Day of Decision

Many have seen the future and invested in gold and silver to preserve and protect their finances, much like an insurance policy. Unfortunately, all they see are downtrends, unreliable economic statistics that do not match reality and managed markets such as interest rates, bond markets and the S&P500.

Regrettably, investors tend to extrapolate unfavorable current conditions into the future and ignore overlooked fundamental changes that may affect that outlook. This is the fatal flaw of that logic. Price direction, standards and fundamental conditions do change over time, as they will do here.

Today we have fundamental situation where fiscal sanity is forgotten, constitutional freedoms are eroded and common sense is ignored. Virtue, ethics and integrity are a distant memory from the past. In this setting, Gold is also seen as a relic of the past, not as a financial foundation for the future.

   

Day of Decision

I can assure you all this will change when the day of decision and judgment occurs.

A time frame for this event was suggested in “Breakpoint” here. This was based on my subjective formula of exhaustion where: 

• Ponzi schemes no longer work
• Delaying tactics reach their limit
• A crisis of confidence in the system passes the point of no return

I could be wrong, but in my opinion we have about two years or less until this critical mass is achieved. In any event and whatever the time frame, it will happen.

The trigger for this event may be a calamity, man-made or natural, but it will come. It is a point where: 

• Ethical standards are totally lost
• Economic resuscitation is futile
• Financial resolution is impossible
• Confidence in leadership will be lost
• A fear of God will be resurrected

It will be a day of decision and recognition. It will also be a day when the shenanigans, shams and shell games begin to end. 

Day of Redemption

We pray that this day of redemption can occur and that the process of regeneration and renewal may begin. 

As a result, real fundamental values, fiscal sanity and financial standards may finally have an opportunity to return.

 --------------------------

(Note: In Part 2 of this series “Ignored, Overlooked and Forgotten”, we will examine three examples of determination in the face of adversity that changed history. This piece is a perseverance guide as history is the future.

Check Left Field

You have box seats, sunny skies, and the winningest government team ever is on the field. Their brochure even shows how they win, but no one cares. The grandstands are full of fair weather fans who just want autographs on checks the team freely hands out when they win. What could be better?

First, let’s see how the team wins.

Banking Team

In the Old West, robbers robbed banks. Now under the new “Bail-In” program, the banks can rob you. You can’t rob banks, if insolvent, and would go directly to jail if you tried.

The new purpose of banks is to safely hold your money until they need it. It’s the all new “Robin-Hood-in-Reverse” plan. How patiently polite for them to wait!

Banks can also “restructure” their holdings in their favor with the central bank. You can’t and have great difficulty understanding the fine art of “restructuring”.

Full (of it) Employment Team

The economy is chugging along at reduced unemployment levels by not counting everyone that is actually unemployed. Who needs to count lazy people?

There are jobs available in the Constitution Department for shredding duties.

A huge number of tree cutter and printing jobs have been posted. These growth opportunities allow the PTB to print money, send out announcements and paper things over.

There are lots of openings at the Treasury Department for economic energizer bunnies, socialists and naïve nitwits. “Bail out” jobs are now nil but “Bail In” jobs are plentiful. These are high paying jobs whose purpose is to find ways to sink your financial lifeboat.

Employment can also be had at the new “Information Formation System”, better known as “IFS”, where cushy jobs rearranging those lifeboats are available.

Regrettably, security guard openings for vaults have been discontinued due to running out of gold. 

New Economy Team 

Current debt exceeds the GDP but that’s ok too since they don't count future unfunded liabilities either. It's the all new “Deep Storage” accounting method, just like in gold.

Interest rates are so low we can easily borrow our way to prosperity, pay for programs we don’t need and buy stuff we won’t use. Luxuries are now affordable!

We are borrowing .46 cents out of every dollar but that is no problem since we own the only printing press. What a relief!

In time, our interest expense will exceed the entire budget, but that's a big kick in the can down the road.

Increased income from new taxes shows the budget deficit of one trillion being reduced by 5%. How reassuring!

Only 15% of the population is on food stamps. Let em eat cake!

Money Team

They can print unlimited amounts of money to pay the bills and manage markets. You can’t because counterfeiting is illegal and jail time is involved.

They can rob Peter’s account to pay Paul’s account. You can’t because Peter has run out of money.

Market Team 

All major markets are properly "managed" You can’t and would be found guilty of market manipulation if you did.

Stock markets are “high-jacked” to assure everyone that happy days are here again. Casino losses are a distant memory from the past.

The S&P500 has a high PE ratio of 21. That means optimism is high, all is well and the future is brighter.

Team Scoreboard

Box Score - Government 20, Citizen 0.

Good news! The government has discovered the Holy Grail of winning and can postpone any possible loss for a very long period of time. An amazing record!

Now, it’s the ninth inning and nothing could go wrong here. Right?

Check left field.

5/15/13

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