Thursday, October 13, 2011

Capital Preservation

As I have stressed for some time on this blog Capital Preservation in this environment is key. I wanted to post tonight because this is one of the last chances people are going to have to preserve capital. People should be using the market rally now to raise cash. Do NOT listen to these inflation biased analysts who are saying hyperinflation is coming because Ben Bernanke will just start up the printing press when a crisis hits. Inflationists do NOT understand the nature of our money. The reality is that the biggest margin call in history is about to beset us...and one of the only things that will be going up in value is what has been inflated into oblivion for the past 100 years: The U.S. Dollar. I am extremely bullish on the U.S. Dollar as I have illustrated before and if it has not made its bottom already it is close. The reason for the coming U.S. Dollar Bull Market is a shortage of Dollars, the opposite of what most think. Most people think there is a shortage of commodities and an overabundance of U.S. Dollars, when in fact it is the exact opposite. The reality is that there is virtually NO money in the system....just promises to pay money, courtesy of the banks. The private banking cartel is in complete control of our money supply and all but one ten-thousandth (that's right, 1/10,000) of our money is debt. That little bit of money that is actual money consists of coins minted by the U.S. Treasury, as debt-free government issued money. All other money in the system is created as a LOAN; an interest-bearing debt...for which the interest cannot be paid. This will result in a credit implosion the likes of which we have never seen. This debt contraction creates an increased demand for dollars to satisfy debts, all the while the supply of dollars is diminishing due to contracting credit...this all has VERY Bullish implications for the U.S. Dollar...and very BEARISH implications for all dollar denominated assets....including Gold and Silver. In Elliott Wave terms, the world currencies are putting in supercycle tops...while the U.S. Dollar is putting in a supercycle bottom. From a cyclical standpoint, there are long-term cycles that are reversing now or in the near future...get ready for fireworks. The way to do that is to first get your money out of the big banks...they will fail in this next phase of the global credit crisis. This is already happening in Europe and will make its way around the world until there is virtually no credit left in the system...that is a long way down. The main point I want to stress, however, is that there is no reason anybody should be hurt by this credit implosion. Those who keep their wealth safe in the safest possible cash equivalents in the safest possible institutions and with the safest governments will come out the other end with all their wealth intact. Please read Bob Prechter's 2002 Book, "Conquer the Crash: you can survive and prosper in a deflationary depression" and see the second half for how to keep your money safe. A safe alternative is opening an account with and buying short-term only t-bills directly from the treasury. Time is running out and it appears as though the music is about to stop in this game of musical chairs....and as usual the most underprivileged will get hurt the most. But as we are seeing with the "Occupy Wall Street" rallies, people are catching on, and they are NOT happy campers. Social mood is worsening and will get much worse before the final bottom...which is why it is important to stay ahead of the curve and prepare for the collapse before it happens.

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