August 2010 Newsletter
QUOTE
The ONLY TWO areas I recommend now are farmland and GOLD - Doug Casey
Q & A
I have just attended one great advance retreat in SA where the wealth of knowledge and experience acquired is unmatched. A colleague thought it was due to maturity in these teachings since a second reading of a book deepens one’s understanding. Among the topics discussed was the ‘Days that are Here’ and that raised some concerns in my life I would need your help to address.
My partner and I do own a Microfinance business which operates on a simple model of taking money from investors and lending them to small and medium enterprises.
As a business we owe the investors and the lenders owe the business.
I can see the days that are here when fully here will not favor this type of business and my worry is debt may not be collected and investors may not be paid.
I worry enough to think that we should perhaps fold up so as to pay off investors and also collect all debts to avert afore mentioned situation.
Most businesses will be affected by the "Global Recession.' I do not have a clear suggestion for you - being successful is still a possibility if those businesses you are interfaced with are needed in the times to come. They must be businesses that manufacture ‘needed’ tangible assets or are a service to those in the most basic of economic circumstances.
If those businesses manufacture necessities, then you have a better chance of returning a profit. Anything that is high-end or a consumer luxury will be doomed.
I am a bit confused about the recent advice to not buy gold anymore as the price has already gone up. The price of gold has not broken through its last peak level in December of last year when the recommendation was to still buy it. Is this referring to priorities, i.e. buy food + water instead of gold or is this advice made in absolute and gold is likely to go down from here? If you have more insights to clarify this, I would greatly appreciate it.
My interpretation is that you need to buy food and in general prepare yourself as it is going to get crazy very soon. I am not selling any coins as I believe and continue to carefully watch those who have been very accurate in the past four years to hold my gold and silver for a peak value by the end of 2011 and the first quarter 2012.
It would be foolish to buy gold as an investment if you do not have food and shelter – as gold and silver will peak after the time it is still relatively easy to buy the things you will need for survival.
I read on your newsletter recently about upgrading your existing systems. I am contemplating the generator I have now (gas/5000 watts) and wondering if switching to a propane generator might be better? We do have an above ground propane tank...and that is another question...should it be partially or completely underground?
I am asking for your view for both backup home use generators including powering a well pump, as well as what you think would work the best for an earth-bermed or UG home.
Gas generators even with additives for extending the life of gasoline are very limited - propane lasts for years - I suggest propane buried tanks and propane generators.
Economy
History simply repeats and repeats. When the public becomes desperate for precious metals they will offer goods, services, and investments at fire-sale values. By selling your gold and silver at that time, you will have taken full advantage using your current knowledge and understanding. The full weight of the upcoming wealth transfer will have swung in your favor. Mike Maloney – www.GoldSilver.com
When is the best time to buy gold??
It is easy to see the manipulation of gold and silver by following these dates:
Here are the dates for the Options Expiry. On these days, gold and silver are taken down just prior to their options expiration date. And if you were looking to make purchases yet this year, the few days leading up to these expiration dates would most likely prove to be a good opportunity: August 27, September 26, October 27, November 26, and December 23.
Richest man in the world buys (another) gold mine. http://jacqui.instablogs.com/entry/carlos-slim-buys-himself-a-mexican-gold-mine/
Today, virtually no one is selling their coins back to us.
In fact, for every 100 transactions we have, maybe one is a seller, the other 99 are buyers. Our largest supplier, who provides over 60% of all bullion to the US market, told me earlier this month they have days without one single buy back. And this is from the largest supplier in the United States." Andy Schectman, Miles Franklin
For the first time in many years, the Chairman of the Federal Reserve went before Congress, set aside his rose-colored glasses, dispensed with most of his sugar-coated platitudes and made some hard-hitting statements about the U.S. economy.
All this is coming from a man whose job invariably makes him extremely reluctant to admit to negative trends in any sector at any time — if Bernanke is saying things are bad, you can bet they're actually far worse!!!
Bernanke on jobs: "This is the worst labor market since the Great Depression."
Bernanke on housing: "The market remains weak, with the overhang of vacant or foreclosed houses weighing on home prices and construction."
Bernanke on fears about the future: "Most ... viewed uncertainty about the outlook for growth and unemployment as greater than normal, and the majority saw the risks to growth as weighted to the downside."
The Chinese are running ads on their State-owned China Central Television urging their citizens to purchase gold and silver. Retail investment in gold rose 57% in the first quarter over the previous year.
China is now the number one gold producer, having recently leaped ahead of South Africa and they are not exporting a single ounce of their newly mined gold. It is all destined for their own burgeoning market. What that means is that all of the production from the world's largest producer is "off the market." Very bullish for gold!!
Homeownership falls to 10-year low
And the decline is expected to continue as rental apartments finally begin filling up.
Posted by Mai Ling at MSN Real Estate on Wednesday, July 28
As foreclosures continued to grow in the second quarter of 2010 -- with 269,962 homes taken back by banks, according to RealtyTrac -- the nation's homeownership rate also fell, reaching its lowest level in a decade.
http://realestate.msn.com/blogs/listed.
Vacancies at U.S. shopping malls hit a near-record 10.9% in the second quarter , That's up 0.1 percentage point from the first quarter and nearly a full 1% point from last year.
Last quarter's vacancy rate has been topped only once in 30 years of data: 11.1% in 1990.
Environment
Don't be intimidated. If you smell smoke, head for the exit even if they call you a "crazy alarmist." Never forget the voice of authority that told the people fleeing the burning World Trade Center, "The fire in the North Tower is under control - go back to your offices." Gerald Celente- Trends research
Doomsday shelters making a comeback
By Keith Matheny, USA TODAY
Jason Hodge, father of four children from Barstow, Calif., says he's "not paranoid" but he is concerned, and that's why he bought space in what might be labeled a doomsday shelter.
Hodge bought into the first of a proposed nationwide group of 20 fortified, underground shelters — the Vivos shelter network — that are intended to protect those inside for up to a year from catastrophes such as a nuclear attack, killer asteroids or tsunamis, according to the project's developers.
"It's an investment in life," says Hodge, a Teamsters union representative. "I want to make sure I have a place I can take me and my family if that worst-case scenario were to happen."
www.usatoday.com/news/nation/2010-doomsday28_ST_N.htm
Mediterranean cave homes
Cave homes have long been popular in parts of the Mediterranean region, from Turkey to Spain, Greece and Morocco. In Spain's Andalusia region, one can find numerous listings for comfortable cave houses for sale and rent, typically at prices that beat above-ground offerings.
What if there is NO ELECTRICTY? Prepare for winter now - If you’re going to make it through the winter in a cold climate, you’re going to need heat. Now if you plan to make it living off the grid without gas, propane, fuel oil, or electricity, you’re going to need a pretty darn good wood stove. http://offthegridnews.com/2010/07/26/...prepare-for-winter-now>
The Biblical Book of Revelation (8:8 and 8:9) says:
'And the second angel sounded, and as it were a great mountain burning with fire was cast into the sea: and the third part of the sea became blood;
And the third part of the creatures which were in the sea, and had life, died; and the third part of the ships were destroyed.'
Credo Mutwa, great Zulu high shaman, said that the sea turning to blood during the run up to the 'end of the world' is a theme in his culture, too. He also said that South African sangomas (shamans) are having visions and dreams about the rain falling as blood and 'large lumps of blood rolling in the shore'.
The prophecies of the Hopi people in Arizona speak of the sea turning black as a sign that the old age is ending and new one about to begin. It says: 'This is the seventh sign: You will hear of the sea turning black, and many living things dying because of it.'
Miscellaneous
We are in the business of selling and buying precious metals and we will buy back any quantity that you have to sell, large or small, even if you didn't purchase the metal from us. www.MilesFranklin.com
Here is the next Web Bot prediction - It will be easy to see if they are correct – weekend of July 31 – August 1
"Within the immediate data points," there are clear indications of a major [damaging] earthquake on west coast of America (MOST likely north America due to angular momentum issues of planetary alignment) and more probably than not, in the PNW perhaps down to mid CA
Sunday on www.halfpasthuman.com
Soooo...i was wrong about the earthquake, and instead we had a global, solar quake and a ????something new??? that will hit earth on August 3rd. This is likely the 'event' that will trigger the [water way changes] showing as being [repaired (in some locales)] by late March of 2011. Of course, now that we know it is a solar event, and that the energies are headed toward earth, we can expect a whole series of earthquakes over these next (likely 2/two) weeks. See Space Weather for the verbiage attached to this solar global ?quake?.
A note from the folks who run www.spaceweather.com summed up Sunday’s event this way:
“During the early hours of August 1st, NASA’s Solar Dynamics Observatory
recorded a complex global disturbance on the Earth-facing side of the sun.
Most of the sun’s northern hemisphere was involved in the event, which
included a long-duration C3-class solar flare, a “solar tsunami,” and a
massive filament eruption. As a result of these blasts, a coronal mass
ejection (CME) is heading toward Earth.
No doubt you’ll want to be checking the www.spaceweather.com site for the next several days because while initial indications were that this Earth-directed coronal mass ejection would show up Aug. 3.
SWISS CITIZENS!!
A reliable source from the German banking system, with high level associates in Switzerland, has informed that the Swiss Government has reacted to the massive exodus of bullion from their nation. He wrote, "Just talked with a colleague in Zurich. He mentioned the Swiss recently passed a banking law that allows them at any time to stop the transit of bullion (and perhaps cash) OUT of the country. If instituted, foreigners would just be given certificates, but could not take possession. This legislation was passed in case of 'emergencies' that stress the system." Miles Franklin Newsletter. www.MilesFranklin.com
Building with sandbags is both old and new. Sandbags have long been used, particularly by the military, for creating strong, protective barriers, or for flood control. The same reasons that make them useful for these applications carry over to creating housing. www.earthbagbuilding.com
$600 COIN Sales - Get Ready for Tax Form.
Effective Jan. 1, 2012, the whole system of giving and receiving Internal Revenue Service 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for coins and other goods that they sell as well as buy. www.numismaster.com/ta/numis/ArticleId=11843
Passage by Congress of the national health care legislation has had an unintended consequence to the nation’s coin collectors who buy and sell coins. The Industry Council for Tangible Assets is alerting member dealers and the public at large in the hope that some sense of outrage will lead to a ready modification before the law becomes operational in 2012.
Testimonials / Comments
I just wanted to share something...I sent my copy of your wonderful book to a friend, Pat, in Baltimore....she loves it! She not only started reading it right away, she says when she's not reading it she carries it around with her because she loves the energy of it....so, congratulations on your book and your energy. www.mulaideguisepublishing.com
Mary Halfhill
Greg.........just wanted to thank you - Made my transaction with Dennis at Lacey Rare Coins. No trouble....................wonderful experience!!
I work in a financial institution and have found each one has a different twist on how tight they monitor funds. The word has already gone out to tellers to watch for consistent large cash deposits. Employees are given kudos for finding fraudulent activity these days. Some tellers are slamming those transactions through, chatting with the teller in the next cubicle and ready to go to the next transaction. It's those personality types that want to make employee of the month, intentionally looking for suspicious transactions that can cause problems. I guess some of this could depend on your personal relationship with your banker and your normal activity.
So just because it's under $10k, it may not be wise to go in like clock work and deposit $9,900. I am not aware of a full-proof way but you might want to find a way to change things up. Even different amounts that are frequent and adding up to over 10k "could" be a red flag. Maybe having more than one financial institution would help so you can spread it out. Not trying to be negative here, just want to share what I have observed. There's a lot of emphasis these days on fraud and money laundering in the financial workplace.
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