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Friday, May 21. 2010
Dow Theorist Richard Russell: Sell Everything, You Won't Recognize America By The End Of The Year
Posted by The Barrister at 10:57 | Comments (15) | Trackbacks (0)
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I converted my 401(k) to 100% bonds when the Dow was at 9700. That was the extent of what I could do, since I am basically poor. I have been feeling stupid as the markets kept climbing. Now, maybe not so much.
Being close to retirement I've been in government bonds since the big drop right before the election. Everyone told me I was missing out on the rebound but I wasn't, and still am not, buying it.
Past that, like Tyrone, there's not much I can do. With no credit card debt, we only owe on our house, one car, and a motorcycle which I was thinking of selling but I may need for cheap transportation should things go south.
I don't understand why anyone would invest in government bonds. I am not criticizing, just trying to understand.
The government has no money. It is broke unto the third generation. I see government bonds as being in the same category as the "sacred trust" of social security. There is nothing there but non-repayable IOUs.
I'm not sure about gold either. When Roosevelt needed it, he simply confiscated it. If you are talking complete collapse, you don't think this government would do the same? This administration is already openly floating the idea of "exchanging" a portion of your 401Ks for a government annuity.
They are desperate. There is no money, except for the money they can convince you to hand over to them.
For people who still don't get it, hee's a few references and resources they can read at 'News Kontent: A Reader's Resources on Systemic Collapse.'
This going to be biblical, folks.
Honestly, this guy is pushing the purchase of gold exclusively. I would like to know how much money he has in gold and if he is on the payroll of any gold-related companies.
Gold is really not a good investment. It can drop like a rock in a very short time, and over time, it has never done as well as a good stock portfolio does.
The people who claim to be economists have always been frightfully wrong about stuff. What makes anyone think that they are suddenly right?
Indeed, why buy gold at all? Invest in aluminum. Sparkly jewelry comes and goes, but the world always needs more soda cans.
Ha. ha. Honestly, we are paying off all our debt and paying off our farm as quickly as possible and doing everything we can to make ourselves as self-sufficient as we can be because the future, at the moment, does not look good.
They ain't making any more land.
I grew up on a 200-acre century farm, and it's still being run by my father. So it's been through much -- several wars and the Great Depression. It's interesting to see the foundations of various houses that stood there, even through the short period of 120 years. There were successes and failures.
Land was considered a poor investment after the Depression and the New Deal, because the taxes were simply too high to make it work. My Dad spent $300 on three acres to add to a corner, and it was a hard decision because of the taxes.
The important backstop to holding on to your land is having a Constitutional Republic that encourages private property, and another need is a local government that gives farmers a break on taxes. A Communist system, which is the end result of Obama's and other Marxist ideology, would confiscate your labor or your land and put it to work for the state.
Being able to provide your own heat through wood fires and doing some gardening and farming might see you through some things, sure, but in worst-case scenarios your farm is going to look mighty appetizing to the powers that be. And think about water rights - those are easily taken away from you by the EPA -- look at the farmers in California. Also, you'll still want cash for medical care and toiletries. I suggest diversifying just like everyone else, and joining with others to get the Marxists out of government.
Google is your friend.
Of course, that doesn't mean he's a shill, he may believe in what he does for a living.
Interestingly, I've been reading just this sort of prediction since the mid 1980's, when I got my first real job and took an interst in such things. I do wish I'd bought a bunch of gold coins back in 1999, or sold that Pfizer stock in 2001, but ....
From a comment at the linked article, "Don't get me wrong. I do like Richard Russell and do find his commentary relevant and thought provoking, BUT, as another follower of Russell once astutely commented: 'Richard Russell is credited with correctly calling 12 of the the last 5 Bear Markets (TIC)...'"
It is actually possible to pay off debts, maintain reasonable cash position, and yet still invest in stocks of companies that pay dividends and have strong balance sheets.
Unless you're a perma-catastrophe type, and then I agree cash, gold, and maybe some silver to make change is king. And bullets.
"The government has no money. It is broke unto the third generation. I see government bonds as being in the same category as the "sacred trust" of social security. There is nothing there but non-repayable IOUs."
You're correct of course, but stock doesn't look like it's going to be worth anything either and I figure the bonds will be there longer than stock.
Or maybe not.
Even after the P&G drop a while ago, people still don't understand the "Market", especially NYSE, has nothing to do with the economy, or even the firms involved?
It's all about having the computer program with the best algorithims for the instant buy/sell, nothing to do with anything as mundane as underlying value.
Gold, physically in your possesion, is the only way to go!
Oh, yeah, a good inventory of firearms & ammunition can't hurt!
Tracked: May 23, 00:59
32 states have borrowed money from the federal government to make unemployment payments; California has borrowed $7 Billion. The FDIC lists "problem" banks at 775 , one tenth of all US banks. The 10 States Most Likely to Default...
Tracked: May 23, 01:50