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