D. Stewart Armstrong
May 14, 2008
This is a strange period in America. It is truly Orwellian in nature when down is up and up is down; black is white, vice versa, and Double Speak reigns. There is a strange wind blowing and it encompasses all aspects of our society. We must realize that so much of this strange wind is by design along with its corresponding political ramifications. However, other aspects of this strange wind are a result of a geo-political financial system that is breaking down before our very eyes because it is a system that has been abused to the max. One cannot de-construct the natural order of any discipline without anticipating negative repercussions. Go one step further and mess around with Mother Nature and we have natural disasters on our hands.
It is a period when there is a war but no one wants to acknowledge it. This in itself is exemplified by the fact that flag draped coffins are hidden from the media and subsequently the public. I’m not certain if this is the way to honor the men and women who have made the ultimate sacrifice for their country?
Are we concealing them in shame or because the sight of them may disrupt the shopping habits of the American consumer? After all, a depressed consumer is not a happy shopper. Are we hiding the coffins because they remind us of a war that no one wants to own?
It is a time when Americans are losing their homes at alarming rates and yet no one wants to really address the issue. It is a time when there is a liquidity crisis and yet it too, is swept under the rug. There is more paper /electronic money floating around than at any time in history but Mom and Pop America don’t have access to it—the banks do! Your small business does not. What is the common theme in these scenarios? Could it be that man-made manipulation has finally gotten out of control?
It is a time when there is an enormous de facto tax in terms of gasoline being refined from $125 per barrel oil. Yet no one wants to talk about it except the talking heads on CNBC or the local news anchor complaining about the high price of gasoline.
It is a time when America is borrowing 3 billion dollars a day just to keep the doors open. But wait! Today, May 15, 2008, Congress just passed a bi-partisan farm subsidies bill in the amount (drum roll please!) of $290 Billion dollars. There is so much pork that even the President threatens to veto it; and everyone knows the president vetoes nothing! No problem, our beloved Congress vows to over ride the Veto with a 2/3 majority. These are strange times indeed and I expect to see Dr. Strangelove and Mini-me arm in arm at our local Whole Foods store.
It is a time of enormous inflation and yet Americans have been told it is minimal and it is under control. Routine denials have been built into the financial landscape. Housewives and the family shoppers are looking at food prices that are the highest in 18 years. It is a time of paradoxes when the difference between the “haves” and the “have-nots” grows ever larger just as the middle class becomes ever smaller.
Immigration is an issue that pushes hot buttons but we have been told it is no problem. Yes, it is a strange time indeed. It is also a time when we must have our heads screwed on tightly because a fool and his money are quickly parted, err; if we can agree upon what money really is!More…
So far, the stock markets have held up and we have a Dow close to 13,000. We have gold at about the same price it was 25 years ago but how can gold, the barometer of inflation, be the same price it was 25 years ago. Doesn’t this seem just a bit odd to you?
It makes sense to me but only in the context of misinformation being disseminated at alarming rates by special interest groups. Journalistic standards have been placed in the meat grinder while government projections seem to have been accepted as truth? This leaves the US citizen in an untenable situation. What do we do? Where do we go? Who do we believe? Is it necessary for us to change our entire lives in order to accommodate this misinformation? What happens if someone in the family gets sick? Even if you have insurance, it’s a battle. I know this first hand. Insurance companies in general want your money in terms of premiums but they sure don’t want to offer you viable service in return.
So much of this adds up in a way that tells me America is a country in denial. We don’t believe that it (the disintegration of our society) can happen to us. But we are country in transition and those folks who understand this will do well while those who refuse to accept the reality which is currently facing this country are going down with the ship. That may sound pretty harsh, but if you’ve been keeping track of the financial news you’ll realize that it’s a harsh situation.
Political Campaigns and Fantasyland
If you follow the political campaigns currently underway for the presidency of the United States, I think you’ll find it amazing how little emphasis is being placed upon the issues that really affect the average American. Obama and Clinton don’t really have any answers and that is empirically verifiable by reviewing the 15 to 20 debates they’ve had to date. They talk in generalities; not in specifics.
They don’t seem to have the answers to a falling dollar or rising oil prices. The health care packages which have been offered up don’t make any sense. The HMOs along with all of the medical lobbyists in Washington, DC all have one objective and that is for their side to win. What is their side? It is the side that allows them to create maximum profit for their own particular organization at the expense of the American public. We all know that’s true and yet we really refuse to do anything about it because it takes time, commitment, and knowledge. Yes money is an element of the equation but is not the only one. We need to remember that we can do positive things within the system if we put our minds to it. In some cases, it’s 90% perspiration and 10% inspiration.
As far as Mr. McCain and the Republicans are concerned, I just cannot see how the country, even in its dysfunctional state would accept an extended four years of a Bush presidency/legacy. I am not a political pundit, but I’ve got enough common sense to look across the landscape and see that there is an enormous confusion created by a constant barrage of misinformation or disinformation. Nowhere is that more obvious than in the way the plunge protection team constantly and consistently endeavors to manipulate the price of gold and silver so as not to alarm the public. Most importantly, and it seems I say this in every other article; the real issue is about hiding the truth. America is in Denial and is hiding the financial truths, the political truths, and hiding the fact that the US financial system is in serious jeopardy.
Politicians talk a good game but when push comes to shove I wonder how they sleep at night.
Everything from air travel to education is under attack. The physical infrastructure of the country is in a downward spiral. This is certainly not reflective of the American “can do” attitude of the past. This is not the America that we grew up in or with.
We have been allowed to delude ourselves into thinking that everything is going to be “just fine” while we watch “Dancing with the Stars” or “Spin the Wheel”.
If we don’t acknowledge these problems that are affecting the country now, we are going to be in even worse shape– worse shape than you can imagine. You can’t begin to fix something unless you begin to recognize that something is wrong. In the case of America, there is a lot to fix and most people know that there is something terribly wrong but because of the constant barrage of disinformation we are kept off balance. There are so many areas to fix we simply don’t know where to begin.
The Proverbial Ostrich
We are a country in denial and I believe this is true both advertently and inadvertently. That is to say that it’s a combination of constantly being “spoon-fed” incorrect information by the powers that be while simultaneously finding it easier to put our heads in the sand like the proverbial ostrich. After all, who among us really wants to act upon the truth when it takes work, effort, money, and commitment?
For those of us in the trenches pressing for the Real American Constitution to be placed front and center for the past 7-10 years, it comes as no surprise that governments endeavor to fool all the people all the time. But for citizens who have been brought up on the idea that if the information comes from the American government, it must be true, this is an extremely difficult concept to grasp. More often than not, politicians have their own agendas and usually they are not the same as ours!
Conclusion
America is a Country in Denial because the alternatives are too harsh to consider. Like little childen, we want to believe in Santa Clause and the Easter Bunny. But the Country is headed towards a Halloween theme of Weimar Disintegration. There is not much we can do except to rearrange the deck chairs on the titanic. However, you can protect yourselves and your families with precious metals and knowledge.
America needs to get out of debt and we need to face reality. Junior mining companies are not for everyone because of the high risk high reward but after an 18 month period of consolidation, we are getting close to the next leg up in these markets. Don’t be left behind!
Furthermore the audience to whom I am now talking understands risk versus reward. And hence, we will set forth to examine some of the sector’s where I believe large money will be made. Those sectors are going to be in the precious metals and oil. That’s not to say that technology, manufacturing, financials, and housing will not recover. But currently, I would put my money in oil, energy, and gold for safety and growth.
Consider :
Oromin Explorations (OLEPF)
Golden Phoenix Minerals (GPXM)
Madison Minerals (MMRSF)
Newport Gold (NWPG)
Geocom Resources (GOCM)
Journey Resources (JNYPF)
These are but a few juniors which I’ve been following and working with for years. Patience is now the key but it is my personal opinion that each of these companies will at least double in the next year. If and when they double, consider taking your original investment off the table and ride with the “house money”. Some of these companies could do considerably better. All have excellent web sites and all you have to do is read and then pick up the phone and call them with your questions!
Until Next Time:
D. Stewart Armstrong
Consultant to the Junior Gold Mining Companies
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