Inside the Meltdown

View this now online at PBS [link]. Yes, their video feed is fast.

On Thursday, Sept. 18, 2008, the astonished leadership of the U.S. Congress was told in a private session by the chairman of the Federal Reserve that the American economy was in grave danger of a complete meltdown within a matter of days. “There was literally a pause in that room where the oxygen left,” says Sen. Christopher Dodd (D-Conn.).

FRONTLINE producer Michael Kirk goes behind closed doors in Washington and on Wall Street to investigate how the economy went so bad so fast and why emergency actions by Federal Reserve Chairman Ben Bernanke and Secretary of the Treasury Henry Paulson failed to prevent the worst economic crisis in a generation on Inside the Meltdown, airing Tuesday, Feb. 17, 2009, at 9 P.M. ET on PBS (check local listings).

Checking Off My “To Do” List

1) Following Jim Sinclair’s advice [Sinclair’s Third (and Final?) Warning] I have sold off my silver ETF (SLV). ETFs are now too suspect to be trusted.

2) I have repatriated ALL remaining cash that had awaited deployment in my brokerage account with OptionsXpress.

Even though OptionsXpress remains in the top tier of online brokerages, per Jim’s recommendation I’m further limiting my exposure to financial entities.

3) I have checked the health of my local bank. [How to Rate Your Bank’s Safety] It’s now rated “C” (down from C+ last fall). The rating agency says,

wcbsm“The C rating means that, in our opinion, this institution offers fair financial security, is currently stable, and will likely remain relatively healthy as long as the economic environment avoids the extremes of inflation or deflation.

In a prolonged period of adverse economic or financial conditions, however, we feel this institution may encounter difficulties maintaining its financial stability.”

Update June 7, 2009: Please keep an eye on your bank! One of my banks was rated C+ last Oct. 2008. When I checked again in Feb 2009 it had dropped to C. Now it’s dropped to C-, just one step away from the deadly “D” range. I’ve set up a contingency plan establishing new accounts at another bank.

4) I have previously [Week of Nov 24] laid in a 3-month supply of freeze dried food for my family (1 year supply divided by 4 people) and a gravity-powered water filtration device. Also picked up N95 anti-virus surgical masks.

5) I have stockpiled about 4 months of prescription meds. I’ve been working on this since last fall. (It takes planning when dealing with doctors/insurance.)

6) I continue to monitor economic events. When (not if) TSHTF I am ready to yank our remaining $ from the bank and go on a WalMart shopping spree for essential items and non-perishable or extended-expiration-date food. (Think oatmeal, canned milk, cereal, canned meat (SPAM), actually canned *whatever*, sugar (it self-stores for years). Flour? Some but not a lot, it’ll spoil quickly no matter how it’s stored. But a 5-gallon pail of wheat from our health food store? Yep!) I could go on but you get the idea!

7) Our three cars are paid off and healthy. No credit card debt. Large store of propane, just in case. The only thing that’s financed is our house–I plan on paying that off once hyperinflation hits and precious metals skyrocket. Beating the banksters at their own game with inflated dollars: cool.

8) A store of physical silver and gold (of course) in a secure location where I can get at it in less than 15 minutes. Please! NOT IN A BANK “SAFETY DEPOSIT BOX” [Safety Deposit Boxes Confiscated]. Better to bury it if you have to rather than trust a bank after 9/11 and The Patriot Act.

9) Guns and ammo? Not yet, I still can’t see myself shooting someone. ‘Course, Yogananda used to tell a story about a saint and a snake…[Is It Spiritual To Defend Yourself?]. Maybe it’s worth having a gun just to fire over the heads of potential attackers…

10) Yes, we have a second home in the rural Iowa countryside. You too can buy an old farmstead cheap. Ours is a modest story-and-a-half on two acres, beautiful view, pasture all around us, nearest neighbor 7/8 mile away. 10 minutes to the nearest town with a grocery store. 110 minutes away from home #1 by Interstate.

Cost? $8,000. Nope, I didn’t forget a zero. Taxes are cheap, too. Quiet. Velvet black night skies. No more than handful of cars passing by on any given day, fewer if it’s been raining (dirt roads).

iowafarmhouse_sm

Will you consider protecting yourself? And your family? This week?

Please?

Scott

Is It Spiritual To Defend Yourself?

Is it right for a spiritual person to fight to defend themselves or their family?

Yogananda once had a conversation with Gandhi:

Yogananda: “Mahatmaji,” I said as I squatted beside him on the uncushioned mat, “please tell me your definition of ahimsa.”

Gandhi: “The avoidance of harm to any living creature in thought or deed.”

Yogananda: “Beautiful ideal! But the world will always ask: May one not kill a cobra to protect a child, or one’s self?”

Gandhi: “I could not kill a cobra without violating two of my vows: fearlessness, and non-killing. I would rather try inwardly to calm the snake by vibrations of love. I cannot possibly lower my standards to suit my circumstances.”

With his amazing candor, Gandhi added, “I must confess that I could not carry on this conversation were I faced by a cobra!”

And yet, Yogananda used to tell a story about a cobra, it went something like this:

Once there was a cobra near a village that used to bite the women as they walked to the river to do their wash.

One day a saint walked by and the snake came out to bite him but the saint warned him of the negative consequences of his karma and he should stop biting people. The snake thought about it and repented of his evil ways.

Some time later the saint walked down the same path again and saw the snake all beat him and looking miserable and the saint asked him what was wrong. The Snake said since he repented the women and children now throw sticks and stones at him.

The saint then said, “I didn’t say you couldn’t hiss!”

Sinclair’s Third (and Final?) Warning

This is big.

Jim SinclairI’ve been following what Jim Sinclair (one of my heroes) says since 2005. I see him as one of the foremost experts in the gold and currency/financial arenas.

He’s known as the man who recently bet $1 million dollars that gold would trade at or above $1,650/oz by January 11, 2011 [link].

After Bear Stearns went belly up March 2008, Jim sent out an email alert. He warned all who have followed his predictions for years by saying,

“This is it!” 

Just before Lehman Bros died he recognized what was happening with the US economy and sent out a second email alert. He said,

“This is it. It is now!”

And now, in Feb 2009, he sees other developments that prompted him to send out a third email alert. Here it is, in its entirety. He says,

“This is it. It is now. It’s out of control.”

Dear Extended Family,

I sent you a certain few emails that I consider to be the most important communications issued in my career that started in 1958.

I am the son of what I know to have been the greatest Lone Wolf trader in Wall Street history ever, Bertram J. Seligman. He was a past master at his business and believed to be a market sensitive. I apprenticed to him, learned from him and inherited some of his ability, not all however.

From this background of experience understanding and sensitivity the following flows.

The emails of note:

1. Said, “This is it.”
2. Said, “It is now.”

This communication is to inform you as of 2/13/09, “It is totally out of control.” There is no longer any means of reversal of the beginning of the final phase of the downward spiral now solidly set in motion.

For your sake, protect yourselves immediately.

Be prepared for disruptions in distribution common to hyperinflation.

1. You should have already distanced yourself from your financial agents. If you haven’t you are headed for significant displeasure and strain.

2. Make sure you stay three months ahead on necessary items that could experience distribution delays such as prescribed medicine and preferred foods.

3. Even though real estate is far from a buy, if you can afford a second home outside of major cities it would serve a good purpose.

4. Own gold.

5. Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required.

6. For currencies, all you can do is own a spread held by a true custodial ship wherever that might be.

Simply said, as of Friday February 13th, 2009 the situation is in confirmed “Out of Control” mode as this well engineered downward spiral enters into a terminal phase.

The motive was profit and degree of the disintegration caused in the pursuit of this goal was not anticipated.

The key event was when Lehman was flushed – all hell broke loose. The hell cannot be contained in any practical manner.

I seek nothing of you, but the protection of yourselves.

Respectfully yours,
Jim

Week of Feb 16, 2009

Wall Street Journal Openly Talks About the Amero
The mainstream establishment sounds likes it’s running the New World Order and Amero concepts up the flagpole to guage the public’s reaction. WSJ Talks Amero.

A New Gold Alert
He says gold will go above $1,000 for good this time.
Julian Phillips Issues Gold Alert.

===========================================
UPDATE: Feb 20, 2009.
4 months ago, on Oct. 23, 2008, I begged you to:
1) get gold at $733. It’s at $990 now. +35%
2)
get silver at $9.72. It’s at $14.51 now. +49%
3)
get out of the market at 8,519. It’s at 7,342 now. -14%
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Read about the only indicator I’ve found that has correctly predicted the timing and magnitude of the 1929 crash in Market Predictions for 2009-2010.

Taking Sinclair’s Advice to Heart
This morning’s market drop and Sinclair’s warning have prompted me into Checking Off My “To Do” List.

Time to Stockpile 3 Months Food, Medicine
Jim Sinclair sees dire circumstances immediately ahead. He suggests getting a second home outside major cities. He suspects we will soon see hyperinflation-induced supply problems affecting medicine and food. Pay attention to Sinclair’s Third (and Final?) Warning.

Silver-to-Gold Ratio Ready to Snap Back?
Adam Zeal graphs this ratio and weighs in on where it’s going in The Silver Catapult Is Loaded.

 Scott

Stats Say Yes, It’s a *Depression* 
Warnings & Advice from a Saint, Part 1 KEY INFO
– 2009: Worst Still Ahead 
Best Way 2 Control the Masses
– Uncle Sam’s Gold Grab   
Something of Historic Proportions Is Happening 
Deflation Xforming to Inflation Soon

Shadow Powers Plan for 2011 
Sober Prediction for Nov. 2009 
– Market Prediction for 2009-2010 KEY INFO
 
>> How to Rate Your Bank’s Safety <<
History of the Meltdown… (on-going)

Remember what’s in store for us: What’s Coming R Way