The Good, The Bad and the Amero

For those of you who are not my customers, I apologize for the lack of recent posts. However, due to the recent market volitility and the fact that my first obligation is to my customers, I have been quite busy as of late. In fact, I have been communicating updates that would usually appear on this blog, via email to my customers. Email me and I will add you to my list.

But I did want to bring you a few tidbits to consider.


THE GOOD
I have been preaching gold for 10 years now, and finally people are listening. In fact, even the main stream media is being forced to acknowledge that gold STILL is a safe haven in times of monetary instability. Because of the fear that is out there now, I have urged and moved most of my customers to a 25% gold position. Gold has nowhere to go but up, over the long term, as dollars continue to be created out of thin air.

Those of you with market losses, in my opinion, the quickest way to make them up is to buy gold.


THE BAD
Obviously, "the bad" is the stock market right now. As I write this, it is still in free-fall. Where is the bottom? Who knows?

Because of this, after it became evident several weeks ago that the derivatives crisis would affect over half of the banks in existence (Bank of America CEO Ken Lewis stated that he expected half of the 9000 banks in the US to fold over the next 5 years.), I moved all of my customers out of stocks/stock mutual funds with the exception of gold and oil stocks. These continue to fall, but they will turn eventually, as commodities prices (in free fall now) will resume their upwards long term trend.

How do I know?

Oil prices have dropped dramatically over the last month, but your price at the pump hasnt budged. Who do you think is pocketing the difference? Yes, the oil companies. I don't see how you can go wrong owning oil company stock.

Looking long term, when the stock market finally bottoms out, and it may be a while, there will be tremendous opportunity for gains for those with the foresight and conviction to get back in. So those loses we have now should be more than made up, just as in 1987 when we went through a similar crisis.

But for now, stay away and diversify.


THE UGLY/Amero
Should this crisis get out of hand, the dollar collapse, and the new Amero currency take its place, there is expected to be a 50% devaluation to the dollar.

London stock trader urges move to 'Amero'
Says many unaware of plan to replace dollar with N. American currency

Analysts: Dollar collapsewould result in 'Amero'

It is possible/probable that this crisis was manufactured specifically to bring this new currency into being. Do you really think the federal government was stupid enough to force Fannie and Freddie to make these toxic loans? Come on! I believe they knew where this would lead eventually, and WANTED this crisis so they could present their predetermined solution. (Thank God they are looking out for us! LOL)

A New York Times article from Sept. 1999 states that Fannie Mae had been under increasing pressure from the Clinton administration to expand mortgage loans among low- and moderate-income people and that the corporation loosened its lending requirements to comply.

(Lest you think this was really about giving minorities a break on home ownership, or Republicans against Democrats, the Bush administration has continued these liberal policies.)

The Amero is nothing new, as it has been in the wings since before NAFTA. It was talked about openly up until a few years ago, and has been surprisingly quiet since then. None of the mainstream press has said a word, which usually means they have been instructed to stay quiet on the issue.

NAFTA was the first step in the North American Union. Now that economic unity has been achieved, the next step is monetary union.

How ugly will this financial/stock market crisis have to get for American's to cry out for help, and the feds to ride in on the white horse named Amero to save the day? I don't know, but I do know that if that happens, you will lose tremendous purchasing power.

So, as always, CYA by diversifying!

That's all for now. Make sure to read the links above regarding the Amero.