Monthly Archives: September 2014

Is Silver Indicating The End Game Is Near?

By: Tom Chatham

Gold and silver have suffered a beating this past week. Silver has broken below support levels and at this time the bottom is uncertain. One thing that is certain is that the manipulation taking place behind the scenes is providing a prime buying opportunity. While investors are having another bad day, stackers are enjoying every minute.

It is common belief that the destruction of the currency by unfettered printing should cause a rise in PM’s but the manipulation taking place has made pricing PM’s a guessing game for the past ten years. Only the final destruction of the fiat empire will usher in the unrelenting rise of gold and silver to their natural free market levels. This takedown may be the final gasp of the currency manipulators before the printers lose control and gravity takes over.

John Embry recently stated that silver is one of the few lifeboats that will be available to people when this Ponzi scheme comes apart. He also stated that from the Austrian perspective there remains only two possible outcomes and the most likely one is that they will print as much money as necessary and that will lead to hyperinflation at some point.

Last year the DHS insider told Doug Hagmann that a prelude to the end game would be a massive takedown in the price of metals. With the price of silver breaking below the $18 resistance level, it is possible we are seeing that move now.

Jim Rickards, who has been providing financial threat and asymmetric warfare advice to the nations intelligence services, is now expecting a great depression that will last 25 years. He expects the losses of the next market collapse to be in excess of 100 trillion dollars. He also believes it will begin within the next six months. He has also stated that the government has already implemented what they call the day after plan for this collapse which involves evacuation of government leaders to areas called site A, site B and site R.

John Williams of Shadow Government Statistics is still calling for hyperinflation in the U.S. and he believes it will begin by the end of 2014 or early 2015.

Jonathan Cahn, author of The Harbinger, believes that based on biblical text and dates that another devastating market crash may happen by September 2015, with a high likelihood around Sept. 13, 2015.

In any event, people will have to judge the current world events and warnings of others and make their own decisions as to what will come and prepare accordingly.

The current cost of silver in fiat dollars is well below production cost and cannot last for any significant amount of time because physical shortages will develop at some point. That makes it a very good vehicle to store any excess funds you have for the future.

When you think about how to save for the future you must consider the actual value of assets and commodities and how they will be affected by a major disturbance in the normal state of commerce.

The value of something is relative. It depends on the one who has the item and the one who wants it. To complete a transaction, the two must come to some mutually agreed upon terms. These terms define the current value of the item.

Even if the world wakes up on the wrong side of the bed one morning and money as we know it no longer has any value due to the circumstances, at some point you will still need some way to save for the future.

One of the reasons we need a medium of exchange that will hold its value over time is so that you can save your excess production now so that it can be used later if you cannot produce enough later in life to live day to day. That is the whole point of saving for retirement. To pay for things you need when you can no longer physically produce enough.

There are many that will say it is a waste of time to save or plan for commerce in the future if everything collapses but it is a necessary action of humanity and will be necessary no matter how bad a collapse is. Those that do plan for some type of commerce in the future may decide that skills will be their savings to draw on in the future rather than physical assets such as precious metals. The reasoning behind saving at least some PM’s is the fact that they have a 5,000 year track record that transcends the past mistakes made by humans.

In the future if you are fortunate enough to still be productive after some world changing event and someone needs something you have, you will either have to give it to them for free or take something in exchange for it. If you take something in exchange for it, what would you prefer that something to be?

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What’s On Your Bookshelf?

By: Tom Chatham

Nothing makes me feel quite like walking into a library with wall to wall books, especially if it is a private library in someone’s home with all of the comfort items. The reading lamps, fireplace and soft leather chairs provide a vessel to carry you to your happy place, at least for a short while, and that is all that is required most of the time.

Most people cannot afford the large library that we all would like but you can still assemble a very useful and enjoyable library that will serve your purpose. It does not matter what types of literature you like, there are millions of books available to fill your special wants and needs.

The main thing to keep in mind is to prioritize your purchases so in the event your purchasing must come to an end, you will have the main reading sources that you want. It is great to have a shelf of classics that can keep you entertained for an evening on a cold winter night. When it comes time to plant or build something, it is great to have the reference materials to help you over the ruff spots.

There is so much knowledge that we want to have but have never had the time or opportunity to learn it. With a good library you can fill in the gaps in your knowledge on your own schedule. For those that fear some type of troubles in the future such as economic problems, natural disasters, wars or the loss of a job, the knowledge on your bookshelf can help you get through it with the least amount of pain.

It may be something as simple as a book to help you do your own home repair, fix your car or start a new business. In these times of shrinking home budgets and corporate downsizing, it is good to have some reference materials that can help you cook a good meal on a shoestring, reduce your expenses by fixing it yourself or building something instead of buying it. It may be a book that can teach you something that allows you to get a better job or start your own part time business.

It is apparent that those who read a lot are better at problem solving. This is due to their expanded knowledge base. The more knowledge you have, the more you have to draw on to find a solution to a problem. The larger your knowledge base the more creative you are capable of being. This is often evident when you are faced with some type of crisis situation.

It does not matter what types of books you buy, as long as they reflect your interests and give you pleasure buying and reading them. A well rounded library will likely contain not just literary classics but history, science, how-to, reference, cooking, medical, economics and even children’s books if you have kids in the home. You should also consider having resources to satisfy your spiritual needs when the search for answers requires more than conventional references can offer.

One of the best reasons to have a good library is to insure your children and future generations have the means to learn what is not taught in school and to counter the misinformation some children are taught. The truth has no agenda but public schools do and that is reason enough to build up a good selection of books.

When it comes to buying books the options are numerous. One thing I like to do is shop for old books at antique shops, garage sales or old book stores. Many times you can find some little known classics for very little money that can give you reading pleasure and provide a good investment. Many people now read a lot on line and there is nothing wrong with that but I personally like the feel of a book in my hands. One reason I like physical books is the fact that you don’t need power or electronics to read it anytime you want.

Building up your own personal library can be a rewarding experience and it is a project that can be handed down to the next generation just like other family heirlooms. Reading also has some little thought of advantages. As Benjamin Franklin once said, “ when a man pours his wallet into his head, no one can take it from him”.

The Great Unwinding and The Aftermath

By: Tom Chatham

As global currencies wage a race to the bottom, citizens of the world are kept distracted by insignificant things to keep them calm right up to the end. The end will be the destruction of many world currencies and the savings of those invested in them. When that happens those who have lost everything will panic, and for good reason. The conspiracy theorists and sound money people will be proven to be prophets but none of that will matter by then.

All of the savings that people think they have was long ago looted by the bankers and now they must destroy those ledger entries that people think they have. Much like the phantom gold that no longer exists in vaults but only on paper, those ledger entries must be destroyed before the banks are required to give that money back to its rightful owners. It is not only the savings but the promised payments from government entities that must be eliminated. The government has made promises it cannot keep and now it must find a way out while maintaining “plausible deniability”.

That is the crux of the unwinding we will see in the near future. The people have been robbed of their wealth and their futures and now it is time to perpetrate the cover up so the guilty parties can sail off into the sunset with their ill gotten loot. It almost sounds like a movie plot but unfortunately the people will have to stick around after this show and deal with the aftermath. That is something most people do not see coming and are ill prepared to deal with emotionally, physically or financially.

There are many things that people will disagree on when it comes to the future but there are some things those following events will agree on.

There will likely be a catastrophic event in conjunction with a monetary crisis.

Most people will be completely unprepared for the events.

Only those that hold hard assets and the means to protect them will come through this with any wealth in tact.

The government will increase their control of the population.

Basic resources like food, water and energy will be expensive or difficult to get. This is especially true for imported goods.

People will lose the homes they cannot afford and their retirement savings.

Government payments will be cut off or severely cut back.

There will be armed resistance against the government as they reduce freedoms that people are accustomed to.

Roving gangs will likely be a problem at least in the short term following the crisis.

The country will look much different in ten years than it does now, and likely not for the better.

People will need a different strategy for retirement than they now hold.

Healthcare will become more expensive and less available to the average citizen.

The U.S. will likely become a third world nation as far as living standards are concerned.

These items point out the direction we are headed as a nation. Those that ignore the reality we now live in will suffer greatly and will be immobilized with fear and uncertainty as to what to do. The government they looked to in the past for guidance and safety will be at odds with their very existence in the future. Those things they took as a given will no longer exist.

This list defines what you as an individual must be prepared to deal with in the uncertain future ahead. Only by addressing these issues will you have any peace of mind in the coming days as events play out on a global scale. It has been said many times before but must be repeated because many still do not hear the message.

You must be prepared to provide basic necessities to your family for a prolonged period of time. This includes clean drinking water, nutritious food, shelter, sanitation, security, clothing, health care and any excess funds should be used to buy precious metals or some other wealth preservation tool. Any transportation and communication assets you have will greatly enhance your survival position.

Beyond these basic items you will also need to think about some way to produce income in the years ahead. Having special knowledge or capitol equipment to produce needed goods will insure you can continue to care for your family long term. The ability to produce food, water, clothing or energy and provide medical help or capitol goods will insure you have a product to sell that will be in demand.

In a dysfunctional world the business opportunities are many. Basic supplies that were once taken for granted will be sought after by everyone. Herbal remedies, meat production, paper goods, cleaning agents, tools, building supplies and such mundane things as blocks of ice and footwear will have to come from somewhere. Something as simple as an absorption freezer powered by a homemade power source like bio-gas can provide frozen meat and ice to sell the year round.

You must also be cognizant of many possible dangers that an uncertain world can present. These include natural disasters, the threat of war, disease, nuclear dangers such as fallout and contamination and chemical threats from malfunctioning plants and storage sites.

The ability to plan for the future is more imperative now than ever. It is a sad thing that people spend more time planning a summer vacation than they do for their future. That lack of planning will insure a difficult future for them and their children as the world unwinds at an ever faster pace taking their standard of living to ever lower levels until reaching the bottom of this unknown new world. You need to prepare now like your life depends on it, because it does.

The Pursuit of Money Over Personal Satisfaction

By: Tom Chatham

Have you ever asked a person why they work? If you have the answer will likely end with a statement that they need to pay for stuff. It’s a truism in the world we live in that you must pay for many of the things we need. Its this need to pay for more and more stuff that leads to the need for higher paying jobs.

This perceived need leads many to seek jobs they do not necessarily like but need to achieve this end result. The race for the almighty buck has many unintended consequences. It has been said that if you do not like your work, you will not like anything else about your life.

The pursuit of money leaves many people with a hollow void that is never filled and causes them to lash out at society in their discomfort. This is seen in the many cases of domestic abuse, road rage and general lack of politeness in society. In many cases the more the person makes, the more likely you are to see these traits.

What is missing in many peoples lives is the personal satisfaction they get from the feeling of accomplishment of something every day. The more personal satisfaction a person gets out of life, the more likely they are to be a happy person and in turn treat others with respect. This also helps to insure a healthy life that avoids many of the ailments that come with having a foul mood most of the day.

The feeling of accomplishment can come from very little things such as building or repairing something. Some of my most cherished accomplishments are things I did for free. Knowing I did something that had some value and served a purpose meant a lot to me personally. Doing that and making some money at the same time is just icing on the cake.

This is something many people in our fast moving world miss out on and it can cost them in the end. As society gets faster and money becomes the primary commodity in life, people can lose their self worth and determination. This is evident when something happens and they suddenly have no money to continue their current lifestyle. Money has replaced personal satisfaction as the cement that holds society together. When the money supply finally gives out, society will fall apart.

Having money is great because it allows you to do many things you could not do otherwise but it should not be the foundation of your existence. How many people have gotten divorced because of monetary problems? How many people have refused to get involved with someone else because they did not meet up to their monetary expectations?

Money has become all too important in society and when it goes away during economic crisis society cannot handle it. If you have a spouse that just says, don’t worry we can manage, after you have lost your job and have very little money to live on then they get it. They are saying their personal happiness does not depend on money to give them the personal satisfaction in life that they require.

This is the missing ingredient that the American society needs to get through the trying times ahead and we no longer have it. If we do not find it soon, the days ahead will be very miserable and very destructive as society tears itself apart searching to fill the void left by the destruction of money. When you can go day to day without money and feel happy about life, you are at a place that will allow you to get through most bad events in the right frame of mind. That frame of mind is what you need to solve the problems at hand and move on with your life. The lack of it will cause us to self destruct.