I love his plan for delegates!
Written by: Joshua Gamen
Gold hit an all time high of $1,633.80 per ounce on Friday! Driving up the price is the result of central banks buying gold and coincidentally(sarcasm) the decline in value of the dollar. The drama in the white house regarding the debt ceiling has had quite an impact on the price of gold lately, as has the news that the US can’t keep perfect credit by devaluing it’s current debts from printing more money. But what is really key here, is that the central banks(the people who print pieces of paper that people use as money around the world) are buying gold.
Silver has been idling around $40 per ounce this past week or so, and looks to continue it’s descent upwards along with other commodities including oil which is at a price of $95.70 per barrel and approaching $4 per gallon. The increased price in silver, just like gold and oil, is an economic reaction to the depletion of value in the US dollar. This is because value does not leave the planet, it simply transfers between different asset classes. Right now the money is flowing out of the dollar and into gold, silver, oil, real estate, food, etc.
I am holding to my recent prediction of silver hitting $200 per ounce by October 2012. If silver hits $200 per ounce, that would put gold at a price of $8,156 per ounce based on the current ratio of silver to gold at roughly 41 ounces of silver to 1 ounce of gold. Strong projection, but I’d like to get some talk going on about the subject. With Federal Reserve Chairman Ben Bernanke recently telling Congress they are working on doing more of the same thing(creating debt for free, devaluing the currency, buying back treasury bonds, QE3…) along with the possible default on the US debt, a credit rating downgrade of the US, and rising prices in oil and gold, I think it’s a harsh reality we could face. What it would ultimately mean would be very bad for the poor and middle class, inflation..
Debt Ceiling – Credit Downgrade
The politics are what they always are, a battle for power.
The reality is, they’ve argued over the debt ceiling being raised for too long and it has already took effect on the credit rating of the country. The reality is that a credit rating downgrade will be just as catastrophic as a default on the debt. The stocks will tank, the dollar will free fall, and gold will surge.
Tho many me be interested to see who wins the heated debate over the hot topic between the Democrats and the GDP, the truth is as Robert “Rich Dad” Kiyosaki puts it: ” that no matter who wins this battle, the war may already be lost—and the American public will be the casualties.”
Like I said, politics are a battle for power – Here is the fact:
WE HAVE A BIG DET, AND WE CAN’T PAY IT BACK. SO IF WE PILE MORE DEBT ON THAT, WE WON’T BE ABLE TO PAY THAT BACK EITHER. The Credit Rating Agencies know that we can’t pay this debt back, even tho they have took this long to finally admit it. According to the Wall Street Journal:
Moody’s Investors Service, Standard & Poor’s and Fitch Ratings have all warned they might cut the U.S. credit rating. S&P, in particular, has said it could move even if a debt-reduction deal is met and the $14.29 trillion federal debt ceiling is raised.
S&P has cited $4 trillion in debt reduction as a figure that would be appropriate for keeping the triple-A rating. S&P has also said it wants a credible agreement, meaning one that has bipartisan support.
Neither side is close to a $4 trillion figure. And given the wrangling, the chances of strong bipartisan support for any deal seem unlikely, investors said(“Downgrade Threat Looms”).
..Now, the question shifts from what will happen to what am I going to do now that I know what is happening.
The definition of insure is this: “to guaranty against future loss or harm.”
The US dollar is a commodity. Everything going on right now is sending that commodity to the tank, and since it has no intrinsic value as it’s physical body(paper), it will now stop until it reaches zero. Now, you can have your political beliefs on everything and that’s fine, but you wouldn’t buy a house without insurance, and you wouldn’t drive your car without insurance, so why do you hold your money as a piece of paper with no insurance? Gold and silver are insurance to the dollar.
My point is that it’s not about what I want to be money, right? We all have ideas of what we want or think should be money, it’s about what probably is going to be money.
Meanwhile it remains a perfect storm -a good one 🙂 – to invest in real estate! Prices are still low while sales are high. Most important is that interest rates remain at all time lows, making the oppertunity to leverage and cash flow abundant. We’re getting it done with outstanding returns here in Phoenix, AZ. Give me a call if you are interested in doing some investing – 623-252-3234, let’s talk.
There is no reason for the Republicans to get on Obama’s plan. Either way the debt ceiling will be raised, and either way, the dollar is toast. The debt is rising so fast that it doesn’t matter what cuts we make. The reality is we are already bankrupt. Devaluing our debt by printing more money(or having the issuer of the debt buy it back, as is the case with QE) proves that. I am not a Republican or a Democrat, but I am definately not an Obama supporter. If the Republicans fold now they will give Obama a great shot at re-election in 2012, if they let this thing play out and don’t give in, people won’t remember Boehner, they’ll only remember how it all happened under Obama. The Republicans have all the pressure on Obama and he is trying to play to gain the public’s support(like he always does), but if you watch his actions instead of his words, it’s the same thing over and over..bigger goverenment, more debt, higher taxes, and an inflated dollar.
..”There’s not enough money in the bank to write that check to Granny to cover the monthly social security check owed to her, but hey let’s go get another credit card so we can give everyone health care…”(don’t get me wrong, at this point in the game we HAVE to raise the debt ceiling to prevent a total collapse, BUT…if we don’t start making changes to our money it won’t matter, the collapse will be inevitable..the problem is not the size of our debt, the problem is that we do not own our own money. THE FED IS A PRIVATE BANK.)
It’s a fundamental misunderstanding of the way money works for us to think we can sustain any quality of life by raising taxes and increasing a debt that would have already bankrupted us a long time ago if we weren’t the only country in the world who can literally print our own money.
It’s a fundamental misunderstanding of logic to think we can default on our debts and not collapse the global economy.
When Obama preached “change,” he obviously wasn’t talking about change to our nation’s financial statement. We are doing the same things that got us into this mess..QE3 Here we come..PS: it didn’t start in 2006, 2007 or even 2008.. It started in 1913 when the Federal Reserve pushed through our government and took control of our nation’s money supply.
Inflation either way, whether we default or simply raise the ceiling and print more money. The dollar will continue to crash and silver will continue to rise along with other commodities. Rich Dad preaches cash flow and a great way to take advantage of taxes, inflation, your retirement, and debt(good)is by investing for cash flow with real estate.
From the Wall Street Journal: “President Barack Obama pressed congressional leaders Monday to forge a $4 trillion, 10-year deal. But after another contentious meeting at the White House, the odds that Democrats and Republicans can bridge their differences over taxes and social programs to reach such a sweeping plan ahead of an Aug. 2 debt-limit deadline appeared to diminish.”
In 6 months, the only thing that has changed is the calendar. Now with backs against the wall, and the Republicans still want huge spending cuts and no tax hikes, while the democrats still want to increase spending and also increase taxes. Neither side wants to give in, as Robert Kiyosaki puts it: “The result is a high-stakes game of economic chicken.”
If the two sides do not reach a deal, the US will default on its debt. If the US defaults on it’s debt, more than likely the credit rating to the US will be downgraded further.
So what does this mean for you?! Well…At this point it does not look good either way for the middle class. Like I said, it’s inflation either way.
If the US defaults, confidence in the Dollar would crash. Since all currencies are pegged to the Dollar, it would be catastrophic. Add to that the fact that the world’s economies would scurry to exchange their dollars, which would flood the market with dollars and turbo jet downward the value of the dollar. Which would of course, turbo jet UPWARD the cost of living for us here in the US.
If the US comes to a deal that does not include huge spending cuts, their only options would be to print more money, raise taxes, or a combination of BOTH. This also means… The middle class will lose more of what they have worked hard for and inflation will rise.
Either way, the cost of living in the US goes up.
Work hard and invest wisely. In the midst of all of this madness there is a huge oppertunity to attain cash flowing assets at super low prices.
By Joshua Gayman
By: Joshua Gamen
While the politicians are doing everything they can to keep the attention of the crowd, the real game players are behind the curtain, sitting at a table, plotting out how they can keep control of the world.
Obama is still the president, for another 2 years. His popularity rating is falling, people are frustrated, they want jobs and they want the lifestyle back. But I assure you it is not up to the government to provide the life you want, it is up to you.
The election was tonight. The House of Representatives had the majority swing back to the Republicans, as the balance shifted to a count of 236 Republicans to 162 Democrats. Democrats still have majority of the Senate by a slim count of 51-47. There is a lot of talk about the “GOP”(Grand Old Party, Republicans), tea parties, etc, and what they will try and change. But while the same game continues to get played in Washington that has gone on for generations, the real players are in the backroom keeping their plan going to make the rich richer.
While Americans were heading to their polling places Tuesday to decide who will represent them in the halls of the Capitol, just two miles away the Federal Reserve’s Open Market Committee was having a two day meeting in its historic Board Room.
Odd that the election came the night before the Fed makes their big announcement. Or is it?
“While the talking heads will be focused on who won what seats in congress, the real power will be making an important decision whether to begin another round of quantitative easing, a.k.a printing money, to try and jump start the economy. The way they do this is by buying their own debt in the form of bonds. ” -Robert Kiyosaki.
The Federal Reserve was established in 1913, we are almost 100 years into it’s existence. The elections are held every 2 years. What does it tell you when the two meet at the same time. Think about this, the Federal Reserve is not part of government. The Federal Reserve is a private entity. It is not Federal, it is not a bank, it has no reserves. All they do is print paper. And yes, they feel the need to have a big meeting over the 2 days while the elections are going on and then come make their big announcement the day after the votes are in. Could they be getting their strategy ready for the next batch of elected officials and their plan to play off of them as well as possible?
They are going to buy back their own bonds. Bonds are IOU’s. So basically, they are just removing some of the IOU’s. Why would they do this? Well, if the interest that they have created based on all of the “loans” they have made in their existence, is greater than the production we can achieve, their only hope to keep the system going is to just pull back and say, “it’s ok, we’ll take some of this off so that you can continue to pay us.” It’s the ultimate “loan mod.” Seriously, their whole goal is that you keep working to give your money to them. You are creating stuff, and meanwhile they are keeping control of everything being created. If the people wake up and realize that we are paying them with dollars that don’t mean anything anyways, then they will quit paying them all together. If the people don’t think they “owe” anything, then they don’t “owe” anything. Could the Federal Reserve order the military to force people into going to work and then handing their money to them? No, not “yet” anyways. Remember, the Federal Reserve is a private entity. Scary that they have the power they do.
Leave your thoughts!