Dear Friend
I was driving in the car the other day and the mainstream news reporter was saying, “the recession is over.” That brought to my mind what a mainstream financial adviser told me back in 2001, I asked his advice about investing in gold rather than mutual funds. He told me that investing in gold was much too risky and assured me that historically the stock market has averaged about a 12% return per year. Well here are some facts to ponder; on 9/11/2001 the Dow closed at 9605, on 9/11/2009 the Dow closed at 9605. Wow, let’s do the math on that return—a big fat 0! However gold on the other hand was at about $250 an ounce on 9/11/2001 and on 9/11/2009 it was at about $1000 an ounce. Let’s do the math on that return—a meager 400% increase!
The moral of the story: I have learned the hard way that “mainstream” many times leads down stream. Recently I have read numerous non-mainstream financial articles that paint a gloomy picture for the economy of the United States and the World. Here is a short synopsis of what I have read:
They are predicting that we will very shortly see the stock market go down to the 4500 level and then eventually down to the 1500 level. In other words the stock market is going to crash (October 2009 – 2010). They say that the crash will be precipitated by mainly 3 tsunami waves of; rising unemployment, rising defaults, and the crash/death of the dollar. Yes I said the death of the dollar. They believe that the dollar will soon lose much of its value, as foreign nations will in force dump their dollar holdings. They also indicate that the powers to be will then replace the world’s reserve currency—the dead dollar—with of all things, a new world currency, how coincidental. They also say that along with the death of the dollar, and rising unemployment, and bankruptcies, and corporate shutdowns, and bank closings will be run away inflation.
Here are a few of the articles from which my synopsis was formed.
1. Collapse in U.S.A. Beginning 9/30/09
http://www.rense.com/general87/collapse.htm
2. Dumping of the Dollar
http://rense.com/general87/lindd.htm
3. The Collapse is About to Begin
http://matterhornassetmanagement.com/newsletter/?newsletter=21
4. The Three Rouge Waves
5. The Crash is Coming; Prepare
6. How to Prepare for the Derivative Defaults
http://www.kitco.com/ind/Summers/sep142009.html
7. The Dollar is Set to Collapse
http://www.marketoracle.co.uk/Article12442.html
8.Optimism Opium
http://rense.com/general85/opti.htm
9. Step Closer to Global Currency
10. HSBC Says Goodbye to Dollar, Hello to New World Currency
I hope that these many bad forecasts by economists are wrong and that the “hurricane” will miss us. But many who have heeded their warnings are preparing as if the hurricane is coming, just in case. I guess that they may be asking themselves what do they have to lose by preparing for this possible financial storm and what do they risk losing by not preparing. A synopsis of what I have read on how others are preparing for a possible severe economic downturn is as follows.
1. Stop all unnecessary expenditures
2. Get out of much debt as possible as quickly as possible.
3. Get out of the stock market, if you can. If you cannot then move your funds to sectors that are likely to rise in value such as precious metals or natural resources.
4. Physically own precious metals.
5. Only keep a minimum of $ in the bank and have 3-6 months of cash on hand.
6. Have 3 – 6 months of food.
7. Get a shotgun and some ammo and learn how to use it.
One of the reasons that I am bringing this information to your attention is because I would imagine that you might have only been hearing “mainstream” information. So now you have heard non-mainstream information. Mainstream says things are getting better, non-mainstream says a hurricane is coming and you should prepare. Who to believe or what to do is for you to decide.
Pastor Chuck Baldwin of the Crossroads Baptist Church in Pensacola Florida--he ran for president under the Constitution party, I voted for him--had this to say about the future.
"Let's face it: most Americans live in a world of false
security. This is somewhat understandable, given the fact that the majority of
the U.S. population was born after 1945. Few remember the dangers and hardships
of World War II; fewer still remember the Great Depression. Few Americans know
what it's like to not have some sort of "supercenter" nearby with
shelves stocked with every kind of food imaginable, twenty-four hours a day.
Few know what life was like before there were restaurants of all sizes and
types on virtually every street corner in America. And only a handful remembers
when most roads were unpaved, or when sports were truly a pastime and not a
megabuck obsession.
Modern living within the
world's only "superpower" has created a giant unsuspecting, soft,
lackadaisical, and lethargic society. We expect the government to keep our
streets safe, our roads paved, our stores stocked, our jobs secure, and our
enemies at bay. However, in the desire to make government the panacea for all
our problems, we have sold not only our independence, but also our virtue.
Where the federal
government was contracted (via the U.S. Constitution) to accept limited power
for the overall good of both states and people, it has become a monster of
gargantuan proportions, claiming authority over virtually every liberty and
right known to man. And in the process, it decided it didn't need God, either.
It is no hyperbole to say
that the U.S. federal government has been on a "Ban God" bandwagon
for the past 50 years. Whether it kicks prayer and Bible reading out of school,
bars military chaplains from praying in Jesus' name, burns Bibles in Iraq,
removes state supreme court chief justices from their positions for posting the
Ten Commandments, or threatens high school principals with jail for asking the
blessing, the federal government has invoked the judgment of Heaven upon our
country as surely as did Old Testament Israel.
Although the comfortable,
sports-crazed, TV addicts probably aren't paying attention, this country is on
the verge of an implosion like you cannot believe. For anyone who cares to notice,
the signs are everywhere.
First of all, Israel and
Iran are on the verge of war. And right now, I'm not concentrating on the
"why" or "who's right or wrong" of the equation. I'm simply
telling you, war between Israel and Iran could break out at any time. And when
it does, the chances that it will not become nuclear and not become global are
miniscule. Yes, I am saying it: the prospects for nuclear war have never been
greater. The CBS-canceled TV show, JERICHO, could become a reality in these
United States in the very near future. (I strongly urge readers to purchase
both seasons of JERICHO and watch them, because this could be our future.)
Secondly, America is on the
verge of total financial collapse. By the end of this year, America's budget
deficit will stand at around $2 trillion. The debt gap is many trillions more
than that. But the nail in the coffin for America's fiscal health will be the
decision by China to dump the U.S. dollar. Ladies and gentlemen, this will be
the death knell for our financial stability (and a painful lesson in sowing and
reaping).
It is estimated that China
owns around one-third of all U.S. debt. If and when China dumps the U.S.
dollar, there would be nothing left to stabilize it, and Weimar
Republic/Zimbabwe-style inflation will ensue. America will be thrust into
financial chaos. (If one doubts that China is planning to dump the dollar,
consider that China is currently purchasing and stockpiling gold at an
unprecedented level. This is why gold has suddenly surged to over $1,000 per
ounce and why it will continue to rise.)
Third, the paranoia
regarding the Swine Flu being demonstrated by both government and media
spokesmen begs a giant push for some type of "government solution."
If they keep hyping this "pandemic," mass hysteria and fear (created
by the government and its lackeys in the media) will result. This would, no
doubt, necessitate some form of forced vaccination, quarantine (maybe this is
what all those internment camps will be used for), and martial law.
Exactly how and when all of
the above will actually materialize is yet to be seen. There is no doubt in my
mind, however, that within the next few months, the world that we know today is
going to vanish. And most Americans are totally unprepared for what's coming.
If you are able to get out
of debt, do it. If you need to scale down your lifestyle in order to be better
prepared for difficult days, do it. If you don't have guns and ammo, buy them.
If you have not prepared some sort of preserved food pantry, do it. If you don't
have some kind of survival plan in place for you and your family, get one. If
you are not physically fit, get in shape. If you are able to move to a more
secure, out-of-harm's-way location, do it. (During any kind of financial or
societal meltdown, urban areas will quickly turn into war zones. Can anyone
say, "New Orleans after Hurricane Katrina"?) In other words, get your
nose out of the boob tube, get your bottom off the easy chair, and get busy.
Am I worried or
discouraged? Absolutely not! (But I am preparing.) The potential good that may
result from all of the above is that perhaps God will protect and raise up a
remnant of people who would be willing to rebuild a place where Natural Law is
respected, constitutional government is revered, and where a ubiquitous,
loathsome, overbearing federal government is far, far away. You know, like
America's Founding Fathers did 233 years ago.
In the meantime, get ready.
It's going to be a rocky road.
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© Chuck Baldwin
This column is archived as http://www.chuckbaldwinlive.com/c2009/cbarchive_20090922.html
Note: I am not an official financial adviser and none of this is to be considered as financial advice, or any type of advice for that matter. Out of concern for you and your family I am merely telling you that some are predicting a financial hurricane is headed our way and how they are preparing for it, what you do with the information, if anything, is between you and God.
P.S. I do not share this information with children or teens and I would ask that you would not share it with them either.
Sincerely in Him
Bill
“God will not do for you what He has given you the power to do for yourself.” Dr. Bob Jones Sr.