Lemming Alert: Beware the ‘Coiled Spring’ ; Part I

The Financial World is currently Upside Down

Don’t be a Lemming Falling off the Flat Side

Preface

Don’t be alarmed because you are correct; the title doesn’t make much sense, does it? But then again, neither does most of the current modus operandi utilized by the financial world. We need to fully comprehend this concept because if we don’t, its like trying to operate in the 21^st century with 18^th century tools. Think of it as the Pony Express carrying your Email!

People would appear to be spooked by interim moves in gold, silver and other commodities. I’m here to tell you that one should not be a lemming nor should one follow the crowd—especially in today’s world.

The crowd is almost universally wrong. That is why sentiment indicators are so accurate. “Gold bulls” know that by now.

The bull market in the precious metals complex and mining companies is as strong and as resilient as it was five years ago. Please remember that all bull markets, regardless of the sector, but especially in gold and silver, always climb a wall of worry. Stand strong and in the long run you’ll be happy you did. Think Argentina around the period of 2002-2005.

A fraction of the Truth is All We Get—but it’s not all we deserve!

It would appear the more we endeavor to understand the huge financial displacements underpinning the geopolitical environment on a global scale, the more we are confused. Why? It is because we, the citizens of the world, regardless of the country in which we reside, are strictly allocated a tiny fraction of the truth by the powers that be.

Everyone “out of the loop” has desperately to fight tooth and nail for every bit of truth they acquire. Almost nothing can be taken at face value especially when it comes to politics and finances. You say, hasn’t it always been this way? The short answer is yes. But as times have changed and the mechanics of communication have changed, the alteration and distribution of the truth by the mass media (controlled by special interests) has also changed.

The process has become ever more sophisticated in order to fool and control the masses–and their finances. (Think of it in terms of everything from ATM charges (in the billions) to the constantly changing “rules” of US retirement plans to the enormous taxes we pay). As that process has become exponentially more sophisticated, the sheer volume of information—much of it “white noise” has overwhelmed us; much as the sheer size of the numbers in the financial world have overwhelmed us.

How does one deal with and relate to 8 trillion dollars of US debt? But wait—it’s not really 8 trillion but more like 100 trillion dollars of debt, when you consider the off budget liabilities—such as social security, and the wars in Iraq and Afghanistan. But wait again–and you might want to sit down for this one–there is over 700 trillion dollars of derivatives in the international system with substantial counter party risk. Who is going to repay one trillion let alone 700 trillion dollars??

On a Personal Level, for what do we strive?

Most of us want to make a relative “fortune” believing that money will make us happy; money will make us free? We’re not going to explore that concept here and now. But if we’re honest about it, most of us want to “get rich” in one way or another. It is the one common denominator inculcated into almost every child, especially in the US. Perhaps money buys us a little time, a little stuff, but it doesn’t buy happiness. Allocate just a little to your favorite cause–ours would be animals and the environment and perhaps animals in the environment. We always need to work smarter not “harder”. Ever notice how the politicos are fighting for this and fighting for that–we’re fighting for you! Pul–lease–they ain’t usually working hard or fighting for anything except their own agendas.

As a quick aside, whatever happened to the adage, “the truth shall set you free?” It would now appear that the acquisition of one’s first million will set you free.

In reality, we should all be “fighting” to get out of debt—however, that is easier said than done because the system is not set up this way. Especially if the tools and the mind set are not at one’s disposal Regardless, we should have a plan and a timeline for doing so. We need to live within our means or expand our means for living. What is YOUR time line for doing so!? Got Gold?

The Gold and Silver Community

We are part of an infinitesimally small community of people who are investing in hard assets—gold, silver, Precious Metals (PM), PM mining companies and other equally precious commodities. Perhaps Picassos and Ferraris if that is your league—it’s not mine! We work hard and we hope we work smart combining both physical and mental in a balancing act designed to keep us partially sane. What we really want to do is to establish our creditability with you. After all , our goal is to set up a fund for animals and the environment when the time is right. We want our junior mining friends to join with us–we want you to join with us.

Why do we do this? Why do we invest in hard assets–especially now? Because we know that soon we’ll be able to pay off a mortgage whether it be $200,000 or $2,000,000 in inflated funny paper and most likely in a deflationary environment—don’t feel guilty and don’t be a disbeliever–Uncle Sam is planning on doing EXACTLY THAT hissownself. Most Central Banks are in a race for the cellar with regards to their own particular currencies. They believe it to be expedient for their own country’s exports. Someone needs to explain the systemic risks of destroying one’s currency without the support of a strong economy.

Exrexate your head from the sand and be prepared to fight for your very existence and of that of your planet. Our very survival and of that of our planet in all its glorious beauty depends upon it.

Al Gore-Mr.Greenie himself, told the environmental conference that is currently taking place, that his own country, the USA was a primary obstacle–an impediment to the reduction of green house gasses.What is wrong with this picture. War is more important than saving the planet. Are there not a few priorities out of whack?

Don’t be a lemming and for Heavens Sake, don’t be an Ostrich. We should all get our head out of our sand.

In case you haven’t noticed its an election year (s); yes make that plural. All of the Presidential Contenders have yet to tell us the Truth! Perhaps Ron Paul has done so. I like the man, but if he cannot run a vertically integrated election campaign how in Heaven’s name is he going to run the country.

Not one candidate on any side of the aisle has brought up the truth. Ron has come the closest by far. This will be the longest presidential campaign in US history. It will have attracted the most candidates who have said absolutely nothing in the full year (s) that they’ve been running for this office. Why? It is because the truth begets a quagmire of reality. Reality is the poison for most politicians. That poison has become ever more intense with each passing election cycle. We are now in a bona fide Walt Disney Fantasy land. (No offense Walt!?) Truth and politicians are like oil and water—they just don’t mix. Forget comprise, truth is what the American public should receive. We receive the opposite.

The most Valuable Commodity of any Educated Nation is its Ability to Reason.

Ladies and Gentlemen, what has happened to American ingenuity and Good Old American Common Sense! We’re being robbed of our most valuable commodity and that is our ability to reason. Let’s insist on retrieving it and not allowing our Country to become “dumbed down, displaced, diluted and polluted (intellectually and physically!”)

We need a return to reason and to common sense because if we don’t get back to the reasoning and the commitments that made this country great, the Bushies are going to look like choir boys and Cheney is going to look like one of the three wise men.

I want us all to realize one final thing. Only we have the power to change our own lives. Only we have the power to reason in the best interest of ourselves and our families. This wonderful exercise called America should not be overrun by the special interest groups regardless of what a very few self aggrandized politicians will tell us.

Before we can move forward as a nation, we must acknowledge the mistakes of the past. Mistakes as varied as as breaking treaties with the original Indigenous Populations of this Country to allowing the Veterans of Vietnam, Iraq, and Afghanistan to rot away in the most deplorable conditions after they’ve given life and limb in defense of one idiosyncratic policy or another all the while believing that they were defending freedom. It is a cruel irony.

People give lip service to correcting the errors of the past but where are the actions that we can accept as proud Americans? More illegals entering the country illegally is not the answer.

Special Interests, Special Compensation

The creation of the Federal Reserve which is neither Federal nor a Reserve is the quintessential example of Special Interests taking over America. We should not allow it to continue and the only real weapons we have are the ballot box, the ability to reason, and to put people in positions of power on the Local,State, and National Platforms hoping against hope that will do something other than to increase their own salaries, health insurance, and retirement benefits. That’s not a veiled reference to Congress, those are the facts people, nothing but the facts.

Americans who know and understand Ron Paul know that this is a man who has the altruistic and patriotic make-up to give it a go. The real issue is can he get Congress to go along?

Let’s use that common sense with which we were born and quite frequently were taught to us by our mentors. As Jim Sinclair is fond of saying—“tune out the white noise and focus on the facts”. There is still time, but not much.

Until Next Time,

D. Stewart Armstrong

Consultant to the Junior Mining Sector

Posted by D.Stewart Armstrong in Articles