On 11/11/10, I shorted the market with “bear” leap call options. Don’t worry about understanding the trade but understand if the market goes down, I generate a profit. I closed out my position yesterday with a handsome return. Unlike most investors, I slept like a baby last night. Gold blasted through new highs and is up again as I write this blog. Our investments have no debt attached and we have been simplifying our lives and eliminating our debt. The U.S. on the other hand has been doing the opposite. More debt, more complexity, and nobody to control the runaway train. Two major drops in the market within days looks ominous for many of the baby boomers hoping to retire. Where is that Walmart application?
Gold is coming to the forefront of the mainstream media… at last. I tuned into CNBC to catch the market opening for the first time in years and the fireworks started early: Market down, Gold up. Silver is a laggard but will catch up as investors start looking for safety on a large scale. Many junior gold & silver producers were down with the market yesterday thus I was a buyer with my profits from the option trade. By the way, that trade was down 80% at one point so it is not for the feint of heart. I simply held tight to my convictions that the economic illusion could not keep the market propped up forever.
Inflation is running at over 10% according to SGS-Alternate CPI (John William’s Shadowstats.com). This number is based on the 1990 U.S. Government calculation method. This means that if you had $10,000 of purchasing power one year ago, it will only purchase $9,000 of equivalent value today. Uh-oh. If the government used this number in calculating Social Security payment increases, the recipients would be smiling with bigger checks but the fund would go bankrupt sooner. Interest rates would be at 7-10% and the National Debt would be growing faster due to higher interest payments. Get the picture?
Investors are getting anxious about whether to ride out this market or cash out and take the losses. There is no win-win scenario. They can see the edge of the cliff and fear is gripping them. What’s the answer? Busting the illusion bubble and dealing with the reality of where we are at. We must repent of our sins and seek Our Heavenly Father who has the solution to our national woes. Love must be at the forefront and must be the motivating factor of our actions. The lies and manipulations must cease. The blindness of the masses must be replaced by revelation and only then will the healing of the nations occur.