Views: 4206
Text:

The Hijacking of America Part II

Macroeconomic Issues Threaten the Solvency of America

By Greg McCoach
Tuesday, March 3rd, 2009

...continued from Part I

The latest so called "economic stimulus package" is nothing more and nothing less than creating money out of thin air.

It absolutely guarantees hyperinflation within eighteen months time frame, possibly much less and gives us colossal opportunities to profit in non-dollar assets such as the precious metals.

And what we were originally told about the stimulus package, is suddenly no longer the case.

As always, what we the people were led to believe in the beginning as with the bailouts and now the economic stimulus is totally changed.

The economic stimulus is mostly pork barrel spending and socialism on a grand scale with little in the way of infrastructure job creation which was how this was originally billed.

It is very conceivable that the first year budget deficit of Obama's administration will exceed $3 trillion dollars. This is absolutely unsustainable by any definition you want to use.

As Jim Sinclair recently said, "There is no longer any means of reversal of the final terminal phase of the downward spiral now solidly set in motion."

It is coming whether you or I want it to or not. All you can do is take the positive approach and prepare for it, and profit from the debacle. The time to do so, however, is rapidly running out.

The million dollar question remains, how much time do we really have before the system implodes?

I wouldn't be surprised to see the next shoe drop at any moment as the "Obama Hope Rally" quickly fades into the next wave of financial panic.

This next wave down is going to be a whopper because it will involve the popping of the commercial real estate bubble and its associated derivatives.

Again, the powers that be don't want you to understand what these derivatives are and how they
are affecting the financial system.

The government/media complex keeps providing disinformation to prevent you from understanding the true nature of this derivative liability that exists worldwide.

What the exact amount of this liability represents is not exactly known. But what we do know is that what we have seen thus far is only the tip of the iceberg.

In these kinds of volatile environments, things can go from looking good to sheer panic at the drop of a hat.

The Federal Reserve is working feverishly at the moment to avoid deflationary panic. But their only solution is to throw money—lots of money—at the problem.

This in the end will only prove disastrous as hyperinflationary forces take over.

The reason for this is because of the sheer number of new dollars that are being created and thrown into the system.

The exact timing of when this hyperinflation will show up taking "Cash is King" to "Cash is Trash" will depend mostly on what is called the velocity of money as I have explained before.

If the newly created money starts to change hands quickly as people begin to buy whatever they can of value before there money buys even less, then you can expect the hyperinflation to show up sooner than eighteen months, possibly much sooner.

If, however, the velocity is slower and the newly created money does not change hands very quickly then we may get the full eighteen months before things really begin to unwind.

Advertisement

China's Greed is About to Make You 2682%
 

It all centers on a metal most people can't pronounce... And yet, the Chinese are keeping every ounce they produce for themselves.

Find out how this wonder metal, that goes into everything from jet engines to skyscrapers... can finance your retirement.




Personally, my take is we will be lucky to make it through the end of the year without a major financial catastrophe.

So get prepared as quickly as possible for disruptions to the distribution network typical in periods of hyperinflation.

  1. Get a food storage and emergency supplies in place. (Including at least a three month supply of prescription drugs).
  2. Own physical gold, silver and the quality precious metals mining shares. Start thinking and taking short-term profits with the shares with every opportunity you get. Make sure you own the American Eagle silver coins if you live in U.S., or Canadian silver Maples if you live in Canada.
  3. Keep some $1's, $5's, $10's and $20's safely in your home...at least a couple thousand dollars worth). I'm not recommending stuffing your mattresses, just some cash in case of "Bank Holidays" that seem sure to happen.
  4. Consider buying or having a safe haven place at least two hours away from a major city.
  5. Take a global perspective with regards to protecting your hard earned dollars. In other words, don't have so much U.S. dollar exposure.  Transfer accounts to countries or currencies better than the U.S. dollar. Currencies of choice that come to mind are the Canadian dollar, the Singapore dollar, and the Hong Kong dollar.
  6. Continue to educate yourself and others about the realities of what is happening. Don't believe the hype and outright lies that come from the Federal Reserve or U.S. Government.
  7. Read the U.S. Constitution for yourself and help others read it so the public can know how we get back on track to liberty, prosperity, and abundance once more.

We are witnessing the undoing of what our founding fathers worked so hard to provide for us. They created a republic but were worried we would be able to keep it. See if the quotes below from our founding fathers don't ring true to you and really hit the nail on the head.

"Yes, we did produce a near perfect republic, but will they be able to keep it?  Or will they in their enjoyment of plenty, lose memory of their freedom. Material abundance without character is the surest way to destruction."
—Thomas Jefferson

Benjamin Franklin's admonition as he left the final meeting of the Constitutional convention to his wife who asked what the new government would be. Franklin replied: "A republic madam, if you can keep it".
 
"The people of the United States are the rightful masters of both the Congress and the Courts, not to overthrow the Constitution but to overthrow those who pervert the Constitution."
—Abraham Lincoln

The bottom line is we are losing the country the founding fathers so diligently worked and strived for.

The enemy is power seeking politicians on both sides of the isle and the unbelievably greedy fractional stock holders of the Federal Reserve who have now hijacked America from the people.

They are the very perverts that Abraham Lincoln warned us of.

Are you willing to fight to save the country from those who desire to pervert the Constitution?

This will be the ultimate decision that all of us will be faced with if the country is to be saved. Some say it is already too late. But I believe there still is a chance.

I believe that it is possible to find our way back to what made America great in the first place.

In the meantime, however, it looks like we are about to find out just how deep the consequences for decades of abuse of our system of credit and Constitutional values will be.

The opportunities for profit in the coming economic meltdown will be amazing.

While many will be losing most of their wealth and suffering in many untold ways, the few who were prepared will be able to come through the storm financially, physically and emotionally intact.

The time to prepare is coming to a close. Please be advised.

Good Investing,

Greg McCoach
Editor, Gold World
Investment Director, Mining Speculator

P.S. Throughout human history gold has offered safety amid crisis. Fortunately for us there's a new money-making phenomenon that can actually double your gains in gold. Thanks to this unique tool, every time gold gains just 1%, you make 2%... a 25% gain pays 50%... a 100% gain pays 200%... a 500% gain pays 1,000%! Click here to learn more.


Media / Interview Requests? Click Here.






Rate this article:
 
     Current Rating:  
Article RatingArticle RatingArticle RatingArticle RatingArticle Rating (20 votes)

Comment on this Article


Comments:

Comment by Matthew Halliday on 2009-03-03
Some of the things you say to do like buying Gold and silver getting a three month food supply,having a safe haven away from the major cities,having money at home ect is being said by a few people which is interesting.The information Dr Larry bates is giving out will interest you look him up.
Comment by Sigurd Smith on 2009-03-03
Thank you for putting into words what many of us feel.
x-Green Beret,
I feel like someone is stealing our country and there is nothing I can do about it.
Comment by Richard on 2009-03-03
Thank You
Comment by Tom L. on 2009-03-03
Seriously, though, Greg McCoach is absolutely right, and this article is right on the money. The next few years are going to be a lot tougher than most people think they are going to be.
Comment by Donna Eusebio on 2009-03-03
Many are warning of this and I think millions of us feel it coming, but you articulated it very well and gave some great advice, which I am already following. I have stocked up on gold and silver coins and bullion. I am also short-term trading on gold & silver stocks. I always appreciate your common sense articles, Greg.
Comment by Paul on 2009-03-05
You may be a little early and somewhat dire in your predictions, but what you say is simply COMMON SENSE. As Margaret Thatcher said, "The problem with Socialism is eventually you run out of other peoples money." Or as I'd put it, that's why we shouldn't elect poverty lawyers as our presidents. We'll end up needing one ourselves.