1. Just as I predicted, gold bottomed at the end of June – first week of July and has broken out above $1030 by trading as high as $1061 today. While this may be good for those holding gold (Silver is near $18) / silver it is not so good for those totally in US dollar assets (read: savings accounts, CDs, money markets, and US bonds)
2. The US dollar has broken once again below the all important 76 support. It’s only strength is the fact that all currencies are fiat and therefore being devalued in relation to true money, gold.
3. Unemployment is now at 9.8% (U-3) with U-6 (includes part-time workers that want full time and those that have given up looking for work) at 17%.
4. The next shoe to drop is commercial real estate. I predict that many retail stores will close after the Christmas holidays leaving many shopping centers and malls with empty stores.
5. Asset prices (like real estate) are falling and will continue to do so as 7 million more homes go into foreclosure. This will put further pressure on the already depressed real estate market.
6. While asset prices are falling the cost of living is rising and the falling dollar will insure these prices remain high. The US imports most of what we consume (energy dependence is at 70%). A lower dollar means higher prices.
7. Government spending has thus far had little impact on the economy. We are told by government and our educational system that lower spending means lower prices. This is sheer hogwash. Lower prices are the result of free market capitalism. The US has not had free market capitalism since the creation of the Fed. The slide into a government controlled economy has taken decades but it arrived in full force in 1971.

I had hoped some of you would begin to see the light but alas that has not happened. At least there is no evidence of it. In the past few weeks we have heard more and more from other world leaders the desire to replace the US dollar as the world’s reserve currency.

Here are some copies of previous messages; most are mine one belongs to a true blue statist, Kash.

“Could the next hundred days impact the next 100 years program. Mike’s message #14 May 2, 2009. A response to kash’s insistence that the Fed is good and the gold standard is archaic. Spoken like a true statist. Response: “I am trying to get a message across to anyone that will listen. There are those that do not want to hear of the impending catastrophe. They would rather live in blissful ignorance. That of course is their prerogative.

There is very little time left. By this time next year Americans will already be suffering under an increasing burden of rising prices and an economy that has stalled with double digit unemployment. I expect that somewhere between 2011 and 2014 hyperinflation will wipe out anyone tied to dollar assets.” Notice my statements regarding the economy.

For comparison let’s look at the statist predictions regarding the role of government in providing economic growth. Kash states:

“kash’s response to “Is the Bailout immoral?” program of Feb. 16, 2009 Message #2

Well, once again my self appointed task on this site is to present the OTHER side of the story. First, before we start throwing the word “immoral” around yet again as it relates to Obama, lets remember that during the Bush-Cheney years the US national debt doubled from $5,700 billion in 2001 to $10,700 billion today. Others may recollect that Mr. Cheney said in 2001: “Reagan proved that deficits don’t matter.” So let’s not hear any more from Republicans about deficits mattering or about ‘generational theft.’ (Mike’s note of 10/8/09: I agree with everything said to this point. The Republicans are statist as are Democrats. There is very little difference between the two parties.) …..it is simply wrong to suggest that the fiscal stimulus ‘will cripple us long-term.’ It will not. Just as the New Deal did not. At times of high unemployment tax cuts may be saved and not spent into the economy. But when the government invests the bulk of $789 billion in real, productive economic activity it will get its money back.
It works like this. Government invests in labor-intensive programs e.g. $40 billion in energy efficiency and renewable energy programs, including $2.9 billion to weatherize modest-income homes. $27 billion for highway and bridge construction and repair and $11.5 billion for mass transit and rail projects; $4.6 billion for the Army Corps of Engineers; $5 billion for public housing improvements; $6.4 billion for clean and drinking water projects.
The energy efficiency/transportation/public housing programs hire American workers – some highly skilled, some not so skilled. These programs also purchase materials – from factories. Some foreign, but mostly American.
Next, something called ‘the multiplier’ kicks in. The workers get pay checks. They use the income to pay taxes – direct to the US government. So immediately the government can use these tax revenues to fix the budget. Then workers purchase goods and services – boosting the economy. Companies hire more workers to deal with demand for materials from stimulus-sponsored programs. More employed workers equals more taxpayers.
But investing in this kind of economic activity is not the only revenue source for the US government. A massive improvement to the budget will be in savings made in unemployment payments.
If the numbers of unemployed people were cut, and if Americans had enough income not to rely on food stamps – Congress would make massive savings to the budget. If we add those savings to the tax revenue generated thanks to the ‘multiplier effect’ – the outlook is much better with the stimulus than without it. (Mike’s comment as of 10/8/09: Notice that government promised that without a stimulus we would get 8.1% unemployment. Thus far WITH government stimulus unemployment is 9.8% and now predicted to peak closer to 11%. So how can it be that all the stimulus has not FIXED the problem. Reason- It was debt and over spending that got us into this mess and more debt and spending will NOT get us out. You do not spend your way out of a depression you must produce your way out of it. Yet government policies (read” over regulations and taxes) discourage the very investments in production we need to generate economic growth. Witness the economic growth in productive nations.)

Going further:
Same program, with Mike’s response #3
……. Even if the stimulus were to create several million jobs, which I doubt it will, that will not add to our economic growth. Jobs do not create wealth, producing goods that people want to buy creates wealth. In the old Soviet Union, and many Communist countries today (China is totalitarian but they have adopted free market capitalism) everyone is guaranteed a job and yet the economically these nations are very weak with low standards of living.
Over the next few years the American people will suffer and suffer bitterly. We have adopted the Traditions of Men in our monetary system, relied on government for our well being and economic growth, and almost totally abandoned God. It is time Christians start reading and understanding what the Bible says about economics. We have bought into a demonic system, and when the veil of that system is lifted, we will finally see the folly of the path we allowed our nation to take.
How we deal with the crisis will determine for generations, how much freedom and prosperity our children and grandchildren experience in the land their forefathers conquered.

Mike’s next message #8 in response to Kash’s unwillingness to see the folly of her position that supports government’s interference in the economy, and her undying support of the Federal Reserve.

”
I’ll tell you what, when hyperinflation destroys this economy and the middle class is wiped out financially, we can resume this conversation. This is nothing more than the continuation of the discussion regarding fiat currency back when Doug Tjaden was on WTRU.
I hate to be so blunt…..that’s not true, I love being blunt; but the ignorance and refusal to see what is taking place before your very eyes is astounding.
Of course the debt has been rising, it must rise in light of the monetary system we have adopted. Without debt it dies and so does the economy. Reality will strike deep into the hearts of every American as the nation is impoverished by a collapsing dollar.
So far, between the bailouts and the stimulus, we could very well add an additional $9.7 trillion added to the debt. That debt is being financed through short term treasuries. Do you not understand the significance of this type of financing. It is equivalent to an adjustable rate mortgage. As interest rates rise, which they are sure to do when the government issues the flood of bonds to finance said debt, the tax revenues will not be able to even pay the interest on that massive debt.
What got us into the fix we are in is too much spending based on too much debt. So what is the government solution? More debt and more spending. All of it defies logic. We are depending on the very people that created the problem to get us out. That is like asking the neighborhood arsonist to help put out the fire he started.
I’m done with this discussion. The Bible is suppose to guide Christians in their world view, but when I support my opinion with Bible passages all I get is secular pap.
Kash the stimulus package grows the size of government. Socialist states have huge government bureaucracies. As government spending grows so does the government. Maybe you will change your mind when you see your friends, children and grandchildren enslaved by the very government you support. It won’t be the Democrats or Republicans that enslave you and your loved ones, it will be the bankers and a handful of wealthy elites. Socialism is not equality for all, it is the rule by a wealthy few.
Let me repeat, this is not a Democrat vs. Republican issue. It is a free people vs. and enslaved people issue. The Social Welfare state offers much, but in providing the utopia it promises, it must take more than it gives. The only solution is a sound monetary system based on a precious metal standard. If you cannot understand the concept then I suggest you read up on what God has to say about it.
Within the next 3 to 5 years, the US will go through a gut wrenching depression that has an element of inflation with it.

So there you have it. The depression is deepening just as I predicted. Kash, who believes in Keynesian economics as do all statist, provided a reasoned argument favoring government action but her position was fatally flawed. Keynesian economics is being discredited as I write this message. Over the next 5 years it will be seen as flat earth of economics. THE US DOLLAR IS BARELY HOLDING ON TO 76, TRADING AT 75.90. GOLD TAGGED $1061 AND HAS PULLED BACK A BIT TO $1053. The handwriting is on the wall. If you want to see some predictions made on TTL, just go to the show featuring Doug Tjaden. Every Christian and non-Christian should visit his site, http://www.traditionsofmen.org. Here is the link to the TTL show featuring Doug. http://www.truthtalklive.com/2009/01/27/fools-gold-global-economics-from-a-biblical-worldview/#comments This show aired in late January 2009.

I will not post another message on this blog unless there is a question regarding my statements. I will keep all my brothers and sisters in my prayers….I pray that they should see the light and protect themselves. The time is at hand.

http://www.goldchartsrus.com/

In technical analysis an uptrend is established by connecting the lows of each pull back. A downtrend is defined as lower highs and the line connects the tops. You will note in the following charts that gold is in powerful uptrends on all the currencies. Gold, what God provided to be used as money, is rising against every currency on the planet. The US dollar is one of the weaker currencies, which is why gold has broken out to new highs. The best case scenario for the USD is a slow decline to oblivion. A crash would be horrific on a global scale.

In the mean time Gold shot up to a brand new high of $1043. Gold is the canary in the coal mine and has been warning for nearly a decade now that a financial storm was brewing. Gold’s move to a new high is NOT good. It foretells of the future decline in the USD. This is the great impoverishment of the American people. The value of everyone’s savings will decline as the US dollar loses value. With everything the government has done, U-3 unemployment is at 9.8% while real U-6 is at 17%. Since this recession began we have had several stimulus packages and so far none have worked. I dare say that the stimulus packages are making matters worse. So what is government’s answer to this crisis? More stimulus. The commercial real estate market is about to crater in, while the next set of mortgage resets will send forclosures to 7 million homes. INFLATION / HYPERINFLATION is NOT an economic event it IS A CURRENCY EVENT.

All you statists that support government programs are about to see an entire generation impoverished in the name of helping the poor and expanding the nation’s military presences throughout the world. This has not been brought about by capitalism, it has been brought about by a state run economy where the Federal Reserve controlled the money supply and government was free to spend money to buy votes…..money it did not have.

I do hope that kash and MattF are taking the time to review some of the videos I have posted links to in my recent messages.

http://www.traditionsofmen.org/html/video_series.html

Let’s see who can take 7 minutes each day in the next 2 weeks to learn what God has to say about money and what we have chosen as a people the day the Federal Reserve was created in 1913.

The problem with you and kash is that you have swallowed hook, line, and sinker the propaganda issued by the statists and those that profit from the state, regarding the role of money in a society. Monetary history is nonexistent in our universities, and when it is presented it is done so with the slant that our current banking system is the 9th wonder of the world. If the truth be known it really comes out of the depths of Satan’s heart. Yet Christians accept it and rejects what God has provided as money, namely gold and silver. Those Christians that believe the USD is money and gold and silver are barbaric relics to be rejected are embracing Satan’s lie and denying God’s truth. I have discussed this issue with deacons in my church as well as my pastor and they do not understand what I am trying to tell them. I have given them a 2 page dissertation on the whole issue from a Biblical point of view and most continue in their “traditions of men.” They still believe God will protect the church and them from the coming crisis. I can count on one hand the number of people that have seen the light regarding the issue of fiat currency, and why the US is now in decline as a nation.

MattF, you said I should show more patience. This thread began about 1 month ago and I am still debating the same points. mherman is the only person on this site that has actually said she visited Doug Tjaden’s website. She stated at the time that he had presented a very good case on Biblical economics. kash has also visited Doug’s website but was not convinced. Of course she never stated where Doug was wrong, she just flat out disagreed.

I’ve often wondered what it must have been like on the Titanic when the ship first hit the iceberg. I now know. Some knew the ship was going down and took the necessary precautions while most accept what the captain and crew said at first that all was well. Within a very short period of time the second group realized that all was not well but by then it was too late. Their fate was sealed. They chose to believe the lie and paid with their lives. The USS United States has hit the iceberg and is now doomed, thanks to what our government has done these past 2 generations. A few of its passengers know the ship is doomed, while the majority of citizens think all is well. When the majority realize that there is no saving the ship of state from its inevitable destruction it will be too late to board a life boat. The life boat is made up of non-US dollar denominated assets with a healthy dose of gold and silver bullion products.

MattF, you say I am impatient. This issue was made public on WTRU at the beginning of 2009, when Doug Tjaden and I appeared on Stu’s Truth Talk Live radio broadcast. One year later, with the economic situation getting progressively worse just as we said it would, and still the only ones that agree with Doug and I are the ones that agreed back then and understood the fatal flaws in our monetary system. No one has yet to refute the data we provided, like unfunded liabilities and debt in the 10s of trillions of dollars..impossible to pay. No one has provided a single example of a debased monetary system that led to prosperity….all ended in disaster. All I get is the usual statist propaganda which says absolutely nothing related to the truth. I have tried to explain to people how they can insure their hard earned wealth against a government that will surely rob them as they have done for decades, and all I get in response is the same old statist rhetoric. Those statists have accepted the traditions of men as truth and have thus nullified God’s word, and most of those are Christians. I am not the arrogant one…..those that reject God’s word are arrogant as they deny what the creator and savior has to say on the subject. You cannot get more arrogant than thinking man knows better than God.

The only extraordinary things are the size of the US debt and unfunded liabilities. This has been backed up by none other than David Walker, the previous Comptroller who has been warning of the coming catastrophe for several years. Google David Walker and see what you come up with. I have also stated THAT NO FIAT CURRENCY HAS SURVIVED THE TEST OF TIME. I have asked you and others to show me just one that has. ALL FIAT CURRENCIES HAVE ENDED IN ECONOMIC DISASTER FOR THE NATIONS THAT ACCEPTED THEM AS THEIR MONETARY SYSTEM. But somehow you think that this time it will be different. Because we are the US our fiat currency, which is being debased now at an alarming rate, will survive. Do you not understand what happens when Money Dies? The consequences for the people are horrific.

MattF:”This takes time, Mike. You’ve presented a deluge of information.”

My lack of patience has to do with the fact that I provide all sorts of links to differing worldviews and you don’t even bother to watch an 11 minute video. I present page after page (might have been on another thread) of how Christians are out of God’s will went it comes to finances….make that deep in sin……and how our monetary system goes completely against what the Bible says and I have Christians that will not tell me or Doug Tjaden, who is the real master on this issue, where we are wrong!!! Have you been to http://www.traditionsofmen.org ? I doubt it. Have you watch any of Doug’s videos were he walks a Christian through what the Bible says about money and what the Fed has done with the system? I doubt it. These are all very short 6 minute videos. YOu can take 6 minutes out of your busy time on the internet to learn Biblical economics. I have not given anyone more than they can handle. I have provided links to sites that it takes is a few minutes of listening to someone other than the government / Financial media hacks that keep telling us to stay the course they will fix everything. If these are the den of thieves you want to listen to, then go ahead. Sink with the ship and take all your loved ones with you….because that is what you are doing. It is my hope that gold does one more sharp pull back to give people one last chance before it blasts through $1000 decisively and heads on towards $1200. I’m sure financial TV and the government will keep up the propaganda that all is well with the US dollar and gold is a bad investment. I guess when gold hits $2500 to $3000, and the dollar is headed for the trash heap of history, where all fiat currencies have landed, then you will decide maybe its time to protect your assets. Of course by then it is too late. Inflation is at first incidious and when people realize their money is losing value, it is too late as then it goes into hyperdrive. You will see the vast majority of the Baby Boomers impoverished thanks to the benevolent government that has eased poverty all these years. They helped the poor then killed everyone in the society as they bled us all dry. You don’t see it because you do not want to see it. My patience is exhausted. I’ve given you the information, it is for your own good. Do with it as you will. If you keep all your assets in the USD you are the riskiest speculator….make that gambler there is….all your eggs are in the dollar basket and that basket is loaded down with $118 trillion worth of debt and unfunded liabilities. Deficits are now running at 12% of GDP. The Argentine peso collapsed when Argentina’s debt passed 4% of GDP. The only reason the USD has not collapsed is its Reserve Currency status, but don’t worry the world is working on a transition out of dollars. May God help you and all those that do not see this coming….make that those that do not want to see it coming….but then again, it is God that is bringing the system down. Only Noah and his family were saved, everyone else died in the flood…only Noah believed God. The Bible is clear on the issue of a fiat currency…it is an abomination unto the Lord because it is a diverse measure. Listen to what Doug Tjaden has to say on this subject. As a Christian you either believe the Bible or you don’t.

You have made similar statement regarding the time period starting in 1950. Of course you attribute this to government programs which really did not begin until the 60s. The flood of immigrants that came to America were able to move out of poverty within a generation. They did not come by the millions because America offered food stamps, and low income housing. Yes there were many injustices, and living and working conditions were terrible for many, but in very short order they worked, sent their kids to school and most became quite successful. I recall in one of my readings that during the period from 1850 to 1930 the more people had moved from the poor class to middleclass than at any time in human history. If you want to look it up you can. I do know that my father came to America from Cuba with nothing and even though he only had a 9th grade education, 2 kids went to college while one entered law enforcement, and he was able to save enough to purchase real estate which he rented out. All the while my mother was a stay at home mom. My entire extended family came from Cuba in the 1960, 1970, and the last in 1990 and all moved quite rapidly to the middleclass WITH NO HELP FROM THE GOVERNMENT. None of them got so much as a food stamp. They came here found work, sent their kids to school made sure they studied and most of my cousins have college educations. As a matter of fact I know very few people….make that no one that moved out of poverty due to government assistence….NOT ONE. I have had experience with those on the dole that were quite content to stay there. My mother has 2 residential rental properties and the worst tenants have been those that recieve government help. A couple turned out to be drug dealers to boot. They almost burned her property to the ground. You have it wrong, the most of the people that get out of poverty do so inspite of the government. Listen to what Robert Kiyosaki says about how government impedes peoples ability to move into the upper income levels. You have yet to watch this 11 minute video. Why?