned into one of my winners. I agree with your view of the market and its lack of foundation but there are basics which people need to survive ie energy and food I would think that easing into such investments would be something to consider. Thanks for your asking for imput E. Carlson

Hi Martin,

Yes I agree with you - our Govt in Australia is doing the same thing and spending like drunken sailors - my concern is also the level of debt. Not just the country but also personal debt level - we all need to take responsibility, pull our horns in and do with less and save more. Reduce our debt all be it dollar by dollar then we can basically “recession Proof ” ourselves.

Cheers Chris

Sent today to my business network……Greetings Martin.

Greetings from Vancouver,

Suddenly a lot of pundits are beginning to finally get the message……….. Even Martin Weiss is warning of the potential for the demise of America? Those who know me, know I have believed for many many years, that their debt driven economy would ultimately bankrupt their middle class, mortally wound their empire, and force a new definition of the “American Dream” upon their citizenry and politicians!

From my point of view this is nothing more than the natural consequence of poor management and fiscal irresponsibility, at any level of enterprise! What continues to amaze me, is that they still seem to generally believe they can buy their way out of this situation? This is nothing more than the continuing folly of ignorant men, and wishful thinking! Self delusion on the part of the Senators and Representatives in Washington, from both political parties! They should all be forced to read (or reread) the “apology of Socrates” so to reinvigorate their sense of honesty, and self awareness as to their lack of wisdom, (”These men of Athens”)?

No amount of “squirming” is going to recapture that great potential that was once America. That “Shining city on the hill” as President Reagan mused? Hopefully what will eventually emerge is a more chastened America, with less arrogance toward it’s neighbors, and a new understanding of the real consequences of personal greed and excess. A new “participant” in the good work, of building a new and better world for all mankind, “a paradise” as envisioned by President Truman. It is so sad when one realizes, that the U.S has had such leaders and dreamers of great dreams, as Lincoln and Roosevelt and Truman and Kennedy and Eisenhower etc; and now O’Bama, and still the arrogance of empire persists within it’s body politic.
An arrogance that displays itself so frequently, when the “good” men of government try to open a new path to the future, this poison within their system bars the way. These “manifest destiny” thinkers who still insist on the Aristotlean philosophies of elitism to rule their world, which contradiction, in most of scholarly opinion, has been the ultimate downfall of every Empire since the beginning of time!

I hope that “common sense” with a more Plato - nic aspiration, becomes the ruling intelligence of the new America. It is time to shut the access doors to government, so easily entered by these fools and parasites, always acting on behalf (lobbying) of elitist, hedonistic and usually “minority” extremist viewpoints, while using verbiage and rhetoric, such as “Americas destiny” and “God’s country” to incite divisiveness at all levels of government. These people who use threat and intimidation, as their weapons of choice and never logic, against those who think in a more logical humanist and humane way…. the “common sense” of the will of the people. It is the real intellect of our society. The combined intellectual will of the people is not “stupid”!

James M. Convey

hello Martin thanks for your insight and truthful mails, please tell us about hyperinflation, thanks again richard God Bless

In her statement today DEENA said GOD has nothing to do with the problems in our economy that the people have to work together to solve the problems. I strongly disagree. GOD has blessed this nation since it came into being. I believe that GOD has removed His hand of blessing because of our nation’s imorality (hundreds of thousands abortions,same sex marriage issue, the overall decline of morality of the people)we need only to look in the old testament and see how the people were punished when they turned from GOD and how they were blessed when they repented and turned back to GOD. I beleive our country and economy is in for some very hard times.

I am old enough to remember the “Carter” years. If you spend more than you have and compensate by printing more… inflation rears its ugly head. The current unwillingness to allow companies and industries to face the results of poor mangement and reckless investing will be the end of the US as we know it. Ask the Japanese how long it took them to recover from their banking crisis. Their government tried the same things… reckless spending massive public works… none of which worked. Only time and discpline in the markets worked.

I agree with everything in the Safe Money Report except I’m worried about shorting equities into a hyperinflation scenario where everything goes up in dollar terms just because the dollar goes down in purchasing power. To me, shorting equity indexes is too risky and the better risk-reward profile is to be long gold/silver bullion and commodities and short long-term bonds, while holding some cash. I don’t see how interest rates don’t go through the roof under either a good or bad economic/stock market scenarios because the bond market will sell off due to global sector rotation back into stocks/hard assets.

America is flat broke at all levels, and I also fall into the “we’re seriously screwed” camp. Better to get the collapse over with and re-build with true capitalism not money printing.

How can I protect my dollar (cash). I have some gold and silver, oil stocks (BP, XOM), Potash , JA Solar, Tata Motors, Osiris, Intuitive Surgical, PST and SRS inverse ETFs. What more can I do?
Thanks,
Joelle

i just read an article that makes since to me . why gm can’t start building high speed trains it would put millions back to work cars are going to be obsolite in just a few years example, i live in naples fl. most people who work here live in or around ft. myers they commute everyday average mileage is 20 to 45 miles they are now making I75 into 6 lanes my question is why not a high speed rail in the middle of I75 one day soon & it’s almost there now it will all be a huge metro city why waste so much money on roads i lived in cincinnati & took a bus to work had to change onto another bus in downtown still i clocked in at the same time everyday travel time was a total of 35 minuties

Pimco is tell the instutional investors to place part of their portfolio in tips. They believe the coming inflation will provide solid returns on the tips.
Ken

Our standard of living is starting to change as fast as technology. Our government is making sure of that. They are literally stealing our property and time via taxation without representation and the continuously increasing amount of political regulation for whatever “crisis” pops up. Politics offers attractive solutions, they disregard the economic trade-offs. Ultimately, the public ends up paying as taxpayers for things that they would not have chosen to pay for as consumers. The politicians are the winners and self-determination dies! As per the WSJ: It’s time to create an Economic Growth Code whose purpose is to fix and grow the economy, not redistribute massive amounts of wealth. A new tax code that creates growth and reforms our entitlement system is the only way to dig our way out of the hole. We cannot live under this mountain of debt for political purpose. When will our elected representatives start doing the RIGHT thing versus following party politics to maintain power? I think we know the answer…

What is the forecast total world wide borrowing, over the next year, of Countries, Local Governments, Companies, Institutions, Individuals, etc etc.?
What is the total forecast world wide savings over the same period?
The answer to these two questions seems to me critical, and has enormous implications should there be a great divergence.
Why will no one address this question?
Best regards,
Michael.

Still afraid to go in the water. Currently planning to invest in T-bills on a rotational (13 week) basis to lock in current rates and be ready to re-invest at higher rates. I’m anticipating that rates will go up bringing a larger return on each rotation. IT’S SAFE!

America, survive we will. However, it can take another generation or so before we once again thrive. The social experiments being thrust upon us as the solution to recession and the profligate, cheap money of the recent past will need to run their course.
Rising interest rates may improve investment income for me, but most likely will not compensate for higher living cost and taxes soon to be endured.
I expext to stay prudently hedged in some securities that represent hard assets and economies growing faster than underlying inflation.

Yes,we will survive…three more years.

Precious metals, mining stocks, copper cos, silver and gold mining cos, deep water oil/gas drilling cos, with the US dollar being destroyed by high inflationary interests, one must be diligen to invest in assets which are positively influenced by a world in financial meltdown.

It is interesting to look historically (1400’s) at how China has treated countries that are beholden to it. The USA is now in the same position with regard to China. I just hope that some crazy US politicians do not come to the conclusion that the only way to remove the “China problem” is to go for war.
Who ever came up with the idea that “service industries and offshoreing production” can replace making things where they are needed in a sustainable manner was a damned fool. So were those that believed him or her. It is time to wake up and do some real industrial activity…making tangible things that people need and adding real value. Meanwhile I am despairing of the idiots that we call a government here in the UK….. they are leading us down a similar path to that of the USA.

Why is the administration unable to see that bailouts will not succeed?
If Companies and Institutions are in bankruptcy they are under supervision of a Bankruptcy Judge who has the knowledge and experience needed to guide them. I shudder to think what will happen to them under the control of administration amatuers.

Martin:

I am slightly angry with you and it is nothing personal at all I want you to know. But to not put often in you M and M comments that holding inverse ETFs (both 1 X and 2X) is very damaging in the long run was remiss. Even if a person holds them through flat markets they erode in value. Also there was not enough comments about why this stock market was rallying in face of terrible underlying fundamentals in the economy. I think it would have been better for you to say “Let’s get out of these now because altho my reasons are correct it is not good to fight the printing presses of the world’s central banks.” I think that the Fed is more powerful than supply and demand forces. Sorry to say. However, I still will read your column and heed your advice with a little more restraint. Thank you

MW: My nick name for you is: “The Bear of Jupiter”. On many details you have been on target, some of which are indeed scary.
I am concerned as a working retiree with 3 state/federal pensions plus being employed full time. My annuity investments have shrunk to less than a 1/2 mil and one: GenWorth makes it extremely difficult to manipulate the funds positioned in a variable annuity. NEVER use GenWorth for anything as they are a bunch of unethical business people.
What to do? well I can keep on working until I know not when, but there is no ultimate guarantee on the existence of any job. A complete collapse of our society and the odds, while small, are not zero would call for some drastic physical action on my part. I am mentally prepared to do what has to be done to protect a spouse and perhaps some of my grown children.
Please continue to present real data that can be used as a decision base. Can assets be gathered in any other way? Metals? What is the best site overseaa…New Zeeland? So many questions, so little time. I do think inflation will finally rear its head when people stop their short term saving rates so please monitor that function.
Thank you for your presentation,
RR$, Boynton Beach, FL

Martin,
OBAMA, AND THE 40 THIEVES…

I have purchased your services, as well as several other. In the last 4 months, I have spent nearly $10K on expert advise… and so far I am up a little in gold but losses in everything else.

I consider you and Claus to be among the best, and I work with several other professionals who have outstanding track records. Yet, thus far I am riding losses, and suffering the sleepless nights that go with being on the wrong side of the market.

I have conviced myself that you are correct and have held on to all of my positions, however we are very close to stopping out if the market goes any higher. Klaus himself is at the same point with a line in the sand.

I am not sure if it is my imagination… but it seems obvious to me that the markets are being seriously manipulated..Other services openly discuss this possibility… Yesterday in the midst of what should have been a dire day… the market shot up and stayed up 200+ points… You could see the market was not even breathing… it was very manipulated looking and had very little swing or breath to it. Every bit of news that comes out, which is really negative, is portrayed as positive, and the market jumps!!!

“LESS WORSE THEN EXPECTED” IS THE MANTRA

Again, fundementally I think you are right… but the reality to this point is that you have been wrong… as those of us who have followed are suffering..

Other advisors have gone as far as to state that they know the markets are rigged, but are okay with it… as long as they can see it…

These clowns in Washington are desperate politicians, and we all know that politicians are all or nearly all crooks. They are fully capable of using every trick in the book to make themselves appear right and in control.. I believe the desperation of these people needs to be filtered into your thinking in a more obvious way..
LIKE GEITNER TELLING THE CHINESE THERE MONEY IS SAFE AND BEING LAUGHED AT.
In the end… I believe in the markets… however these jerks are doing tremendeous damage… and will continue to do so… unless they are stopped, or caught being the unlawful manipulators they are.
OBAMA AND THE 40 THIEVES… THESE ARE A BUNCH OF DESPERATE AND DANGEROUS PEOPLE…… IF WE ARE GOING TO DO BUSINESS WITH THEM… WE NEED TO KNOW IT.

It is likely that real value will remain with Governments/currencies that do not ‘print’ money from thin air. However, best bet is on precious metals, since gold and silver can be an exchange commodity that is relatively fixed and stable. Being paid in dollars may be a thing of the past sooner than we think.

Scott Whipps

There are so many posts and I have not gone through all of them but one thing I would like everyone to keep in mind is that even though Martin would love a repeat of his father’s success and most of us with him there might be significant differences this time round with all the manipulation etc. My point being your predictions need to be well thought through and honest people are putting their hard earned money behind you and your team’s vision.

Martin, Thanks for your advice. This was caused by the banking and financial lobbyists in getting rid of the safeguards and the CDO’s and CDS’s came about. The politicians we elected are self serving and seem to care less about our wishes, with the exception of a few… The president is spending taxpayer funds like water. Imagine flying to Vegas to support a fellow politician then on to California to a $30,000.00 a plate dinner to discuss our nation being broke. Think of the cost to the taxpayers to do this. There is no concern for being frugal and saving taxpayer funds. The new leader is sinking the ship and apparently is a true narcissist striving to rule the world !!! ………..retired

Martin,

I believe precious metals will seriously outperform US stocks, international stocks and world currencies in the coming years. Global equity markets and the world’s major currencies are all realing from the same devastation and it will probably take years to undo the destruction.

As is generally the case, there will be some exceptions; some individual companies will profit dramatically, perhaps some even more so than precious metals, however, I believe precious metals and in particular, gold, provides the best chance of overall greatest gains within the broader investment categories you’ve named.

The only thing I don’t understand is your most current buy recommendation. I had FDO when I bought your book. In it, you said sell stocks now, before it’s too late. I did and now just a few short weeks later, you’re telling me to buy the same stock you just told me to sell. Did you mean it when you said sell it or do you mean it now when you say buy it? I want to believe and stick with you, but you’re making it hard with flip-flops like this.

It will be a sudden and total colapse in some 36 months

I am currently investing in Dryfus China and Malaisa funds, which are doing well at this time, in addition to gold (GLD). It appears that the market (and world) are swallowing everything they hear coming from Obama; everytime he speaks, the market goes up. Until reality sets in, I can’t take a bearish stance.
As far as the United States future is concerned, nowhere in Biblical prophecy is there any mention or alluding to a force or kingdom across the sea, as it probably would if the western world played a part in the end times. My conclusion is that the United States will not be a force to be reckoned with. According to Mr. Obama, we are no longer a Christian nation. Do you think God is listening?

The world trade and the world economy is slowing dramatically - people will always need food, water, money, and energy to survive in a modern world. Currencies are traded in pairs - there is always a “bull market” for smart investors. Agriculture etf’s for future food and water crisis events yet to appear, and commodities that deal with raw materials (some level of global inflation is already built-in) of production.

If worldwide hyper-inflation breaks out then the last standing will be governments, big business and unions. Since there debt will be wiped out by the process. Investments in stocks of key protected industries in and outside the US will be required to survive the next ten years.

Dear Dr. Weiss: First of all,thank you. Because of reading your commentary I had sense enough last Sept. to leave the stock market with only minimal loss. Your article of last Dec 1st which flatly called the economic situation a “depression” was also a sad,significant milestone. Now exactly 6 months to the day after that article another even sadder milestone-GM is bankrupt! I am a 55 year old “retired” man.(Read that UNEMPLOYED.) I started my IRA in 1981. One of my biggest fears is that my IRA funds will be lost in the coming economic catastophe. How can I get my IRA overseas into an IRS compatible vehicle? Should I be thinking this way? Having been on the sidelines for nearly 9 months, watching the worsening situation, I frankly don’t know what to do. How I wish I could have afforded subscription to your contrarian advisory! What God- awful milestone will the US be facing in another 6 months?! Lawrence Heath

Yes - the wealth of America will continue to be distributed, and with great speed to powerful people in high places and to various nations until America is decimated! - bankrupt! For that is the plan. It’s intentional. The powerful hidden force of the Conspiracy (which we’ve smuggly denied so many times), having come this far, is in full swing now to take control of what’s left of our country’s wealth and power and transfer it to their one-world headquarters - the godless United Nations! We are not organized against it. We’ve lived our luxurious lives as careless, proud “useful-idiots”. So, once there - surprise! We and our country will lose all we have left and become their ponds!

There are many challenging/scary things going on out there, but two strike me as the most important.

1- inflation is best defined as too much money chasing too few goods. M1 and M2 are on near vertical climbs, and most companies are/have been reducing inventory (Chrysler is a very recent example). The government and the traditional media talking heads will be the last to discuss the tidal wave of potential inflation that is coming our way, each having their reasons. The media because they are so bought into BHO that they wouldn’t say poop even if they had a mouthful of it, and besides, most of them are simply reading the scripts that they’ve been given, much like BHO. Within 18 months on the outside, we will be beaten up severely by inflation, and there is little that we can do besides either getting on the sidelines, or buying inverse investment vehicles.

2)Bigger and more scary is the surge by elitist politicians worldwide to establish a world government. Flow out the logic of “global warming” to see what the only and ultimate solution must be to stop “man’s” self destruction (hint: it’s world government). It’s not about money, it’s about power, pure power. Stop for a moment to think about the stories that we are being sold to combat global warming and polution, and who is serving up the stories. Al Gore, BHO, UN members (very recently). Oh, and by the way, the form of government won’t be modeled after the good ole USA’s form of government. Nope, not a chance. It’ll be hard core communism even though Reagan supposedly and singlehandedly ended communism. I’m sure that it warmed the hearts of every hard core leftist when they figured out that we’d convinced ourselves that communism was dead.

Make a pile of dough now, find a place to park it safely, and brace yourselves for the next wave of lunacy that’s already out of the gate. Beware out there.

DieselBoatMan

We’ve followed Martin and Larry for years. Even read his “Survival” book. Hope he continues to be spot on. We’ve taken his advice and have moved most cash to American Century Preservation Funds. Yes, God Bless Us one and all. Younger folks
like my youngest son feel it’s over-reacting to make such a change. We’ll have to see,
won’t we?

Hello Martin
So where is all this leading us, is the whole world going to fall apart? Will unemployment be 20%, 50%+? Are we doomed? Will the end of mortgages come? Should we buy, for example, a caravan/mobile home as survival with any cash we have now while companies are still producing? Is there light ahead, even if we follow your advice will the rest of the world be there to spend our profits? If renewable energy has no chance in catching up before we run out of oil, the whole situation looks bad…
What do you recommend?
Look forward to your comments.
Yours sincerely
John Orr
Many thanks

These are indeed scary times. The failure of GM represents the spiritual failure of the people of this country. We (the people of this country) no longer have the integrity, honesty, and moral compass (God’s divine principals in our hearts) to fall back on. God makes war on the arrogant, but gives grace to the humble. We as a nation are getting humbled by God because of our arrogance against him. This is very evident by the type of President that we the people elected.
We will survive this down turn, but not without a lot of pain and adjustment. My recomendation to my friends is to pay off as much debt as you can-ie your home, car,etc. Sell anything that you don’t really need in order to create liquidity. Cash will be king. I would also do the following:
1. Own some gold coins in order to trade and barter with.
2. Own a good selection of good dividend paying stocks such as gas and electric utilities. We will need basic services regardless of what happens.
3. Develop a skill that would perhaps allow you to do a service for others-this allows you to trade and barter better.
4. Watch for opportunities in the stock market. There will be plenty. The Dow 30 industrial stocks represent the best value for most folks right now. If you can afford to buy an equal number of shares in all 30 then do so. They have not been this cheap in a long time. Five years from now you will be well rewarded.
5. Consider moving to a small town if you do not live in one already. In a small town, people help look after one another and all of us have skills that we can use to provide a service to our neighbor.

This country is doomed to go bankrupt. It will take five years or so but it WILL go under. The Dems have never been known to handle any economic problems well. I don’t think any of them have understood Econ 101. Read Thomas Sowell’s new book “The Housing Boom and Bust”.

It is too bad that we have newbe’s at the top. Pres. Obama is nothing but a Comm. organizer, never ran a business. We have a tax cheat,Tim Geithner at the helm. Does anyone know what they are doing. Either they know and are trying to bankrupt us or they are plain stupid and trying anything.

Inflation or deflation? I am confused . I hear the view that all this money printing will lead to inflation. I hear the opposing view that the economy has shrunk so much that all the new currency printed is insufficient to keep up with what has been sucked out and that we are facing deflation.
The first scenario leads to commodity price increase, the latter to decrease. Help!

At the age of 60, I’ve never in my own life seen a time of more darkness and chaos. I read the negative taunts about the so-called “conspiracy theorists” while having also read as closely as possible on the other side of all of these various mindsets and arguments which seem to challenge each other as much as those opinions that I’ve read from the more traditional sides of matters.

I feel grievously concerned with the implications of all that I’ve read to date concerning this new “Amero” currency along with the ensuing NAU (North American Union) that is said to be in the frighteningly near future. I make no claims to having “the answer” to anything these days. I fervently believe that there has been (and remains) a great deal of “disinformation” which is being carefully disseminated throughout all that is happening around us currently. I fervently believe as well that there are dark forces at work in all that is happening around us presently, and that the implications of those forces are far too little understood by too many; a woefully sad thing indeed.

With everything in me, I wish that I could find some sign or symbol of real and meaningful hope for the continuation of this nation as we’ve all known it to now, but for the life of me I simply do not. And I hope above all things that at some future time, I will remain long enough to find that “things are never as bad as they seem”, and that in the end it will be the good which prevails.

The cental portion of the USA has been carrying the East and West coast for too long.
New York has long been nothing but a user and never a producer of anything. New York takes our money and our production and decides who gets it and for how much. The central states of America could produce all the energy and food needed if it did not
have to make a living for the leaches that sit in their offices skim all the cream off the milk. The break-up of the USA is long over due. Let’s down size the country and let the people that work for what they have alone.

Ladies and Gentlemen:

So as not to bore you with the specifics of my personal situation, I have just one question for Martin, who is the one person that I follow most closely, even though Lary E, Tony S., Mike L and Sean B are all very capable annalysts and advisors. I subscribe to every service you offer, including the Contrarian account, which is managed by Claus Vogt.
I really admire Claus and the methods he uses to reach conclusions of market direction, etc., and have tailored my account to reflect all of his reco’s. Here’s the question: In Martin’s opinion, is this truly a bear market rallye? Should I hold about eight (8) inverse ETF’s, countless put options on the Diamond Trust, expiring in Sept. and Dec. , 2009, or should I proceed to sell all and not try to fight this confounding market sentiment and euphoria, and get back in at a later time? If I sell all, substantial losses will be incurred as most contrarian positions were taken in Jan. & Feb., 2009.
Many thanks for your consideration and prompt reply. Wishing you all a great week and wonderful summer, and may you and your families stay well. Best of regards, Fred Tuerpe’

I’m not sure it’s so much will America survive it’s more of what will America be when it is over? IMO Gov has no business in owning businesses, banks, insurance companies or the like unless it is through a privately ran Sovereign Wealth Fund. How much better off would we be if instead of bailing out these insolvent institutions we were instead investing those trillions? My point is if I’m smart enough to figure this out and it is not being done something else is and what is being done is being done with special interests in mind and not the American tax payer.

“Home of the government owned land of the less privileged”

In my humble opinion, what is coming will make the inflation of the Wiemar Republic look like the good old days! The dollar is losing value with each spin of the Treasury Department’s printing presses, prices of food stuffs and other essentials rise daily. There was a recent article on the Drudge Report which was said to have been an excerpt from Pravda titled “American Capitalism Gone with a Wimper.” Whatever the source, it aptly discribed the loss of our Representative Republic and the astounding speed by which the sheeple have been conned into accepting pure Communism. That article should be must reading for every remainig Patriot. It will go right over the heads of everyone else!

I am 87 and conservative investor and have must of my portfolio in Fed. Mtgs. Should I sell and take the loss? I don’t trust they will be FDIC

I can’t believe this is happening and most people are clueless. I’m afraid we’re in for some very hard times. Surely there are a few countries left to invest in.

gold, silver and cash. Until the financial situation stabilizes.
ron

You are 110% right on debt when you say,”But Washington’s debt bubble makes GM’s pale by comparison–and it’s inflating the size of that bubble at the staggering rate of $3.8 billion per day.” And–”Is America Next?” In my opinion, yes, if they don’t tax on ability to pay, concerning the federal income tax, like President Franklin Roosevelt did in World War II. What is stopping President Obama in doing so, is the POWERFUL LOBBYISTS in Washington, such as HEDGE FUND DEALERS, who are creating all those TOXIC DERIVATIVES. Nobody, including banks, want REGULATIONS and now General Motors, which they call “Government Motors” aren’t even listed on the New York Stock Exchange along with Citibank. So what that tells me is that the government ought to NATIONALIZE Citibank as well. We have no one auditing anyones books, no regulations. We should REINSTATE the GLASS-STEAGALL ACT. We have to have a standard gauge mark to go by, like the TVA, created just before World War I. Sad to say, we’re in that bad of shape. Your article should get someone to think seriously and I hope my comment helps in the conversation. I would enjoy a comment.
Yours truly, Disgusted Middleclass Taxpayer, Public Citizen and AARP Member, LaVern Isely

It is not GM that will sink US economy. It is greed of the businessmen, who keep going despite all facts & indications that immediate reforms are needed (too many of businessmen have no economical background or education). It is Us government that will kill US economy because of it’s disastrous decisions (too many ties between the government officials and businessmen). I would call it a SABOTAGE, because they must have known for a long time what is happening. If they really don’t know, I would blame it on stupidity? They should be prosecuted and charged.
Marek.

P.S. Lack of economical background of the government officials gives a green light to speculation and corruption.

I feel we may be heading towards a one world monetary system.

With our leadership and our debt our fate is sealed. But worse still, the future for our grandchildren is being determined by those in Washington. I believe the best course is to buy gold and essential commodities before inflation is extreme.

This shutdown has been predicted for over 30 years - is the brain child of “The New World Order” whose affirmed purpose is to destroy the U.S., specifically the $, exterminate some 80% of residents and emerge to dominate the residue. This criminal conspiracy “The Shadow Gov’t” has dictated results of all presidential elections since FDR - by the bluest blue blood running. Since congress gave the country the federal reserve system in 1913 - by refusing to perform their statutory obligations - the present results have been accumulating for near a century with NEVER an audit. In the bankruptcy of 9 March ‘33 - FDR converted every citizen to 2 identities as the cost of doing business with the international monetary fund as performance security to back the bankruptcy. It leaves us as chattel - pigs, cows, chickens, TURKEYS - denied rights not recently enforced but increasingly so now. There’s lots more derogatory stuff that is common knowledge like congress being more interested in being the finest politicians money can buy than performing their constitutional duties, corruption at all federal levels as in the FDA where they violated their charter in ‘83 when Reagan appointed Arthur Hull Hayes commissioner and poisoned the public with aspartame approval against the recommendation of technical staff - which resulted in delayed genocide and the A.M.A. getting fat on disease management by refusing to find the underlying causes for cures. In short - theft of the country.

Well I was hoped to leave the planet before the chickens came home to roost. What we have is blind ignorance and pay back time to address. You see what we sow we shall surly reap. We have no one to blame for this financial disaster but ourselves. We allowed our gold backed dollars to be robbed by the international banksters and we have been borrowing their worthless paper every sense. Banksters owe no loyality to our constitution nor our nation. They are globalist that we allowed to create their wealth out of thin air. Not one of them has ever put in a honest days work. They own your cars, homes, and your children. You are existing from day to day in their debt hoping to see light at the end of the tunnel. Is their a solution. Yes, look after your family first and formost, go to your local church and find like minded friends to help each other. In short band together and fight the common enemy greed and power. All is not lost but we must become tools of God as this Is His Battle and we cannot win without His intervention. Seek first the kingdom of God and al things will be added. ty.

It appears the US is drowning in debt, including particularly the US Gvmt. And it’s unclear to me that the rest of the world is much better off, considering that their central banks have inflated currencies perhaps just as seriously. That leads me to conclude that the only refuge is things with intrinsic value like infrastructure and commodities, particularly precious metals like gold and silver; isn’t the ultimate solution to abandon fiat currencies and return to real money, gold and silver? A concern has to be what pain we go through before we realize that. One concern: China calling us on our debt by requiring pieces of US “flesh” in one form or another!

Chaloke from Bangkok
Will America survive? : Yes, but American will be there only as colonial subjects, Owner of America won’t be American anymore.

How do YOU feel ……….? : There’s no free lunch. American will have to pay, somehow, for spending heedlessly far too much of the wealth that they didn’t have for far too long.

Which investments ……….? : Simple grain markets had the habit of gaining more than 200% after having finished their corrective waves in the past :-
Corn 1971 - 1974 corrected to 109.50 and rallied to 400.00, a gain of 278%
Corn 1977 - 1980 corrected to 180.75 and rallied to 395.75, a gain of 119%
Corn 1987 - 1988 corrected to 142.00 and rallied to 359.00, a gain of 153%
Corn 1994 - 1996 corrected to 210.50 and rallied to 536.00, a gain of 155%
Corn 2005 - 2008 corrected to 185.75 and rallied to 796.00, a gain of 329%
Rough Rice 1987 - 1988 corrected to 3.90 and rallied to 12.82, a gain of 229%
Rough Rice 1993 - 1994 corrected to 4.78 and rallied to 12.80, a gain of 168%
Rough Rice 1994 - 1997 corrected to 5.97 and rallied to 12.45, a gain of 109%
Rough Rice 2002 - 2004 corrected to 3.48 and rallied to 11.50, a gain of 230%
Rough Rice 2005 - 2008 corrected to 6.21 and rallied to 24.85, a gain of 300%
Oats 1977 - 1980 corrected to 98.50 and rallied to 236.75, a gain of 140%
Oats 1986 - 1988 corrected to 95.00 and rallied to 393.00, a gain of 314%
Oats 1994 - 1996 corrected to 106.00 and rallied to 296.00, a gain of 179%
Oats 2000 - 2002 corrected to 93.50 and rallied to 248.00, a gain of 165%
Oats 2004 - 2008 corrected to 122.00 and rallied to 486.00, a gain of 298%
Wheat 1969 - 1974 corrected to 119.50 and rallied to 645.00, a gain of 440%
Wheat 1977 - 1980 corrected to 214.25 and rallied to 544.50, a gain of 154%
Wheat 1990 - 1992 corrected to 238.00 and rallied to 463.25, a gain of 95%
Wheat 1993 - 1996 corrected to 277.00 and rallied to 717.00, a gain of 159%
Wheat 2004 - 2008 corrected to 282.50 and rallied to 1349.50, a gain of 378%
Soybean 1969 - 1973 corrected to 236.12 and rallied to 1290.00, a gain of 446%
Soybean 1975 - 1977 corrected to 439.50 and rallied to 1076.50, a gain of 145%
Soybean 1986 - 1988 corrected to 467.50 and rallied to 1099.50, a gain of 135%
Soybean 2002 - 2004 corrected to 415.50 and rallied to 1064.00, a gain of 156%
Soybean 2005 - 2008 corrected to 498.50 and rallied to 1635.50, a gain of 228%

Corn averages 207%, Rough Rice 207%, Oats 219%, Wheat 245% and Soybean 222%. We are at the end of the A-B-C correction for Grain markets and there is no reason to not to anticipate 200% plus advance for the next few years. With 1:10 leverage, that will be 2,000% plus and even at the double ETF, then gain could be over 400%. I recommend a look at Commodities market such as Grain and Oilseeds, including Soft, Precious metals and Energy and don’t forget to hedge the value of the sinking US dollar with a few currencies, e.g., AD, BP, CD, EC, JY and SF.

I appreciate your advice, Martin. I have a lot of confidence in your cautions. I don’t have a lot of money and being 76-years-old, it’s difficult plunking down cash on some of the speculative ETFs. I own TBT and GLD and have been selling Calls against the positions, and will continue to do so until I’m called out. I’ve also sold some out-of-the-money Puts to generate a little income (at a price I don’t mind if they are exercised).

I would have purchased GROW also if I would have had the symbol but it opened above $7 so would have missed it anyway.

Having said all that, with the public’s bull frame of mind, when do I enter the short ETFs?

Thank you,
John

Dear Sirs:

My wife and I have just retired. We do not have enough assets to justify the contrarian program you offer.

We have about $50,000 in Roth IRA’s that is invested in short term Treasuries following your guidance.

We do not need to draw from this amount and are thinking of investing it in gold ETFs. Is this a good plan over the next 5 years or so? How much should we invest?

Is this economy going to turn around or remain nearly stagnant for a long period of time?

With Much Appreciation for your counsel.

James Bullock

IT WILL DEPEND ON WHETHER THE GOP IS ABLE TO TAKE THE MID-TERM ELECTIONS, IF THEY DON^T IT LOOKS REAL BLEAK. GOLD AND SILVER MIGHT BE THE ONLY INVESTMENT OVER THE LONG TERM. OBAMA IS A RADICAL SOCIALIST BENT ON RESHAPING AMERICA AND IF HE IS SUCCESSFUL WE WILL HAVE A SECOND GREAT DEPRESSION THAT WILL MAKE 29 LOOK LIKE A SUNDAY SCHOOL PICNIC. THE ONLY WAY TO CORRECT THIS MASSIVE SPENDING IS TO CUT GOVERNMENT TO THE BONE AND THEN IT WILL TAKE YEARS. I CAN SEE A LOT OF PAIN COMING FOR MY COUNTRY, HOPEFULLY WISDOM WILL PREVAIL. W.W.

When asked about oil stocks some weeks ago, Claus felt it was premature to hop on board that sector. As I recall he said when the overall market takes a dive, oil is just as vulnerable. Regrettably I took his advice, as we have seen an appreciable surge in this sector the past month. U.S.Oil for example went from its low of $22 to $38 in just over a month. When you consider it was at $120 just a year ago, the upside potential vs the downside is no contest. When you combine that huge gain with the contrasting drop in his inverse ETF’s, that is a very substantial amount to make up.

Perhaps one should also hedge against a precipitious gain!

Martin. I have bought your book and joined your Million Dollar Portfolio program and am ready to make the next move. I am basically completely out of stocks and bonds, with the exception of T-bills and money market funds (mostly T-bill only); I also have a few inverse ETFs. I must admit, however, that this market rally is taking an awful long time to turn around (even for a short time), which makes me hesitant to keep waiting for the inverse ETFs to come around. I am a conservative investor, like you are, but how long do I wait? …..In another area, I can’t stop thinking about how the market suddenly turned around in March/April with no apparent good reason. My belief is that the government realized that the key to the market was consumer confidence, so they allowed the banks to value their “toxic” assets wherever they wanted, which of course made the financial institutions look good, which made the stock market go up, etc. I wouldn’t be surprised, also, if bad news (which might hurt the market) is being hidden from us. Conceivably, those toxic assets could be held on the books for 10 years, after which they would have grown into non-toxic assets; during that time the market would never go down. God bless. Dick

It is a dark day when one man thinks he has all the answers to our problem. Why can we not have a group of dedicated authorties form a think tank, Allow them to decide what is the problem? What are the solutions? With many hours of imput what are the best solutions. Not allow political party “MAJORTY” to ram their political advantage to over ride agood solution. Make sure all in the group realize it has to be a win,win solution. If we allow our “SINKING SHIP” to sink we all will lose. America has allways rose to a difficult challeng. I know there is a GOD and i firmily believe he will be there for us if we humbly bow and seek his”HELP” I am not a religius nut ,but in my 80+ years God has been with me when almost hope was gone.

Whew!! So many, expecting things to become so bad. Doesn’t anyone have faith that we will survive? Of course, we know there are going to be difficult times until the country gets back on track; but we will in time. Listen to good advice, prepare for the hard times to come and then just ride it out.
As a sailor, I many times learned of bad weather ahead and after hunkering down and preparing for the storm; all we could do was ride it out. sometimes it was scary and we often wondered if the ship would carry us throguh the storm. But it always did and when the wind stopped, the seas calmed and the sun once again shone through, we knew that we had survived once a again.
Have faith. Prepare for some rough seas ahead. Have confidence that we can survive.

It would seem that we are building up to a recession that could put the noose on our neck for years to come. I am scared for our Country.

We need to get organized, and pull ourselves up. We need to stop blaming the government, and realize that we elected these people, so we are also to be blamed.
Elect people who start thinking what is best for America, and stop policing the world.
Elect people who will work for the people who elected them, and not just finding a career job for themselves, as well as their family and friends. We need to invest in production, and stop erecting strip malls down every major street in America. I hate strip malls!
For the short Dr. Weiss, I feel commodities as well as precious metals are best, what are your thoughts? Thank you and God Bless America!

Hello Martin & Associates,

I am baffled by the rising stock market vs rising government debt. To me, it should be “falling stock market vs rising debt.

The MBA’s say large government spending is the only way to turn the economy around. How would you guys turn it around?

Because of yours and others advise, over the past several months, I made out very well. This week I sold the stocks I bought at the bottom of the market last year. I made over 150% on them, and I bought PUTs in SPY. I also bought gold and silver last fall when I sold most of my PUTs at the bottom of the market and so far have made +20% on the precious metal. I made over 100% last year on my PUTS. I think PUTs will be a good investment for the next 4 to 6 months then I’ll have to look to see if its time to go back to stocks again or just go with gold, silver and real state in my Utah home state. I also have a one year supply of emergency food and other essential stuff for my family and I am debt free.

In Nov of 2007 I moved my wife’s retirement account to bonds and then moved it back last fall to mutual funds. She has made 30% on her account, where most of her co-workers at the hospital have had major losses. I plan to liquidate her retirement account, pay the taxes, (she’s over 65 now) and do real state, gold and silver with the money. I think her retirement fund will be a big loser if she stays in it any longer. Utah real state always does well when the economy gets bad because many members of the Church of Jesus Christ of Latter Day Saints move here in bad times. Some of the farm land in central Utah has doubled in price in the past year or so.

I am baffled by a rising stock market vs rising government debt. It seems that with rising debt, the stock market should be going down.

The MBA guru’s in Washington and elsewhere feel that the only way out of a recession is to spend. How would you folks reverse the recession?

Fred

Dr. Weiss - Which is more likely to occur: (1) hyperinflation a la the 1920’s Weimar Republic in Germany or (2) 12% + annual inflation a la the Carter-Volcker years of 1978 to 1980 that led to the “Reagan Recession” of 1981 through 1983 that threw 2 million (Republican estimate) to 5 million (Democrat est.) Rustbelt blue-collar high-school educated assembly line workers out of their jobs. It is abundantly clear that inflation will occur, and these oil prices rising again will only worsen it, but I would appreciate your outlook on the level of inflation we may experience. I am very interested in when you think inflation will get so high that I will have a chance to get out of 3-mo. T-Bills and buy very high-yield US Treasury long bonds paying much higher interest rates.
Thanks very much for considering my query.

Its hard to believe that the United States itself could go bankrupt. I`ve been part of the contrarian program to try to avoid loosing a lot of momey and hopefully making some money. I invested $10,000 in a fidelity account and buying the suggested investments but it cost $19.95 as a commission for each buy which is a large percentage of the buy. There have been 8 buys now at $19.95 each so alot is going for commission. Its going to take a lot just to make up the commission so any advice yoou have will be appreciated. Thanks! Ray Deckert.

Martin, you are prone to a level of hysterics that reduces your credibility. When you say things like “court approval to begin liquidating its assets” you sound ignorant of the differences between Chapter 7 & Chapter 11 bankruptcy. If you are not ignorant, then it appears that you are purposefully misleading others who might be ignorant of the differences. Either way, it’s bad for your credibility. The date for enrollment in your “Million Dollar Portfolio” has passed. Give it a rest.

Investors of all walks of life will folk to precious metals as the US revisits the days of France’s Joh Law. Sorry to be so gloomy, but we are seeing the change of the entire US paradigm.

Dear Martin:

I have been reading your information about buying stocks at low prices and then selling when the market is stable and making a profit. Warren Buffett feels that the market will always come back and he invested in GE stock that was half price in September. He looks for companies that are well managed and buys them at a 40% savings. This is good thinking by both of you, but my concern with both of your ideas is that we have a government that prints money like it is going out of style. This new money has no financial backing to support it worth. How can we continue to try new ways to save our investments when even if we do the dollar will be worthless. Buying gold, silver, and diamonds makes more sense because you have a precious commodity. The only thing wrong with this plan is who will buy these precious items when we have a world wide financial crisis and famine. Can we eat those precious commodities?

OUR ONLY CHANCE TO SURVIVE IS IF THE CURRENT CROP OF WASHINGTONIANS DO NOT. THIS INCLUDES ALL THREE MAJOR ENTITIES; EXECUTIVE, LEGISLATIVE AND JUDICIAL. THESE RATS HAVE SOLD US OUT AND THEY SHOULD BE STRUNG UP FOR THEIR TREASON. IF THIS IS TOO HARSH FOR YOU, TOO BAD. JUST WAIT AND SEE. WE HAVEN’T SEEN THE END OF THIS BETRAYAL, IT WILL GET WORSE.
I AM A PROUD VETERAN WHO SERVED WITH DEDICATION MANY YEARS AGO. I CAN ONLY TAKE SOLACE WITH TODAYS CONDITIONS IN THAT AT MY AGE I HOPE NOT TO STILL BE ALIVE WHEN OUR TOTAL DESTRUCTION AS A FREE AND WONDERFUL SOCIETY FINALLY CRUMBLES UNDER THE “NEW WORLD ORDER”.

WE ARE WITNESSING THE GREATEST DISTRUCTION OF A FUNCTIONING ECONOMIC SYSTEM SINCE MANKIND BEGAN BARTERING FOR GOODS AND SERVICES. THIS ECONOMIC DEVISTATION CANNOT BE CORRECTED BY THE METHODS BEING USED BY THE INDIVIDUALS THAT CREATED THE PROBLEMS. ALL OF THE CORPORATIONS AND INDIVIDUALS THAT CREATED THIS ECONOMIC PROBLEM SHOULD BE PROSECUTED FOR THEIR CRIMES NOT BAILED OUT. UNTIL THE PERPETRATORS OF THESE CRIMES ARE PROSECUTED AND CONVICTED THERE WILL BE NO TRUST OF ANYONE.

As per Raymond’s comments, I thought about getting involved in the Contrarian program on a modest basis myself, but was concerned in advance about the volume in trade fees eating up profits, so I did not go ahead. What minimum investment is recommended for this program? Will Weiss open this Portfolio at some point for other investors?

Hi,
As a non American but keen historian I have been watching the tragedy of the US dream unfold for some time. It is a reflection of the other great civilizations - great endeavour eventually destroyed by uncontrolled greed and excess on the part of many, abuse of power and the very systems put in place to protect the nation, a general willingness to turn a blind eye to lies and deception, and finally, a shameful and possibly deliberate erosion of the education system (Maths 0 vs MTV 1).
Time for Americans to re-read some of the writings of the founding fathers. They sounded all the warning bells back in 1776.

This is devistating. Our children and granchildren will not live long enough to pay this debt.

It is time to return to some old fashioned values that you have to earn. The me too generation will learn that the hard way since everyone feels they are entitiled to the government freebies. There is no free lunch and never will be.

I am extremely pessimistic. I envision a depression similar to the 1930’s or worse. I’m 75 and trying hard to reach 80 to see how this all works out.

Martin, I have 70% of my assets in a Life company, in an annuity (American
Family Mutual) that you have rated A plus . I receive a 4 to
4.5 % tax defferred rate of return. I have 5% of my net worth in
gold and am planning on increasing that % to 50% over the next
3 years. Perhaps around 2012, at the bottom I may then begin
to purchase stocks at incredible bargains, if our currency survives.
I too see our country as spiritually bankrupt. We need to repent
and seek His face. Thank you for your good work!

Martin,

The capital markets are frozen and so are my business and my income. I am an independent sales representative selling computer generated imagery services to architects and real estate developers. Developers buy our services - sometimes directly and sometimes through their architect - in order to accelerate the sales process after the architect has completed their work. We bring the development to life with 3D images and animations, and this imagery is used in sales brochures, on websites, in sales offices and in other ways to promote the properties.

With capital markets frozen, there is no development occurring, and the architects have nothing to create. Therefore, I have nothing to sell. Every month, when I send out a global email to my customer base, I get more an more undeliverable emails back. Those are people who are no longer employed at these firms. Many of these firms have laid off up to half of their employees. I’ve never seen anything like it in my lifetime, and I’m sixty-one years old.

When do you think we will see some “thawing” of the frozen capital markets?

Thanks,
Ron Garland
Bozeman, Montana

Dear Martin
Bigger than the economic decline is the lack of leadership in Washington D.C. People are losing faith in our leaders. The governments solution is spend spend spend. What about a 20% across board cuts in every program without exception. Lets sent a message to the world that American can tighten its belts and I believe the American people would welcome it starting with congressional pay and perks. Balance the Federal Budget as quickly as possible and have everyone in America participate in doing what is right for the country. “War on Government Spending” for the sake of the country. We need a balance budget amendment at the federal level. Also, assist the umemployed by using matching grants to help them start new business. If someone wants to start a new business have them tab into their IRA/401K funds for lets say $10,000 without penalty and have the government match it through the small business administration subject to approval of a strong business plan. There is so much that we could do.

What is happening to the United States at this time is anyone’s guess. What ever it is I guess we will find out soon enough. What ever it is both the Bushs and both the Clintons have supported Obama and this OPEC take over from the Saudis. I’m sure soon to be recognized as the Islamic Empire.
It was very obvious what needed to be done. Instead of rational political and economic leadership we have seen the expansion of the Federal Government. The hostile take over of U.S. Corporations by the Federal Government. This Federal Government killed the goose that laid the golden egg and is now wipping out the entire corporate economy and small business base. Both political parties just keep acting alike to the point that a two party political system is a thing of the past. We the people have not seen a rational political move out of Washington for so long now that I’m sure extreme levels of apathy among the entire nation will be our next biggest enemy. If I am wrong and Obama is some kind of secret genius then we are going to be in for the supprise of our lives. The way I see it, Obama is just another Saudi flunky just like the Bushs and the Clintons. The American people are going to be so disappointed to learn that instead of socialism they are going to get Shariah law and economics. It is all pretty much fascism.

This is the United States of America. We will come back. I have no idea how but I pray that we get off our collective rear ends and start electing people that think the way we do and call them out when they don’t follow through!

I agree with an individual - that is stop blaming government for everything. We as US citizens need to elect not only right folks for White House but for local and state governments. In additon, we need to raise teaching standards in the schools so that our next generation is smarter than us and outside world, and can rebuilt America. If we contiue to elect wrong folks, we will be eventually sold to other countries, not physical slavery but monetary salvery.

As far as stocks, I still believe some of the big names AIG , Citibank will survive. NEW GM, I still have doubts. What are they going to do different than what they have done over last 20+ years. Lets us face, GM products are good but compared to NISAN and HONDAs etc, they are not so good. Find cause for that first and fix that. Bring back manufacturing back in US. Also, UNIONS need to step back a bit so that jobs do not go oversees.

Regards

Anyone who did his/her homework would/should/could have seen this coming. We’ve been gathering statisics since the 1700’s. Remember the journalist who asked the simple question,”How does Enron make its money?” Well its the same answer now: by lying, cheating, and stealing. Its called criminal fraud, folks. I remember one time I went to a storage auction and people were bidding ridiculous amounts of money on sealed boxes. I sure gave them what they wanted next time around, and back in those days a thousand bucks profit was a nice piece of change.

America IS bankrupt-you are correct! The question is “what can we do?” And the answer of course is “nothing”-nothing that is untill the government’s checks bounce or are worthless! At that time -or before-we will see rioting in the streets and worse. The only trump card the government has is “the guns”-we are the one and only world power. That is why the Obama and his administration hate the 2nd amendment (actually they hate the whole bill of rights AND the constitution) and are doing everything in their power to take away any and all power from the people. Of course they are doing this under the guise of “the good of the MAJORITY of people.
They hate ALL cash money-especially gold-because it is hard for them to follow it.
So…you get the picture.
Thank you
Jerry Jones

The Obama administration is the first in history to not have America’s best interest at heart. Even Jimmy Carter thought he was doing what was best best for the country - OBAMA ISN’T.

It is incomprehensible that this government would nuillify GM bond holders contract agreements - taking away their personal lawful rights - paid for with a premium -but will provide protection at all costs to terrorists imprisoned at Guantanamo. OBAMA administration actions to date demonstrate a quick and radical movement toward a facist and totalitarian state. If one disagrees because he or she still believes in his hope and change rehtoric, then analyze whether or not the change in policy toward ISRAEL, the current underfunding of the military, increasing the largest debt ever known to man, has the best interest of America at heart. We are well down the road of being incapable of protecting our children from jihad.

I am not an optimist about this OBAMA-NATION as all the rules are being re-engineered by his people to benefit a socialistic way of life. It is evil toward every man in its very inception. It seems that it is time to keep our wits about us and pray that God grant’s us the courage to do the right things - no matter the consequences.

As such, investors are not blind to the meaning of this administration’s actions and will not want to invest in any business in a country where contracts regarding the formation of capital investments are unlawfully invalidated by the government. It appears now that only the government is lawfully sanctioned to form capital for investing - ie.. GM, AIG, Banks etc… Until, the OBAMA government is cleared from office, Americans will suffer the dire consequences of a powerful socilaistic agenda to create all men equal in every way. Only those that can pay their taxes will survive for a while until their wealth is confiscated by the state to take care of the masses.

With respect to administration policy toward printing money - this will likely cause select commodities and stocks to prosper - unless manipulated by the government and many more businesses to fail resulting in an increased crime rate.

Therefore, the only smart thing to do is to follow Safe Money advise, get out of debt, reduce one’s cost of living and pray to God that you aren’t living near Sodom or Gomorrah.

David,
US Navy Retired

The unfortunate truth is that the vast majority of Americans are just one paycheck away from being impoverished. I find myself at 60 years old in that demographic. I take full responsibility for being in that position. I will utilize all the skills taught me by the USMC 67-69 to maintain my freedom to earn and provide for me and mine. I have made and spent two considerable fortunes in a free and open economy, I can do so again. If the government, depublicans or republicrats have their way, I will not be able to do so. With that thought in mind, take note all NWO proponents, oligarchs, and world bankers. The most dangerous person in the world is one with nothing left to loose. We are a nation with nothing left to loose but our liberty. Keep or develop your ability to survive no matter what. Money alone cannot do that for you. I can walk out my front door here in Texas and walk in any direction of the compass and not fear starvation for I know how to survive. Can you, are you willing to face these tyrants down? If you aren’t willing or able, then roll up your sleeves, report to the nearest FEMA center for your mandatory vaccination, chip implant and new world order assigned job. Just pray that your job is not to come take my 2nd amendment rights. I know hundred if not thousands who will be financially destitute tomorrow without a job. They can still survive with their guns to hunt for food and defend their sovereignty. They can have my firearms, bullets and shot first. I will stand till my last breath will you, in defense of liberty? If you have money put it in hard metal and ammunition. Yes folks, it has come that far.

The $500,000 share of US Government debt that EVERY American family owes is over-and-above each family’s personal debts on housing, cars and credit cards. Such a debt can never be repaid, except by devaluing the US dollar. You know it, the rest of the world knows it. It’s only a matter of time before the trickle of those exiting US dollar investments becomes an avalanche.
While Americans still think their country is “the world greatest nation” (read Larry Edelston) the rest of the world remembers that the US has brought us one global depression and looks like starting another, and is the only nation to have annihilated a civiliation population with nuclear weapons. You have bullied anyone who doesn’t agree with you, tortured prisoners of war and squandered more than your fair share of the world’s resources. I have yet to hear even an “Oops, sorry” from any American for all this. Don’t be too surprised that many in the world rejoice at seeing a bully on his knees.

Thanks for sharing your insight and knowledge. My fellow conservatives keep forgetting that the Financial Bailout Bill was passed on Friday, October 3, 2008 (another Black Friday), a full month before the Presidential election, under a Republican President and our “financial derivative whizkid of Wall Street” Republican Secretary of the Treasury. And our “new” Secretary of the Treasury was not only intimately involved with that action but also was the “designated specialist” regarding the AIG Rescue. I see no hope from the Democrat party and little if any from the Republican party. It seems to me the politicians have artificially restructured our entire monetary system, and that the end result will be excessive taxation or runaway inflation or both. Combined with the loss of American jobs and the lack of any hope of returning to any significant manufacturing base, our so-called “consumer based economy” is nothing more than a classic case of a dog chasing it’s own tail.

Martin,
Where does the money trail go?
I’ve read that there were $$ 1.2 Trillion in derivitives that were betting against GM with the objective of a huge profit on the GM bancruptcy.
The only problem is that if there are huge winners then there are huge attendent losers.
I think I understand who were the losers, but tell me the names of the winners! !
I know GM would hane had to endure a Chapter 11 but this is much grerater.
Regards, Norm Ofstad

I personally think America is definitely in for a tremendously rude awakening concerning its monetary practices. Someone has to pay for the printing press bill–money simply cannot be generated from a lack of the same. It bothers me that policy makers cannot grasp this basic, simple economic truth. If I have a negative balance in my checkbook then good fiscal practice encourages me to not continue writing checks and utilizing my ATM card. Throwing debt at debt only makes more debt–where is the reasoning for actions taken?

Dear Martin:

What will bring down America is its insularity, its refusal to recognize and come to terms with the fact that indeed there is another world out there – a world that is growing in numbers as well as in knowhow and expertise. This ‘other world’ is increasingly more sophisticated and more cunning in exploiting its advantages and preserving its resources. This we have failed to recognize and appreciate.

In the early sixties, the US produced eighty percent of the world steel. Today it produces a mere 7%. In those days, engineering and scientific conferences were populated mainly by Americans – the vast majority of the attendees were American. Today the American participation is down to a few percent. Our educational system reflects this decline. It has catered to professions that are dependent on the generation of wealth rather than to those that generate it.

Over and above all this, we have developed a policy of quick profit as opposed to long term investment. As a result our infrastructure has been neglected. Our railway system is antiquated.

But the ‘coup de grace’ is the fact that the supply of energy and commodities is declining and what is left of these lies mainly in foreign hands. The countries that are rich in commodities will not part with them cheaply for fiat money. Copper has become gold. Their price will skyrocket as countries around the world keep printing money with abandon.

He who has the gold will make the rules!

Kirk Valanis, Ph.D.

I think we are is a severe economic crisis that will change the world forever. I think this is only the tip of the iceberg and more economic woes will come to America and the world. We will never again see the prosperity that this generation has had. People think that the Gov’t will somehow come up with a miracle that will fix this, but it won’t. The Obama administration is headed in the wrong direction but it may be a sign of the times. The Bible predicts economic disaster in the end times.

To the Dr. of Vent, from one who needs to: I’m mad; mad at my congressman who
failed to heed his constinuency and voted for Bushs’ Bailout. Then he got religion after
the fact & wants to stand for some sanity by voting no to the rest but it was TOO LATE. I’m mad at my neighbors & countrymen for electing a team that time after time
proves they’re not ready OR capable to lead in PRIME TIME, no matter what the area of
responsibility. I’m a VietNam era vet who can’t get the benefits promised a guy who
signed on for four years. I’m mad as hell, and can’t navigate these markets alone…no
experience here. It’s why I’m a SAFE MONEY subscriber, and glad you provide the service for those of us who don’t have the portfolio’s OR income to subsidize the best of the support you offer. Thank you, Martin Weiss, and I’ll be listening in tomorrow at
noon for the next “offer”.

I don’t know what will happen next for sure. I do know this. The treasonous idiots that run the government are destroying this country and there is no turning back. If we make it to the fall of this year with anyone having a job left after the currency is devalued I will be really surprised!

I used to write letters and submit broadsides, printed by think tanks, to my congressmen. This usually generated a form letter reply that made it sound as if they cared not, what I thought. I have finally, for better or worse, given up thinking that our government leaders can cure any problem. I think that I shall sit back and try to live through the coming collapse. Maybe my coins and a couple of guns will carry me through.

god help us because the evil people in washington will not

I have little education in financial investing as it is just in the last few years I have accumulated income. . . I would like to know if you think the dollar is going to crash. As inflation rises and the Euro gets more strength (today 1.49 to our 1 dollar) as the US debt increases, more money made and lots of wrong government deals it seems that the time is close.
In Financial Astrology they are speculating November of this year.
What do you think? And is there any foreign currency that will be safe to have? Is gold and silver safe? And, what other investments would be good for people with small savings. I live abroad in a third world country.

I am in a quandry over this. I wonder if we will have deflation in big ticket items and inflation in every day expenses. US cannot print so much money and not wreck the currency.

Rich

I honestly do not know what Our Country is coming to. I fell like the Lord is putting us to the test. For my money we need to almost have a target as a percent, as to when we get out of a given stock. All bets are off when we reach the point. Question is how much is should we take off the table. I wish I had a good answer to that question.

Regards,

Bill Foushee

Martin,
Thanks so much for keeping us informed on the government’s blunders and the failing markets. Between you and Glenn Beck maybe we can rally enough troops to get through to the idiots in congress. I’m retired since 2004. I have very little invested in the stock market right now. Most of my investment I made in 04-05 are in start up companies that are suppose to go public but I’m still waiting and not seeing any return on my money. I do have some invested in silver which I’m liking right now as long as it keeps going up.
I too think we in for hyper inflation. It’s for sure the bailouts didn’t do as intended and our grandkids are going to be burdoned with the debt. I have to much confidence in the American People for us to fail, but I think it will be a different America that survives. We need to keep God in everything for if we shun Him he will shun us. Where are our rights as Christians?

Wish you were President. You have had so much wisdom. It’s a shame noone in Washington has a clue. Why couldn’t you teach them something.

How can we avoid an inflationary depression as long as we are printing money with no value and ignoring the law of supply and demand. This is insane.

Martin, this nation cannot survive at the rate money is being printed and spent. Common sense tells us this. The Congress is enabling the Obama administration to essentially bankrupt the nation. Secured creditors are being treated as “unpatriotic” for wanting their debts paid. The national media is failing to do its job as the “third estate” and challenge authority. Under these circumstances, there is no such thing as a safe investment.

I woke up one day in October and realized that the country was heading into imminent bankruptcy and collapse. I heard some Peter Schiff podcasts and caught a few of the Weiss reports which further confirmed what I felt. I don’t believe that we are going to have deflation until there is a hyper-inflation collapse. I don’t believe the government will come to its senses until there dollar is worthless and we defaulted on our bonds. The fact is with guys like the Bamster and his henchmen running things, we don’t have a chance. Not that Bush was any better. The only thing that can save the country is a return to sound money and elimination of the Federal Reserve. From its formation in 1913 to the present time, the dollar is worth approximately 4 percent-and sinking fast–of what it was in 1913. From 1790 to 1913, the inflation rate was .12 percent. This means prices were about the same in 1913 as they were in 1790. That’s quite a proud record for our central bank. The Bamster and his cronies seem hell bent on making what little is left of the dollar even more worthless.

The results of this suicidal policy are not hard to foresee. Civil unrest, marshal law, and a total loss of freedom. We have no one to blame but ourselves. Our founders were much wiser than us. They knew and understood that the greatest threat to liberty is government. Unfortunately we will have to relive this lesson in the most painful way imaginable.

I have been a follower of your articles for over a year now. I’ve also purchased your book. The problem I’m having is all the green shoots that’s going on everywhere from consumer sentiment going way up, to the major increase in the market, increases in manufacturing , existing home sales etc. All you seem to hear is the recession has bottomed and we’re in the process of recovering. If you’re wrong, we’ve lost a major opportunity to get back some of our losses from the past few years. If you’re right, when do you feel this temporary upswing will end and we’ll begin the economic downturn you so strongly believe will happen.

why doesnt anyone talk about the Federal reserve, its controlled by the big banks, and as long as it controls the money system, and is controlled by the big wall st banks we cannot get anywhere.

Hello I am sorry to say I do think we are DOOMED and the AMERICAN PEOPLE have not got a clue most of the ones that have jobs and are making a good buck don’t know what is going on oh ya they heaar it on the news and read about it in the papers but I still think they have”nt got a clue.
I have been unemployed for over six months I have exsausted my first stint of unemployment and just started my second and I have been digalently applying for jobs on line and filling out aplications but no one calls not even for an interview and they tell you right off the bat don’t call us we willl call you. And if this is happening with little jobs like Burgerking and gas station/convenient store attendent what in the hell do you think they are going to do with corporate America they will make a shables out of that too.
Oh and my favorite it Obama wnats to send everyone to school for what all of 20009 grads are fullie educated and are looking for jobs oh ya they could work for free and get an internship ya that is going to put lots of food on someones table.
I see America being a lot of highlly educated people working at 7-11 and oh ya Walmart and lets not forget do you want fries with that.
No don’t get me wrong these are all desent jobs and I do’nt mean to pick on them but people need to wise up what are you going to go to school for if there are no jobs and educated people can’t get a job.

Americans voted for a socialist regime and we will all have to pay in the time we have left. Our system is broke and no one around with enough sense to fix it. Not even heard from any members of Congress. Scary indeed.

Dear Martin,
China holds a great deal of American debt. We are locked in a very disfunctional embrace, but WE ALL NEED TO KEEP DENYING THAT THERE IS A PROBLEM. So, would you just keep a little quieter? The reason we need denial so much, is because NOBODY HAS ANY CLUE (Admit this to yourself) AS TO WHAT TO DO. So if we bumble around a little longer, maybe all this will go away. Or, we can just pretend that the world is O.K. Witness our cute little ‘dead cat bounce’ of a stock market rise, and some pretending it might be real.
One solution I thought of, which will NEVER happen, is that the citizens of USA rise up and demand that the Federal governmen cut itself in HALF, right across the boards. Congressmen’s territories would have twice as many people. Each State would have only one senator. California’s Governor Schwartzneger should fire half of all the government workers and cut half the programs, as a goal to save money. We have just way too much government, and we can no longer afford it. Every state should fire half the government workers.
So now, Obama should write a check to all those fired workers, half or less than they used to make. Run the figures on that for me, will you? Are we making a dent?
Encourage every jobless person to start a garden in their yard, and if they no longer have a yard, public parks might work. Or they could till their working neighbor’s yards and get paid in vegetables. Or Obama could cut them all a little check also. Much less than bailing out banks and albatross automobile companies.
Best I can do for today. It all makes my head hurt. I will keep thinking. And buying gold mining stocks. Maybe some oil or gasoline.

Hello yes I do think we are doomed and it is innevitable we have been sold down the river by past and present polaticians. I mean look what is going on people everything is falling apart and all our presadent can do is say everyone go back to school you have no job no money comeing in and he wants you to go back to school and we have millions of 2009 grads getting out of school that can’t find a job what makes him think that when I get out of school there will be a job for me oh ya I heard you could take an internship ya that is going to put food on the table and cloth children and pay rent and I could get rich too if some one could for me for nuthing

Dr. Weiss:
I can”t get by the old phrase, “don’t fight the tape.” This market is not reacting to bad news and that can paralyze investors wanting to get back in. I feel that many mutual funds missed the March bottom and are under invested, so June will probably be an up month so they can report quartely portfolios more in line with the stocks that made these huge gains. This is a very difficult time to invest. I feel that the market may continue up until the fall. Watch out for September and October. Leveraged inverse ETF’s will probably be the play.

Martin,
I agree with you. America will survive, but it will be a different America…it already has turned socialist, it will get worse. My money will not be worth as much due to higher interest rates, a weaker dollar and taxincreases. precious metals will be the strongest of all. My last comment is God Bless us all when this hits us in the upcoming months.

Unfortunately Common Sense is not So Common. The future generations should not pay the price of our Greed.

If printing money would solve our problem then we would all be printing money.

Where will we be at the end of this. This is really worse than the late 1970’s and really being masked because we don’t have the high interest rates YET !!!

I am stuck in some respects with investment real estate, unless I can increase rental rates inorder to cover the future increases in interest rates that I will have to pay.

Alos, can we make it and have any wealth in the future without a true viable and broadbased manufacturing sector. I don’t believe we are still the world’s largest manufacturer. Can someone prove that real numbers?

Reading all above comments it seems tome that a fair number of writers do not realize the contradictions in their statements. Roughly summarized: On the one hand they think that US-america is god’s gift to mankind and that they are entitled to all kinds of riches and benefits, on the other they bemoan the fact that that other people had the audacity to try and reach the trough.
While America is a large country, it is not superior or special in any way over any other place, safe for the fact that, collectively, it has always lived beyond its means. From the venerated beginnings there was debt and state interference in the economic process. Whether you think of the Louisiana ‘Purchase’ or the land give-away to the railroads, land that was no the government’s to give away in the first place. I can see no moral beacon (with some brief historical exeptions) but a lot of ’sausage making’. Leave the Almighty and the hoity-toity (correct my spelling, if you wish) out of it. There is no moral highground, never was, its all about how the few can stripmine the landscape at the expense of the many. Combine that with an inflated military (eating 40% of the budget) that often stuck its nose in places where it had no business (Vietnam, Central America, Middle East) and efforts to blame regulation as an assault on ‘free’ enterprise and you have cowboys running wild, trashing the place.
Wolfgang Sailler

Martin,

I am a new investor, I honestly admit that. I am not a cynic, but I do recognize what is going on in this economy, in this nation, and with the fed. I do forsee that the american culture has through the years passively forfeited its rights, values, financial intelligence, and desire to honor our predecesors values of self education, hard work, freedom, pride, and prosperity. On the positive note, there is more material wealth than ever in the world today. I forsee a future where technology enables production and business is so effiecient that only a small group of the population would even need to work. Things are already trending towards this model as humans around most of the globe have basically secured lifes necesities. Today the world moves on consumerism, and even that market will become more efficient and require a smaller work force. Have you ever seen idiocracy?

Here is how I see it. As long as America uses Fed dollars, the Fed will own the US and everything in it. So be it. The question is how can we make money. It is my belief, that the US government, the US dollar, and the US economy are all going to get way worse. We can assume that as through history, the fed is going to crush the dollar and crush the people of america. This will allow the government to gain more control of the citizens and businesses, and also enable to fed to gain more control over the government and business as well. As done throughout history. It will enable big money to buy up much of America, as done in the early 1900’s.

The only defense I can see possible is a Super High leveraged currency attack against the falling dollar. I have never traded currency, and have barely traded stocks. I haven’t yet read on currencies but I am about to. As a young man I don’t have much trading experience, but I know that in this market and in this world, our offense is our best defense.

After researching ETFS and leveraged ETFs I don’t personally feel that they are the best vehicle for profiting in the rocky economy. Heres why: The market is not perfect. People may hold out on their positions and stocks can still maintain value, just out of insanity or stubborness or desperation, despite bearish fundamentals. The crash may come, it may not, it may come in days, it may come in years. I think it depends, and I think it will take a bigger catalyst to trigger the huge consistent sell off needed to profit with inverse ETFs. Two, inflation may defend against a further decline in the market, even as fundamentals crater. Three, even if the market does come down, or move sideways it will also bounce up and down in small increments along the way. This up and down incremental movement actually takes away from the profitablity of ETFs especially leveraged ETFs, and may even cause negative gains even if the long term market moves in your favor. This I have discovered after taking your advice to study the significance of daily releveraging of ETFs.

As Jeff B pointed out, the world bankers are swift and powerful to say the least. We too must be swift, focused, bold, aggressive, and deliberate in our strikes to counter the destruction of the dollar and the economy, and profit from it.

Martin, I see that we must play currency and we must play hard and high leverage. I want people to be able to turn their thousands into millions in the currency market. I know people do it. I want to be one of those people. I suspect that the feds flagrant destruction of the dollar should be setting the stage for some nice predictable, sane profits in the worlds biggest market, currency.

Does any one agree with me?

Martin,
I bought your book about two weeks ago and now realize how unsophisticated I am in this area. I am currently about 20% percent invested, mostly in corporate bonds with a good yield. The rest is on the sidelines waiting for some inspiration. With a great surge in inflation very likely gold seems attractive but, can it go much higher? What is this talk of the “amero” replacing the good old Yankee dollar? I need a strategy. Thank you for your work. You are a voice in the wilderness.

we will survive but with a lot of Inflation

GM was almost destined to contract, regardless of recent woes and miscues. The car business became a replacement industry. When I was a kid the norm was one family car. Then Mom went to work, and things got so hectic the kids needed cars to get to shcool and activities. Lately, some families added an SUV for special trips. At the same time vehicles got built better so they lasted longer. More want for cars than need fueled the remaining tottering sales as demand had a head-on collisoin with rising prices on both the cars and the gas to run them. The debt crises was only the acute blow that knocked the shaky legs from under an industry which should have down-sized earlier to meet diminishing demand. The money we wasted trying to splint these wobbly legs could have been diverted to subsidize indusrtries in their ascendency, ones likely to produce more long lasting, secure jobs.

Martin

The banks are holding the good foreclosers on their books (600,000 properties) plus all of coming defaults in commerical and residential properties plus people without work! Check your mens undies. They say “2013″ !!! Thats going to be a couple cold winters with worn out shorts.

Good luck fellows!

America will continue to decline unless our younger generations go back to basics. Too long have our people been assaulted by the Media, Academia, and Politicians with the mantra that they are the entitled and keeping up with the Jones’s is somehow patriotic. Steering the national ship of state by the fickle polls created by those that would deceive has led us to a place where we have found ourselves with no contact with the moral bedrock that made America free. With Representatives and Senators not in place to represent, but to fatten their wallets. It has been, and is, a fiscal sodom and gomorra with no care for constituents except to obtain their votes.

GM has proven itself not an icon, but a complete failure. It’s employees must share in it’s demise for obscene demands for retirement and health plans. Building cars with planned obsolescence so the buyer would have to buy another car has finally caught up with them.

As for Obama, I voted for him based on his platform, but his continued spending to “aid” the felons who cause this world-wide disruption, plus his continues barking for his “Jillion dollar” health plan leaves me gasping like a fish out of water. If he continues on this mad scheme, he’ll be known as being as big an a—–e as his predecessor. ER

Martin

The government is doing what you expect it to do. They responding to the economic crisis like politicians not business people and statesmen. They are digging a deeper hole that will ultimately make the problems worse than it need be (and the problem is bad at best.).

I agree with you and Claus. Things must go back considerably at some juncture no matter how much money they throw at the economy.

Mike Mutterspaugh

I’m in your Contrarian play with Claus and buying whatever he suggests. I’ve already aligned my portlolio to this philosopy. I’ve had NO consumer debt or credit card debt for the last 30 years. I’ve got a mortgage that is down to 34% of my house purchase. I hope to have it paid off in the next four years, maybe less than that.
Thanks for the heads up over the last 10 months I’ve been taking your advice.
Jim

REMEMBER IN MARCH 2000 WHEN THE TECH BUBBLE BURST GOLD ALSO STARTED TO CRATER EVENTUALLY TO $ 250 PER OUNCE. I THINK MANIPULATION VIA MEDIA, TV , ADVISORY PANELS WILL DRIVE THIS MARKET ABOVE 10000 BY AUGUST AND THEN LET IT DROP LIKE A ROCK.WE ALREADY HAVE SEEN MARKET DROPS OF 777 POINTS AND I THINK WE WILL SEE A DROP ONE DAY OVER THOUSAND POINTS.REMEMBER THEY ONLY WILL CLOSE WALLSTREET IF THE MARKET DROPS MORE THAN 1350 POINTS IN 1 DAY. IN AN ENVIRONMENT LIKE THIS EVEN GOLD WILL DROP

I believe gold will benifit the most over the next few years as we are in a Kondratieff winter and faith will be lost in the US dollar. The government is following the script.

To those that have posted to this blog who are so smug about their being debt free and financially secure and regardless of how bad things could get, would be able to maintain their lifestyles and in fact enjoy care-free jaunts to the nearby beaches and parks for a lovely afternoon with their families, don’t seem to understand or choose to ignore the fact that if we do experience an economic and social meltdown (and I fervently hope and pray that we don’t have a collapse) that your days will not be as rosy as you think. If things do get that bad remember that there will be strains, stresses and disruptions to every facet of our day to day lives which could get worse with every passing day. Some of these disruptions and shortages include the ability to get food, water in some areas, heating and cooling for the home, transportation, public services(police, fire, ambulance) being under funded and overwhelmed, etc. to name just a few and you add to that a rising level of increasingly desperate people who have been forced into destitution and are also seeking resources and struggling for survival suggests that those that can will be hunkered down in their homes struggling to preserve what they have, protecting themselves and also struggling to get by.
This idea that the very affluent would weather the crisis in relative style and enjoy lovely afternoons at the beach and park as depicted in F. Scott Fitzgerald’s “The Great Gatsby” during the Great Depression could happen today but only for those living in private closed protected communities secluded from the masses. For the majority of us (even those who are debt free, living in nice neighborhoods and with some financial reserve) I think life could get much more difficult and much scarier with forced changes to our value systems if a widespread deep meltdown were to occur. With so many teetering on the edge, to the tune of tens of millions of Americans already and many more beyond them if further shocks to the economy happen, the consequences would truly be dire.
For a more graphic explanation and depiction of how bad things could get, refer to Glenn Beck’s television show several months ago on FOX where he interviewed 3 pundits who went into some detail about it. Tough to think about scenarios like that but what if? I hope they turn out to be crackpots.

Retired Army 20 years +/-. Thought I was thru with the whole gun thing. Did not own one till last year when I purchased 6. Hated to spend the money but “Be Prepared”. Been buying silver for 4 years. No stocks, bonds, ETFs, IOUs or any other paper. Hedged by 50/50 eagles and numismatic coins pre 65. I know I have no input in either local or national politics and still not one person I have ever voted for is in office. I gave up on the two parties of whores years ago, never to return. All I can count on is family and friends. A loose coalition has formed and caches are buried. Paranoid? Who knows, who cares. All I can do is protect my own and hope other pragmatists out there can do the same. sic sempre tyrannis.

Martin: The market keeps going up, perhaps as much as the dollar is going down, thus not a real gain. If the trend persists, keeping the money in cash seems even worse.
Agree that with the government actions, bailing and printing, there is no way but down for our economy. Is the european situation any better, same as ours or worse?
Thanks for your sensible comments
Elisa

I have little to no faith in stocks at the moment, i feel we may have a interest rate spike with in the coming years, which will cause delayed economic recovery. the markets dont seem to be trending in normal patterns(i wonder if its to do with gov stimules distorting things?)
For the record im an aussie, we dont seem to have it quite as bad here but i feel we just tend to operate behind America ecomomically, so im still waiting foe the ball to drop

Watching the impending economic disaster unravel,doesnt surprise me one bit.If one uses bad business practices,failure will ultimately occur.Starting in the 60s with the printing of worthless paper money,was the start,and as the US govt perfected its’ ingenious plan,it has now reached its’ zenith.With the manipulation of the dollar,they have been able to raise you taxes and steal your wealth,and they never even had to open your wallet.Brillant ,is’nt it.If the value of your currency is constantly dropping you are nothing more than the donkey chasing the carrot hung from the stick in front of your nose.Too bad they didnt see all the destruction it would cause,but the politicians probably didnt even care. Hell,the average American cant even balance his checkbook or calculate intrest,so do you think they could see this scam being fabricated.Fortunately ,my wife and I have reached a point of NO debt. Everything is paid for. House,cars,credit cards and everything else is paid for! Debt has strangled America,from the college student to the Govt. of the US.The simplest rule has always worked,but it was the one everyone forgot. It’s not a sale till it’s paid for. Scary concept,huh? Fasten you seat belts.It a rough ride in store and the lunatics are driving the bus.

Dear Martin,
I’ve been reading the blogs that you publish. They are very amusing and I can sympathize with most of your readers. The ones that get under my skin are the anti-democratic freedom fighters who come across more like fascists. I am now reading a book that is informative about your favorite subject: “The Black Swan” by Nassim Nicholas Taleb. I highly recommend it to all of your bloggers.

Dear Sir:
The problem is the Fed. Get rid of it. Congress’s job is to control the money, not some private bank. Congress has not done done their job. When the people finally realize this I wouldn’t want to be a congressman/woman.

Martin thank you for your valuable ongoing information, I spread your word whenever I can but fear some cannot stand the truth. My wife and I are small business owners, been so our whole career - 25 years so far- practically every aspect of our “wealth” is tied up in our business. I have now set a goal of at least 50% of our retirement holdings and non retirement holdings to gold ETFs and have seen some return, will hold on for the ride. It is clear to me, and should be to many others by now, that the current administration’s dealings with all that has taken place is way too risky, venturing into totally unchartered territory, with little factual basis for recovery at our current pace. By now we should all be able to point out those responsible for a majority of the financial chaos and make our voices heard through the upcoming Congressional election cycle. If Congress won’t give us term limits, then we have to take it on ourselves and vote the career politicians out of office and replace them with clear thinking normal people. Clearly we need different leadership and individuals that are not career politicians in it for themselves, but normal people, who represent you and I. I tell my wife, if I were to win the lottery tomorrow I would immediately move into politics and do all I could to change the current face of America. Mr. Wegeman, you are to be commended for all your hard work and effort, I am sorry this has happen to you and the thousands in similar positions. I wish this would turn out differently for you. You are entirely right when you say, America Wake Up, wake up before its too late!

The gov has no money!!! ONLY TAXPAYERS MONEY !!!!!! SO SOONER OR LATER US TAXPAYERS WILL PAY FOR EVERYTHING THIS CONTROLED ADMIN IS DOING IN THESE REGARDS.

With GM going like a dino what can we expect of inflation and how soon will it come about? I think we are in for rough times for several years and may not recover at all.

My view is that the next step will be a huge INFLATION, that all the governments will WELCOME, in order to pay with monkey money their huge debts!
(I guess that China is praying this will not happen)
Question is: what can we do?

Dear Martin,
I must say I’m amazed by a tendency by many out there, who likely belong to the party that “drove the car into the ditch” to blame this Democratic administration. I think that the reality is that since Ronald Reagan (a former democratic “socialist”) & Co. advanced the “greed is good” philosophy, we have, as a people, been traveling downhill ever since. The Clinton administration also drank this Darwinian kool-aid…my point being there is plenty of blame to go around…none of which will save the United States. Let’s stop pointing fingers and find some common ground to save what’s left of the nation-state. Perhaps we have reached the stage where our loyalties belong more to specific world-wide “tribes,” otherwise known as corporations, than to our native land. If this country is to survive, it is going to have to BE a country again. Instead of robbing Peter to pay Paul, the Treasury buying its own bonds (the snake eating its tail) and the resultant inevitable hyper-inflation, we need to get back to Glass-Steagal (regulating derivatives is a hoax) and to invest in science and technologies (no, not better computer games) that improve the lot of mankind. Meanwhile, my advice is to batten down the hatches by buying energy, gold and silver. These have done better by me than the inverse ETFs that you’ve recommended, which I stopped out of. I think the party has lasted longer than you thought, but I’m sure your prediction, as always, will eventually come to fruition and so I’m planning on adding this hedges again. Thanks, again, Martin, Mike, Larry & Co. for all you do…you keep me sane…and thanks for reminding us that “we have nothing to fear but fear itself…”
Andy

Washington has been breaking the law for years, even more so with Obama in office. The Fed is not constitutionally permitted to do what it has been doing, yet Washington is getting away with it. Where are the checks and balances . . . I guess we have only checks . . . being written to banks to use taxpayer money to pay lavish bonuses, to business that should be allowed to fail because “the price of failure is failure.” If we the people don’t do something about this escalating mess soon, there will be a crash of such proportions that the Great Depression will look like a cakewalk. What is going on now is called the “Big Push,” where the powerful and wealthy stack more power and wealth onto their stockpile. Then you will find prohibitive gun/weapons laws so that the middle class, the true homeland security, is disarmed. That is their hope. We are going the way of Germany and the attempted annihilation of an entire race of people. If we are not diligent, it will happen again. Now Washington is talking about a 25% tax on goods at the manufacturing level and a tax on health insurance paid for by employers. How much more can the middle class take? Not much!! I make a good wage and I have curtailed buying because I don’t feel secure in my job. I would like to retire in four years, but I don’t think that is a reality!! We need a huge change in Washington, a change that will occur only when the American middle-class rises up and says ENOUGH IS ENOUGH, IT’S TIME TO STOP. Thank you for your time.

In order to survive in a global economy we need to establish a balance in trade. How much longer can survive by selling our debt to other countries?

hi martin thanks for all you do…i believe the USA is finished..the 10 year and the dollar are beyond control and the obama adm is failing. we better get a new senate and house next year or we are totally cooked. that proably wont help much but it will stop or slow down nobama. im worried but i have gold and silver.ive been studying this mess for over 3 years.i moved my retirement account out of harms way before the dow started off its high in 07. i respect guys like you and jim rogers and peter schiff. again god bless jeff

HOW CAN THE U.S. GOVERNMENT GIVE GM MORE MONIES TO HELP THEM OUT OF THEIR STUPID DILEMMA . WHEN GM OUTSOURCES JOBS TO MEXICO ,CHINA AND CANADA ,WHICH CAUSES MORE AMERICANS TO LOSE THEIR EMPLOYMENT .FOR THE LAST THREE DECADES
I’M SURE GM KNEW JAPAN WAS MAKING A BETTER VEHICLE . NEED I SAY MORE ?

Possibly Atlas has shrugged

I am worried about bonds. I have U.S. Savings Bonds - I Bonds. Are they in danger?

Thank you.

Kathryn Bowers

It appears that the Fed is hell bent on flooding the economy with new money. This will lead to high inflation. This scenario; they hope, will lead to big increases in asset prices. The hope is then that these asset values will get close to the level of liabilities held on balance sheets. This will result in the Fed holding all the countries debt. The next job will be to get this down without raising interest rates to levels that are unsustainable.

Is this what you think can happen. ?

I attended a “Rich Man” seminar in Sydney, Australia over the weekend and the information we gathered from Robert Kyosaki and his team combined with what I have been reading in “Money & Markets” for some time has inspired us to come home & get the hell out of the Australian Stock Market because America is sneezing big time and we believe (in spite of the positive publicity the media has been spinning lately) that Australia is about to get the flu. We are heading for bullion and cash - to take advantage of the opportunities that we believe are about to present themselves.

I grew up in the Eastern European country between 12-49 of my age.After many trial I succeded to immigrate in the best country in the world.I worked hard sometimes 18 hours a day and I considered to have my retirement assured. With this economic crush I lost more than 60% of my investments.But this is nothing,comparatively with the real CHANGES in this country.I am scare by the speecheses of our leaders.They are exactly like in Cuba,Russia(before the 1989)Hungary,GDR and Romania of Ceausescu.It’s so frithening that many times in the night I wait to heart he knock on my door and ask to go with them.Everything is going toward Socialism-Comunism.No doubts that AMERICA goes TOWARD PROMISED CHANGES.GOD BY FREEDOM,

i do not think america or the world will survive economically or environmentally. i published a letter to the editor in 1974 advocating a depression for environmental reasons. if u do not have a depression u will not survive & if u do have one u probably will not anyway but in any case a depression is needed is my position. see econcomist e j mishan. the collapse of gm is a great start towards one. it seem; to me mr weiss u miss the point as u grieve over the above..

Martin, if you and your team don’t know the answers to these questions, how do you expect me to know? I look to you for guidance.

Dear Martin
Just 1 thing the australian dollar will slaughter me if i invest with u , rising aussie sinking us dollar , my profits will run away

what should i do i have gold and im going no where

Ed Pulido
I had the opportunity to work for a great company and retired in 1994, luckily with a decent pension a good profit sharing. Our house is fully paid and we don’t have a extravaganf life style. We are economically OK. We believe in buying American, in fact we are loyal to GM and the last 8 cars we owned were GM’s. The american people killed the auto industry, they fell in love with cars from Japan. Driving in New Jersey all the cars on the roads ara japanese. Another thing wages and benefits of the auto workers are exorbitant compare with US Toyota, etc

I am operating from Sri Lanka. I am always following up US economy status. I am teriibly shocked to see your letter I received today. What is happening to US and us in Sri Lanka. We have finished the 30 year war and we have to now develop our small island. Our main economy is Tourism, Tea, Rubber and Garments. I want your comments about our economy.
I am in the real estate brokering business. I have not done any deals for the past six months. Why not people with some money in hand come to SL and invest in real estate and start a simple life. Is it possible to encourage them?. Then I am sure I can also make some money.
I need your clarification of the situation.
Best egards and thank you.

What we are witnessing in america and around the world is the dismantling of one
system for another. The greed has distroyed the system and has run its course.
Any system that feeds off of its self will soon die. The people who plan the future
of America are wise, the system was milked dry. So now a new system.

Your question, “Will We Survive?” begs a Yes answer.  I suggested to President George W Bush that he declare bankruptcy for all of us, both as a nation and individually in one fell swoop by presidential directive.  In other words, everyone is absolved from all debt wherever noted or recorded.  Then we all start over again with a clean slate, from scratch.  That way, the complete bankruptcy that is America would start everyone out on a level playing field.  Instead of dragging it out over a period of years where everyone is slowly positioning themselves to stick the other (Like Ruff’s definition of the Old Maid Game), there would be no recovery by the sharks circling the money.  Those shark bankers would also suffer greatly.That is where we go eventually.  There is no turning back.  Our nation is bankrupt.  But the sharks still wound up with the money.  Bankrupting the whole nation would at least declare it to the world, and let the whole world start over.  What a sorry mess that will be.  There is no do-overs in this game.  The bad outcome is guaranteed because of the larceny in most everyone, all around the world, China included.  The only bubble remaining is the giant money printing machine alluded to by Doug Noland at Prudent Bear Advisors.  What a collapse that will be.

Many companys have gone over seas because of high taxes, theres alot, of what this
country is made up of not to mention the jobs. In Calif, lots of jobs are lost to other states because of the dispicable goverment runing this state.
As you have described in your letter, the traggidy of our country is the direction it’s
taking with the masterful stupidity of or so called leaders (bums) buming of the people.
I can only see it getting worse before it may get better.
God bless us all, semper fi, Randy J

Martin:
I live in southern California and I feel the next b.f.d is the chapter 9 filing. Chapter 11 for GM is nothing compared to a 9 filing for California. I actually welcome this event as I would rather have a federal judge and a trustee running things than the clowns in Sacramento. Let us abrogate the insane labor union contracts and start over. It is the only way out of the hole we dug for ourselves.
Bob

everything will be all right for a little while and then the problem of paying off this dept will surface–the new president was left with a mess and has no idear of what will happen and he is pulling straws .. THE GREED IN THIS COUNTRY ==CEO’S ‘UNIONS AND THE CROOKED POLITICIANS HAS RUINED THE AMERICA’S AND IT WILL NOT RETURN AGAIN–WE USED TO BE NUMBER ONE–BUT NO MORE—WE OWE EVERONE AND WE WILL BE TAXED A LOT TO PAY FOR OUR MISTAKES

I would have thought your inverse ETFs would have worked,but not so, except TBT. Maybe the Government will declare bankruptcy and wipe out all the investors like they have been doing with all of the other companies, then China won’t have to worry whether their bonds are good.We furnished a room and not one item was made in this country-can’t continue to exist that way. I think the answer is-let China annex us-we can get rid of all our failed beaucrats and a failed American style capitalistic economy that was supported by the world purchasing our treasuries and other debt instruments.

I appreciate your guidance and am very much in the camp of those respondents who believe the worst is yet to come in the financial markets. I don’t however feel it is productive to paint obama as the evil one. This path was laid out long before he burst onto the scene. Have we forgotten the last 8 years? Additionally, the Contrarian Portfolio seems to rely heavily on analysis akin to the elliot wave—which does not argue about political parties.

Firstly, I want to say that I think your assessments are basically right on. The net of all of this being caused by as you mentioned in the beginning during the 50’s but then accelerated in the Regan years as the banking regulations were lifted in earnest. You would think that someone would have brains enough to realize that the lessons learned from the depression about the influence of the banks, borrowing, and leverage on the ecomomy is somthing that must be regulated - how short the human memory is.

There are a couple of things though that you have not addressed that I believe should be looked at more closely or at least explained to your clients in clearer terms. These have to do with what really drives the markets and why derivitives were created in the first place.

You haven’t mentioned the fact that Mutual Funds actually were created during the hay day of the 20’s boom and some people believe that they had a lot to do with the eventual collapse. The government has had to bail out more than a couple of Mutual Funds so far but their over all influence on the markets is still great. One of the main problems with these funds though is that they are so big they cannot enter and exit the markets without causing a great influence. The same is true of many hedge funds. In spite of the failure of many of these funds there are still many more out there managing huge sums of money.

Also, as you probably know the Mutual funds that qualify for IRA and ROTH and the like are regulated by the government. This means that what they can hold, the ratios they can hold these positions and how much they can buy and sell are all dictated by the government regulations. Although these regulations were put in place to protect the funds with a conservative guidance, in certain situations they will have a very negative impact on the fund construct which can force buys and sells at the wrong times. Just how much of an influence this is going to be will be interesting note and how many of these funds will the government attempt to save?

Even more important though is that fact that these kinds of funds are getting their money from retirement contributions and the like that are on going. Thus, the money continues to pour into these funds and hedge funds and it has to go somewhere - which is mandated - into the markets. It is this fact that has I believe has driven the markets up way beyond any reasonable measure of true company evalutation thus making the markets an unrealistic measure of any kind of economic performance.

In addition, so much money has poured into other forms of investments like hedge funds banks and investment houses from similar sources that they could not put the money in any kind of conventional investment like stocks and bonds because the amount of money they have available to invest would drastically affect the prices of the equity every time they try to by or sell. Thus, alternative investment forms had to be created that would work outside of the markets - derivitives and the like. If this trend continues with a thriving economy there will continue to be some kind of alternative investments that must be created to deal with this money - or the money has to be slowed down which is what tried to happen recently.

The fact that the goverment is actually subsidizing this situation is going to end up being a very big problem especially with the huge sums of money that are also being leveraged in these investments.

On the markets, I believe that for the most part they are determined by greed, fear, velocity, trends and money available. Greed fear and trend analysis drive the short term moves. In the current case fear drove the market down and now greed is driving it back up with the idea being sold that the worst is over - have the realities set in yet - no.

Velocity has to do with the fact that when the market moves very quickly either the exchanges will step in and slow it down or the gaps will make it untradable. At this point it will have to stop or pause for a while before continuing. There will also always be rebounds from any sharp decline. This is because there are a lot of profit takers on the side lines ready to pounce on these situations and there is enough money there to make the prices rise. If you look at the market in it’s current position it is in a “Stall” or horizontal. From this state it could go either direction but the most likely direction is going to be down or remain at this stalled position due to money input.

The money input is due to the fact that the Mutual Funds are still receiving billions of dollars of IRA money and the like and by their mandate they must put the money in the markets. They can only keep so much of the money in cash.

In the end, I also believe that we are not in exactly the same situation as we were during the great depression. It could be much worse or it could be much better. There is no doubt that the government policies over the last few years with regard to trying to sustain an economy that was failing on many fronts by printing more money is not a good thing and as per ECON 101 the end result could be severe inflation. This kind of inflation however usually is accompanied by virtual economic collapse where supplies are short and demand is high. Whether this is going to happen or not remains unseen.

Frankly, I am not surprised by the GM bankruptcy or the failure of the auto industry as a whole. Just like the airlines wages got out of hand and something has to happen to bring them back in line. It is too bad that the management didn’t see this on the wall but large companies tend to move like the government. Every major industry has had to go through this and will probably continue to go through this as long as the unions over step reality. And in fact the whole transportation industry has been going through this process and other industries will eventually have to do the same- could have been better timing though.

One of the other things about the banks and investment firms that is interesting is that they have taken their toxic assets and put them into separate holding companies that are not on the market. Then they only show the profits from their profitable operations. So, how are all of the continuing losses going to be absorbed? They have to end up draining someones pocket?

I am into currencies and short term trading. I don’t think any long term positions are advisable at this time.

Greetings: Your expert advice and knowledge pertaining to the area of your expertease is very interesting reading. It’s distressing though, knowing that at last
America is now paying for all those sins committed as per it’s citizens screwing their
neighbors in the name of business as usual. I sincerely believe this latest war was
conceived under the guise of WMD for more business via oil and contractor political
appeal involvment. No doubt about it, war makes for business and Bush provided a
an opportunity at the right time by being in the right place. This also was helpful for
the sinking of the economy. I’m 77, retired, good income, good health. This is being rich. Love reading your stuff, keep up the good work. Hope your customers get rich.
Risk for me would be skydiving and I’m goint to delay that for a while.

Buy Gold.

MARTIN THANKS FOR YOUR HELP OVER THE LAST FEW YEARS. LAST YEAR I HAD A VERY
SMALL LOSS. MY INVESTMENT IN THE MARKET IS BUT A SMALL PART OF MY RETIREMENT
INCOME. I AM INVESTED IN DIVIDEND PAYING STOCKS WITH CLOSE SELL STOPS. CANADA
OIL TRUST,ROYAL CANADA BANK,PFIZER,NORDIC AMERICAN TANKER,KENDER MORGAN,
ETF’S GDX,LQD, PFF,SDS,TBT,UDN ALL WITH CLOSE SELL STOPS. DOING GOOD. AM EVEN
FROM LAST YEAR. I AM A OLD GRAIN FARMER & HEDGER.STILL OWN THE FARM. NO DEBT
BUT I CANT AFFORED A LOSS . WHAT ABOUT INSURANCE CO.S THAT HOLD THE ANNUNITIES

I’ve been reading a lot. Read your book as well. I’m not smart enough to figure this all out and I suspect I’ve read more than 99% of Americans. What is the safest way to diversify my assets? Gold, silver, foreign currencies or treasuries (like Canada, Australia or Euros) land?

Firstly, GM can reinvent itself with hydrogen powered/Electric cars. About 70% of vehicle trips are to and from the shops or to and from work. It is a big market and would reduce U.S. dependence on fosil fuels. The Japanese originally broke into the car market by copying other car manufacturers products. Maybe GM could re tool and re gain their strength once more. There is such a car already.