The United States Crossed The Rubicon On Its Path To Collapse

gold collapseSince the Lehman crisis in 2008 it turns out that gold and silver have been the number 1 and number 2 best performing investments.  I bet that surprises everyone who is reading this.  Despite this nasty two-year correction, if you invested every penny in gold and silver, you have outperformed every other possible asset class.  And get ready for the next move higher in gold and silver, because our system is in worse shape and further along its collapse than it was in 2008.  Goldman Sachs knows this and that’s why – despite their analyst report that says gold could still go lower here – Goldman Sachs – the firm – became one of the largest holders of GLD during the 2nd quarter of 2013.

90 Sale 2-Recovered

 
From Truth in Gold:

Alea Iacta Est – “The die has been cast” – Julius Ceasar, after crossing the Rubicon River on his way to conquering Rome

I really wanted to go into a rant about how our economy and political system is in a serious state of collapse. The economic numbers released yesterday and this morning are proof that I’m right in my assessment of the economy.  The Syrian situation is all the proof we need that our Government knows I’m right (the old attempted “divert the public’s mind from the problems at home”).

Quietly yesterday afternoon the Government released the August spending deficit.  It surprisingly came in on the high side at $148 billion, well in excess of July’s unexpectedly large deficit of $97.6 billion.  And I’ll note for the record that media was pretty quiet about reporting the number.  YTD the total deficit with one month left in the fiscal year is $755 billion.  To be sure it will a be bit less than last year and it will fall short of the trillion dollar mark, but keep in mind that embedded in this number is close to $100 billion of non-recurring payments from Fannie Mae, Freddie Mac and taxpayers (the December tax revenue jump from investment gains taken before the Jan 1 capital gains increase).  In addition, revenues are higher this year, not because of a better economy, but because of a higher payroll tax rate.  Finally, we know that Jack “I’m Robert Rubin’s New Butt Boy” Lew, the new Treasury Secretary, has explicitly stated that he has played games with the budget in order to avoid running out of money now that the Government debt issuance has exceeded the so-called debt ceiling limit. The Government spending will experience a “snap-back” affect – at least from an accounting perspective – in the next FY from these “games.”

Today retail sales for August were reported.  They came in below expectations, and well below expectations if you strip out auto sales (which are inflated by easy credit) and inflation.  You can read the details here:  LINK and here:  LINK.  Essentially clothing sales and building materials (I told you the housing bounce is over) are dropping and restaurant sales – the beacon of disposable income – are plunging.  In addition, consumer confidence was reported and it had its biggest miss vs. expectations on record and it has plunged back to its January level:  LINK.  In short, consumer spending is contracting (expect for student loan and auto debt recipients) – the economy is in trouble and the people on “main street” know it.

So much for my not ranting (but I kept it brief).  The good news for gold investors is that since the Lehman crisis in 2008 it turns that gold and silver have been the number 1 and number 2 best performing investments:  Gold and Silver #1 Since Lehman Collapse.  I bet that surprises everyone who is reading this.  Despite this nasty two-year correction, if you invested every penny in gold and silver, you have outperformed every other possible asset class.  And get ready for the next move higher in gold and silver, because our system is in worse shape and further along its collapse than it was in 2008.  Goldman Sachs knows this and that’s why – despite their analyst report that says gold could still go lower here – Goldman Sachs – the firm – became one of the largest holders of GLD during the 2nd quarter of 2013.  That just goes to show that anyone who follows the advice of the Taxpayer-supported big Wall Street banks is a complete idiot.
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Comments

  1. Well then, I didn’t know that gold and silver were the best performing assets since the Lehman crisis! Maybe they are on the long term (2000-2013) but for the moment, they’re not good for people who bought precious metals at the peak in 2011 since they lost over 50% in terms of dollars. The only thing I’m worried about is if I’m on the right side of history.

  2. Your right Kid just a twist of words to make the PM’s look good. If you bought in 2000, sure you will be doing great but I don’t know anyone that bought back then and held on to it. Lol
    Nice seeing you back again. How is the Cent collecting? Lol

  3. Government numbers are going to keep getting worse here on out when you look at the true figures and not the ones they played tricks with

    • As one of the Eurocrats once said, “When things get really bad… LIE!”.  Well, the US Gov and the Fed are lying 24/7 these days about inflation, unemployment, and GDP “growth”.  They HAVE to lie.  If the average American knew how deep the poop is these days, there would be a sheeple stampede of epic proportions.  The thing is, though, that we DON’T have to believe their lies.  Because we do not believe their lies, we buy PMs so we can convert dying fiat into something of true and lasting value.  Yes, the dollar price of PMs does jump around quite a lot but isn’t that due more to the character of fiat than of PMs?  Sure it is.  Keep stacking the 4 precious metals:  gold, silver, brass, and lead… if you are allowed to, of course.  If not, then go with the 1st two.  ;-)

    • And when the interest rates rise we’re all toast. All this ‘stimulus’ and the Full Time jobs have still been falling, but hey lots of part time waitress jobs .. apparently. When Ben stops stimulating the rates will rise and any small gains that have occurred in the ‘recovery’ will be a non event and then the real physical collapse kicks in. I don’t think the Govt can afford not to stimulate, I think it is locked into financial masturbation mode with no end in sight. The US is now impotent and no amount of financial masturbation is going to get it off.

  4. Gold has never changed its value. Silver has never changed its value. Everything else on the other hand is like a good Okie truck spinning its wheels in a ravine after a good dust storm. I went back to the farm. Jim Rodgers told me to.
    I look at my Silver when the “price goes up” and when the “price goes down.” They always look the same. I don’t get it.

    • That’s the funny thing about gold and silver, Eagle.  No matter what the price may be, the ounces in our stacks doesn’t change because of it.  That only changes when we buy and sell ounces.  Not that too many of us are selling these days, of course.  Stack on, regardless!
       

    • You mean Bar Ditch, not ravine.
       

  5. I lost 10k on a speculative oil company last year. That was the bulk of my savings account. Then I got a 1ozt silver eagle from my company as a Christmas present and it changed my perception of money. I haven’t been stacking long but ever since I began I have felt better and better about my family’s future. Maybe some of you know what I’m talking about. To me, it feels so much better to hold a chunk of metal that people actually need in every country than paper with whatever value they want printed on it. Hopefully it’s not just me. 

    • No, HvyMny, it is not just you.  There is an entire stacker community out here that knows EXACTLY what you mean by metal beats paper… as in the old rock-scissors-paper game.  Only in this case, rock is the situation we find ourselves in, scissors is PMs, and paper is fiat.  People who live in Japan, Venezuela, and Argentina know WAY better than we do about what it is like to have their paper money devalued.  It stings.  A lot.  When 1/3 to 1/2 of your accumulated wealth disappears over-night because of government edict, they are literally robbing you of your labor and hard-earned wealth and you are getting nothing in return for this.  When we hold gold and silver, however, we have opted out of the fiat paper / inflation game and do not participate in all of the downside risks of it.  If paper money is devalued, such as the 40-50% devaluations that occurred in Argentina and Venezuela in the recent past, those who hold their wealth in gold and silver just smile and go on about their business.  Their wealth is secure and not devalued… read stolen.  The people who tell us that fiat currencies have value are the very same ones who tell us how much value they have… and that is a VERY dangerous combination.  Better to hold an alternative currency over which they have minimal control.
       

    • @HVYMNY
      Been there.  I turned the corner in 2000 after I made my last losing trade.  Welcome to “sound money”, the crooks on Wall Street can’t destroy.

    • >>>Welcome to “sound money”, the crooks on Wall Street can’t destroy.
      But the crooks can still steal it. A crook by definition is a dirty filthy thieving rat bag… @HVYMNY This is a socialist country now, when SHTF the government will enact a confiscation, it already legalized what MF Global did which was basically the same thing, so when the crash comes, the FDR mode will turn on and you will hear … “Ask not what your country can do for you, but what YOU can do for your country”, the bankers of course can continue to screw the country unabated but all my silver stacking and gold guzzling buddies will be a ‘terrible hoarder’, a ‘selfish American’, and your PM’s will be desired by those who are legalized to confiscate it… and for a fee.
       
      Get a gun too, and ammo, and an exit strategy. When the collapse comes you will not simply be able to trade your silver or gold with the average retailer if it is banned on a confiscation order. You will be able to trade it with people who think alike, so this means around 1% of the country will be your friend and 99% will be your enemy … at least where trading is concerned. Extra Govt Credits will be on offer for those who rat out their PM owning neighbor, so keep your mouth shut about your real assets. Just some advice from someone who has read about the Great Depression and the social and cultural aspects of the situation, and this will be much worse than the great depression … much worse.

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