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BANKING ON THOSE VERY FEW "NUGGETS OF CERTAINTY"
"I am terribly conflicted. This is the most uncertain time that I can remember. Things are violating the laws that I learned. The whole world is experiencing an upsurge but I don´t know what to make of it."
~ Robert Shiller, Yale professor and co-creator of the S&P Case-Shiller Home Price Index, in an interview with Fox Business a few weeks ago
Dear Mountaineers,
I have to admit that I find a certain degree of solace in the fact that a man of Mr. Shiller´s caliber, these days, appears to be just as puzzled with current economic developments and financial markets as I am. Yes, indeed, we live in VERY uncertain times.
Uncertainty, to some degree, always has been and always will be a constant in the realm of wealth management. However, as we proceed further along this path of ‘Easy Money´ and the growing power of central government that, per default, goes with it, we are progressively moving into uncharted territory. The more you study and reflect, the more you get the pervasive sense of living in a giant global experiment, possibly the grandest science project in the history of man, and certainly in the history of money.
It is in times like these that you must stand back and look at the bigger patterns, the larger truth. These are times to stand back and think outside the box. We tend to get lost in detail and, as a result, end up missing the forest for the trees.
In the midst of uncertainty, it is worthwhile considering a few big picture realities -- a few nuggets of certainty so to speak -- so that you can then form your conclusions and strategic decisions accordingly:
- Governments and central banks around the world will continue to do whatever they can to stave off another bout of steep deflation. It could send the world head-over-heels into the very visible and very obvious territory of depression. That will be avoided at any cost. Thus, you can expect MORE MONETARY INFLATION.
- More Easy Money needs to be financed. Taxpayers will foot the bill. As socialism moves forward, you can be sure of MORE PROTECTIONISM, MORE REGULATION, MORE TAXES.
- Timing the markets is difficult...always has been. With the high degree of government intervention we face today, it is even more difficult, if not impossible. The game is rigged. However, while timing is difficult, and while you may have not regained the wealth you had prior to sub-prime, you can still protect what you have by the means of proper INTERNATIONAL AND JURISDICTIONAL DIVERSIFICATION. It is STILL the only way you can effectively protect your wealth long-term.
- Historically, monetary crises do not pass without substantial social unrest, geo-political tension and regulatory changes that become increasingly suppressive. Over the next decade, you can expect A LOT LESS FREEDOM AND A LOT LESS PRIVACY.
If anything is a ‘sure thing´ today, it is that our governments will continue to actively ‘manage´ the markets. They may well manage to completely eliminate free market principles, and they will manage to transfer more and more wealth from those few that are still productive to those who prefer living off the benevolence of others.
Government measures are set in one direction, with no way out and no means of turning back. The measures of loose monetary policy are a fact of life. These very measures will spell trouble for those unprepared.
As Mountaineers, you know well that PREPARATION AND RISK MANAGEMENT is everything. Now, my hope is that you act accordingly.
Sincerely,
Your "Swiss Mountain Guide"
Frank R. Suess
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HOW DOES THE 1% CONTROL THE 99%?
By Bob Livingston, http://www.boblivingstonletter.com. Bob Livingston has devoted much of his life to research and the quest for truth on a variety of subjects including issues of privacy (both personal & financial), asset protection and the preservation of freedom. Here, you´ll find this ultra-conservative American´s views in an excerpt from a recent publication.
How does the 1% control the 99%? The answer: Herr Goebbels said "It is the absolute right of the state to supervise the formation of public opinion whatever the state needs to do."
We cannot understand modern despotism and police power unless we understand modern money. Modern money in the U.S. and the whole world is fiat paper money and credit. It is under the total control of government (and the bankers).
This means that all government funding is with fiat counterfeit paper that is created in unlimited amounts and costs the government nothing. But it transfers wealth and savings of the people to the money creators and government through the depreciation of the currency.
The American people have no understanding of how the government gets everything literally for nothing. It is the source of all government power. The control of free and unlimited funding with created money in unlimited amounts guarantees the power and control of the 1% over the 99%. The American people are taught voodoo economics. They have absolutely no understanding of reality.
How does the 1% control the 99%?
By gross deception at all levels:
1) Controlling all news media, printed and live.
2) Controlling all newscasters.
3) Controlling public education from start to finish.
4) Controlling the "healthcare" system. The public is kept sick by mass vaccinations.
5) Government mounts fear campaigns:
a. Fear of disease to manipulate people to take mass vaccinations.
b. Fear of financial collapse for an excuse to increase fiat, diluting the purchasing power of the currency and destroying dollar assets of savers.
c. Government builds up fear of "boogie" enemies. Example: Saddam Hussein´s "weapons of mass destruction."
d. War propaganda is waged by the military industrial complex. The words democracy and patriotism are heavy words used repeatedly. Perpetual war is possible because of unlimited access to funding with fiat paper money.
6) Income tax controls the population by forcing "voluntary" disclosure of personal information. Information about the people is typical and necessary to tyranny. Fear of the IRS is awesome.
7) Government at all levels promotes the state over the individual person. Personal freedom is the enemy of the state. In all things the state promotes the collective man and the collective mind. The virtue of individualism always gives way to group dynamics through the group psychosis of altruism. The state can manipulate the crowd far easier than the individual.
8) The bigger bureaucratic government is, the more it fears the people. The government has to control the population in order to control the government. Only the power of propaganda keeps the people from overthrowing the government by force.
Also government (the 1%) holds the police power and the military power, the main purpose of which is the silent force to contain the population. Even though the population in the U.S. is armed, there is no general awareness that government is enemy number one.
Toward the last days of a fiat regime, confidence in government accelerates on the downside and the risk of armed violence escalates. Hence, stepped-up oppression of the government against the people.
Gold rises and is hoarded. Controls at all levels are intensified with the strategy that the bigger counter-force will prevail. Government bets that its own police and military will not mutiny.
Pensions and pay loom large in the collective mind of federal police and armed forces. None realize that their pensions in fiat will be worthless. Modern propaganda in America hides behind and is passed off as science and research.
In the last days the people begin to realize that their "elected" representatives are really employees of the federal government. Modern government, especially the U.S. government, operates above the threshold of the intelligence of the people. The people are controlled because they can´t discern between hocus-pocus and reality.
The fiat paper money mentality is something for nothing and the government obliges with bread and circus.
The population is unaware that they are unaware. Criminal government is recognized when the rule of law breaks down, as now. The control by the 1% of the 99% can be summed up in two words: "psychological warfare."
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NEWS BRIEFS
Why Switzerland is Still Free and America is Not
Last week, Ron Holland gave an interesting interview for LewRockwell.com. In the interview, he discusses the fact that next weekend, in Switzerland, we will be voting on whether it should be allowed to build minarets or not (minarets are a tall slender tower of a mosque from which the summons to prayer is cried by the muezzin). While, ultimately, a few minarets here and there are not a big problem, the bigger issue of a rapidly growing Islamic population and potential implications need to be discussed. And they need to be discussed openly, without "political correctness" getting in the way.
Swiss citizens are becoming concerned about the threat that Islam presents to their traditional culture, economy and religious institutions. As an American, Ron knows how he would vote were he Swiss.
Go To Story
Strauss-Kahn Predicts the End of Dollar Dominance
At the following link, find another excellent commentary from The Daily Bell on the International Monetary Fund´s Special Drawing Rights (SDRs). Since early April of this year, we have been alerting Mountaineers to the possibility of a new world reserve currency being established in the form of SDRs. It sounds far-fetched, and even unromantic, but watching the political pushing and pulling around this topic, and the increasing comments from the likes of Strauss-Kahn, raises a lot of questions.
According to Strauss-Kahn (Reuters, Nov. 19th 2009), the imperative of greater global currency stability means the world can no longer rely, as it has done since the end of the gold standard, on a currency issued by a single country. He´s probably right. But then, is an IMF-issued multi-currency basket really the solution we should hope for?!?! Or, is it merely an extension the big money game, a rigged game that works in the favor of the monetary elite, and to the detriment of everyone else.
Go To Story
Dollar Slump Persisting as Top Analysts See No Bottom
Nov. 23 (Bloomberg) -- The most accurate dollar forecasters predict the world´s reserve currency will continue sliding even when the Federal Reserve begins to raise interest rates, which policy makers say is yet an "extended period" away.
Go To Story
Wave of Debt Payments Facing the U.S. Government
"The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.´s on terms that seem too good to be true. But that happy situation, aided by ultralow interest rates, may not last much longer." (New York Times, 23. November 2009)
All good times must come to an end...
Go To Story
The Recession Is Over...Really! Pass On the Message!!

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| © Copyright 2009, by BFI Capital Group AG, Bahnhofstrasse 29, 6300 Zug, Switzerland, website: www.bficapital.com. The MOUNTAIN VISION UPDATE is published by BFI Capital Group (‘BFI’). Quotation is allowed if credit is given. Although every care has been taken in the preparation of Mountain Vision, BFI does not guarantee and cannot be held responsible for the accuracy of any statistic, statement or representation made. We recommend that you consult qualified professional advisors to determine the applicability of this information and opinion. The publisher is not a registered investment advisor. Readers should not view MOUNTAIN VISION as offering personalized legal or investment advice. |
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