Martin D. Weiss

Today GM … tomorrow America: Will we survive?

Click here to post your comments …

Yesterday, the unthinkable happened: General Motors — one of America’s oldest, largest and most respected companies — went bankrupt.

This morning, this venerable, 100-year-old company …

This firm that survived two world wars … The Great Depression … the Korean and Vietnam wars … the oil shock, recession and runaway inflation of the 1970s … and scores of other shocks over ten long decades …

This great icon of American innovation and success … won court approval to begin liquidating its assets as soon as possible.

These are dark days indeed — a personal catastrophe — for GM’s employees and for hundreds of thousands of other workers at dealers and suppliers who thought they had jobs that would last a lifetime.

But the implosion of GM is more than just the guarantee of surging unemployment rates as far as the eye can see. And it’s much more than just the failure of one of our most powerful engines of economic growth.

For nearly a century, GM has served as a metaphor for the overall U.S. economy — the harbinger of things to come for the stock market, for investors and for every American family.

For nearly five generations, most economists accepted the mantra, “As General Motors goes, so goes America.” And those words were never truer than they are today.

The simple truth is, debt killed GM. The company could have easily weathered this economic storm had it not buried itself beneath a $173 billion mountain of debt.

Is America Next?

In its failed attempts to save GM, AIG, Fannie and Freddie, the entire banking sector and many other companies, Washington is now creating its own Mt. Everest of debt.

But Washington’s debt bubble makes GM’s pale by comparison — and it’s inflating the size of that bubble at the staggering rate of $3.8 billion per day.

As we’ve seen in recent weeks, Washington’s record-shattering spending binge is already crippling the economy. Treasury prices are cratering. Rising interest rates — the kiss of death in a weakening economy — are already increasing borrowing costs for companies and consumers.

Meanwhile, in what has proven to be a failed attempt to stop the surge in interest rates, the Fed is feverishly printing dollars — creating money out of thin air — to buy more than $700 billion in bonds so far this year.

So the question of the day — the single most important question any investor can answer now — is simply this:

Will America survive?

How do YOU feel rising interest rates and record-shattering money-printing will impact your income and investments in the weeks ahead?

Which investments do you expect to spin off substantial profits next? Select U.S. stocks? Foreign stocks? Currencies? Precious metals?

Your opinion is critically important to me personally and to all of us here at Weiss Research. Just scroll down and use this blog to let me know what you think.

My team and I will meet you there to address your concerns, answer your questions, respond to your ideas and help in any way we can.

Good luck and God bless!


1274 responses to Today GM … tomorrow America: Will we survive?

  1. Hi John,
    We have the same surname. It is not at all a common one!
    Are we related?
    I live in the UK but I have a brother, John Bertuello, who lives in Toronto, Canada.
    Drop us a line.

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  3. Albert, what do you sugest we do with the people who have their whole lives for there social
    security benifits, and people not able to work!!

  4. Dear Doctor,
    I am now living in Canada and have maintained my American citizenship. For the past
    65 years I have heard all the rheteric about what America is doing wrong or right.
    I served in the Army in inteligence from 1961-1964 and watched how the CIA and other
    factions along with L.B.J. got rid of Kenedy. But never have I seen a time in which the very fabric of freedom has been distroyed as I have with Mr Bush. The Patriot Act, 911
    and the Irac War. This may be considered treason, what I am saying here. However, I
    have never been so ashamed of my country as I have been since George W. Bush manipulated his way to be president. What is sacred in the U.S. today? What has become of the Constitution because of what has happened since Bush became president? What has happened to the country I fought for? I have read many times of this time when the U.S. would fall as Rome did. Be as it may, The Federal Reserve and
    the private bankers that may be what is wrong or even bringing down this country.
    What can Americans do now that the possible iminent fall has begun? Who is really leading this country? I really think the President is just a figure head. It is truly a sad day for the great country I grew up in and have loved all my life. I just don’t know if anything can stop what had begun maybe as far back as when the Federal Reserve Act was set up? I wish I had more real information and there was something that could be done by real Americans.

  5. The problem will never go away as long as we have “Professional Politicians” who have learned that they can bribe the people with their own money. As Magaret Thatcher once commented, “The trouble with socialism is that you eventually run out of other peoples money.”

  6. Ultimately America will not survive – literally NOT SURVIVE (I give us 6-10 years…maybe). We have ringside seats to the collapse of the American “Empire”. We, as a people, have been terrible stewards of what we were given. We are “victims” of our own aggrandizement, greed and corruption – forgetting almost entirely from whom our blessings really flow. The unprecedented increase in the national debt, printing money out of thin air with nothing whatever to back it up and rising interest rates are precursors to the hyper-inflation that is just around the corner. I expect that some foreign currencies, some commodities and precious metals have potential for staving off inflation however, I believe this recession will remain a global problem for several years to come.

  7. China seems somewhat unconcerned about the state of US debt. They seemed to be amused at Geithner’s groveling.Is it possible that China has already dumped a large portion of their US treasuries through their SWF in the form of third party deals for real estate such as farm land, mines, and other resource bearing properties? Places in Africa and South America seem to have a large Chinese presence.
    I think it’s possible we never saw the shaft coming!

  8. Martin,

    Am watching your site and also watching many other sites and am probably as confused about what is going on as everyone else out there. I did subscribe to your service because I think the world economy is in very deep trouble.

    Do you really have time to read all these blogs?

    First off, I no longer trust any brokers or financial advisors. I watch, listen and decide what to do and do it. I fired my broker in February and just do online investing. Have accounts at ScottTrade and am getting ready to start a Japanese account in Japan with another service.

    Well, I barely have time to read 10% of what gets sent to me everyday. But am reading and listening to as much as I can. You ask me what I think will work as investments going forward and I have to be honest with you, I do not know. In addition to the contrarian protfolio I am in with you, I am about 50% in cash (which happens to be Yen because I live and work mostly in Japan). If I had dollars I would be more concerned. Not that Japan is doing all that well, but at least this country still makes things and most people here work much harder for less and are not as guilty of over consumption as the US. Sorry if that offends any of the US folks that read this, but with offices in both countries, I can see a big difference in work ethic. If the US ever wants to get back on track, people will have to work much harder for less versus working less and wanting more. If you are already doing this, then good for you, you deserve success.

    Being in Japan has the advantage of being able to see what is going on from a distance. I do not like what I am seeing and I also do not understand why so many investors are jumping into stocks again when there is so much risk. It is bordering on insane, but they are making money, and so guess that is good for them. It is gambling at this point though.

    I am doing ok with mostly oil and precious metals. I think mid term both will do better than stocks. I think there will be another major sell off or two before the bottom is hit, but who knows when. Probably after all the stimulations are done and the debt loads along with high unemployment, higher inflation, higher interest rates and higher taxes suck all of the life out of the stimulated economy. My best guess would be sometime within the next 3 to 5 years. But as high as things have gone over the last few months, there could also be a major sell off tomorrow for all I know.

    I think owning some physical gold is a good thing too. I have a little and will be buying more on any dips. Am also interested in gold stocks but have not purchased many. I have a lot of other ideas, but until I get a better idea of what is really going on, I am waiting. I think when things drop again, there will be better entry points for the things that will be going up…energy, agriculture, precious metals, other metals, etc. There could be some decent stocks out there too in the future, but right now, I think most are not worth the price and risk. Maybe some stocks in other countries are good buys. I am a bit skeptical on Family Dollar Stores and Aaron Rents, which I did buy after your recomendations. I think they will still get sucked down when things fall but maybe not as much as others.

    Well, you asked for my view and although it is not very clear, this is it for now…could change tomorrow.

  9. Obama is a fish in a world full of poliitical sharks. He is being eaten alive and his political positions will be left to rot on the shores of destruction. The former United States will be his epitaph.

  10. Ty hungerford
    Your statement is right. A bit like John the Baptist,
    but right on the money!!!

  11. Well I am always supprised when folks try to make excuses for a failed system that was geared to fail and go bankrupt. Gentlemen their are no accidents by your government as it is micro- managed by the globalist bankers who underwrite all the financial world. This recession is not about loss of jobs, stocks and bonds, or the housing market. It is about the loss of our soverign nation, the culling of our populations, and the extablishment of a globaliistic empire. This is about an elite class of heathen satanic humans that have been at this game of world control for a long time. However the real cause of the failure of our nation is We The People. We are a nation extablished under the laws of God. We have broken most of thoes laws and have turned from our God to worship their almighty dollar which has stolen affections of our nation. We now worship the god of wealth, greed, pride, and power. We were a chosen nation of God too expressed His love to a lost and dying world. Do you think for a minute we don’t reap what we have sown? We are a nation that is dying as it has lost it’s way to God. We are taking God out of our society and with it goes all the moral values that made us great and productive. Our only salvation is to repent and restore God on the thrown of your life. Get out of the bankers usury, obey His word to the letter, and band together for mutual comfort and protection as the heather will self distruct with their greed, power, and satanic lifestyles. Their god is money and power over mankind. I got news for them. This is Gods planet and He made it for His followers and He will restore them as soon as they repent and turn from their wicked ways. Why would a Christains want to resore a failed fraud money system when it is controled by heathens. Wake up folks get our gold back and barter for services. In God WE Trust Hungerford

  12. I work for the largest builder of homes in the country. Despite the $8000 government payment just for buying a home, sales have slowed down considerably and new traffic is now almost non existant. Although we have sales not yet completed that will carry us for a couple of more months, very few new ones are going into the pipeline. Although the fall off has already started, there will be a dramatic fall off in sales starting in August once the prior sales are worked through to completion. The ripple effect will be profound. Massive layoffs will take place in our industry and all our suppliers will have to lay off also. Our company is very solvent and will take whatever action it must to survive. To do that it must pare down all operations commensurate with sales. You have hit the nail right on the head when you say that true unemployment is about 20% and the remaining people are scared that they may be next. Those remaining workers are reining in their spending to only the most mandatory necessities. We are far from the bottom of this depression and the rising oil prices are only giving the final coupe de gras to any hope of economic recovery in the forseeable future. My only hope is that the govenment does not do what it did the last time it ended a depression which is to enter us into a great conflagration. They have already created the bogeyman. It wouldn’t take much to whip up war fever over some created incident.

  13. I know Gm will easy go up to $3.50 beause alots of goods news to came up to pust the novalue stocks higher.

  14. Russia, the world’s second largest oil exporter, has been pushing for a rethink on the dollar’s status as the world’s reserve currency of choice and plans to discuss the dollar’s role with BRIC group partners Brazil, India and China at a summit next week.

    Alexei Miller, chief executive of Russia’s gas export monopoly Gazprom, called at a conference in Italy for a reform of “a system linking oil prices to only one currency” in favor of a multi-currency settlement system.

    Ulyukayev said Russia could also consider including assets denominated in China’s yuan but only after Beijing liberalizes its capital account transactions, making the yuan a convertible currency.

    This is what I believe to be the possoble end of the dollar as we know it,in the very near future

  15. What happened to this great country? Why are we in the horrendous shape we’re in? Greed, pure and simple…not on the part of the “little guys” who pay the bills, but on the part of our elected representatives, those folks to whom we gave our trust. The eletists, from the Presidency on down to the Congress and Senate; State and Local officials, have lied to the people. Washington, unlike most of the American populace, is rotten from the top down. We’ve been sold a bill of goods, and the outlook is incomprehensible. I see no way out, because conservative thought is now likened to terroristic deeds.
    In short, degrees from college don’t make the person, nor money, nor prestige: Moral authority and ethics does. If our leaders were imbued with these principals, we would not be living in a pc, “me first” country, with the corrupt skimming off the cream on a daily basis. I hope that America wakes up before it’s too late!

  16. I am fascinated by the opinions of Nick Guarino, who projects marked deflation and a precipitous drop in the price of gold. How does that fit in with ideas voiced by Weiss Research?

  17. Well I read your opinions for years and over a long period of time you have been correct. Your timing is not the very best, but accurate none-the-less. Now for my input on the situation.

    After we lost the Vietnam war I sat on a sea wall next to Key Biscayne many years ago and listened to a Hungarian Electrical Engineer (Oscar) as he asked me the question. “Why do you think I work for 10.00 an hour in America but I work for only one dollar an hour in Hungary doing exactly the same thing. He said I’m telling you sir it is the U.S. Marines.

    Based on Oscar’s wisdom, what really scares me most is what Mr Obama is doing. And that is Crying for forgiveness over past policies.

    After leaving Oscar and Project Viking (Mars Lander Design) in Miami I went to Hawaii in 1973 for the second time where Mr. Obama spent his formative years. While the Aloha spirit is great for remote Pacific Islands it just will not work in a world that is dominated by power.

    If we over spend and yet we are strong we can get away with it like all other feudal societies of the past. But we must remain strong and keep the supply lanes open. This is why we had a great Navy to project this power around the globe. Even though the only land we ever took (other than some small Pacific and Carribean Islands) have been were our soldiers are buried.

    So what has happened to the Marines and the “Lets go over there and get it over citizen soldier. Well it’s the American stupidity about history and the working of the real world. Besides the numbers you so admirably deal with, the real problem lies with the short sighted memory of our people. Whatever happened to remember the Alamo, The Maine and Pearl Harbor. Where is the remember 9-11 and the innocent Americans that were slaughtered that morning in the twin Icons of World Trade and the horror that went on in those Commercial Aircraft. Unlike Pearl Harbor we sat there and watched it with our own eyes.

    We need to remember all those folks instead of making the survivors millionaires. We sat and watched our airline Industry become decimated in the days after 9-11. Where was their help? Where was our leaders when American Automobile manufacturers where invaded by cheap foreign labor and great cars that the non-union labor forces built. Now we all know and of course we have our scapegoats, but where are those guys that really make the difference.

    Well I’m out of breath but we are capable of rebuilding if we go back to Reagan and Theodore Rosevelts Doctrines, and the Great White Fleet and walking softly but carrying a big stick. What ever happened to “Don’t tread on me” flags doctrine.

    Yes sir it was some 36 years ago since “Oscar” philosophised on that sea wall on
    Biscayne Bay. Thank God for what is left of a great force the “United States Marines”.
    But they need our moral and spiritual backing of Don’t Trad On Me.”

  18. I, and every other person on a fixed income is screwed. To say more is simply beating a dead horse. I hope all those folks that voted for change are also on fixed incomes as misery loves company.

  19. I feel that the structures of many systems in the U.S. today need to be changed or done away with completely. It is this undertaking that will provide the next growth for this country. If Money and Markets could point its membership in those directions, and counsel the upcoming young in this vain, then investment in the future can be realized. We are being sold obselete systems that someone wants to divest themselves of; Energy, Finance, Housing ,Transportation and Health, to mention a few.

  20. No nation can print their way out of economic hell. In this envirament I like gold, water, and other agriculture commodities. I also like (srs) the real estate short. I even would like to short china (fxp).

  21. Dear Sir
    I live in Australia i am 64 AND my super i have lost about 30% this means i will still have to work to make ends meet.I read most of your articals and find what you have to say is right on the money but I want to know how Americans allowed there leaders to get themselve in so much mess and what they are doing about making sure this does not happern again Dr Weiss please watch this if you have time then comment The National Debt Road Trip
    on YouTube



  22. Dear sir:

    I am not an American but I am worry about what happening today in America.
    There are people who have mysteriously poked the American society into pieces for a long time.

    America did not lose the Vietnam war on the battle field but rather in the American living room. The individual freedom has been violated beyond the imagination of wise people.

    The same thing happening again this time with the war in Irak and Afghanistan. The American did not listen to their leader. They have to win the war, no hesitation.

    On the contrary, Democrats think they better than the Republicana: it demonstrates a wrong idea. Especially at this moment. democrats think they will dominate the nation for generations to come. Brothers kill one another at home while their mutual enemies look on! Mr. Clinton, at an interview by Canadian Broadcast Corporation, said that he did not believe that Mr. Bush borrows money from China. Now, in your text, the US treasurer went to China for the same reason!

    Canada thinks they are better than America. The Canadians (not every Canadians) do not know they isolate themselves. They will pay a price if they do not cooperate with the US.

    The individualism often proves a weakness of people who do not have competence, talent and pride.

    America has a plenty of man with competence, talent and honor as those who wrote the Declaration of Independence, I just wonder where are they now? What has kept them away from the problem of their country? Harvard is dominated by people different from the whites; Mayo Clinic is inactive and let the majority of ordinary American people believe whether they eat wrong food or they must be on diet. Where is the beautifully balanced American Nutrition system? Why the American citizens have to make themselves starved or suffered from nonsense rumors? They are preparing to be defeated.

    Nicholas Cage has been living with whom in an island he bought in Bahamas? Why he got an Oscar in the film “Adieu Las Vegas”. The film is a contradiction of the efforts of those who revive Las Vegas in the last Depression. Also, Angelina (forget the last name) who lives with Brat Pitt is poisonous by negativism to the US where she can make lots of money but she dreams another country.

    There are many more people like that. They eat and sleep comfortably in one place but their mind is toward the other side of the fence.

    The Governor of Alaska is a true American: plain and honest.

    There have to be more American like her. Where are they? Please come forward.

    NATO takes advantages of the war more than helps America properly: the war
    lasts too long and costly. They forget that the Americans did sacrifice themselves to give Europe back their independence and dignity.

    Another thing, when doing

  23. I think Gm’s collapse is symtomatic of a much larger problem. That is the destruction of the ‘working middle class’ by insanely shortsighted international trade deals. The first step in this collapse was the outsourcing of higher paying working class jobs to lower wage countries. The second step was the layoffs of the people here who used to work these jobs. The third step was the creation of a ‘debt economy’ to keep these big ticket items such as autos and homes selling despite the fact that just about everywhere in this country incomes were falling. The fourth step was running out of buyers that had even marginal credit (such as me). The fifth step was extending credit to those who were entirely unfit. This was necessary to keep to keep at least houses going up in value. I suspect it has long been federal policy to do ANYTHING to hold those housing values up. Once those fall, there is absolutely no bases for the American economy at all. Poor people, such as myself, don’t buy houses. We rent. Finally, when there weren’t even UNWORTHY people to extend credit to, the first cable on the bridge snapped. Housing values started falling. Gm is but one more cable letting go. I expect many more will follow. We will end up where we were at the onset of WWII. And that is if We are lucky. If we are not, the whole damned bridge will fall. That will mean not only depression (considered a mild term at the time) but revolution. I say this not because people are reported to be snapping up ammunition at record rates, but because there are fewer and fewer institutions that anyone trusts any more. Along with greed comes its twin brother, corruption. I also feel the anger welling up inside myself at the fact that none of these bad actors is ever held accountable. And that my once proud ‘democracy’ is now beholden to a fascist (formerly communist) state. Also, as hard as I have tried, my personal fortunes have been falling ever since Clinton let that damned NAFTA through. I am now trying to support myself On income (adjusted for inflation) that I first earned when I entered the workforce, thirty some years ago. If you want someone to pull this economy out of the ditch through middle class style spending, don’t look to me.

  24. I feel doomed by this socialist President. He has done more harm to this country in the past 100 or so days than any of the past Presidents have ever done.Our rights and our finances are slowly being stripped away and I really dont feel that the USA can come back that fast. The liberals in control are determined to spread the wealth and punish those of us who worked hard and tried to save for those rainy days. Crooked CEOS and tax cheats get rewarded and bailed out while us workers get the shaft. Our leadership is a total disgrace bent on total domination of our lives.

  25. Of course we will survive. But, it suspect as a different country.
    – We seem to be moving to a post-industrial european style ( socialistic) of life. What will we make that cannot be made elsewhere in the world for cheaper?
    – Many young people are narcassitic due to decades of ” self esteem” training at home and in school. I suspect they will respond to a crisis by having the government solve it for them, rather than the prior great generation’s responses to crisis.
    – Instead of investing our wealth, we bought mcmansions, oil and consumer items from abroad.

    Martin, my father was of your father’s generation. He anticipated this crisis a decade ago and also predicted this attempt to inflate the economy and devalue the dollar. I believe, as he did, we will avoid 20-30% unemployment, but we will all have a lower standard of living for a long peroid to pay for our excesses.

    I thank you for your wisdom and for help saving my family’s economic future.

  26. I believe America, will survive. We have tremendous resilience in this country I have not seen elsewhere in the world. There is a freshness of Spirit here not noticed in Europe, where two world wars and numerous other wars have taken place for thousands of years, or in India, still suffering from the adolescence following colonialism.
    However, it seems that we have let greed go too far and now we have a price to pay. It would be better to pay it on our knees, humbly asking GOD for forgiveness, and then making amends with those who have been wronged. Then, I believe we will rise again, and have the credibility of integrity in the world of commerce and before our GOD.

  27. Could be a hyper inflation like Germany saw in the 30’s. Printing too much fiat money. Coming off the gold standard in 1971 was a big mistake for America. We will pay the price for this. We will have some dark days ahead. We have danced to the fiddler much too long with our out of control use of credit. Very soon it will be time to pay the band.

  28. The USA will survive. Overall we will be poorer and reduce our world-wide role in military and financial affars.

    Unless the Congress reduces the debt through lower spending and makes bankers and Congressmen and Senators subject to criminal penalties for not controlling banking actions, it will be repeated. No matter how big a holding company gets, the banking company must remain profitable and free from the holding company bankrupting it. Contributions from banking lobbist, unions, any other interested parties must cease. Expect a lesser replay within the next 10 years!

  29. Years ago a person could afford to buy a house worth twice their annual income, and a car worth 1/4 their annual income. Those numbers did not change, but the surge in available credit, changed the rules. You could have everything you wanted right now, just ask any high powered salesman with a credit backing. Prices escalated dramatically to reflect this new purchasing power. Now, those corporations and individuals who took advantage are being called to pay the piper. Unfortunately our elected representatives never had the will or the courage to prevent this debacle, and as in their past failures to serve this country, they personally will float to the top of the septic tank.

  30. First, I think that the Unions tough negotiation with GM Management has a lot to do with GM not being competitive and going into be debt. I read that it cost GM about $1500 more to manufacture a car.

    Management was reluctant to adopt new gas efficiency techology, Like HAFC. The fuel efficiency of internal combustion engines is about 17%. I was told this by a director of Ford. If it could be doubled or tripled, think that the Arabs would be eating sand. I have read that HAFC has been around for about 10 years. The problem is that computers in cars have to be modified for the new technology and auto manufactures were reluctant to do that. Are they in cohoots with the Arabs? or Oil companies.

    The HAFC technology involves using a small amount of water to electrolyze water to hydrogen and oxygen. When this mixture is combusted with gasoline, the efficiency of gasoline conversion increases dramatically.
    Check this out on the Internet under HAFC.

  31. I’d like to think that if Obama people didn’t spend 100s of billions on
    these companies like GM, Chrysler, Big Banks, who were likely to go bankrupt anyway,
    taxpayers would have saved 100s of billions right now.
    It’s mistakes like these by these people that are costing taxpayers trillions and
    trillions of dollars.
    I recall Mass. Governor Romney mistakenly overspending on BigDig construction
    project for $14 billion, originally for $3 billion at the beginning.
    So Mass. taxpayers are being forced to pay higher highway tolls and subway tolls
    to pay for extra $11 billion mistakes made by Romney and his cronies in Mass.
    Why do we have to pay big time for mistakes made by these elected idiots?
    How long can we keep this up?

  32. With God all things are possible. If we will turn from our wicked ways and pray. He will hear from Heaven and heal our land. If we pray for our President He will put our nation on a righteous course.
    Put not your treasure on this Earth where moths consume and thieves break in and steal, but store up treasure in Heaven. Take care of the poor and the widow, In the last days people who stack up wealth are going to wail and their hearts fail them for fear. Cling to God in Christ Jesus.Forgive and walk in love.

  33. I do not understanding why we have not been at least scaling into a short position on long term Treasury Bonds, such as through 2x Inverse TBT.

    On the other hand, I hope we are not becoming a club of “M. Fools” who build up a data base of our own follow-the-crowd recommendations, and rank stocks accordingly.

    On still another hand, I hope Claus is aware of the danger of hubris, in becoming overly dependent and confident on past results of success as a forward investing strategy.

  34. I am finding it difficult to make investment decisions based on the current administration’s unprecidented appetite for debt, it’s wilfull disregard of the U.S. Constitution and it’s rapid descent into fascism.

    Unless a miracle happens, I believe the dollar will be significantly devalued and replaced with new currency, although whether that is a North American Union currency or we are forced to accept the renminbi, I’m not sure. As protection against this kind of event, I would buy precious metals.

    Other than that, I’m watching to see what markets China invests in. I think they are working overtime to mitigate whatever toxic U.S. or other foreign assets they hold and they know full well that the stability of their country depends on the health of their economy.

  35. I think something needs to be done immediately to stop this train wreck if it isn’t already too late.
    As a senior, retired and with resources diminishing by the day I am in a quandry as to how I (any of us at the low end of income level) will survive the coming financial catastrophe.

    It seemed obvious from the beginning these massive bailouts woudn’t work. I believe they were never intended to. Just part of a conspiracy of sorts to dismantle capitalism.

    There must be some vehicle the people have to salvage what is left of our nation from these spoilers who have usurped power away from the people.
    Our constitution is being violated left and right. The rule of law trampled. It must be stopped!

  36. I believe this mess will end in the “Gog/Magog” conflict of Bible prophesy. The only good thing about that is that we win and plunder those who thought to plunder us. We face a rough future. In the meantime I must choose what will best serve me and mine before then. Precious metals and Ford motor company seem best now. NG is consistently giving days of 7 to 10 % increases which is proabably good for at least 300%. NG has tremendous amounts of Gold in the ground, but must build its mining abilities. During the crash it looked like it would loose everything in the credit crunch, but has pulled out of it and now has its financing in place. The crash took it down about 95% but it has recovered about a third of its loses as it put in place its needed financing. Now it is beginning to soar back to where it belongs. Other precious metal companies are doing the same, but most did not loose and come as close to failure as Nova Gold did. Nova Gold still has the gold in the ground and should recover nicely from here. It has had a breath taking roller coaster ride.

  37. I am retired now . but I fear my grand kids will be the ones that will pay forthis mess

  38. alot of car,banks,etc. companies will only shrink or go bankrupt.we sure need to fast track cafta and the world trade before its to late and if we dont we sure heading for help us GOD.

  39. What killed GM and a lot of other companies is the uncontrolled cost of medical insurance that has every company and every auto dealer struggling to make those astronomical payments. Having worked in manufacturing for 40 years, I have seen how medical cost has made hiring of people so difficult that companies run their plants with two – 12 hour shifts, rather than 3 – 8 hour shifts. And then they send the product to be made to China, Mexico, India and all over the world just to evade the expense of hiring an American worker. This country needs to reign in the medical industry and I feel it is time for a National Health Insurance program similar to those in France, England, Canada, Taiwan, and Japan.

  40. You try to be hopeful and optimistic but you have to be realistic with what is happening. Our empire status has pretty much come to an end. With just a few formalities left, like a collapsing dollar event or a government bond default, we are cooked geese. We can’t hold on to our supreme world superpower status forever nor were we meant to. The world has changed taking our old ways with it. Better play it safe and prepare for an unpleasant tomorrow. It could get ugly. America might get through this but I have a feeling that it won’t ever be the same.

  41. I believe the “takeover” of our medical system will be the crowning blow to our Republic. Over fifty years ago, I gave a speech, in my freshman year at Ohio State University, as one of my required presentations. I could have selected any topic to research. Fear is an avenue, used by dictators, to subdue their citizens into submission. Fear of one’s access to medical treatment has been one of the tools used very successfully in past takeovers of the citizenry. We have no funds for the socialized program, but that does not seem to alarm a large sector of voters who expect cradle to grave sharing of others hard earned wealth!!

  42. “Luxury has fallen upon us, more terrible than the sword, and the conquered East has revenged herself upon us with the gift of her vices.” – Juvenal, 1st Century Roman poet and satirist.

    Ringing any bells?

  43. Martin D. Weiss, Ph,D. Sir.
    Am I so far out in my thinking to offer the following.
    You cannot pay outrages prices and benefits to people who put together automobiles that come with a price tag so out of touch for people to buy who make 5,6,8, or 10 dollars an hour. If they do buy them they are worn out before they get them paid for because it takes 5 or 6 years to clear the debt for the car. (You know I didn’t have to go to college to realize the above.)
    Will America Survive?????
    The Moral Fibers upon which this Nation was built are being torn to shreds. Our Constitution has been shamefully Disobeyed and walked on with disrespect. There is unvelievable corruption in lives of Leadership that makes Honest Citizens shake their heads in Disbelief to think this Nation could ever fall to this Degree and the guilty not be brought to Justice.
    As for me and my house we will Serve the Lord and wait with patience for the coming of King Jesus to Put all things in order according to His will. EVEN SO COME QUICKLY LORD JESUS. Sincerely, James W. Holtz

  44. Did anyone out there notice that in the news today that Russia and China have banned buying pork from the United States? They said that they were not buying US pork because of the Swine Flu. This is the beginning of protectionism as the problem did not originate in the United States, but in Mexico. If you get a chance to read the article, they have broken the World Trade Organization rules on their banning our pork products. Russia and China are our two top purchasers of USA pork. Pork would seem to me like a good stock investment, until I read todays news. Wonder what other US product bannings we will see down the road.

  45. America is through unless the citizens unite and find a way to elect statesmen into office in one election. History has proven that one or a few men can not change Washingotn. This can only be done by defeating the Political Pary system that our Founding Fathers warned us about. In the past it has been done by Revolution. Today with the modern computer it could be done without blood shed and at a very low cost. If not done soon we will be in a one world government and if you think Washington is unchangeable; can you imagine how difficult it will be when the Capital is located half way around the world and the leaders selected by all the countries? As a matter of fact I feel our voting rights will be removed by the One World Government.

  46. Unbeleiveable !!!
    According to the book, Lords Of Finance, the Bankers Who Broke The World by Liaquat Ahamed, 2009, The Penguin Press, GM indeed served as a metaphor for the US economy. By 1925 it was producing about 25% of all cars sold in the US – 800,000 a year. Between 1925 and 1927 it’s profits increased 21/2 times to 250 million/yr; the most profitable co. in the US. It’s stock price quadrupled from $25 to $100.

    I beleive the US will recover; we got through the Great Depression (when I was born) and we can do it again. Short term, I think precious metals offer some interesting opp.

  47. Martin,

    They call it capitalism. However, this is nothing but debtism. There is no capital, only the debt everywhere. The edifice built on debt has crumbled causing a collapse of everything.

    The US consumer has no job (all manufacturing has been shipped overseas; many white collar well paying jobs have moved to India). To counteract the effect they were fed the opium of debt against their houses that kept rising. This opium kept them in good mood as they took more and more loans that kept their spending habits intact. After this asset bubble has collapsed, they can not get any more loans to sustain their lifestyle. The Fed is trying to release more opium but there is reluctance from both the distributor as well as the receiver.

    The rich and super-rich were having a bonanza as they were buying super cheap by paying slave labour rates in Asia ( I am an immigrant engineer from India who came to Canada about twelve years back, and I know what the labour gets there) and saling at fabulous prices comparatively to consumers in America. Earlier the rich and superich of the western world would invade countries, subjugate/kill millions in developing world in search of Markets for their products ( I am just quoting history). However, since eighties they are no longer required to do this. They had to just ship all manufacturing
    and outsource jobs to asian continent to make the enormous profits; and this time without killing or subjugating anybody. However, they were subjugating their own people and driving them to poverty through enormous debt load. Now the world has taken a full circle. There is and will be no consumer; so whom they will be saling their gadgets?

    What will happen next? In my opinion, the middle class will rise and there will revoluiton through ballots. All these superrich people will be heavily taxed. This has already started happening. Manufacturing wil lbe back into North America due to popular demand. The rich ans superrich will be on the run.

    So will America survive? The answer is, yes. The only way it can happen is by bringing manufacturing back to North America and stopping outsourcing. What is the other way way out? How people will get jobs and where? Which industry? You can create jobs by just printing money and giving to the corrupt banking industry that is owned by most corrupt dishonest super rich.

    You may say this is PRTOECTIONISM and that this will be further damaging to the industry here citing comparisons with great depression era. However you forget that in those times US was net exporter and the factory house for the rest of the world. This time US is the net importer and majority of goods are manufactured in Asia. It is any body’s guess who will benefit from PROTECTIONISM, I call it self defense.

    These are only some of my own thoughts.



  49. It is without a doubt, the fulfillment of economic LAWS. We(the US) have had a monopoly/oligopoly of production for almost a century. Of course, we prospered immensely.
    GREED, STUPIDITY, COCKINESS, and STUBORN UNWILLINGNESS to change or even to recognize the capitalistic production evolving of the rest of the world.
    Did the politicians, CEO’s, judges(Supreme Court), and the general populis think we lived in a bubble? Were immune? DAAAAAAAAAAAAAAAAAAAA
    The only way to have made this change manageable was to let the economic laws of supply and demand work without corrupting the commercial/business environment.
    The rest of the world WILL produce what they need AND what we need – cheaper and
    We will NOT learn and accept the FACT that our standard of living for the HUGE majority is gone!
    This will make our depression deeper and longer lasting.

  50. The US has become a failed state, surely to enter 3rd world status.
    It has come to my attention that several private parties have accepted contract assignments to neuter the COMEX and London Metals Exchange, to render ruin to its gold market. That bears repeating from the rooftops. MUTLIPLE HIRED HITMEN HAVE ASSIGNMENTS TO KILL THE COMEX GOLD MARKET. That is the lynchpin to control the USDollar, the USTreasurys, and the numerous mechanisms used by the New York and London financial centers of power. Their behavior is beyond the reach of those who seek justice and remedy, but they are not beyond the reach of hitmen. The USDollar has been in violation of the US Constitution since 1971, perpetuated by a series of wayward administrations. The global creditors for the USTreasury Bonds are so angry at the past suffered losses, the prospect of deep future losses, and the perceived impropriety laced throughout the US financial system, that they have hired third parties to kill off the US$-gold platforms, to harm the vehicles used by the US-UK bond peddlers who control the gold cartel itself. They have systemically been dismantling the COMEX pillars and levers over the last several months, quietly and without fanfare, surely without publicity. The upcoming events might be as swift as brutal.

    The events around Georgia lit a fuse that set off a chain of events, with reaction starting in Moscow. In time, events led to orders given by high level powers, for the US fraud kings on Wall Street to swallow the medicine no later than first thing Monday morning on September 15th. When inquired as to the nature of the urgency leading into that understood stated deadline date, no answer was given. The guess of the Bank For Intl Settlements was submitted by me, and it was confirmed. Other sources, the USTreasury Bond creditors, also applied the pressure, it was told. The US financial sector has been under siege since last autumn.





  52. I appreciate your objectivity and especially your adviseability. Ihave been in the investment business for nearly 39 years…. and this is the most perplexing environment that I have encountered.I personally believe that we have experieced a massive shift in the center of the investment world from one that once centered on American Economics to a Global Arena. I personally that America is technically bankrupt and those nations holding so very much of our debt are doing so out of self interest and will gradually unload our debt instrument back on us(to the extent we are able to repurchase them or else print more money to pay them back with..with a much depreciated currency). In either scenario it’s a lose…lose situation for all concerned. KEEP UP THE GOOD WORK…a daily reader.

  53. First, I believe that if we, the American people, do not require Congress (our elected officials) to desolve the Federal Reserve Banking System very soon, and return to following the US Constitution requirements for issuing money, we will all become slaves to the banking cartel.
    Second, the people of the US should never repay the money and interest owed to the stock holders of the Federal Reserve for decades of borrowing fiat currency.

    Oil will become one of the hottest investsments in the not to distant future. Because we will be told that the world is running out of oil. Gold and silver should be a good investment to preserve the value of wealth due to the inflation of the money supply.

  54. I think gold and oil are going to be the best investments for awhile.

  55. Greetings, All,

    Alcoa (AA NYSE) is trading near $11, was $44 last year. Too much debt and it dropped under $6 earlier this year. Do you expect this stock to break $30 anytime soon??

    :) Marv

  56. In your estimation, how can the present problem of failing companies, government guarantees and underwater financial institutions be addressed, other than mass infusion of capital by the government?
    Also, what should the tax payers get in return for the infusions that make sense?

    With the present spending, how soon do you see our monetary system collapsing under the weight of printing more and more money?

  57. Hello,

    I wish I knew which investments will spin off substantial profits, I’d buy a boatload! I’m 62, lost $100,000 in my 401K, and lots of money in my other stock investments. I can only see a profit in precious metals, maybe. If the stock market is tanking in general, how can anything do “well”? I feel we are teetering on the edge of a depression, the more the government spends, borrows, etc, the more we teeter. The rest of the world’s well being seems to hinge on the U.S., so it doesn’t look too good for anyone, anywhere.

    There is very little borrowing for bank loans, mortgages, etc, going on at the lower interest rates, it will probably completely dry up it interest rates rise, you cannot just keep rinting money and think your problems are solved, they may be for the moment, but we all have to pay the piper eventually. This combination of “resolution” will probably push us over the edge into a full blown depression (regardless of what the government calls it).

    I’m usually a positive person who can always find a glimmer of hope in amy situation, but I’m still digging through this horrible mess, tring to find even a microscopic dhred of hope!

    P.S. I have been in mortgage banking for 26 years & my husband is a realtor (part time), so we are very aware of the mortgage industry.

  58. Frankly this whole scenario reminds me of the last years of the Roman Empire. Our fat cat politricians are still stuffing their personal accounts while millions will go hungry tonight.Most everyone has the notion that this country wil not survive in its’ present condition. Like how would you like a deficit of 3.8 billion a day without any means of repaying it,except for printing more money. The money we owe overseas will be repaid on pennies on todays dollar. Our savings will be worth the same,pennies.
    Yet throughout all this I have yet to hear {except for Ron Paul} a single politician come forward with a plan to save the good old US of A. Banks, insurance companies and Wall st. all get bailed out from their own stupidity and we the people get to foot the bill.The Military Industrial Complex keeps churning along like there is no tommorrow and more and bigger and better bombs keep rolling down the assemly line. These are not cars or farm machinery but one time, one use bombs that cost millions apon millions of dollars and then billions. And so it goes and you ask if we will survive? It is not if but when the end comes. They are just trying to stave it off slowly,so that we slide into our demise.Hey they don’t want the people to panic as they should.The thing is if they didn’t panic over the Cheney,Bush administration why should they now?

  59. I am 62, my husband is 68. We are fortunate to be healthy and living in a rural area. Our children are doing alright to well, but, like us, they are very nervous with what they see. They and we know from personal experience (the 1979-81 recession) how fast you can go from thinking you are “safe” to homeless and really Washington doesn’t give a d_ _ _ – just so long they get reelected and can carve out their piece before the cake is crumbs. Then they send the crumbs to the bottom members of society and expect adulation for the effort! We have wanted for years to invest and follow Martin’s advice (absolutely steller) but our economic level was just starting to climb when 1997 hit. We have not recovered and we were not “in the Market”.
    Do I think America will recover? Only after every single heartstring is cracked (where hearts remain) and the memory of those that survive will be seared with the images of the carnage. Unlike other nations America has been given much – and where much is given much is expected.
    Many continue to follow after Mamon wildly expecting huge profits or turn-arounds and this glut of greed and wanton desire for ever more will turn on all of us, great and small. The day of humbling is upon us and only when this nation is once again on its knees will prosperity return. Just as Caesar made the great Germanic chieftain, Orgetorex, pass beneath the bar in humiliation and submission so will America pass beneath its “bar of obiedence”. Many hidden as well as open acts of ingratitude, pride, gluttony, lust, lying, theft, debauchery, etc. have to rise to the surface to be skimmed before this nation will again taste the fruits of prosperity and goodness. And only then.

  60. Elliott thinks this will be a DEFLATIONARY depression. He says that the government can print all it wants but can not force the money into circulation. Also printed money is a very small portion of our economy which is mostly debt. What do you think about inflation vs. deflation?

  61. Shalom; “For G-d did not give us a Spirit of fear,but of HIS Peace.HIS love and a Sound Mind.The more I give where the widow and fatherless have there need,the so-called worry of “what will i eat,drink,etc. my funds and work is not even on my mind.Shalom is not an “absense of conflict”.It is not a wordly peace.

    Your wisdom of economics is very good.! You are a good teacher.

    The next wave of prosperity in this world will come with a heavy price.
    This is my humble opinion,but I believe that it is a truth.The WORD
    of G-d(DAVAR ADONAI) teaches this .But those who hide in HIM,,,there is no worry.
    My prayer for you is G-d’s Wisdom.

    warm regards, Yhudit

  62. Martin…..
    I have watched this sham from the last of the 1930’s
    The gold smiths and silver smiths previously had a habit of writing recipts for metals that was not in their vaults because the people got in the habit of using reciepts for money.
    In 1933 when the bankers (who did the same) went to F.D.R. and warned him that people were asking to turn in their gold and silver certificates for the real metal,.
    metals that did not exist because they had printed money with out the gold in the vaults.
    As F.D.R. was coming into office he told them to come up with a solution……They revised the old (Wars Powers Act) which took the peoples citizenship rights away from them, made them enemies of the state. That law which congress passed with out reading it is still in force today.
    They passed F.D.R.’s farm morgage act which took our true ownership of land away and many other things. As Obama says we are users of land not owners……
    The United States of America was a Goverment which was under the control of the States, a land based Goverment……
    A new Goverment was formed, made to look like the United States of America but is not, it is a maritime Goverment with a gold fringe around the edge of the flag (the one Obama stands in front of) . This United States Goverment takes our real rights away in Federal court.
    We the people stand here while our untold wealth is destroyed by accident, NO by a well oiled political machine that has been running for many years, fueled by the people who “WANT SOMETHING FOR NOTHING”.
    Citizens there is no something for nothing, hard work brings something.
    What is going to happen?? Oh My Just Wait And See First Hand.

  63. Not only will America SURVIVE; I believe it will THRIVE!! I think the US consumer has learned the lesson to begin to control their debt. If you look at what they have been doing over the last several months, you will see that they have paid DOWN some of their debt. They are clearly heading in the right direction. Letting GM fail is a POSITIVE step, it means that the US government finally realizes that they can NOT bail out everyone. The public understands this and wants a free market system. It looks like the housing market is hitting its bottom – many have forecast the bottom to be by the end of this JUNE. I think all of these indicators mean the markets will hit bottom and bounce back. April was the strongest April in 50 years for the stock market. May is also up. I am getting back in; my money has been OUT of the market since January 2008. I think it is time for all the doom and gloom to dissipate. I expect that it will be November before the bulk of US sentiment switches – so many people still believe in the Out in May and Stay Away philosophy – HOWEVER, the early money will make the most money in the rise of the marketplace. I think there is a lot of money on the sidelines that is starting to trickle back in. Many of the Obama programs will begin to see their impact this summer. Don’t be left out.

  64. The middle class was born with the automobile assembly line under Henry Ford,the unions,the GI bill for returning WW11 vets,the suburbs,cheap gas,and upward mobility
    for the average American,that wanted to work for it.Social security,and pensions,saving for the future,medical benefits,the American dream.Now its take back time,for the enemy
    of the working class.the elite rich bankers,CEO”S,bought off governments officials. It goes back to the war for Independence in 1776,the people we beat to gain our freedom
    have been behind the scenes working all along to take it back,a little at a time,right under
    our dumbed down noses.The Federal Reserve system,the farming out our manufacturing system,not honoring our Constitution,on and on,one piece at a time.The founding fathers knew this and gave us the tools,to keep our freedom.Its time
    to stand up and use them,or loose it all.Our Fiat money system will be destroyed,no longer the world”s reserve currency,the Fed printing money around the clock.Massive layoffs,hyperinflation,new taxes by our local,state,and federal governments.Gold and
    silver will be the last resort place to have your money,as it has been threw out history.
    A new age is now here,the people wanting one world government have been working
    very hard,while America slept.We have been warned,all along,if you only looked.The hour is now at hand,fight back to regain our freedom,or perish under a cruel new one
    world government.The enemy of freedom is now at the gates,will we wake up and fight,or wake up to find a nightmare of a new age upon us.It is up to us,right now,the future of America,pray to God,that this once great country rises up to Fight.As GM goes,so does America,the world is watching.Maybe it should be as America goes,so
    does the rest of the world.At Pearl Harbor the planner of the attack on America,the enemy leader
    was asked,what the results,will be,he said “I fear all we have done is awaken a sleeping
    giant,and fill him with a terrible resolve”.

  65. Mr. Weiss,
    Thank you for asking my opinion of the current disaster at 1600 Pennsylvania Avenue. These are truly scary times for investors. As an amateur investor, I am having problems seeing any trends that give me confidence to know just how to invest.

    Beyond the financial aspec of the Obama Presidency, I can’t understand why someone with the means to do so has not filed suit to demand to be shown where in the Constitution Mr. Obama gets the authority to do what he is doing. I see what he is doing, I know it is wrong and even unconstitutional, but I don’t see a way to stop him.

    The most frustrating part is that he still has better than a 60% approval rating according to some polls I have read. How can the majority of Americans watch what is going on and approve? I am just about ready to pack my bags and go to Grand Cayman to escape while there is still time.

  66. Thanks, Martin, and your entire team, for all your insights and thought-provoking commentaries; I am a stay at home Mom who is trying to prepare our family’s finances to endure and hopefully prosper during these troubling times.

    I would like more information on interest rates:
    * The difference between short and long
    * Why interest rates will go higher, when it seems to me that with our huge debt, the government will keep them low to make the debt appear less outrageous; also it seems that they’ll do it for the banks. Also, they want the economy to recover, so won’t low interest rates encourage/enable home buying and other borrowing?
    * Does the government totally control interest rates? Or will it be beyond their control (if hyper inflation takes over) and they won’t have a choice?
    * What will be the “tipping point” where deflation turns to inflation? Is it related to money supply?
    * What is the relationship between inflation/interest rates? Can short term rates move independently of long term?

    Also, could you comment on the benchmark spread between short term interest rates and bond yields? And if this spread is large, is this an indication of any kind?

    I “soaked up” the Ultimate Depression Survival Guide and plan to re-read it this week!

    Thanks for any information on the these topics; I enjoy reading everyone’s comments and wish that several of them were advising our government………

  67. Well, this WAS a shock…the question is can any of this madness be undone? It seems to me that in trying to stave off the wind, we are going to reap the whirlwind that will be the depression of all depressions.

  68. I am the eternal optimist about this great country of ours. We will survive, I trust, but not without some major damage to our ecomomy, our people, our government and our position as a world power. Unfortunately, Dr. Weiss, you have foretold the issues we now deal with, however, no one in positions of power have chosen to listen. I find it such a frustration that the fact you have done this for years now and our leaders don’t make the connection that your wisdom might just be proof that your solutions are valid.
    My prayer for you and yours is that you will not be discouraged and never quit making the case for the salvation of this great nation of ours. NEVER QUIT!! We need you.
    God bless you all!

  69. Dear Martin,

    The United States should be the most wealthy country on earth, but it has forfeited that to the greed of the population for wanting the government to provide everything for them. It is just as Jefferson stated that we give you a republic – if you can keep it. Pravda article last week that “American Capitalism gone with a Whimper”, other countries recognize the problems and they need to protect themselves. If you go to the bank for a loan, you do not tell the banker what the terms and conditions will be, the banker tells you, that is the same now with the foreign lenders, they have the right to tell the US what the terms and conditions will be.

    This country has all the attributes that made it the most wealthy, except the people who now demand that their every want be supplied and paid for by the producers of wealth. The only producers are those who operate and are employed in private enterprise, very few government employees and no receivers of government largess, including the pensions of government employees, is a producer and are therefore contributing to the downfall of this (should be) powerful and wealthy country. There are many others who are also destroying this country while professing to be contributing to its well-being.

    The future may not be kind but we will need to get back to the basics that this country was built on, and quickly.

    (Annonimous) Wil

  70. Our America is most likely lost

    The Liberal progressives,now in charge,are not a bunch of Nuts that just don’t know what they’re doing.They know exactly what they are doing and are being very sucessful on the way to socialism.Many followers and by-standers belong to Lenin’s team of “useful Simletons”.

    Do we really see what we’re dealing with?

    Please advise.

  71. For my own preservation, I have cancelled all my Superannuation shares. I would like to find a trustworthy stockbroker who deals in metals and Asian stocks. Does anyone where I could find one!? I live in the bush in Australia and am in my 70’s.
    Mr Weiss I find your opinions very refreshing in honesty. Have you got an office anywhere here in Australia?

  72. It seriously concerns me that a stock which traded at more than $90.00 per share just a short time ago today is valued at just $.75. How is it possible that GM can survive such a downturn? They can’t even pay the light bill at that rate. The government can’t continue to bail them out forever. When will it possibly end? I think I understand the immediate and peripheral impact of GM failing but can we allow this and other companies, including banks and mortgage companies, to bring this country to ruination? I am beginning to believe that it has to be a “sink or swim” situation. `1929 may have been bad but I am beginning to believe that we may not have seen anything yet!

  73. Will you please explain to me why the stock market has been surging? It does not seem logical to me, because I really feel we are in financial peril – so many people un- employed and so many companies and banks going bankrupt. They are just putting bandaids on and we are bleeding profusely. Any comments on this would be very much appreciated and I hope your answer will enlighten me, because frankly I am in the dark and v-e-r-r y confused, indeed. Thank you for your input. Looking forward to your response!

  74. Even a 10 year old knows that we cannot spend our way out of debt. Germany tried to get out of their mess doing just what we are doing, and they went into a period of hyperinflation. The bailouts will only make things much worse. Thank you Washington! for absolutely nothing. I’m sure we are looking at the begining of the end for the US dollar and God help us, maybe the end of our great country.

  75. I am a type two and right now the bounce that I have missed is driving me crazy….I beat myself up for having missed the 2003-2007 rally and now again missing this rally. The main reason for being a type two is that almost all of my money is in a 401k and we cannot use reverse ETFs to go for profits. We must catch the bounces/rallies and then move to the treasury fund or money market fund during market crashes. I hope the market crashes again so I have another chance to buy the rally.

  76. Will America survive? The short answer – YES.
    I share the same view as Rick Jensen in the change of the corporate work culture. After SOX, many firms opted to get delisted in order to take the long term business survival view vs. the quarter by quarter performance views by Wall Street. Rick’s assessment of China buying up U.S. physical assets is also spot on. I would only add that China will be buying assets that will improve it’s countries industrial production capability along with improving it’s military capability. Selling the Hummer line to China is supporting their military build up effort and not providing cars to the people in Beijing. I too have traveled there on business and an Olds Alero would be a big car in that city.
    I also agree with Dan Goebel’s historical accounting summary of the central bank’s attempts and eventual success at inserting itself between the people and government to manage both while getting a cut of the action from both. Cutting out the middle man is also spot on with regards to having a true restoration of the Republic that our founding fathers envisioned.
    Robert Pretcher’s 1996 book “At the Crest of the Tidal Wave: A Forecast for the Great Bear Market” was a compelling read in 1996 and even more so today. Base on the arguements presented in this book, which has thus far been very accurate, the economic and social outlook will be grim for the remaining century. The next 40 years will be particularly painful as the excesses are purged. The final low is predicted to be around 2092-2095 time frame. On the positive side, Robert is like you with regards to using these economic charts, cycles and understanding of human behavior, society, governments to navigate through the negative trend to stay focused on reality, protect the family health and wealth.
    I don’t know what form of government the U.S. will become over the next 10 years. I do expect the current direction that is being forced on the population through those currently in power will back fire, there will be some form of revolt on the raiders of the U.S. Treasury and those in government that is allowing the raid to continue. It is going to be very ugly in a multitude of ways and those individuals relying on the government or business to keep their promises will become fodder. We only need to look a Katrina or the various city riots in the 60’s to see how quickly things can deteriorate and who suffers.
    When the entitlement mentaliy is erased from the population, the Robin Hood philosophy is removed from government it will be the begining of the new foundation for prosperity.
    It won’t happen in my life time. It might with my great grandkids.

    Keep up the good work Dr. Weiss.

    Best Regards,
    Rick Broquet

  77. In the 1920’s, and early 30’s the UAW provided a needed collective bargaining tool. In time General Motors, and the other 2 companies of the “Big 3″ found that they could pretend to “bargain”, and then give the UAW almost anything, and pass the costs on to the car buying public. When Japanese auto companies saw how overpriced American auto companies were, it was the beginning of the end. With labor costs of $70 per hour, bankruptcy became inevitable. I knew GM employees who referred to GM as “Generous Mother” because of its wages and benefits, including “SUB” pay. Both General Motors and the UAW must share the blame.

  78. The good news is that as of December 2008 the BIS bank has recently reported that the over the counter (notional amounts outstanding) value of Credit Default Swaps had dropped to $41.868 trillion dollars from Junes 2008 high of $57.324 trillion. Thats a drop of $15.456 trillion. Too bad no one knows the remaining value that does not appear on the banks books : as the large banks write this off it shows up as income. Now we have to look forward to the GM and parts suppliers default events. There has to be another leg down and and as Martin Weiss points out: If interest rates go up, more defaults and if interest rates are kept artificially low by printing money because foreign investors start pulling out, we get inflation. As the rest of the toxic assets magically appear as income gains on the books of the major banks more surprises are on the horizon. We still have a way to go as we deleverage. I believe the only way we get out of this will be to produce our way out and get back to making something of value that people want to buy. In two years or less we will be forced to correct and get back to a market economy by reversing the spending and making the cuts necessary to rebuild our manufacturing base. We need a hub and spoke system of major companies of scale supporting the communities and the small businesses that feed them. Must deal with the unbalanced taxes on our products being shipped overseas to Europe and China for example. I still believe that the American worker with good leadership can out produce anyone as long as they have a fair and balanced playing field. The question is how soon can we get back to the basics and use the creative talents and energy of the American People. In the mean time, I am sticking with ETF’s taking short and long positions. Tom

  79. Martin , I’m not at all sure how this story turns out . The government intervention adds an unknown variable to the equation that attempts to model the 1929 sequence of events . Growing up with parents that were young adults during the 1929 period we practiced living within our means and I find those concepts have guided my life also . I fundamentally don’t believe you can use monopoly money to solve real and serious problems .
    As far as how to navigate the financial storm we are in I must rely on organizations such as yours to provide direction. I participate in the Million Dollar Contrarian and several other subscriptions . I am sometimes confused by the diverse advice that issues forth . I am looking for precious metals and the far east to play an important role going forward . Tom

  80. I have never been afraid for and of my country the way I am right now! I always believed if I paid my taxes and led a lawful life I would succeed and live the American dream without interference from the government. I no longer feel this way and am very afraid and feel helpless to do anything about it. This government scares the hell out of me!

  81. We are an elderly farm couple who have always kept our money in local bank and used Ed Jones Co. for other investments. On their advice, we have lost 40% of our life savings and we are too old to have any way to earn it back. Ed Jones guy told us not to buy more farm land but we did on our own and that was smart (and lucky). Then I wanted to buy a small amount of gold stock (GLD) and he laughed at me but ordered it. It is one of the few things that have gone up. Is there any way ordinary hard working people can believe anyone in this crazy world of investing? Thank you for listening.

  82. I regret to say that our government is out to destroy the working class. Perhaps this is the inevitable goal of all governments. It seems like only Ron Paul gets it. Most unfortunate but, yeah, we’re going down.

  83. I feel completely helpless as I watch what has been considered the greatest economy in the world wither and die as we spend our way into the abyss. It may be true that an unrestrained and greedy capitalist market system has brought on it’s own peril, but I cannot understand the lack of courage by our Government leaders in dealing with this crisis honestly. I don’t know if you are a God fearing man, but Heaven help us. I have completely lost faith in our systems ability to recover the damage that has been wrought on us all.


  84. from the Glenn Beck radio & show today, question:


  85. I think the whole picture is depressing for everyone but the big money people who are constantly on the dole from the federal administration. Abraham Lincoln said that the only ones who can destroy America is America itself, and we are doing it. China is buying Hummer. What next?

  86. No doubt, USA is on the slippery slide to Socialism. There are too many people with their hands out. I am very disturbed about our nation and its abandonment of the Constitution, Bill of Rights, Ten Commandments and the Golden Rule. It makes for much confusion in just what to do with ones finances. Maybe its best to stay in precious metals and Oriental stocks/funds. I am with Joseph Devanzo on Dodd and Frank. I could name a few dozen more Congressmen that I would like to see put out to pasture but I hate to fund their rediculous retiremnent benefits.

  87. wow this is really going to flip the boat . we will see and drastic change in july after the 4th . the market will take down to 6800 remember to give me cut

  88. The simple solution is a return to the constitution. The assumption was made that only honorable men would become part time participants in the government. However a small group of dishonorable men have captured control of far too many parts of government and industry. As more and more men became dishonest and ruled by their lusts it became increasingly inevitable that the country (a constitutional republic) would cease to be. It is just a matter of time.

  89. I think we should bring all the US. companies back to the U.S. and also do away with Gatt. The american farmers used to feed the world and you took away their supports and look what a mess you have now. Most of the small ones had to quit which is what they wanted in Washinton. Also, what about the island off the coast of Florida all the wealthiest go to to decide what they are going to do to us next and do they receive special monies? Is this true?

  90. To me the job market is the best criteria. Unemployment brings everything down.

    After the depression–as the jobs slowly appeared things turned around. The deeper in debt we go–the longer the recovery

  91. Greetings,

    The financial side of Uncle Sam is frightening enough. What concerns me even more is the economy. The American consumers make up (or made up) about two thirds of the GNP. With increasing amount of unemployment and dwindling of credit I can only see a shrinking economy and possibly even social disorder. I wish I had more positive comments.

  92. Something interesting is happening in the gold market. Although the price of gold has risen, it does not reflect in any way its true value. Do you agree that if there were no manipulation in the market by the ROTHCHILD control cartel, the price of gold would have skyrocketed to at least $1000 per ounce?…and if so WHY?

  93. Bravo Martin for your great work. Reverent regards to your father.
    I trust you for cleasightedness in Money and Markets.
    What doom the present economy system is simply human greed. Our Administration never dealt with it. G8, G20 avoided this fundamental factor. They reject God and His commandments to trust on human laws and wisdom. We are all to make our accounts with God.
    Wishing you and your team the best. Thanks cordially.

  94. Since retirement 12 years ago, and especially after 2001-2, I realized I knew nothing about investing and spent my time reading books and newsletters and attending AAII meetings hearing hundreds of speakers. I have learned not to be greedy (risk) and to preserve capital at all risks. Methods which work in an up-market, fail in a down market.
    At present I am totally invested in junk-bond funds, but check them daily and will sell without fail if they fall below a 30-day moving average.

    I am not optimistic. The present economy is worse than in 1929-33, and the bear market will be as bad in the next ten years as it was then, IF WE ARE LUCKY. However, that is the best-case scenario; our present actions are almost certain to fail.

    In the worst-case scenario, the United States will follow the course of Rome in the year 476 A.D. (total collapse), and will carry the rest of the world down with it. Rome’s Vandals will be replaced by the Taliban and like groups, and intellectual activity will be suppressed for a thousand years, as it was then. My reason for this latter opinion is that the problem is not just financial, but much broader. Already, 20 countries cannot govern themselves or feed their people and are on the verge of collapse [Lester R. Brown: Could Food Shortages Bring Down Civilization?, Scientific American, May 2009, pages 50-57].


    William W. Thayer, M.D., Pasadena, CA

  95. I’m conflicted about whether we are headed for inflation or deflation. Either way spells trouble.

    I feel the safest investments at this time are precious metals and foreign (oriental)stocks.

    Several months back you recommended/suggested two gold dealers. Could you please repeat them for me. Thanks

  96. America will survive, but in a different form. Every new generation must learn its lessons, and few members of those generations ever learn by listening. Most must learn through the hardest lesson of all – personal suffering. Nevertheless, people do eventually accomodate themselves to new situations and even search for solutions to problems created by past mistakes and abuses. Not everyone will want to travel in a new direction, so some never learn the lessons, no matter what amount of suffering must be endured. We are in the midst of great change and while it brings instability it too will bring great opportunities for those who are open, vigilent and not affraid to move in a different way.

  97. Yes, we will survive but our standard of living is going to drop significantly. I have been completely dismayed that our government stood by silently when American Corporations moved their headquarters off shore to avoid taxes, when those same corporations exported millions of jobs (and technology) to somewhere else, and our government looked the other way while millions crossed our borders illegally to take our jobs.

    Our markets are going to be tough to make money in for a long time. Maybe like Japan for the last 15 years. My favorite trend is the World’s growing population and shortages of life’s necessities: water, oil, natural gas, copper, wheat, corn, uranium, alternative energy, etc. I think natural resource companies are going to be the place to invest for a long time.

  98. I agree that the economey continues to weaken abiet at a slightly slower rate , at present. I also agree that the the money printing and spending is only going to destroy us down the road. None-the-less, the market continues on this bear rally. It seems the volume is slowing but momentum is still indicating on the upside. I’ve been trading small positions on the up side with tight stops while buying down inverse etfs. Any advice here would be geatly apprieciated. Thanks, Rich

  99. I recommend reading the book “Meltdown” by Tom Woods. As a Senior fellow at the Ludwig Von Mises Institute I think he has a pretty good handle on what created this mess. The Federal Reserve is to blame. This private banking cartel has been illegally given the power to create money out of thin air by the Federal Reserve Act of 1913. Indeed Congress was given the power to coin money and to regulate against counterfeiting by the Constitution, but they were never given the power to delegate these powers, much less additional powers, to a group of private bankers. These private bankers control our entire monetary system behind closed doors. They are not required to comply with the Freedom of Information Act, and have been found to be a private institution by the U.S. Supreme Court. So, why does the United States Government barrow money from the “Federal Reserve” at interest when the United States Treasury could, and has prior to 1914, print money without paying interest to a private banking cartel? It is because some rich bankers got together in 1910 and set up a plan to control the United States currency. They financed both major Party candidates in 1912 and thus were able to get the Federal Reserve Act passed in 1913. The Federal Reserve is a Privately run Central Bank very similar to the First Bank of America which Jefferson was able to kill, and the Second Bank of America that Jackson was able to kill. The difference is that the other two Private Central Banks lasted less than 20 years while the Federal Reserve has been controlling our economy for 95 years.
    It should not surprise anyone that the Second Bank of American created a Depression in the 1830’s and blamed it on President Jackson who was trying to abolish the private Central Bank. In his retirement Jackson was asked what his greatest achievement was and he responded that he “beat the bank”. Indeed he served our country well as we had a free market economy for over 70 years before another private central bank took control of our monetary system in 1913.
    The Federal Reserve created the current mess by artificially keeping interest rates down while they created more money out of thin air. They have created period of booms and busts by controlling the interest rates. This has allowed their member banks to unjustly Capitalize during periods of bust. We are not even allowed to know the names of all the member banks of the Federal Reserve. Many of them are foreign bankers who have little interest in the welfare of America, yet they control our entire monetary system. It is my guess that the Federal Reserve has planned the destruction of the U.S. dollar so that it can be replace with a new world currency controlled by a new, privately run, World Bank with many of the same members.
    Can America survive this?? Not if we let it happen! We have already seen gross violations of our Constitutionally guaranteed rights implemented by people that have been sworn to protect these very Rights. This is not the America I grew up in, nor is it anything like what was envisioned by those who created the U.S. constitution. However, I do think that we can restore the Republic if we can get Congress to Repeal the Federal Reserve Act of 1913 and require that all money be issued by the U.S Treasury. NO more “Federal Reserve notes” and things will get better for real people.

  100. Financial Hurricanes,once continuity of production of goods & services is lost we are back to square one again, you can’t suite talk fundamentals.

  101. I do not understand why there is a general lack of scrutiny by the press of President Obama. Is the press afraid of being called racist. I do not mean criticizing for the sake of wished for failure on the part of Obama. Rather, healthy, genuine and informative scrutiny. I don’t understand why Senator Dodd is untouchable, as is Barney Frank. Why complain about bonus’s at AIG, when they were also given out at Fannie Mae and Freddie Mac. NO one ever mentions that Congress gave themselves a cost of living increase. So who is sharing the Obama pain. Too much lying and no counter opinions.

  102. Dear All and Martin:

    IMO, thigns are changing faster than we can keep up with them … A lower dollar is going to fundamentally change stock valuations to the point where the Markets can go uo to unheard of levels .. thus, using short strategies are going to be extremely dangerous … I follow the work of Jim Rogers a lot and I have learnt over the years NEVER to bet against JIm Rogers …. he was shorting housing stocks in 2005 …. P E R F E CT Timing …. and now what?

    Jim Rogers: S&P Could Go to 50,000,spy,xlf?sec=topStories&pos=8&asset=&ccode=

    Martin: What do you think? This is a very plausible sceanrio …. in that case …. betting on a market downtun is suicide … which is leading me to the next point …

    2. Use of LEVERAGED ETF’s and dangers of drawdowns –> Brutal math …

    If your on the wrong side of the trade with a leveraged ETF … don’t expect to get your money back in linear way if the market returns to the level where you bought them:

    The main problem with short ETFs is that as the underlying indexes get lower, small dollar moves become large percentages, especially in 2X funds. This math works against you as the market exhibits volatility on its way down. A dollar of loss in an index wins you a smaller gain in your short fund than a dollar of gain in the index from that lower level gives you a loss in your fund. Here’s an illustration:

    Imagine if XLF (a financial index ETF) goes from 20 to 19 one day, and SKF (SKF’s 2X inverse) goes from 100 to 110.

    $1 out of $20 is 5%, so SKF goes up 10%

    $1 down = $10 up

    The next day XLF goes from 19 to 20, so SKF goes to $98.42 . $1 out of $19 is 5.26%, so SKF goes down $11.58.

    XLF is back where it started, but SKF is down 1.42%.

    As many have learned in the bounce from the March 15 lows, this math can be brutal with larger percentage swings, and these moves will only get wilder as the market goes lower.

    SO –> When using SKF or SRS … trade for SHORT TERM ….

    Martin: Please advise accordingly … many have been burnt becuase of the LACK of knowledge ….

  103. Martin, I am a member of your contrarian account and am following your direction very close. However, about one year ago I purchased about 12 Master Limited Partnerships that pay dividends on average of about 9% and have continued to do so year over year.
    As you know these are mainly Pipeline companies whose revenues are very stable. I have also bought your suggestions as I believe that my country is heading for a major fall. My downside should protect my upside. While I lose on one end, I make on the other. Not very productive, but certainly safer. What do you think about MLP?
    Allan M. Harris

  104. Dear “weiss research Inc.” as always superb, great reading material, keep it comming.
    keep us informed and well educated to counter the “dummying down of America” of recent past.
    p.s. I read your articals on “”

  105. Dear “weiss research Inc.” as always superb, great reading material, keep it comming.
    keep us informed and well educated to counter the “dummying down of America” of recent past.
    p.s. I read your articals on “”

  106. Article 21 of UN Resolution 217 The Universal Declaration of Human Rights should remove democracy and elections as a human right and replace it with good government where governments are judged by how good a job they do not the political system they use. The US legislature encumbancy of evil supported by their attack voters is the global engine of crimes against humanity occuring on our home planet and in deep underground military bases. They are using the plutocracy to advance their fanatical agenda of forced democratic fascism and left unchecked will destroy both america and our republic and may start and loose world war three in the process.

  107. DEAR MR. WEISS,







  109. It could happen? The government could devalue the dollar. Today you could have $10.00 in your pocket, and tommorow only $5.00 inbuying power. This has happened in Mexico and other countries, and may happen in America. The future is not looking the best at this time.
    In time America will recover, but at my age it may be too late.

  110. I applaud your outstanding efforts in helping investors cope with the current financial tsuanmi that’s hit our country, and I agree, that “as goes GM, so goes the the US economy.” We haven’t seen anything yet, with unemployment figures. The ramifications of the GM bankruptcy are yet to be felt by the general population and economy. I believe that capitalism works, and I believe that the “silent majority” feels the same way, but we have a president and Congress that seems hell-bent on destroying our country and our way of life. The silent majority must be slient no more, if we have any hope of saving our country from socialism and fascism.

  111. GM will exit from bankrupcy and become a very suprisingly profitable company. If we can create value in the auto industry by inovative products that everyone wants-like the I phone_ we will be better than alright.Unleashing this creativity in the auto and other US businesses is the key to survival and prosperity. Our large companys are now burocracys like our government with too many commities and consultants needing to aprove every move. We can and will do better

  112. Will American Survive?
    Yes, but in a form my generation won’t recognize! Traveling overseas extensively on business for 25 years, it was obvious countries lacking modern manufacturing capability were the poorest – failure of GM and countless others is driving us down the same path. A service economy is an unsustainable myth. When I entered the workforce in 1963, CEOs and company executives worked their way up from manufacturing, engineering and marketing groups within the companies – they knew the company, products and markets inside-out. Over time outsiders with primarily financial and legal backgrounds were brought in – with short-term objectives to further “their” career and move to more powerful positions in larger companies. This resulted in short-term planning – making them appear successful – at the expense of long-term planning. This also resulted in excessive debt, inefficiency, severe reduction in internal R&D spending (lifeblood of a company) and eventual loss of market share. At the same time, graduates from our top universities focused on “quick riches” within barely-regulated Wall Street, Investment Banks and other financial institutions – “quick riches” usually meant flogging investment instruments which previous generations would have recognized as “fraudulent”.

    Wall Street and associated rating organizations substituted “easy to apply” complex math formulas for reliable but laborious in-depth research – resulting in derivatives too complex to understand – a major contributor to our current financial crisis. Many of these derivatives are fraudulent in nature, but disguised by complexity. The total value of derivatives in our financial institutions is SHOCKING – but never mind, capitalism has been suspended by removing “mark to market” – the only way an asset can truly be valued – extending the life of failed institutions.

    Government bailouts are “always worse” than bankruptcy – which capitalism demands. Creeping Socialism is a fear, and rightly so if Government involvement is not short-term – we’ll see. I don’t see bailouts helping, even in the midterm – miniscule compared to the size of the problem.

    I see a probable end result – China is currently buying resources, technology firms and key assets with borrowed money using their huge surplus of U.S. dollars as collateral – greatly increasing their wealth over the long run. Eventually China will be buying U.S. assets in quantity, and the majority of us will work for them!

    I only see two probable future paths for the U.S:

    1. Eliminate legalized payoffs from K Street Lobbying Firms to our representatives – returning us to Democracy from an Oligarchy of Bankers – will never happen unless there is blood in the streets.
    2. Drift into true Socialism under pressure from organized voters suffering in a long-term economic crisis.

    In either event, the Dollar is toast – when hyperinflation takes hold after a deflationary period that “could” last years. China comes out the winner.

  113. I’m a longterm investor and am interested in your opinions on longterm trends and the investments that would profit from them rather than short-term investments.

    I enjoy hearing your investment advice. Thanks for the help!!!

  114. i have very much injoyed your e-mails. Im a small contractor and have been in business for 15 years, I made a good living not getting rich but enjoyed having the material things I desired but my problem is this some of my employs call for my support either financial or emotional, they have been making it on unemployment but that is running out. I had a back surgery three years ago and havent recovered physically so im not in a position of help emotional or financial this winter is going to be a long winter our economy is like the seasons spring everything blossoms and winter everythings dies, I dont have any answeres. I will also loose everything its easy to find green shoots when your employed I have no money to invest we had money put away for the rainy day but the rain hasent stoped. Im a dirt under your finger nail kind of guy but in this economy I cant find any work! no bail out or construction work to keep the wheels turning please let me know what direction I should be looking. Is there any hope? What do I tell my guys? Thanks for telling it like you see it.
    Thanks Don

  115. Dear Dr. Weiss & Claus,
    You have great wisdom and pegged this recessionary/depressionary market correctly. We are in for a long rough economic ride. I would love to be more opportunistic, but the jobless numbers tell the story. Please do not sway from your strategies; they have worked in the past and they will continue to work.
    I know many people are looking for instant wealth and for the market to give back what it has taken away from so many folks. I wish the for same, but I know the markets are not stable. The number/volume of investors are low. In fact, I believe the market volatility is due to very wealthy (Megabucks)investors nudging the markets one way or the other. How else would you get swings like we are seeing. The megabucks investor starts the swing and then the optimistic (small) investors bite, in all, getting the markets to move. I am not a gambler ready to risk my money on market sucker moves(short, swift, and fleeting). I am a small investor looking for direction. Your insight and recommendations for investments have given me opportunities I would have probably missed. Thank you for the opportunity to join the Contrarian group of investors.

  116. My greatest fear is the potential devaluation of the dollar. Outside of gold and metals how can we best protect ourselves?
    Bill Hirschfelt

  117. In my humble opinion, it is timely that the world’s true learned start explaining that to charge interests is wrong and to sell something without a solid credible structure or a worthy thing is also wrong. And to lend is actually many many times a noble deed than just giving away for free, but the rich should only lend without charging interests, to help one another because each of us has the right to do business and become a little richer than ordinary, but not too rich that will only lead to greed and finally we cannot control the vicious cycle. That vicious cycle will then show its ugly head by utilizing them not for anything good for anybody. Frankly, we don’t need obama or great scholars, but any good teacher or students can speak about this. my 2-cents.

  118. I think the Gov should have just let Chrysler & GM go under. Now we are pumping billions into both companys, that will fail regardless of the bailout. Our Country is getting deeper in the hole with each passing day and I think that the worst is yet to come and it will be here soon.

  119. Pete:
    I agree with you, the the rest of the world is not stupid. The naivety of the young current administration would have us all believe that they actually understand what they are doing with building such tremendous debt. Large debt has been the downfall of societies through out history-example-the Roman Empire. There will be replacment; It will be replacment of the dollar as a preferred world currency…

    We all have an opinion about what the problem seems to be. It also appears that we all are correct about the items that concern us the most, from our perspective, myself incuded.

    The only course of action that makes sense to me is the old fashioned way of preparing for the future is to save save save…Bank deposits create funds for loans; loans create funds for development; deveopment creates jobs; jobs create wealth for saving, etc…
    This is real equity investment – people.

  120. Stop bailing out banks.
    Invest in new technology, small business, health care, schools, higher education.
    Bring back retired, experienced people and give them leadership role.
    Let America get to work in small communities, towns.
    Invest in cross country rail network.

  121. What’s bad for GM is bad for America.
    How did we get here ? The Nation that put man on the moon, didn’t see this coming !
    Why ?
    I think, because we lost basic American values. We are not our brother’s keeper any more. Few of us too busy making billions in Wall Street not thinking we are undermining the very boat we are all in. Now the boat is sinking. Our standard of living is lower than Europe. Still we have no concern about massive job loss and it’s long term social cost.
    We must go back to basics.

  122. America will survive but in a totally different form. We now have Government controlled industries and health care is upcoming. This is communism and reminds me of what we feared in the 60’s from the USSR style of gov’t.

    Very sad and I am glad my father who was in Europe for 4 years in WW2 is not here to see this. He would be sick.

  123. Ross Perot was right. Leave board room in nyc and go on assembly line. Find out what’s wrong with our cars. Instead, the other directors bought him out! Arrogance!

  124. America will survive as long as there is faith in the government of the United States, plain and simple. No matter how much debt is created, how many manufactures go bankrupt and so forth, as long as we believe in the “system”, America will survive.

  125. I wonder about the choice of investing in rare coins as opposed to gold. I have lost 50% of my 401K and IRA portfolio as I cashed out at the bottom of the DOW as I watched it drop everyday. I have received e-mail from Martin Weiss and his associates for quite a long time and value their input. I observed Martin on the Glen Beck show a few days ago.

  126. What’s happening today is an indictment of us Americans, business leaders, managers, engineers and all white collar people.We have chosen to blame it on the citizens at large/blue collar people in particular and not see this coming.

    Nation that put man on the moon, lost it’s way. Forgot all about greater common good.
    Selfishness, greed and myopia has killed this great society.
    We need to realize, we are all in it together. We need to innovate, find cost effective ways to improve peoples lives and respect those who do hard work for us. Stop wasting money in military adventure abroad.
    Rise of Wall Street at the expense of Industrial Power is disastrous. We are already paying heavy price. It’ll get worse, if we do not put a brake on it now.
    But do we have the will power to do it!

  127. I wonder about the choice of investing in rare coins as opposed to gold. I have lost 50% of my 401K and IRA as I cashed out at the bottom of the Dow as I watched it drop everyday. I have receivesd e-mail from Martin Weiss and his associates for quite a long time and value their input. I observed Martin on the Glenn Beck Show a few days ago.

  128. The thought of impending inflation is very scary to me. I am retired on a fixed income of about $30,000/ year.
    I don’t believe Obama has any idea how to get out of this mess!!!

  129. It saddens me that we Americans are being deliberately lied to by the news media. For reasons that remain obscure to me, the media has become willing disseminators of the financial propaganda of the Oboma administration. Smoke and mirrors that will result in rack and ruin for our great country.

  130. Unless we grow up we are doomed to a third-world way of life. We are morally, intellectually, and fiscally bankrupt. We need to stop playing superpower and take care of the people who can make this country great again. We need to educate our children for the 21st century, pay our taxes, provide health care for all, maintain and expand our infrastructure, especially transportation and energy. We need to stop poisoning our air, water, and food. We need to live within our means. If we can stop our petty bickerring and do these things, we still have a chance.

  131. I believe our economy is a house of cards that will tumble further.I also believe that no matter what the Fed says they are monetizing the debt.The rest of the world is not stupid and will call for some sort of replacement to price commodities.Higher interest rates are on the way!! Pete

  132. The stock market is going up because short sellers are buying and selling, taking profits and getting out before the next bear market takes off…

  133. A few more billion dollars and thirty more days was not going to cure GM’s problems. Chrysler, because of possibilities of a deal with Fiat, was a little different deal. Obama just have just let GM go into bankruptcy without committing additional taxpayer money when that was going to be the ultimate outcome anyway.

  134. the u s a will not survive until it gets an honest money system. Gets rid of the Federal Reserve Bank . It is a corporation completly privately owned. There is nothing federal about it exceot its name. Established in 1913 it has in less than 100 years destroyed our nation. To get a complete pi-cture of the real truth about the Fed , read abook published under auspices of congressman Wright Patman in1964— A Primer On Money aIt Ind Money Facts:169 Questions & Answers On Money. A reprint was made in 1993. A book may be hard to find.

  135. Martin
    First – Thank you for your insight into the economic conditions and sharing them with us.
    As for the future of this country, I’m very concerned. We are loosing our major manufacturing base slowly but surely due to high cost, mandated federal regulations, quasi-monopolistic Class One railraods and now the cap & trade for greenhouse gases. Will we have to contract out our military requirements in the future, since there will not be a manufacturing base left to produce this equipment? I believe cap & trade will cause the electric companies to pass on these excessive cost to consumers of electrical useage – both residential and commercial – causing more stress on the manufacturing sector. The next core industry to be affected by regulations, rail rates and cap & trade will be the chemical industry in which I work. We will see this industry move off shore as the cost continue to climb. If China doesn’t come on board with cap & tarde, then no other country in the world should do so. China will have more pollution than probably most of the rest of the world combined.

    I also believe that a lot of Americam citizens see trouble ahead based upon the amount of guns & ammunition being bought in the US. Are they preparing for anarchy?

    Do you know of a nice quite place where one can retreat, possibly in Brazil or Austrailia?

  136. I am Canadian and I would like to know what you think of our banks. They say they’re still making a profit. How can I find out which banks/credit unions are safe to put my cash in. Do you have any other advise for us Canadians?

  137. I’ve been following Robert Prechter and Elliott Waves for some years now, and conclude that although he’s been early several times (e.g. warning of the top and subsequent crash in the late 90’s), he’s been right, every time. In this situation, he’s saying that this bearish bounce is due to turn when the Dow reaches 9-10,000, and more importantly, when nearly everyone blanks out the bad news and considers the crash done and gone. Prediction relies on indications, so one can’t be exact, but since it looks at wave forms, fibonacci ratios and some others, EW timing is more precise than following indicators that only focus backward. It also looks for a time when the talking heads are heralding a new and bright future, when they give government credit for the upturn. That time is close, but not here yet. The wave forms are not complete, and there are still some voices telling the truth.
    The strategies you provide in your “Ultimate Depression Survival Guide” provide detail I have not seen before, and give me hope. With regard to the Millionaire Portfolio, I do have some heartburn with your recent comments about stops on inverse ETF’s and on buying ANY company stocks, even those that have shown some resistance to the downturn. They, along with all others, will lose money for those who invest in them, and their waves show it.
    So now I must choose; do I follow your advice and buy long in a rising market, or trust what essentially becomes my own belief, that this short term bounce will take a little longer (a month or more???), and then surprise everyone with the ferocity of its downturn? Had I listened to my head instead of my emotions, I would be waiting for the S&P to get closer to its peak, and avoided the loss we are all experiencing now with our inverse ETF. I’ll follow your lead tempered by what I know, live with my fear and greed, not buy stocks long, and hang on to my ETF’s even if they go past your stop point.
    Skip Gurnee


  139. Dr. Weiss:
    Sir, I am one of your subscribers that is more interested in the way in which YOU will be answering those particular questions. The posts from other people are somewhat interesting; however, we need to know YOUR answers. Thank you.

  140. hello Dr. Weiss……..believe bi-metallic standard should be re-implemented ……restablish gold at 20 dollars an oz.

  141. General Motors had an electric car but did not take it to the final step of selling it. They had good engineers but instead listened to the marketing people who sold cars they thought the public desired but not really want. I for one believe that America and the emphasis on profit is forever gone. Our medical Drug companies have selling us junk drugs to address symptoms and not causes. Our government in the FDA is corrupt and are selling us Equal, MSG which are excitotoxins designed to kill brain cells and to make us fat because of profits. Flouride for our teeth is another hoax. Medical costs also killed GM so that we are paying the highest medical costs but are not the healthiest people. Athletes and especially basketball players receive way too much salary for their worth so that only the rich can afford to attend. Things will break down and the smart ones who invest overseas and who buy commodities will survive while the bread lines form and the dollar drops. Our dollar will lose reserve status and even AAA status so that we will be subject to the laws of economics instead of the loose money policies of the Federal Reserve. We have been printing money to pay for things we don”t need so the bills are piling up and soon it will be payoff time. Just watch the price of Gold as it zooms up.

  142. Dear Weiss Research-Martin Weiss,
    I am not in any way a stock anylyst or know anything about stocks and options,etf,shorts,etc. etc.
    I am just one of the many millions of Americans wondering what the hell is going on.
    Yes we are experiencing inflation and probably just the tip of the iceberg of things to come.
    We down here are just trying to work to keep food on the table. Hunting,fishing,and gathering are options now.
    We only work because the government will take away our land just because we didn’t pay taxes ,even though we paid for thirty years the mortage to banks who we bailed out.
    How do you think we feel about this? I know you know this is true.
    People on our economic level have no idea of things to come. A lot of them quote the bible. Some say revolution is to come. State are think of ceceding from the union.
    We import about 90% of all the food here in Hawaii. There will be chaos in the streets.
    People must have the same opinion as gun sales have increased.
    Now they are talking about not spending the rest of the bailout money and the training wheels are coming off.
    My biggest question is why if the economy is going to go bankrupt that the stock market is going up which is the leading indicator of better things to come?
    People are putting money in or maybe only a few very rich people are munipulating the market as they did when it went down. How can we low income people know this? We do not have the resourses and as I said just go to work to put food on the table.
    So may the force be with you.


  144. Martin, My opinions,
    Will “America” Survive? – My answer to this is: Is America Today anything close to what the founding fathers wanted it to be…Fiscally and Politically?
    I seriously Fear of Civil unrest and a Divided America Ahead. Breakaway regions?
    ***It is mathematically impossible to pay off our current national Debt (which will officially be $22T by mid 2010) without Instantly cutting 50% of all Federal Spending and at the same time Taxing Each and every American Houshold an ADDITIONAL $1500/mo for the next 30 years….
    Thats what the Math says, and math doesnt lie…$1500/mo covers Just the Current US Federal Govt Debt, it wont cover SS or Medicare…if we did those numbers, were looking at $63T and amortorized over 30 years, would be $4500/mo additional tax revenue from each and every US houshold.

    So…Will America Survive? Not in the way weve known it unfortunately….unless someone can show me some different algebra which I may have missed along the way…the government certainly is using it.

  145. i watched an interview on bloomberg the other day. the ceo of potash corp was being interviewed. he said that fertilizer sales were off considerably (which obviously means less agricultural planting world wide) he also said that agriculture would be the road out of recession. i see this to be two things, 1st possibly great investment opportunity and unbelievably higher food prices in the future

  146. Alex: It’s about time someone said what we have all been thinking, we have only ourselves to blame for our excesses and failure to save for our future…

  147. I believe that most stocks and companies are at grave risk. The exceptions [where I am investing], is in physical silver and gold, some mining shares, and some oil, gas pipeline, and natural resource shares. Partly per your beliefs, I am maintaining a large cash reserve.

  148. Is gold the way to go for a good percentage of our portfolio? If so, how does one get qualified dollars into gold investments. Now everything is in short term money market funds. Thanks

  149. Paul:
    I don’t feel qualified to give you advice on your investments and retention of same. I can tell where I’m going with mine. I’ve been giving 10% of everything I bring in to God’s work. I don’t mean to some large church building fund etc. I mean to the needs of people. feeding and providing for the everyday needs of people. There may be something or someone near and dear to your heart that you know needs help.
    I know absoutely, you can not outgive God. He returns to the cheerful giver…

    This philosophy has governed me for several years and has seen my bank balance increase many times over. Blessings to you, Bob

  150. I think America will survive, but it will be DIFFERENT, because Americans are innovative, tenacious, and hard-working. Those outside of the politicians, Federal Reserve, and the very greedy money handlers, that is. Most people, I believe, are trying to adjust to a much more frugal life-style, and realize the huge change in this country. After all, didn’t the government tell people to go out and SPEND after 9/11? So now they are learning the government is the BIGGEST problem!
    My investments are in foreign funds and hard assets, such as precious metals, but I am not a “buy-and-holder”!

  151. Thank you for your very keen market analysis in terms that a layman can easily absorb. Finding you has been an enormous blessing. I’m onboard with your contrarian portfolio. Following it will be fun – and you’re making it easy! Here are a few questions:
    Just received a “come-on” for investing in Silver Shots – and how to turn $10K into $1M from due to China’s growing market in cell phones, metal grabs and the diminished supply???

    Second question: There is some speculation that the government might choose to confiscate gold – it’s happened before – your opinion?

    Another question: This government knows no limits and there is also a rumble they might choose to confiscate IRAs and 401Ks “because so many have lost so much” and they want to “help us?” Your opinion? Advance warnings if we opt to cash out and not get their “help”?

    Last question: If we are to have an extended “bank holiday” where we cannot access our accounts as happened in Argentina in 2001 – we’ll we get a heads up from you? Will there be signals we need to watch for?

    Glad to see your presence in Washington D.C.! Keep up the good fight and tell us what we can do to join you!! Thank you!

    Cynthia Murray
    Los Cabos BCS Mexico

  152. Yes we will survive, in about ten years after much anguish. I think it will be with deflation,and with gold deflated.

  153. Martin,
    Like so many others I share your concerns about the direction of the economy and the current policies. So far your analyses and forecasts have had a high level of accuracy. While no one can exactly call all the detailed turns of the market, your general predictions have been highly accurate, for example, your forecast several years ago that GM was in danger of collapse.
    No less an authority than Robert Reich has recently gone on record as predicting that GM will not survive at all and that the reasons for providing assistance to the company were for policy reasons, not any rational business decision.
    Until now you have been highly accurate about the economic turnings. I wonder now what is your best estimate about the future of the dollar and dollar-denominated assets in the near and medium range.

  154. Martin,
    Thank you for telling us the reality of what’s going on. I’m a little guy investor but am taking your advice on getting out of debt and saving what I can. I know my neighbors and friends get lost when the government talks in trillions of dollars. They simply can’t wrap their brain around the crisis so they’re for the most part, ignoring it and living like it’s not real. Lots of blame to go around but I think the “Golden Goose” is almost dead. Unfortunately the American Experiment is taking a bad turn and I don’t hold much hope for our Bill of Rights staying intact over the next five years, the politicians may tinker with that just like they’re doing with the markets.

  155. Martin, I am very concerned as the US gov needs to borrow more and more to fund it bloated budget/expendures we are sure to see inflation and interest rates increase greatly. I am not sure that our stock markets are intune to the real facts as the current run up can’t be justified by the unemployment numbers or any other measure so it must be driven by purely by emotion, greed or rose colored glasses/better described by stupitity. Some say the market has already included the effect of GM failure, but I doubt that any one can understand it’s effect fully.
    So I am not confident that stock investments are a good choice unless I follow you bear market approach that I am following by joining your milliion $ contrairan group, but I haven’t seen any gain by that approach to date and for now as I am retired I am drawing down my short term savings rather than drawing from my IRA’s and trying to ride this out and I am getting more nervous day by day.
    I am concerned that as the stock market goes up more and more the potential for a really fast drop to a new very low number is possible. This makes me very uncomfortable. The old addage that what goes up must come down seems to apply to more than the law of gravity.

  156. i have read your artical related to gm and america. that has provided lot of knowledge. thanks. money printing activitivity leading to higher inflation results in to higher commodity prices.i think golds appeal as safe heaven wiill increase significantly. thanks . do send me your reply

  157. Hi Martin
    The GM bankruptcy is one of the most clever manyvers yet. The Union was the biggtest winner, especially that GM can’t import any of their foreign brands. The biggest problem with all of this mess is the corporate legacy of GM itself. They have always done what they wanted to do, and the heck with the consumer. They know now that they will hereafter always have the govt. to support them with infusions and as such, do not have to worry further about insolvency. The way they handled the Hummer-Chinese matter is a good example. Obama will not step until he’s able to completely control everyone’s life in this coun try. We are now the United Socialist States of America. Investment wise, forget it, and run for the hills.
    R. L. Schanbarger., Gadsden, Al.

  158. In short, we need a “Federalist” type solution to the problem. Alexander Hamilton showed
    us how to do it. FDR ( who was really a Federalist at heart) also showed us how to do it.
    Democracy as we know it may need to end, and a return to a “quasi monarchist” State
    lead by the military may be necessary to maintain order during the transition. This is because
    Congress is too stupid and corrupt to get anything done. Our Nation is now in very grave
    danger because of this. Extreme measures will be required.The alternative is chaos!

  159. Cars from these now bankrupt companies will now be selling at bargain prices. This will pull from the others manufacturers sales for the next three to five years. If people aren’t buying from the healthy? manufactures how is the automotive industry going to survive, be it American or foreign and how will thisimpact the recovery?

  160. I live in Wichita, Kansas. We have had thousands of layoffs in the aircraft industry in the past few months (mainly producers of commercial aviation jets, although Boeing and Spirit Systems (builds parts of aircraft bodies for Boeing) are involved, also. The strangest thing is that when I go into a restaurant like Olive Garden here, the parking lot is almost full and business is good. I can name several other restaurants here that are doing very well (Cheddars). All of this leads me to believe that people here do not have any notion of what a real depression is (I am almost 81 and grew up during the depression. No doubt we are experiencing one of the severest recessions in memory and many people have lost a lot. Yet, I can remember in the 60’s when I worked for Boeing as an electrical engineer that Wichita seemed to suffer more than it is right now (“Last one to leave Wichita, turn out the lights”). Your prediction of a 5000 Dow is scary and I know the loss of all of these jobs in the U. S. has to have dire consequences. Yet, the American people are very vibrant and they will probably overcome somehow. I think the fact that people now have Social Security (as opposed to nothing during the depression) has a lot to do with the economy managing to survive). Being fortunate enough to have a little extra money to invest in riskier investments which produce income, I have been able to survive quite well (Have Penn West Energy Trust from Canada, Blackrock Debt Strategies, and Energy Transfer Partners, and GE for example). Yes, they are down a lot, but are still payin quite good dividends. Plus, I own farmland in Northwest Kansas and commodities have been paying good in the past year or so (Whest as high as $9.00 or $10.00 a bushel, etc.). I did get hurt on about $15,000.00 worth of Fannie Mae or Freddie Mac preferred stock, however (which you correctly predicted would go to practically nothing– I called my broker and he said he would sell it for me, but he did not recommend it–so I did not and suffered).

    I hope this gives you some insight in to how things are in Wichita. This recession has me mystified, because it is so unpredictable. I know we will pay with inflation, due to all of the govt debt, sooner or later.

    Don Elliott

  161. Bankruptcy and a rescheduling of debts is the only solution for the numerous States and the
    Federal Government. Payscales and benefits will have to be slashed significantly, the way FDR
    did it. The troops in the Mid East will have to be brought home and the wars ended.
    The US will have to stop borrowing Federal Reserve Notes from the private sector and start issuing “red label” interest free “US Notes” backed by Fort Knox gold, directly for infrastructure
    and “CCC” type jobs. Gold will have to be revalued to about $1000/oz and Fed Notes will have
    to be rebacked at least 20% by gold. Mortgage debt will have to be cut in half by fiat (ie an
    emergency presidential order). Managed deflation needs to be the order of the day!

  162. I am at my wits end, will it be run away inflation or deflation. How do i protect the assets i have worked over 50 years to accumulate? Help!!

  163. First, I’m very concerned about the American economy the collapse is only a matter of time and we will probably go into socialism. But the question is, will there be any better place to go.
    I look at the action being in Asia, primarily China and Latin America primarily Brazil where I have investments.
    Exceptions include Ford where I bought 2011 Leaps on Ford where I think we have a major turnaround happening before our eyes. I’m betting on Ford’s new CEO and believe we are seeing a real paradigm change. I’m somewhat familiar with what he did at Boeing. The only thing that might stop him is the UAW.
    I think the new Taurus that is coming out this July will start the turn. With the reduced competition from GM and Chrysler a lot of people will buy Ford just because it will be perceived to be the only American Car and these new cars will be the best cars Ford has ever built. However the UAW is a parasite they must deal with.
    I also bought long term Leaps on Qualcomm based on their break through on chip technology. This is a long term gamble but if it works like they think, it could be a massive advancement in the technology.
    My primary holding, over 50% is in Gold related equities. This is because of my concern about the American market. I think we are heading for hyper inflation; it’s just a matter of time. I’m looking for ways to deal with inflation.
    I’m prepared to move to inverse ETF’s if I see a collapse in the current rally.
    Based on the current education situation in the US I think we are on the way to being a banana republic. While American education if falling apart and we are having trouble even getting kids through high school, in China education exploding particularly in Science, Engineering and Business. They have students in nearly every major university in the world.
    Can you believe that in Korea the average wage was $289 per year in 1966 but they put their effort into education and it has gone from rags to riches. The US seems to be going in the opposite direction.
    Our only hope in maintaining the US technology lead is to get the well educated people from other countries, they won’t be home grown. It will take over a generation to correct what our education system has done to us if we made the necessary changes today. The future looks grim for the US.
    Fortunately I’m 72 and with any luck may not live to see the carnage.

  164. GM is in trouble because of stupid management. They failed to see that large vehicles that were gas guzzlers and poorly made would cause them to lose their share of the market to countries like Japan who wiselly shifted to moderate sized cars that were well built and outlasted american cars. Further , their policy of allowing the auto workers union to dictate their employee relationships was incredible. Hopefully they will learn by mistakes.

  165. I believe everyone better hunker down, save some cash at home and some gold and silver. I also believe because of local break ins and crime people are starting to do what they do when they get desperate. this is beyond the normal criminal.

    I believe your money is not going to stay very valuable for much longer, perhaps it will stay about 40% of value. I believe that making sure you can grow your own food even if you live in a condo. some is better than nothing. Our country is the roman empire and we are emploding because we have lost sight of God.

  166. Why do those “that have” feel the rules don’t apply to them, rules are for other people? Like many good American families, we have taught all 8 of our children, some are grown and some still at home, to be HONEST and to give that honest day’s work for the honest day’s pay. We don’t understand the prevelant practice of unearned and unmerited bonuses we have heard so much of lately. We don’t understand how someone being paid too much already to run these companies feel such entitlement to such bonuses after they have failed to perform. Did they not learn basic math? Perhaps they felt the basic rules of business and economics were for “other people” as well. It’s pretty sad when we see even our youngest child understand the simple concept of you don’t spend it if you don’t have it and that is exactly what has hurt the entire global economy. We don’t have millions of dollars, not even thousands just sitting around. Every little increase at the pump or store is just one more stress on our family budget. We offer our gratitude for my husband’s employment everyday and are doing everything within our power to get by and save for the rainy day, why can’t the business world?

  167. I subscribed to yours and your dad’s service around 1985 or 6 I believe it was.At that time the charge was 5000 dollars per year and the big prediction your dad made was
    that GM was going bankrupt.Indeed it did….This time around,everything you are saying makes total sense and what is going on is sheer folley of the worst kind but it is hard
    to know which way to jump.I fortunately cashed out of the market in june of 2007 much to my broker’s disgust and ridicule and have been in cash in Austsralian dollars
    since.Today I am looking pretty smart but how about tomorrow.My cd’s (at 8%) come
    due in august and the prevailing rate is now 3.5.Still thinking that keeping the money
    out of our soon to be worthless dollar is the correct approach.

  168. As a senior citizen who has saved money by living underneath our means and prepared for retirement in advance, I am appalled by the policies of both the Republicans and the Democrats. All they seem to do is meddle in everyone elses business, create more ridiculous legislation which favors special interests and debases our American standard of living with out of control spending of money which must be borrowed in increasingly large amounts. Meanwhile, seniors such as my wife and I, who depend on interest from our savings, are left in the lurch by ZIRP.
    I have little sympathy for the bureaucrats in government who seem to live only for their own power. Further, the tax code of this country cannot be considered to be fair in any sense when almost half of our population reportedly pays no income tax whtsoever and the government sends them a rebate check anyway. All of these ills are symptomatic of a once great country now in serious decline–and deservedly so.

  169. It does not look likely. The problem there is no balance in our governement now.
    It is all controlled by one party and one that loves to waste money. They are anti-business, so business owners and workers will start losing the initiative to continue to work. Similar to what happened in communist Russia.

  170. I think so too. However we have be more aware of the enviroment and global warming going forward.

  171. this goverment of ours is selling us out and has been for a long time obama is spending money like it growes on trees he give all this bail out money to the wrong pepole he should have not bailed out anybody and left them go broke they could have had pepole back working fixing roads andbridges and all sorts of things and they should have helped pepole with morgages so they could stay in their homes our goverment stinks and its getting worse as we go obama and the congress had better get on their knees and ask the lord for guidance before its to late because god will bring this nation to its knees

  172. I think that we need to puch the panic button when the U.S. Dollar Index drops below 70 (to 69.99 or lower). At that point I would be inclined to convert stocks, bonds and cash into commodities, like gold, silver, wheat, etc.

  173. Oh yes, we will survive and thrive eventually. Precious metals, green energy, & job creation & more insight in a balanced political environment may be helpful. Just wish I had a larger chunk going in to follow your Contrarian Portfolio. And may God Bless you Sir.

  174. Dear Sir,
    First I would like to thank you for your good work and for your courage to say things as they are even if it goes beyond public’s believe and specialist opinions.
    I do not have your knowledge in finance and economics, but I must admit that a lot of what your are saying is true as back at the end of the 80’s I was working in the financial domain and yes I have served as an instrument to the system that dictated our bible as to recommendations or strong suggestions to make to our clients in regards to their portfolio. This is the world I know and recognize your knowledge and straightforwardness by.
    All this being said, I would like to read your opinion about the Federal Reserve. Why does such an institute have so much power over the States and the World for a fact, while it is a private institution that is most certainly working in its own interest. What good can it bring to world economy besides serving, maybe under false pretexts, the good reason of being? Why is it, that most of the Countries have a debt based economy? Is it not illusive to believe that there is no remedies to that and keep dishing hard earned dollars to encourage such illusion?
    I am sure that I am not the only one that think the same and look forward to reading an article or two of your’s with the same integrity as you have always shown, if it is not threatening to you to do so.
    Again, congratulations to you and your teem for the good work.

  175. My fellow Americans, “WHAT THE HELL ARE YOU THINKING”? You blame the UAW. You blame GM mangement. You put all the blame but where it belongs. Answer me this, Why does it cost $25,000 to buy a Chevy Malibu here, but $50,000 in Japan? Why has GM paid $105,000,000,000 billion in healthcare the last 15 years. How much has Toyota Paid, or Honda and Nisson. How much Kia? HOW MUCH? GM pays and army 500,000 pensions here in the USA. How much does the Asians and Germans pay here? why did Ford and GM only export 10,000 vehicals into Korea and Japan last year but they imported 1.3 million here. Did you not pay attention to our trade deficits these last eight years? Was something said by anyone? YES, But it went unanswered. Both GM and the UAW beg for better leadership but it was not there. You do not like failure nor do I. BUT HELLS BELLS, DO NOT BLAME THE UAW AND GM OR CHRYSLER OR FORD. BLAME YOUR GOVERNMENT AND YOURSELVES FOR THIS IGNORANCE.

  176. I believe the best bet is to put money in Canadian and indonesian banks. In Canada you have two ways to make money one one interest and secondly on the appreciation of the canadian dollar. Indonesian the rate of return is great and the cost of living there is negligable I have lived there in the past. Gold a small portion of your money in it but not now it is to expensive. I have been in real estate but got out of it completely in 2007. Collectables like paintings, coins, and stamps too are all-right but as bit risky. Investing in central america laand e.g. Costa Rica may be all-right to buy a retirement home that is all. The sit back and enjoy what will be will be.

  177. I think that the country will survive but we may not be the domanint world power that we are today. energy, fuel(oil), food , fertilizer(to grow food), and comodities like gold are going to go up in value. This will probbly happen in the next few years.I am concerned that the goverment is going to eventually bankrupt the country.The goverment will attempt to hide this from the people for as long as they can.

  178. Dear Mr. Weiss,

    Thank you for the information you have been sending me. I wish I had the funds to invest in your contrarian fund. Ten years ago I had a thriving business exporting live seafood to Japan. Annual sales were almost 5 million in a six month term. But I listened to George Gilder and his Gilder Technology Report via Forbes Magazine and I lost a bundle
    on the stocks he touted. Then I lost my Japanese live market to Russian competitors and
    today I have an accounts receivable problem that may put me under for good. I have an annuity at the Hartford that is not FDIC insured and I am nervous about their
    condition. I notice they are not named on your list of troubled insurance companies
    but I know they have exposure to credit default swaps and despite a painful early withdrawal penalty I am thinking of an early liquidation. Any advice would be greatly appreciated. I saw you on Glenn Beck yesterday. He did a terrible job of managing the conversation.

  179. I completely agree with Rick with one exception. I believe we are on the eve of the fall of America as we have known it to be, Financially we are no longer the world’s leader
    and the Dollar is becoming undesirable as a security blanket for invesment. The rest of the world wants another form of monetary security such as the Euro or SDR’s. This situation brings a past empire to mind, it was called the Roman Empire – everyone having vast amts. of debt and living a life style no one could afford.

    I firmly do not believe in wall street and am no longer invested in stocks or bonds.
    I have gone back to the basics of saving and $OOO.OO debt. The amazing things is, it feels great to be free of encumbrance and not losing anything as I watch the markets I was once in, drop like a stone… Like Masada – never again…

  180. Sir:
    I was in Detroit for severel years and the GM accounts for all Divisions of GM except Oldsmobile were my accounts. I started the Flint SS for GE and watched the unions ruin the different plants. I drove GM cars because they were the ones provided in my job, but when I retired never rowned one again because of the roblems in constant repair over the years. Luck does not solve their problems. Hard work is in order.
    Fred Sallade’

  181. back when the off shore cars started taking over the market and it took years for them to try to make cars as good (Quality wise) which last year finaly started to happen they were the least efficent in the more bad year in sales has destroyed them.
    no adjustments were made to reduce cost in a serious manner. if you don’t do the business as well and hopefully better, you are going to go out of business. even when you can sell stock and raise cash. without offering any security to the suckers (er sorry) stock holders.
    regards richard

  182. Dear Martin: I’m a 69 years old retiree that REGRETFULLY trusted GM corporation and putted
    a big chunk of my life-savings in GM bonds. That happened five years ago and I wasn’t lucky
    enough to read your prediction in 2005 that GM will go bankrupt !!!!!!!!!!!!!!!!
    Now is too late to cry over the big mistake I did in trusting not only GM Corporation but the
    whole American government and institutions !!!!!!
    The way GM in connivence with the Obama administration are ruining, destroying, demolishing
    LIQUIDATING , the life savings of hundred thousands american citizens to favor the UAW is
    It’s clear for this Obama administration that the UAW HAVE A PRIVILEGE THAT THE
    The unjust, harsh treatment of the GM bondholders by this administration is more typical of
    a communist regime or a fascist regime !!!!!!!Not a truly democratic government, not a truly
    Constitutional government….The GM private bondholder had no say at all in the restructuring
    plans of GM that favored the UAW and the Treasury !!!! In place of liquidating GM that expanded TREMENDOUSLY in China, Latinamerica, Germany, Korea , etc, etc, etc, with the
    BONDHOLDERS MONIES……..GM and the Obama administration is LIQUIDATING THE AMERICAN
    BONHOLDERS !!!!!!!! This is the ” CHANGE ” promised by Obama during the presidential
    election campaign ??????????
    The real change ocurring now are that The Bill of Rights, Equality under the Law, Fairness,
    Justice, Democracy…….are upside-down !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1111

  183. Hi Guy’s

    I have been reading with great interest over the last number of months your newsletters and wishing that you might be wrong on how bad things are but last week i heard on the Irish Radio that GM had gone and remembered reading your warning on this very thing.
    I hope to god you do get through this

  184. As a younger investor starting today, I believe that you have to weigh the good with the bad. I also have to look at some of these posts, such as a couple above me, spelling out the doom of capitalism. To me is rather comical, because what got us in this mess is a continued move away from capitalism or a market economy to begin with. The markets today that a move us back in the direction of a market economy. This is most evident

    As far as dollar devaluations, to the elder investor this would spell disaster, such as my own parents who refuse to listen to reason, and are holding investments as taught in the past because it brought them prosperity only to see it crash before their eyes in the time they would be counting on such investments in retirement and the golden years. To the younger investor you can see a long term growth prospect as a cheaper currency will force America into producing what it consumes. While the short term is dire, the long term looks better.

    I don’t think that there can be any other investment plan out there that makes more sense in the short term as brought my Dr. Wiess. I personally have the belief that short funds and commodity based stocks and funds are the way to make and hold are way through this.

    My only advice is to keep your hands in the car during the duration of the ride.

  185. I believe America’s citizens are in for a really tough time over the next few years. I expect that inflation in this country will hit unprecedented levels. Let’s face it the Chinese hold the cards. This is why they are beginning to buy up commodities(copper, gold, etc…). I read an article not long ago by Byron King about the Chinese, already having a 95% stake in rare earth metals, and buying a majority stake in the last independent miner of those metals (an Aussie company called Lynas (may be misspelled)). It was interesting to note that these metals are used in TVs, Computers, and guided missile systems. Does this mean no more smart bombs without Chinese approval? Ooops! Scary stuff!!!! Just think if America doesn’t dance correctly the Chinese coupled with North Korea could be trouble.
    I expect we will see massive inflation. My guess the next big bubble may be agriculture. It may be the best place to be. Let’s face it the Chinese still have to eat; Their ag production capabilities, from what I understand, fall far short of feeding themselves. This is, as far as I can tell, America’s only strong card.

  186. I think gold and silver will continue inch up. I need to set up a income stream. I hope as the interest rates continue to go up, you will let us know how to take advantage so we can lock in some good rates for a considerable time span.
    Thanks for your help thus far.

  187. Dear Martin
    I have read your column’s with interest over the past few years. As a south African i spent 35 years in the investment business in NY London and largely Toronto. My first bond trade was done the day Herstadt fell in the mid 70’s and inflation was flying. Managing a bond desk in 1980 was I believe a wonderful training for what we are about to witness in the North American markets and likely those of Europe as well. Stagflation was the name of the day, Money Supply numbers were all important and the bond market was surprisingly liquid given the bond losses being wracked up by investors.
    I am now a consultant located in lagos Nigeria and maybe from afar it is interesting to see the reactive policy stances of the “developed economies”. Clearly nobody in power was listening to the Robert Schilller’s of the world who were screaming from the rooftops that the Refi and mortgage mess could only end in tears.
    My investment choices are:
    Long gold and gold related stocks, find small caps in Canada, US or Soutrh America
    Long Oil and Oil services. Buy the Canadian Dollar and invest in oil plays there
    Long Arternative energy plays, particularly those firms that are already established and can move quickly as oil breaks first the $100 barrier and then the $150 and stays there. Nigerian Govt bonds yielding 10%+ might be interesting for the adventurous as the $/Naira will move again up to the 110 level
    Africa is a good lonfg term play if one is careful about corruption and its influences
    Sell The S&P 500
    Sell Lonfg US Treasuries and Sell Long UK Gilts

    Hope this is of use


    malcolm Gilroy

  188. I sent you a letter yesterday, but did not receive your comments or advice.

    Currencies……my passion is currencies. Personally, I am a dollar bull. I shall await your comments if i should hold this view or change…..if to change, please advise on the currency pair or pairs you would advocate.


  189. I think it is tragic that GM survived so many catatrophies and was not able to survive six months of this current administration. I will personally never buy a car made by “Government Motors” or anything the government offers for sale. I would rather drive my used junkers or do without. For the first time in my life I feel very depressed about our future as a country and cannot believe people in this country are so numb to reality that they cannot see what is coming.

  190. We will survive, by the tooth and nail. We will have to see more people suffer before it happens.
    We are on the cusp of THE GREAT Depression.

  191. Martin,

    My comments are limited to the GM thing.

    In the 1960s I worked for GM for five years, first on various assembly lines as a union member (now you know where this is going) and then as a salaried member of (low end) management (personnel department).

    During that time I privately criticized the company for its many concessions to the union (IUE) mostly due to (in my opinion) a great economy and a management reluctant or unable (due to weakness) stand up to the unions and their ever-increasing demands. I believe they thought things would go on forever, giving more and more to the union, mortgaging the future by agreeing to extend health care and pensions without considering competion or hard times. The union folks knew that, even if they had obtained everything the workers needed, they were obligated to seek more and more with each contract, lest the workers feel a gap in representation, and vote them out (sounds like Washington, doesn’t it).

    Now GM and Chrysler (but why not Ford?!) are unable to weather the current storm. Why not, it was only on for a year when both collapsed? The reason was years of financial abuse (not George Bush, as the current mantra of the left would have us believe).

    Back in those years (60s, 70s), the unions were not even forced to attack each of the “Big Three” individually. The UAW merely picked a “target” company, threatened their strikes and slowdowns, arrived at yet another coup for their members, and the results were given to the other two car companies who simply fell into lockstep with the target company.

    Now we are in a situation with a commander in chief who is in concert with the unions, probably owes them, and who has done outrageous things to a once-proud industry (e.g. firing a GM CEO, unheard of and considered impossible right up until the moment it actually happened).

    The unions did not destroy the American auto industry single-handedly. Management was asleep at the switch. Starting with Henry Ford (“give ‘em any color they want, as long as it’s black”), American car companies have been arrogant, bringing out new models only distinguished from the prior year model by the amount and placement of chrome, fins, or other $10 items. The stockholders certainly played roles, as usual, by demanding larger profits, dividends, and the “current balance sheet” mentality. Attention to ergonomics (look up that word, Detroit) were not invented by the Japanese or Germans, but they both made much money from the concept here in America, all as Detroit continued to turn out clunkers.

    Unions were once needed to curb abuses by greedy managers and company owners, there is no doubt. But their real contribution to the success of the American people, both workers and consumers, ended long ago, their contribution ended, but the unions didn’t. Now it appears they are coming into a new age of control, one that certainly will last until there is a change in government in Washington.

  192. I am an insurance broker in the Western Catskills of NYS.

    There has been a steady decline in the economy here for the last 50 years due to the manipulations by New York City – we’re in the watershed.

    I know and have seen poverty and what it can do socio-economically.

    The way out of our situation in the US and the world is not to concentrate on assets and wealth but on dreams, new ideas, innovation, sales, cashflows. And, cashflows will be derived from what people use everyday – food, clothing, shelter, repair of machinery…

    The USD will probably will do no worse than most of the world currencies. But expect a 30 to 50% rate of annual inflation as a guess. It is important to assure a food supply as well as all the essentials as one would in the country in the 1840’s.

    New opportunities will develop and lifestyle changes are in the wind. Expect the sunspot activity and energy and magnetism drop in the sun – most pronounced in the last cycle in 2005 to lead to colder weather – mini ice age, food shortages, famine, pantemic/epidemic, social disruptions and war. The last time that the solar clock was reset was 1928, but we really need to look back 500 years, possibly 2000.

    My home heating fuel of choice is wood – I won’t pay for cap and trade. :-)

    I’m working on some forgotten ideas for electricity and will need government clearance, then marketing.

    There are alternative fuel firms waiting in the wings – funding not needed, only acceptance and efforts.

    There are new technology manufacturing firms – locally that need start up money now but can’t find the funding anywhere.

    We have enormous energy resources that are out of reach by design.

    And, I’d like to know who the leaders of the new world order are. I was born in 1948, so the concept of one world government, one currrency, no second amendment … are alien to me.

    The current trend line spells the demise of the cities.

    Looking back over my educational experiences (HS,BA,American Institute’s CPCU, American College, NALU, Finance) and too many years in insurance – The one 10 cr hr course that stands out from the rest is World Civilization. We are at the beginning of a new chapter.

    It’s all about our resources, not money. Money for commerce, yes – back to basics.

    Did I answer your question?

    John Nichols
    Reference: Marquis; Strathmore, etc.

  193. What we have is a capitalistic society with socialistic tendencys where we are becomming more and more dependent upon local, state and federal goverment and their agencys to do for US what we should be doing for ourselves. What we had was a whole lot of credit with very little equity and the assets where way over valued.
    The only way out of this mess I can see may be via ITC ( Investment Tax Credits ) to stimulate investment back into this country. Thank you for everything you are doing and God help US. We are going to need it.

    John E. Hagan
    [ ]

  194. To anyone out there who are worried about fidelity’s exhorbitant brokerrage fees eating up your meager 10k fund imitating Dr Weiss’ 1 miilion $ contrarian portfolio, sogotrade’s $3 per trade offer sounds like a much better deal. I tried it and loved it. Lots of immediately available info about the stock you want to buy BEFORE you hit the “order” button.

  195. hi all
    i have been reading all your coments and realise that there is a lot of bitterness out there in the hearts of men. people are over worked and under paid, they are loosing all their savings to keep up bills. I being one of them, I dont know much about savings, i will like to learn, but twice i put my money with brokers and i ended up with nothing, so i am a bit sceptical about investment until i understand it fully.

    However, as i was saying before, these things have been written to happen if you read the book of Revelation chapter 8. You will find your answers there.

    I am not saying dont save, but you need to know that without CHRIST on the scene, it is all a waste and yes America needs to wake up just as United Kingdom and every other country that used to put GOD first and now think they know it all and dont need HIM anymore. this is a wake up call for the whole entire world not just america and i believe that if we can just come HIM with a humble heart, we will find that it is not all lost.

    So in conclusion, i will encourage that those amongst you that are christians should start taking the place of authority and let GOD reign

    Ayo london

    ps, if there is any one on one training or simpler way you can help me understand the trading world please feel free to contact me

  196. big trouble, this government is killing small businesses, quality of real life, our dollar, seems they are totally out of control. They even passed a law in 2008, if your leaving with your $$, then you have to pay upfront this governments 50% tax . Lets face it, they will do what ever they want to do, seems there is nothing wwe can do EXCEPT ALL march onto our states capitals and washington DC all on the same day, do a we are not taking this any more, stop working, paying taxes, etc, that is REALITY on how to stop this insanity Ok, BUT how many of us are willing to do that, I ask them on tax day, what do you have, a mortaged home, auto, false secure money? they just look bewildered. We have to get organized and mean what we say and represent, telling these insane leaders of our economic life to hit the road, probally it’s time for another revolution Ok. Revolutions are not bad, they come along about every 200 years to level out the playinfg field again, called taking our country back again. PROBLEM is big brother is watching everything , survallience every where, tvs, cell phones, fincen computor data on every individual, I also heard troops comming back from over seas are in ft benning georgia, getting retrained, guess for what?? CROWD CONTROL. Very scary times indeed so unless we the people tajke a bold step how can this insane machine be turned off or in thhe right direction which is not GREEDY people looking to line their pockets no matter what, what do you say about this??

  197. Good Morning Martin,

    Thank you for all of your great advise. My wife and I have all of our retirement money in index annuities. The company is North American Life Insurance Company and several other Ins. companies.

    These annuities grarantee 8% growth until we take the money out to live on. At 70 we can take 6% for the rest of our life. The company is A + rated by AM Best. I’m thinking that this is a safe investment which will guarantee our investment will double in the next ten years.

    Do you know of a safer investment that will yeild 8% growth for my retirement dollars and guarantee me 6% income for the rest of my life. I’m looking forwrd to your response. Sincerely Chuck Holman

  198. GM and the auto companies lobbied themselves into extinction. Their will be more to follow and they deserve the disaster they created for themselves and the country. Until usury is repealed and the financial sector money changers, which only produces paper products, lose their preeminence in the American society these disasters will continue unimpeded because the the CORPORATE WELFARE KINGS will be bailed out with taxpayer dollars. This is COMPULSORY CAPITALISM, Fascism, and is totalitarian as Sovietism and is in fact Fascism. This is also the end of economic freedom in the USA. The CORPORATE WELFARE KINGS ARE THE beneficiaries of this COMPULSORY CAPITALISM. Capital markets are needed, as imperfect and corrupt as they are, because they provide decentralization and channel capital resources to those segments of society which benefit the with society. To be functional, capital market investment decisions must be made by those parties who have decided to invest in the capital markets as they see fit and are responsible for their decisions. People may not want to invest in capital markets because of their corruption or averse to risk. Government making decisions using taxpayers funds eliminates responsibility and financial freedom and is totalitarian as defined by Franklin Roosevelt in 1938.

  199. Dear Martin,

    You missed the big rally since March. Which may only be a bear market rally but it is still a rally. You should read Kyle Bass of Hayman Capital April Investment letter. It sounds some dire notes. But yet he is strong on Gold and US Dollar, because the other world economies (Western Europe for example) are much more highly leveraged than the USA. We are witnessing a time of global transformation. Capitalism as we know it is dying. It is going to be replaced, by a monetary and fiscal system that is more realistic, less greedy, and more compassionate. The days of fiat currency’s are over. But the USA is still going to come out ok. India and some parts of Asia are going to be ok.—All the best and may the world be blessed with prosperity and peace. Because the reality is nature is full of abundance.

  200. The America I grew up in is over with. The very idea to give the RICH so much free money. it is criminal. They are still in the big homes. Lot’s of money in the bank. One banker lives 3 doors away. Got only 1/2 of his $5,000,000 so called bones. while I am trying to keep my home and pay his fat income. In the beginning of this great country the criminals on Wall Street would be in jail or hanged. When we refuse to follow the original constitution we are doom. The volcano two years ago destroyed by farm. in Hawaii, 50 years of my life was gone. Heck the insurance did not cover me. but AIG and the big shots got Billions. Yet for many years they collected my insurance payments. “Oh it did not cover acts of God” Washington could not wait to give AIG billions. and to stick it up our butt. gave each other bonese for a job well done. Screwed the government and tax payers out of billions. Yes, the job was well done. There are not any honest men or women left in Washington D C as well as very few reporters….. any thing for a buck… telling state secrets . the emeny of our country don’t need spies.. just watch the local news. These same people laugh at Heavenly Father (God) well friends who will get the last laugh. No, our wonderful country will not make it. maybe my great great grand kids might be able to get it back… as an old saying “Let me control the currency of a nation I could care less who makes the laws” how very true it is now. The banker, brokers and elected officials have stolen more money in a year than all the robbers in history put together. I am glad I am 84 and not have to see the finial fall. I regret each day when I wake up. Don’t worry I will not cost the tax payers any money or the insurance company. I no longer can afford my insurance…

  201. The America most people know is vanishing before our very eyes. Between the massive debt and the destruction of the US dollar, the course is set in a similar manner as the Titanics course was set after it rammed the iceberg. People tend to remain optomistic long past the point of reason and then when their optomism finally breaks, it takes generations to restore the faith and trust. The Federal Reserve and Poliltical dictators of America have smashed into dust the faith. History tells the same tale about every civilization that has tried the path America is on. IT is DOOMED to FAIL! I do not plan for a recovery, but survival of the pending destruction.

  202. The trouble of today did not start last week,month or year !, it’s been going on for 30 years and more. GM and the rest of the Auto makers turn a blind eye, 80% of the money was made from the avg.person. Ford started making cars, the avg person could afford – the trouble is the “what if factor ” was blinded by GREED and dumbest to put it nicely. One problem we have is credit cards,when people lost the fell for money – “easy money” NOT SO EASY !!! LOANS “NOT SO EASY, LOST OF RIGHT OFFS, THE DOLLAR BUYS LESS. Not to mention the lost of farms, and businesses that are and have been for over 45 years – move off shore to other countrys – all for the BUCK and less control of “how things are made”. In short people like Milken, Madoff and people that just think others are “low lifes” and firms alouded to sell ” THE KINGS COTHES” ( not real) are the ones that have put a hole in the ship – no repect for how a young country became the best – and still is the best for the worst for all the Dumbest over the past. The money is not in Wall St. – it’s in the street and farms in the factorys in the people 3,000 mile for the street – without the farm products WALL ST. would have nothing to sell .
    Most of all that is told to us is INVEST for TOMORROW !!! todays young is tomorrows future, we have Planes, Trains and Auto -mo – blis, we need to remove the bad apples so that they don’t get TO THE MARKET . Other wise we will have to change the sign over the courts to IN GOD WE TRUST – ALL OTHERS PAY CASH.

  203. It is time to batten down the hatches “tightly”, and hold on. The US will recover to some degree and will be more or less equal to some of our neighbours. Those which have been subjected by the US will find an equal base and be more competive than the US. There are too many voters in the land of La – La, and too lazy to read and study their Voter Informational guide. The US has fallen into a false economy and has ignored marality. When people start returning to their church is when the economy will return to normalcy.

    Another war is just another false economy. WAKE UP AMERICA ; THE PARTY IS OVER ; IT’S TIME TO GET SOBER

  204. We will make it through. The price to pass through is heavy and painful. My advice is to listen to Dr. Weiss; yet listen to others too . As a pro portfolio mgr I did, and my portfolio was down 8 % last year and up 38 % this year. I did not lose much last year because of Dr Weiss, and I made a lot this year because of others. I will give all you one advice …… read the very first comment by Chaloke from Bangkok . Also, I do feel this bounce is just a bull rally in a bear market… so it is getting very near to taking profits.

  205. What do I think of all this? The rise and fall of empires happens all throughout history.
    We are no exception to the law of gravity, except most Americans have been snoozing
    while the man behind the curtain (the new world order) has moved in, taken our Country,
    our liberty, our freedom, our independence and now they have taken our money too.
    I will not be surprised when we all wake up one morning and there will be a new world currency to replace the dollar, a new North American Union (the reason why our borders have been so pourous forever) and six billion people will be the puppets that we are to a massive “one world Government” just as it was planned so long ago. Crazy you say? I never dreamed it could happen, but look at the breakneck speed at which “the Obama deception” has been moving.

  206. Yes, we can survivie and we will! We need to get off foreign oil, get the immigration under control, repel the 14th amendment to grant automatic citizenship rights to non-citizens and limit foreign investments in America. All other countries do this this as a matter of course. Until rights are completely recipicatl we should not extend citizen rights to non-citizens. Do not concern ourselves with what the world thinks but do what is best for the US. Promote America, buy American and tax foreighn products like they do our products. Tell China/Korea/Ira/Europe to piss off and nuc Afghanistan if the Muslims terrorists get control of the government. Reduce ties with Israel and go back toa gold standard. We still control the world economy lets start flexing our might!

  207. Hi everyone,

    I am not American; I am British, however I live not in the UK but in Europe – and just like you, I have to listen to people telling me that my country is finished on a daily basis, they tell me the UK depended too heavily on financial services, it did not protect its manufactuing base and so it is bankrupt and to cap it all we have a massive scandal regarding our parliamentarians fiddling their expenses. Perhaps you have that still to come, I sincerley hope not – So how do I respond to my fellow Europeans who feel we have been rightly brought down to earth with a big bump & how should you respond?

    Well the first thing is that you are America, that is where you come from. Things may change but the land, the people and the country are not going anywhere – you have had this & more through out your history and each time you emerged stronger. As a nation you have faced much more than a few greedy and socially irresponsible individuals trying to undermine your way of life, you will come out of this a stronger, leaner and more advanced country in the long run. There is no doubt about that from my perspective. There may even be an argument that your needed this to modernise your infra structure and stay ahead of the competition – But and there is always a but, you need a vision, you also need strong leadership, clear thinking and the will to do what needs to be done, painfull though it may be.

    I am not sure that your current leaders are able to provide that, they are inexperienced and as yet untried – but there is another constant and largely untapped resource that can provide all of those things; the people. They are the ones who are suffering the financial loss, whose pensions and savings have been undermined, whose jobs are on the line or gone, whose homes may be repossesed and whose future is uncertain. They now have a clear choice, they can sit back and let it all happen or they can excercise the true meaning of democracy by demanding accountablity and leadership from their leaders. Not as a mob but as a democratic process; strong, determined and focussed upon clear objectives. Its time to get it all out in the open, to really understand the size of the problem, save what can be saved, rebuild the infra structure and set things right.

    The first thing to do must be to stabilise the systems, the second must be to determine the short term course required to avoid any further wrecks and the 3rd must be to use the country’s natural resources to repair the damage before finally setting America back on a steady course. There is no other way to do it, correctly organised, the drive, the direction and the practical solution must come from the people; it will be the American people who clear up this mess, not their politicians or the bankers.

    There was nothing wrong with the original plan (free market, capital based society), but with so many players and such a complex and diverse system the rules have to be both understood & observed by everyone, and above all sensible state regulation must be in place to monitor the game and stop cheating or manipulation that will unfairly or wrongly disrupt the structure.

    When the Banks started to fail, some said let them go to the wall they are the same as any other business, while others said no they are the corner stone of our society and they must be preserved at all costs. The 1st option of cutting free the dead weight would have been quick and very painful with some considerable collateral damage at the time but it would have been over sooner while the 2nd option of a slower controlled crash landing still had the potential end result of hitting the ground at some time in the future, some said it has simply delayed the inevitable. Lets face it neither one was a very popular choice but a choice was made and America opted for the slow controlled crash landing. You must forget now that the money pumped into saving the banks and keeping them on board could have created up to 10 healthy financially robust banks, fuelled your economy and set in motion the mechanism for recovery, and all within the rules of a free market economy. That opportunity has passed, the 2nd option can achieve the same result, so look to the future it is what you do next that will make the difference. I am certain that you will continue with the American dream and build a better future

    And what do I say to the UK’s critics? well they are correct in what they say in the short term but the truth is that we will survive this crisis, with our institutions, and our systems if we do what I am advocating that America does. As for myself – I did not rely on my governement or my bankers, I make my own pension and I guard my wealth in a very conservative way. I have made some money on the “bear market rally” and we shall see if Dr Weiss is correct about it falling further, I suspect he is right – but the tea party idea was the best thing to do – but it did not go far enough, do it again but on a bigger scale and address all the issues. Let the politicians know that there will be a day of reckoning and don’t forget the strength of America is its Entrepreneurial spirit, its can do attitude and its desire to succeed.

    There is also change coming in the UK, you have just had your elections and you have elected your leader – we will have our elections very soon and then I will have my say.

    Good luck to you all and may you have every success for the future.

  208. Hi I do agree with Anastaia Weaver,William Weaver,Joe Pastorek,Cecil T Richardson,Bill Nickerson.My Father Was A Sailor too!He used to tellMOM when they were in the STORM all they had isFaith in the Almight.I say lisen to good advice and we will get through.You have to try not die.Even if the Market is down it will go up. What goes up it will come down.But when it is down and is in the GRAVE WE THINK OF A RESURECTION. It is Jackop`s Trouble But The LORD IS IN CONTROL and HE siad that HE WILL GET US OUT OF IT!HAVE A GOOD DAY! LOVE to all of AMERICA AND GOD BESS ALL AMERICA! J.G.S.B.

  209. Martin you asked where I believe there is money to be made in the near future. I believe it is in short term technical based trading strategies by following the best in the business. Currencies are probably one area where there are opportunities. I feel the medium term investing is not a runner at the moment as the markets are trading on momentum and not based on fundementals. In fact they seem to be trading in the opposite direction to fundamentals and sanity. Therefore medium term investing is dangerous at the moment as you could find yourself 50% offside before things start coming your way. Things are scary at the minute, but these lunatics could succeed in convincing the market that everything is rosy for quite a while yet!


  211. As a “former residential builder” in Michigan and having homes in both Mi and FL, I saw this train wreck coming at least 8 years ago…when everyone was buying mini-mansions on adjustable rate mortgages….people spent like their was no tomorrow…I warned everyone I could..of course, people thought I was nuts….it is no surprise that when Obama became President, he warned of Depression “unless we approved his stimulus” and as soon as it passed “we were in recovery”. Wall street wants us to believe in green shoots but with the help of the phony tarp and the knowledge that the taxpayers would not fall for that one again….bank stocks, all of a sudden, soared (so the banks could re-capitalize themselves by their rising stock prices)…of, course, no one wants to see the elephant in the room…the toxic assets they are hiding that will be growing each day as the prime mortgages start to go bad due to fallen home values….then, will see how really bankrupt the banks and this country really are..and credit card and commercial defaults are just starting to give them the final knock out punch.

  212. And with all that said we are living in denial. “Money managers” and “CFA’s” recommend staying in the market in their own self interests. The market has “enjoyed” a technical rally that still continues against all fundamental logic. My sense is that, just as we saw last year, the final result of the current run (bubble?) will be even greater pain. We are on the verge of a collapse.

  213. Dear Martin,

    I lost most of the money that I had invested before I came to know of your group.
    What little I have left, I plan to buy gold stock. I do not think that we are out of
    the woods, I think that we are only beginning this dark decline of America into the
    worst depression one can think of.


    Psalm 34: 3 & 10

  214. Hello Martin and to all your team. I am sitting here in London, England, eating my lunch and reading your sensible and practical observations about the US economy. What is applicable to the US is, I am sure, also true about the UK. It is hard to see how all this will end up. Today is my 70th birthday and I have become a very conservative investor. Our houshold has no significant debt, some assets, mainly in the shape of our house and some cash in the bank. I have started to ‘dabble’ (as we say here in England!) in the stock market, but only in UK blue chip companies with no debt (at the moment!) and a good dividend record. I subscribe to Stephen Bland’s monthy HYP (high interest portfolio) letter with a monthly recommendation. He is a London-based financial analyst and I find his views and recommendations perfectly suited to my situation. If I was living in the US I am sure that I would subscribe to yours!

    Keep up the good work, I am sure that eventually we will get out of this mess, but it is hard to see it happening any time soon.

    best regards
    David Little

  215. Dear Martin,

    What money I have left to invest will go into gold stock.

    Thank you for all that you do for your people.


  216. Dear Martin, It is a bit foolish to go against the markets, No ? As of today most of the world markets are rising (Brazil especially) . I know we are both right. you are right to be short long term, at least I believe it, because of the kiss of death of rising interest rates on treasuries (The Fed has no power at all on this market) I know I am right to play temporarily the markets, even the US markets, on the long side. But I still see a big inflation surge coming and commodities prices on the rise. I am very long Gold and Silver Metals and Gold shares too. I am long (OIL) and am long (TBT) Inversed Treasuries. I am short the US Dollar, because China is now making SWAP agreements, the last one with Argentina and this is very important because for their trades they do not use the USD anymore. China is trying to protect their USD and they are now increasing their Gold reserves. How can the USA compete with stupid unions that only know to ask and ask. Your unions in the US have gone blind. The same Unions (UAW and others) that were to protect the workers are now destroying them. I feel that America has gone way over the line believing that it could do anything it wanted financially, because of its military power, because the USD is the World currency. Now you in the US have a real problem of credibility and if there is no credibility there is no confidence and confidence is the primary engine for business. I am really sorry not only for America, but for Europe too. How do you expect people to save money if this money is like sand in hand ? It is as if these governments would incite people not to save ! America is not anymore the land of the free. America has as Europe, too many (Fonctionnaires in French) officials. In the ancient Greece if I remember well taxes never surpassed 10% and the fonctionnaires were very restricted. ALL THIS MONEY IS A LIE !
    WALL-STREET is the Biggest Casino in the world. Even the word Investor makes me smile ! Aren’t we after all all Specualtors ????? Good luck in your shorts Martin, but as a speculator I need my flexibility and am long the markets now unti July. Best to you.

  217. As a small business man for 36 years, seeing good times and bad, I have come to this conclusion in life:
    I agree with the Bible, 2 Chronicles 7:14 if my people who are called by my name will humble themselves and pray and seek my face and turn from their wicked ways, I will hear from Heaven and will forgive their sins and heal their land.
    I think the same God who has delivered us thru all the past bad times you mentioned, will save our land again, Amen.

    America has a very important purpose on this earth and if we allow God to use us, he will, if not their are others he will use.

  218. Well given a couple of years I could have driven your economy out of the worst of its disaster, just some.
    1 Democracy is a serial dictatatorship Obama, for the American people should not look to the next election but act now. He has lost the next election even now, it is no sacrifice to do what is best.
    I think keep one of each, one bank, one automaker.
    The failing loans either buy them, the house or push the interest rates down to serviceable rates.
    The freed up money will largely disappear I expect, but thats what it is doing anyway!

    The losses would be less, the currency probably stronger and if it is housing the state can even own some of that.

    The free market is a farce and should be free of most of the current drivers.

    I am happy to help Mr. President.

  219. Hi Martin,Thank you for your very thorough research which has been of great help.However I dont agree that the dollar will collapse.The recent strength in stock and commodity markets has gone hand in hand with a much weaker dollar.I feel that once the dollar starts strengthening,the markets will resume their downward path and take out march lows.Many press articles are writing about the dangers of inflation but whilst credit is contracting there can only be 1 outcome.Deflation!Keep up the good work.Regards Willem

  220. Good Morning From Central Ohio,
    Absolutely LOVE your column and your great array of team mates. We are a 70 year old couple, “retired” from owning retail clothing stores for 20 years now. After selling our stores, I could not get a job in this field although I had 30 years of great well known success. I invested in a “start up” restaurant where I did everything but cook, and we were successful. After selling this to my partner, I became a sometimes Maitre de, oftentimes waiter, a job I still work at today.
    We realized shortly after selling our business that our lifestyle must change, and we adapted to a totally “debt free” life which we maintain today. Our two daughters and their husbands have followed this approach and are fabulously successful.
    I have felt for the past 15 years, since the rejection by Republicans of the 1994 “contract with America” , that America was headed into socialism, and a massive division of classes. In my restaurant work I am surrounded by 90% co-workers who have absolutely no life skills, knowledge of anything other than cell phones and American Idol, and no plan at all except government as their support system. Our public education system has failed, obesity is rampant, and now I am still paying taxes and social security to support the ignorant. Our country is in a death spiral because there is absolutely no Self Responsibility required of this now over 50% dependent class, and I cannot see any hope coming.
    Your insights are very helpful in my financial and moral decision making. Michael Manley- Granville, Ohio

  221. Gold, Ag Commodities, staple retail, and companies that meet everyday needs in a struggling economy, as well as inverse ETF’s, would be my direction for survival.

  222. Gold, Ag Commodities, staple retail, companies that meet everyday needs in a struggling economy, inverse ETF’s.

  223. Christians call this the end time, Buddhist something else and Mayans said 2012 was an important cycle change.
    I think we will have a different economy in the future. Some kind of climate economy. Less competition and more cooperation i guess.

  224. With interest rates going up, I assume that people like myself (retired), with most of our investment funds in short term treasuries, will benefit from higher returns on notes and bonds? Perhaps enough to keep up with inflation?

  225. I don’t think I’m alone in seeing startling similarities between what is going on in Washington today and what went on in Berlin 1920-1924 or thereabouts. Inflation became so bad in Germany that retailers would not accept Marks. Employees were paid twice a day becasue of the changes in inflation dailly. Our pain, however, is limited by our life span. The nation does not haver such a luxery!

  226. Attached is my letter to President Obama.

    May 24, 2009

    President of the United States
    1600 Pennsylvania Ave.
    Washington D.C. 20500

    Dear President Obama,

    With so many people writing you, I realize there is little chance of you reading this, but since the economic and financial situation is so grave I going to try anyway.

    I hope that what I say will change your perspective and focus. Since we are a government of, by and for the people, if you fix the people, the people will fix everything else. So rather than focusing on big intuitions, focus on the people. Allow homeowners with a mortgage, home loan or land contract, to apply to the treasury for funds to reduce their debt. The treasury would send them a card, similar to a gift card you purchase at retailers or the grocery store, encoded with the name of the mortgage, contract holder or debt holder and 25% of the principal amount owed. The homeowner would take the card to the debt holder to reduce their debt. The debt holder would have to forgive any unpaid interest, late fees, penalties and the like and amend the loan, reducing the principal by 25% and the interest to 3%, adjust the payment for the remaining period of the loan. Anyone that lost their home thru foreclosure would be permitted to apply for a card in the amount of 25% of the principal owed at the time of the foreclosure. The card could be used as a down payment on a home of no greater value than the principal amount owing at the time of the foreclosure. No fees or charges could be made when the card is used. Cap all new mortgages home loans at 3% for the next 5 years.

    The result of this action would stop all foreclosures, stabilize the housing market, eliminate all toxic mortgages, stabilize the banking system, fix Fanny Mae and Freddie Mac, put thousands of people back to work, increase tax revenue to local, state and the federal governments.

    What would this cost the federal government? Nothing. The treasury would not have to sell any bonds, notes or T bills. The cards would be the same a increasing the money supply. The only difference is that instead of going directly into the banking system, it goes to the people and then into the banking system. No act of congress is needed; everything is already in place for you to act. The Federal Reserve and banking system can process the requests. Just pick a date and do it.

    There is not enough money in the world to save the auto industry. If they could sell more cars, they could save themselves. Use this dept reduction method to reduce individual auto loans and leases by 25% and they will buy more cars and trucks.

    The same idea could be applied to credit card debt and student loans.

    Our problem is too much debt. More debt will not fix it. Debt reduction of the people will.

    Do this for the people, balance the federal budget and you will go down in history as one of this countries greatest presidents.


    Robert D. Arlen
    48085 Colony Farm Cir.
    Plymouth Mi. 48170

  227. Couldn’t get in the $1,000,000 portfoliio deal because the market has already picked my pocket! Wish I could have, though, because I believe the avalanche is getting set to fall on the US economy. Somehow, “good” news of an economic recovery keeps moving the market up on a wing and a prayer while the elephant standing in the room is left unnoticed! It’s fairly obvious that the irresponsible policies of the past of our government are finally coming in to view and the point is being reached where the piper cannot be ignored any longer and will demand payment! At this point, I am just trying to hold on to what I have left in my retirement account (99% in govt “G” fund) and waiting for the car speeding into the night to hit the proverbial “brick wall”. This country was built on hard work, sacrifice, prudence and God. People now seem to want it all without working for it. The pending avalanche is set and piper has his hand out – time to pay. Wall Street etc ignoring the downfall of the great American icons of GM, Chrysler, etc is beyond me. The dominoes are falling and the current fascade of a rally will come to an abrupt end. Time to get back to honest hard work, prudence and deal with reality, rather than senseless policies that knock this country out of competition — we need to bring back our manufacturing base to create jobs!
    Good luck with the million dollar portfolio — you guys, I believe, will make a killing when the tide finally turns and the reality of this country’s economic situation finally hits. GM etc going under while the job losses have been exceeding 600,000/month along with all of the other bad news — foreclosures, credit card defaults etc cannot hold up this economy. Timberrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr!!!!!!!!!
    Good luck with the portfolio — but don’t think you will need any luck, though – Klause (sp?) and Co have the ticket!

  228. In your book The Ultimate Depression Survival Guide, chapter five, you mention the big risk for banks with derivatives. In my experience, the only unlimited risk with derivatives is related to selling options. Please explain.

  229. Our whole country is up to its eyeballs in debt Where and when it will end is anybody’s guess. Our once great country is in shambles and the whole world knows it. Should we all become survivalist? Can we continue to have faith in our politicians? I’m fast becoming disenchanted with Wall Street, Washington, and all of the greedy SOBs responsible for this mess. We all bought into their mantra and took our hard earn money to invest in their companies and exotic financial instrments only to have our 401-Ks decimated and all of our equity in our homes disappear in a few short months.

    What are the options? Move to South America? Mexico? Panama? Eastern Europe where our weakening dollar can still buy more than in America? Who can we trust today in a world filled with dishonesty, greed, and corruption.

    God Save American And The American People !

    Honolulu, Hawaii

  230. Hi Martin and the Gang, Great Show with Glenn,Beck What Wonderful American Sprits we are,….. Indeed Go Metals and Maybe Flash action & with All the Leadership Mud Slinging, PRAY, for Aur Children’s Children. God Bless.

  231. Will America surive? In all actuality, it cannot survive if this president and legislature get their way. that being said, She wont go down without one hell of fight! i dont even think our own population entirely understands this old vets’ mindset. but they’ll catch on if need be.

    All I know is the rest of the world better hope She pulls through.

  232. Dear Martin & readers,

    I work for a bank and warned of the dangers you (and others) so wisely pointed out. I was ignored and the rest is history.

    The US is a moral experiment – it is the world’s most successful nation, a nation that Under God (not Allah, Mr President) has given more rights, more freedoms, more protections and more material wealth to more peoples and more nations than any nation, empire or people group in history. Its institutions and government were for many generations the most admired and respected in the world, once again, Under God. (The classic 1000 page Christian Life and Character of the Civil Institutions of the United States underlines the Christian foundations of the nation).

    But what has the US become? A gluttonous debt orgy with a failure of government, leadership and moral backbone. Debt and more credit is the answer to everything, your president is bowing and scraping before to the Saudi king in a disgusting display of obsequience and near-fealty, your divorce rates are soaring, your family structures are collapsing – but socialism and political correctness and taxpayer funded ‘diversity programs’ are in full swing, right?

    One of your Presidents said that “Those who trade freedom for security will, and deserve, to lose both”. You are not far from that point, America. Same goes for the UK.

    The leaders of any society sit not in Congress or thinktanks. They sit as the leaders of philosophy and religion, for it if from these people that your representatives, elected or otherwise, make their laws.

    I highly recommend JD Unwin’s 1934 book “S.x and Culture” – hard to get but predicted what is happening now – the Eastern nations are not rising in wealth, rather, the US (and the west in general) is falling down the cultural scale to below that of the Eastern nations. Global leadership and wealth will follow.

    This is a macro view – Keep up the good work, Martin & team.

  233. Greetings Martin and Company.
    Thank you for all your help and insight as to the occurance of events that have and are now taking place. I greatly appreciate your family history and your referrals to the greatness of your Father. I like wise had a Father, bless his Soul, that was a self-made auto mechanic. And even back in the 50’s he was commenting that there would come the day that the Auto Industry would some day fall apart. He hated Unions. And it was his contention that the Union would some day be the death of the auto industries.

    Anyway, so far I have been struggling to keep my small fortune together. It is a chore at best. I did get out of the equities as recommended and do now own several ETF’s And I started buying into a couple of LLC’s of small oil drilling families in the KY area and OK. The families have been around for about a generation and a half. My participation is small so as not to get to risky. In OK. there are now two producing wells and am now receiving monthly dividends. In KY I have an interest in two old time drilling families. One event is a 15 well consortium. Todate 10 wells have been drilled and 7 are producing wells 2 non-commercial and one dry with still 5 left to drill. The eventual production level is looking like it will equal close to a minimum of 100 barrels per day. I started this all in Dec ’08 and Jan. of ’09. My thinking was to counter the high price of gas at the pump so my wife and I could afford to drive on the oil Co’s. dime and that it would be a hedge against inflation. I could not see paying $4 to $5 for a gal. of gasoline. And now the question is — Can this be considered a commodity that will be on par with gold and/or silver ? ? ? ? The price of oil is definitely going up and it looks like come next month it will hit $75/bbl. And it more than likely will be at about $90/bbl by the end of the year. At least that is what the guru’s are talking bout.

    What is your opinion ?

    Cheers, Lou
    Thank you.

  234. I worry about USA and the world. The extreme elite who own the Federal Reserve and run the World Bank don’t care about any of us. They continue to get richer and more powerful by causing a crisis and then making the ordinary public/tax payer go into extreme debt to ‘get us over the problem’. Meanwhile they profit from the situation. My eyes have been opened by the film ZEITGEIST – take a look. We are all being played for fools!!!

  235. I am responding to Paul Wegeman’s post: your legacy is you’ve never given up, have worked hard, and set the example, never failed in loving your children.
    You are no ward, you are what motivates children to try as well, and, as a family, will grow stronger, period. so, yes, keep working, and yes, keep healthy. I’ll do the same, my folks do the same, and you, most important of all, when you look at your self in the mirror, you are proud, clean.

  236. I did warn everyone of the consequences of not following my copyright idea. Its still not too late.wake up america wake up europe wake up world

  237. We have great difficulties here in England. Apart from short-sighted & corrupt thieving politicians, we also have a trend similar to your ‘where GM motors goes America will go’. Ours is ‘what happens in America will happen here in a couple of years’. My own view is that our Corporations have been allowed (even encouraged) to swallow all competition. There are a very few small specialist car manufacturers left in the UK, from what was a thriving diverse industry. The remaining factories are foreign owned (GM owns Vauxhall etc). The whole industry has become a cartel of huge manufacturers owning the names & marques that became famous by being different & good. Now all cars start to look the same. The companies need to operate 24/7 at tight margins to compete. It only takes a few percentage points to bring the whole thing tumbling down.

    I recall one of your American politicians declaring, not too long ago, that deficits don’t matter ! Every housewife, small business owner & business manager on the planet knows that deficits DO matter. They can be hidden for a while. Governments can print money. Governments can hold down interest rates to tweak the economy. In accountancy & fraud terms it is called ‘teeming & lading’ – fudging the figures this month in the hope that you can correct next month. Eventually the whole thing just tumbles down.

    Every country is as rich as it’s natural resources and the ability of it’s people to grow / manufacture / sell on the product of those natural resources.

    In the UK we have been pumping oil out of the North Sea for 40 years – it’s nearly all gone. When the oil price spiked recently our Prime Minister went to the oil companies to urge them to pump it faster. We cannot rely on short-sighted fools to make decisions for the good of the coming generations.

    Aim again for self-sufficiency as a nation. Aim to farm enough food to feed the nation. Encourage small business again. Force the huge corporations to split & diversify. The failures must go to the wall and/or start again.

    The last depression was survivable because needs were fewer and the world was hungry for western technology and innovation. We have built a house of cards on service industries and money-go-rounds and house-flipping. This depression, for many people, is not survivable.

    Government does not understand simple economic principles. You cannot borrow & spend your way out of debt. You must encourage saving and investment – which means savings must be secure and the return must be worth it. Those savings must only be lent to sound causes after due diligence procedure.

    Good luck – we all need it !

  238. Yeah! blame this economic turmoil on the Dems.
    Don’t forget when all this started (during the Regan era) when this country turned into the greatest debtor nation.We even got rid off all oversight rules and regulation.This was a direct result of an incompetent Republican controlled congress,senate and white house in the past 8 failed years.
    I could go on and on or by the way lets not forget about the failed invasion of Iraq.

  239. I think increasing your portfolio in precious metals is one way to hedge the future
    economic downturn. I am not an expert in financial markets , but something very
    unusual is attracting my attention: The Fed. Whay are they so secretive with their
    actions that affect us all? In my opinion it would be for the BEST interest of our Nation
    if they adopt 100% transparency . Sure it wold not solve every problem we have at the moment , but it would definitly be a sure first step in the right direction for this great
    nation of ours.

    God bless!

  240. RICHARD R
    I do not believe we can win the war in Afganistan because there is no interstruture, there is no industry, the government is weak and not supported by the people, the army and police are weak, the people are not familiar with democratic government, and one either farms poppies or joins a warring gang. America will tire of this war and its cost and eventually leave.

  241. had money gripes, of course. But today’s scale of indebtedness puts this generation in a different league – and in need of money management skills.

    Student debt? More like parental debt . . .

    In many cases it will be parents shouldering much of the burden.

    Sending a child to university can involve a new set of costs for parents not used to paying for education. Financial advisers say this added burden may also come at a time when the older generation needs to look to their own pension shortfalls. However for parents already used to paying school fees, supporting a child through university can seem relatively affordable.

    With all these cheap student loans and overdrafts, I wonder if I should be helping out at all

    Students have never been offered so much cheap money – which may partly explain how some get into so much financial trouble.

    The government’s student loan system exists for students to be able to support themselves with low-cost loans of thousands of pounds. There’s nothing to repay until after the student leaves university and starts earning more than £15,000. While interest starts to accumulate on these loans from day one, the rate is only equivalent to the Retail Prices Index. For the past year this was set at 2.4 per cent although for the year starting this September it will jump to 4.8 per cent.

    Banks also fall over themselves to sign up students with incentives and interest-free overdrafts. This year the “freebies” include a hefty £75 cashback with Lloyds TSB, while Halifax is offering 0 per cent overdrafts of up to £2,750, according to, the online comparison service.

    So should young Jeremy just open accounts with all the banks and live off the 0 per cent cash?

    Students are only supposed to have one student bank account, although some do open accounts with more than one bank and pocket a range of incentives and free overdrafts.

    In opening any bank account, experts warn against being overly swayed by sign-up gimmicks such as free cinema tickets (Barclays) and 20 per cent discounts on books, CDs, DVDs and games (RBS). For most students interest-free overdrafts are likely to be the most worthwhile benefit, saving hundreds of pounds in costs. Even Lloyds’ £75 sign-up cashback has catches: only £25 is upfront with the other £50 dependent on the account not going overdrawn before June 2008., the rate monitor, also warns that interest-free overdrafts may be more limited than quoted maximums of £2,000 or more. Many banks only offer £1,000 of this in year one. Halifax has the highest quoted overdraft of £2,750, which can be applied for in year one. However, only students with the best credit rating may get it.

    I’ve heard that some enterprising students actually make money out of investing student loans

    It’s been suggested that students who don’t need their full loan should take the cash anyway and invest it, because they can make more interest than they incur. Some students have made hundreds of pounds from this arbitrage.

    It has certainly made sense in the past year when the loan interest rate was just 2.4 per cent although from next month it will be harder when the rate rises to 4.8 per cent.

    An obvious way to make a return is put loan money in a tax-free cash Isa, where the best rates are currently 6 per cent or more.

    Many students are also non-taxpayers, so the wheeze should also work with other savings accounts. And if it works for loans at 4.8 per cent, maxing out a 0 per cent overdraft and investing the cash makes even more sense.

    Some students may even be tempted to put the money in the stock market – although this carries risks. National Savings’ Index Linked Certificates guaranteeing a tax-free return of 1.35 per cent over RPI are another option.

    Presumably students can also reclaim any overpaid tax?

    Like the rest of us, students can reclaim overpaid tax by talking to their tax office. But if they get a summer job they should also look to sign a P38(S) form to be paid gross. So long as they earn less than £5,225 they shouldn’t have to pay tax. And banks will also have R85 forms which can be completed to receive savings interest gross

  242. Hello Martin, I eagerly await your newsletter each day.
    Such informative interesting reading. THANK YOU SO MUCH.
    As I am from Australia and things are not quite so bad here YET your email gives me insight to what could be coming our way.
    As far as the majority of politicians and their hanger-oners you would be hard pushed to beleive them even with their hand on the bible. Most of them sicken me. Their are quite prepared to sink our countries just so they can look after their buddies who have in my opinion caused this meltdown. Blind Freddie can see this.
    Again, thank you and may GOD bless you always
    Mary Honeysett

  243. Key money market rates rose for the first time in more than two months amid worries that the economic revival could stall as the financial health of banks remains fragile.

    The cost of borrowing dollars between banks over three months, or dollar London interbank offered rates, on Tuesday rose for the first time since March 26. Dollar Libor edged up to 0.663 per cent from 0.660 per cent.

    Three-month euro Libor also rose for the fifth day in a row to 1.270 per cent, although sterling Libor continued falling. It has dropped 62 days in a row since February 24 and now stands at 1.278 per cent.

    Three-month Libor rates are the key rates in the market as billions of dollars of financial contracts are priced by them.

    Don Smith, economist at inter-dealer broker Icap, said: “We are a long way from a broad-based recovery in the money markets. There are still worries about the financial system and some banks are still hoarding cash.

    “We also have a very tiered market with stronger institutions able to borrow at much lower rates than the weaker ones.

    “However, this rise in dollar Libor is very small. It is not a significant turning point. You have to put it in the context of how far dollar Libor and other Libor rates have fallen in the past few months.”

    Dollar Libor jumped to a high of 4.820 per cent in October after the collapse of Lehman Brothers. Euro Libor rose to 5.393 per cent, while sterling Libor spiked to 6.285 per cent.

    However, there are concerns that banks are hoarding cash as they continue to repair their balance sheets. Dealers say only a few banks are prepared to lend, including a couple of big US banks and some Middle East and Asian financial institutions.

    The weaker banks are also being forced to pay much more to borrow than the stronger institutions.

  244. Do you think there will be deflation or inflation? To me, the writing on the wall is clear. The USD and many other leading currencies will buy half of what they buy today in a decare or two because we humans have borrowed way too much money from ourselves (with promise to pay in future with interest) and since that much money will not be payable through wealth generation, we will pay ourselves by printing more money. No country is immune from this.
    Think when you buy US treasuries or any country’s bonds, you are loaning money to US govt or indirectly to people of that country. So everytime you are buying US treasuries in your 401K with say 30 year maturity date, you are basically borrowing money from yourself today (or your grandchildren) and after 30 years this money will have to be paid back with interest by you (and your countrymen and your grandchildren). If the net wealth generated in this timeframe is not enough to pay principal + interest, this will be monetized by currency devaluation.
    There is NO option other than long term inflation to pay for this debt. If any of the experts and Phd’s tell you otherwise, don’t listen to them!

  245. Dear Dr Weiss, I see the country going the way of GM. The world seems to be as it was at the onset of WWII. The US is being taken over by a bunch of power grabbing opportunist who created a financial mess to obtain power. I see a world war on the horizon just like in the 1930’s. The future does not look very good for all of humanity. Regardless of the type of government we have, socialist, communist, captilist, fascist, or…there is always the wealthy and then the rest of us. Our country sure got duped by the politicians again. Thank you for asking. The ship is sinking and the life rafts are few.

  246. “Over time, this will be very significant,” said Ray Valdes, an analyst with Gartner Research. “Social networking sites have suffered with monetising [their services], but this leverages [the fact that] users are there on Facebook.”

  247. it is truly a sad day to see one of the biggest auto producers go bankrupt but i think it was inevitable. You cannot go on running up your bills without consequence. The large corporations in this country have in the past seen nothing wrong with borrow, borrow, borrow. And they always believed things would get better. But how long can you go on money that really isn’t there? Dealerships have been loaded with new cars. the supply seems endless. But who wants to buy a vehicle for half the money you could purchase a house or real property for? And along with the price increase has come vehicles with engines and equipment that can only be serviced at a dealership. This isn’t what people want. They want something that they can service and repair themselves. The price of auto parts has also gone skyhigh. I believe that that some years ago when car companies started offering service contracts and maintenance at a fee they cut their own throats. And our government always coming to the rescue has not saved them at all. We may be coming to a point where only a few of these large corporations survive. I myself am disabled and on a limited income so investments in my world are non-existant. I struggle with monthly bills and no health insurance. But I only have one credit card that has money owed. How would i have ever survived with the philosophy that large corporations use to guide their expenditures? I think failure and bankruptcy were inevitable. And the large company executives should have been willing to sacrifice some of their huge paychecks to ensure the future was sound for them. But they were not. Greed is a strong and vicious creature and has swallowed many people. The truth is that if our government also fails and is unable to provide such services as social security and help for the needy it will be a sad day indeed. And i know that the amount of this is small compared to what they have given to the corporate world for bailouts. I think it is time that our world becomes more equalized. Ted Turner(goofy) said if you need more than 70 million dollars a year to live on there is something wrong with you. I am sorry to see GM fail but i have never been a chevy person myself! lol. I can only hope that this sign of the times doesn’t make life any rougher for those of us who already are barely surviving.

  248. inverse etf’s on the financials, the same for treasury bonds, the dow ands the s&p 500.
    double long oil, and gold? buy silver and gold. these are my picks from all my research, especially from your emails, and other online sites.

  249. I am 57, which I have said in the ’80s that this country was going to financially fall. You can not run a country on billions & billions (now trillions) of dollars of debt without something cracking or crashing. Now, we are losing our retirement, & freedom. Capitalism works, socialism does not, what happened in Russia. I agree with you that more bubbles will pop, when are the 535 men & women in congress, going to see the errors of their ways.

  250. G’day Martin,

    we in OZ seem somewhat immune at this point. The stockmarket keeps rising; unemployment is increasing but hardly noticeable as day to day commerce appears as active as ever; cutbacks in mining with layoffs but certainly not dramatic. Our terms of trade (lower imports) prevented us from technically being labelled “in recession” and Im wondering if I have missed the boat to buy shares when they were at bargain basement prices. Our GMH branch is ok and the collapse of the U.S. company didnt spark a collapse in share value. What gives? Do I hold tight and wait for the bear to re-emerge or start buying – the feeling here is we are coming out of it!

    Col Edwards

  251. I think the “green chutes” everyone is talking about is pioson ivy. Will we ever be the America we once were? NO–It is over folks. The Vietnamese are willing to work for a dollar a day; are you? We have to be competative or have a technical edge inorder to grow and we no longer have either. The incentive to work harder or smarted is getting harder to muster as our socialistic society demands taking it all in taxes.

    I worked in China for 2 years (had to move the business to China or have them put me out of busines) where I paid $1.25 per hour insted of $15.00 in the US–there is a message here America–Wake up.

    Keep electing demoRATS that only know how to redistibute wealth instead of creating wealth and we will continue on this same path.

  252. The corrupt and diseased condition of our government, our economy, our morality and our nation will not be healed unless we, the church, apologize to God and sincerely apply ourselves to the remedy He has provided for times such as these:
    “If my people, which are called by my name, will humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.” 2nd Chronicals 7:14

  253. Dear Martin
    I have the feeling that Mr.Gheitner is in China to prepare the Chinese for a USDLRS
    devaluation and therefor the stockmarket continues to go up and gold as well.
    Europe will suffer from this and especially Germany whilst China will have no problem
    since they will stimulate consumption at home.
    Sofar the contrarian portfolio has been ok chossing gold but failed completely to recognize that the ETFs sofar created only losses instead we should have betted the opposite way, anyway in the casino there is no logic.

  254. I share in the grief others have expressed over the decline of our nation and I’m very unhappy with traitorous people in positions of power who are causing it. But, as a Church-going Christian, I think I have to say, like Pogo, “we have found the enemy and the enemy is us”. Our nation would not be in this sad situation if we, the Church, had not abandoned our morality, our charity, and our backbone to stand for the Christian character and principles embodied in the Declaration of Indepencence, the Constitution of the USA, and the Holy Bible.

    The corrupt and diseased condition of our government, our economy, our morality and our nation will not be healed unless we, the Church, apologize to God and sincerely apply ourselves to the remedy He has provided for times such as these:

    “If my people, which are called by my name, will humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.” 2nd Chronicals 7:14

  255. Precious metals are the best to invest at least will not bankrubt on us
    is that true?

  256. As a disabled veteran of the Vietnam era, I’ve been reading financial sites to get more information than the “driveby media.” I am afraid for this country and the innocent seniors caught up in the government tarbaby of Social Security and Medicare and even the Veterans Administration. “We have met the enemy and he is us,” Pogo said in a cartoon in 1970, and it is coming true for those who can see.

    PS Although I carry the same name as a recording business executive, I am not that person… there’s at least 45 of us listed on the net phone book.

  257. Dear Martin,

    My thoughts going back 3 to 5 years are that GM was lying about their actual Assets or Net Worth.

    My thoughts now are that GM could have went Bankrupt without 50 Billion from the US GOV.

    Another thought? Is the 50 Billion really tax payer money? If it is what is the process for that????

    If GM has “to sell 10 million cars a year to break even” they are going to be downsized by 90 to 95% or they wont make it. The UAW have not yet made the considerations they need to.
    Free healthcare after age 65 is not sustainable. The UAW members need to transfer to Medicare and have an opportunity to buy a MED-SUP as if they just turned 65. The whole mess was not handled correctly by GM, the GOV and the UAW, they were all to busy trying to stick it to the Bondholders.

    David A. Acklin, By the way I have no plans on buying a car anytime soon.


  259. Martin,

    A. Can’t thank you enough for all your insights.
    B. I suspect commodities and inflation are going to go up – big time.
    C. I don’t understand bankruptcy. Shouldn’t GM sell EVERTHING first and pay off as many creditors as possible? How can they screw bondholders, shed all that debt, and still keep plants and equipment in their name? That they come out smelling like a rose stinks.

  260. Martin,

    A. Can’t thank you enough for all your insights.
    B. I suspect commodities and inflation are going to go up – big time.
    C. I don’t understand bankruptcy. Shouldn’t GM sell EVERTHING first and pay off as many creditors as possible? How can they screw bondholders, shed all that debt, and still keep plants and equipment in their name? That they come out smelling like a rose stinks.

  261. USA will pass this crisis ,it is not the first time.But in addition to the mismanagement in the economy, there is more serious mismanagement on the political side .For America TO SURVIVE THINGS MUUST BE PUT IN ORDER POLITICALLY AND ECONOMICALLY.


  262. America’s hey day has come and gone, no more free lunches. In saying that there is always oppertunities to make money. 30% cash, 30% in gold and silver bullion, 30% in blue chip commodity plays outside of America such as BHP, Rio-Tinto, BP and 10% for gold and silver juinor miners. I especially like the Canadian juniors at the moment, huge potential to make a fortune with a small ammount of money.

  263. MARTIN


  264. The usa has a huge problem and that is the current bunch of rulers are riding roughshod over the constitution itself . Most of the fed acts are illegal and also totally unregulated .The fed itself is an extra constitutional body . The creature from jenkyll island has come to haunt the American people again and this time its mostly going to be the last time .
    What the USA needs is a third political party which really cares for the man on the street ,the hardworking american and the committed american who is committed first to the republic of the USA . These current two parties are the same ,average ,mediocre and totally compromised to their banksters and masters who fund their campaigns .
    The usa has absolutely no hope since the manufacturing symbol is gone into bankrupcy .All the usa currently manufactures in abundance is just dollar bills .

    Thanks for a great newsletter which keeps us updated on current events and the state of the nation .

    Obama is turning out slowly to be a great american HOAX due to his actions and his selection of people to help guide out of the global crisis , and the charm is slowly wearing thin ..
    He has wasted no time in starting a war in Pakistan which is totally unnecessary using someone elses army by bullying a bankrupt nation called Pakistan . He is going to lose there , the war is nothing to do with the taliban ,but against the Pashtoons who are innocent and and are a total clanlike ready to sacrifice entire families for war ,ITS JUST NOT IRAQ ,its full of mountains and the terrain is no picnic , and the Pashtoons have been fighting wars for centuries ,everyone including the roman army ,even the mighty genghis khan left them well alone , the Russians could do nothing and they were just close by ,the americans are nearly half the globe away .Obama is a great media manipulator but i think he has bitten far more than he can chew this time at least in Pakistan .
    A whole generation and a half of americans has only been habituated to living on CREDIT and knows nothing else .ITS very difficult to change habits and lifestyles and roll sleeves adn get to work . THE GLOBAL GDP in the last ten years has increased 16 times just due to derivatives and that is another sorry statistic .ITS better to have GDP on some tangible like a manufacturing or some service rather than on thin air and wisp of wind .
    The USA has forgotten to work for a living due to the policies of these POLITICIANS who indulge in wars as a last resort to safeguard their seats and positions of power .Every war is just antoher racket to enrich a select few at the cost of hundereds of lives and abject misery for millions .

    A bigger problem is these economists some of whom are nobel lauretes who have been harping on the wrong economic models for economies and have totally ruined entire continents like africa .These economic policies mostly Keynesian are now taught as the latest fashion in most of the the best universities and accepted as a gospel and when the keynesian policies fail a different excuse is touted for the failure but its never the failure of any economic model .The mainstream media is also complicit in these brainwashing by governments worldwide and there is no counter view projected to counter the official view .
    During the presidential campaign the current incumbent has stated time and again that his administration would be the most transparent IN USA HISTORY in all its dealings . These grand statements have all been thrown in the dustbin .
    I see gloom and doom ahead since the largest market is in trouble and the people who have the job of administering it are totally unreliable and untrustworthy and have only mastered the art of illusion with the smooth talk using state of the art telepromptors basically.
    THE 21 CENTURY IS A CENTURY OF CHALLENGES due to RAPID ADVANCEMENT IN TECHNOLOGIES , small business cycles and fast pace and what are needed are ABLE LEADERS UP TO THE CHALLENGE not manipulative politicians who hold the country back and also hinder CAPITALISM and are only great orators and nothing else .

  265. I have heard that we program our own destinys, That our minds are electrical energy and as we think with our minds it eventually will write this into your heart and it will eventually become a reality in your life. ” As a man thinks in his heart so is he.”
    As a group you can change the destiny of your town , and your country. If enough americans think that the state owes them something, and dont like to work hard, but like to get all you can , (case in point GM workers and union) your liberal minded , anything goes, and we are all entitled to free lunch eventually that type of thinking puts socialists, and liberals, in power over the hard working people of this country , because you were working hard and never realized the liberal, welfare mentality took over your country …and now you the taxpayer are going to pay to keep the “you owe me ” in their greedy lifestyle.
    I will be investing in canadian resource stocks and gold.

  266. Martin,

    I like to read your comments ans amalysis. Looks like they are still some people in the US with common sense.

    To set the scene, I am a Swiss citizen living in the UK. I will compare one of the main sector that drove us into the current mess: housing. Here, in the UK, we have cardboard doll houses, fully overpriced (still) and of poor quality. In Switzerland, they have houses built out of brick, stone and concrete, made to last at least two centuries. Swiss houses are not exactly cheap, but well worth their price tag. Reason why? The housing market is tightly regulated, the property prices are slowly ans steadily rising (still today) because mortgage specialised banks (most of them state-owned) are cautious and do not take unmanageable risks. As you might know, they are two quite distinct banking systems in Switzerland: the fat cats (UBS, CS) who went down international and dipped into the subprime market with the results we know.

    The other sector are all the state banks. One per Swiss state (the US original Constitution is quite a carbon copy of the Swiss 1815 Constitution). These are rock solid, strongly regulated and at least 51% state owned. You want to invest in something as sure as “Christmas is in December” ? Go for them.

    I would advise to get some of the BCV shares. Yes this is Bank shares :-)
    to have a look at how they are doing through this crisis.

    Admitedly, this is not contrarian. Just safe. No big money, but no big risk. Switzerland had its own housing bubble some 15 years ago and learned from it. Oh, and one more thing, my Swiss banker knows me, all my details, knows my career, my family. Well, both banker and kind of a friend. This is what I call customer service.

    Take care.



  268. I believe as the way it goes, dollar will no doubt devalue quickly against foreign currencies. The ways that may save individual’s hard earned savings are: 1. To buy stocks that can make money faster than the dollar devaluation 2. Buy real estate while it is cheap, the mrket will come back around in time 3. Change some of the U.S. dollars into some upswing foreign currencies.

  269. Hi Martin
    I am about in the same position as Paul above, and will be 75 the 22nd of this month. I have two portfolios, one I call my core account the other I call my trading account. The core account has almost held it’s own due to a Perpetual Money Fund of 8 closed end etf’s which so far pay great dividends reinvested monthly. These funds were recommended to me by the Oxford Club some time back and have paid off very well, so I intend to keep feeding income into them until I reach holdings to support switching to monthly income checks to my bank account.

    The other portfolio I use to trade almost daily in which I have lost up to 75% but now is back to 50% loss and climbing. Lately I only trade for energy, alt. energy, and food and water stocks which I believe will be the only thing worth holding for the future.

    That being said, I would like to comment on the situation of the country. Until the greedy, self serving dummies of this country wake up and realize they have been systematically brainwashed and reprogrammed over the last 50 plus years by the so called “elitist” (megamoney enemies of freedom of the masses), and realize they have been duped and manipulated into obedient zombies when election times come around, this country has had the schnitzel. We all need to realize the Democrat Party is no more for the people, but is now the Liberal Nazi party which is the enemy from within that will destroy this country, not to socialism, but to a full dictatorship, where the good people of this country will be of the same social level as Chinese Coolies that work the rice paddies in China and/or N. Korea. It will not matter what our money is worth, as the general public will not have any, and will be fortunate to survive on what they can grow in the ground. Sounds bad huh? Believe it now or later when it’s too late.. It will happen, just a matter of time.

    So what can we do as individuals? One thing is to realize the problem is SIN. Then get right with the Creator God who promiced those “called by His Name”, II Cronicles 7:14. Takes more than reading that, we have to commit ourselves to our side of the bargain, and maybe, just maybe He will give this country a reprieve for a few more years. Otherwise, the lifeboats are filling up fast, and if you do not know Christ, there won’t be room for you. As for me and mine, we already have reserved seats. ;-) But I’d sure like to see this country back on course for the kids before we leave.

    One way to do that is through the laws of our Constitution. We the People are still in control, although we sure don’t act like it. Before the Liberals get the power and opportunity to destroy the Constitution why can’t we come together and sue the pants off every politician who intentionally violates their pledge and tar and feather them on the way out the door of Congress. Start with Pelosi the liar. Then Frank, Schumer, Dodd and other libs guilty of Racketeering. Make a clean sweep, most are guilty, and get this train back on track for 2010.

    Next make Martin Sec. of Treasury. With his experience and that of his father, he could have headed this fiasco off during the Bush Adm. Amen????


  271. Absolutely heartbreaking that we Christian Americans have ,because of our apathy, unconcern,and failure to be proactive in voiceing our outrage. have surrendered our precious United States of America to the anti-american, anti-Christian far left socialist-communist activist who are obviously more evangelistic than we are about propagating their idealogy/agenda.

    Martin, thank you and your good team for all you do in taking a position for right and truth. Of course your market analysis and your recommendations are the most credible on the scene today along with your insights on the world political and economic happenings. Keep standing in the gap. We need you

    With much appreciation,

    Ed Spencer

  272. i have one question. where is all the money that is being lost going? is it going to europe or swis banks? it is common sense that if i have a quarter and i lose it for whatever reason the coin is somewhere, it just doesnt vanish into thin air. is it the power of the euro or is america getting lasy and is not producing as much as it used to?

  273. Dear Sir,
    I will be 75 in September and work hard all my life,when I could see paper money coming to an end,as people were using CARDS for their shoping,I told my wife the WORLD is landing itslef in Big trouble,and I could see the world going back to the days *TRADING WITH GOLD AND SLIVER” the real value of our ASSETS.
    So my friend I can only say to invest in GOLD and SLIVER,as those days will come back, too late for my.
    So I am in PROPERTIES the next BEST.

  274. Your views on investing in a country like India.Will countries like China,India escape the depression or will they too go through the pain of a depression.Thank you for your views in advance.

  275. I personally want to thank you for the warning given in fall of 2004 when you listed 25 stocks on one of your e-mails saying “if you are holding these stocks after the election good luck they are dogs (GM and Ford were the last 2 listed). I moved all I could out at $44 a share. I worked for GM 36 years its certainly not like it used to be. I agree this country is spiritually bankrupt. The beginning of Proverbs 13:22. Its not a coincidence (there is no word in the Hebrew for coincidence) that the stock market decline began on 9/30 Rosh HaShanah the Jewish new year. Look for 12 years of tough times we ain’t seen nothing yet. We are moving down the food chain because of our Greed. Haggai 2: 6-7 and Habakkuk 2:6-14

  276. Martin Weiss is our modren-day Paul Revere. “The British are coming, the British are coming” was Paul Revere’s warning. What is Martin telling us? Like an Army squad in enemy territory. What are they told? Be vigilant! Keep your eyes and ears open. Check everything. Keep in touch with your friends, we are all in this together.I’m 91 years old. One thing I know for sure is the human body was not made to last much longer than 100 years probably in part because of the way we treat it so time is of the essence. The American people are slowly awakening to the fact that right now, this minute, there are people who are mododically taking our country and our freedom away from us. We have been remiss in not holding our political “representatives” liable for their actions. The horse is out of the barn. Can we identify the thief? We desparately need a leader who has the ability to attract a multimillion man posse. Hold the theif accountable and get our country back.

  277. From what you and your group have been saying, plus what I read in the WSJ indicates
    comercial real estate looks to be heading south. But (SRS) ultra short real estate has been going down pretty constantly, from above $65 to below $20. Is it a viable short to hold? Your thoughts please.
    Dave Reed

  278. Dear Sir.
    I will be 75 in September and worked hard all my life, and when I could see that PAPER money coming to an end as people were using CARDS for their shoping, I told my wife the WORLD is landing itself in BIG throuble, and I could see that our world going BACK to the days “TRADING WITH GOLD AND SILVER” the real value of our ASSETS.
    So my friend I can only say invest in GOLD AND SILVER, as those days will come back, BUT TOO LATE FOR ME.
    So I am in PROPERTIES the next BEST.

  279. As the President of the organization which I am involved with it is my place to be of all things a watch dog: Having said this, the things I see is that this whole thing is manufacturered in order to destroy the stability that America has had over all these year, the reason is very simple, it all hinges on getting America out of the way, to make way for the emerging one world global government: Will the Globlist win, yes for this reason and this reason along, it is because of so many national local governments be they free or other wise have not managed to manage affairs of it countries, to the point where the populations around the world are ready to reach out to any thing that will give them what they believe they should be experience peace and prospertiy, the Globlist big carrot. The main problem is that we do not and have not true government
    for the people, by the people this being the case I very much doubt that it would have
    ever come to the stage that we are finding us in today; much more could be said, America if it wants to survive it will need much that just prayer, it will need pure light to decipher what is tuly happening, and the taking of steps that are even more dramatic then the steps that have are being taken to sink America.

  280. I think natural resources, precious metals and China, Brazil, and some alternative energy
    will be good investments in the long run. I Obama turns against Israel, I think we as a country will have even more problems.

  281. What happened with GM was no accident, it was all part of the plan to bust the UAW and minimize workers rights and benefits. When the UAW shut down the CORP with strike in 1977 Gm said never again!! There was the southern plan to move operations to right to work states, shreddding of the EV1, and team concept to mention just a few. I have not seen details of the bankruptcy but if things are running true to form bankruptcy was only declared on US operations, specifically targeting the american workers. When Delphi declared bankruptcy the writing was on the wall. It was only a matter of time until GM would do the same. In @005 BUSH sign an agreement to form the NORTH AMERICAN UNION and print one currency for Canada , The US , and Mexico. Within the first 100 days of the new Presidency the finacial tsar Timothy G. has already mentioned printing a new currency. There is a plan underway to turn AMERICAN workers into slaves. This is evident by the overt actions that have taken place to intentionally erode the US DOLLAR. At the speed and intensity of recent PLanned events it is obvious that these problems will not be solved with words if History is an accurate indicator. The current situation would be properly referred to as a HOSTILE TAKE OVER.

  282. I cannot agree as one writer wrote that the GOP will save the day and that without them things will look quite “bleak”. The GOp (with Clinton’s help) have been the champions of deregulation, which is the single largest reason for the mess we are in right now. A “free market” just becomes a “free-for-all”, and Madoff is the prime example of that. It is possible to have capitalism and government at the same time. I believe in both. I am not a socialist but neither do I believe we can do without significant regulation , the kind of regulation that was put in place after 1929 and that then disappeared decades later before various financial crises followed.

    The US needs a good manufacturing base and workers need to be able to buy the products they produce. Tax the very wealthy higher. How is it that the wealthy are so far paying way less in taxes than they were with Richard Nixon, no friend of socialism. Obama a socialist? My foot. The scare tactics put out by FOX TV and the GOP are just superficial nonsense that do not stand up to intelligent scrutiny. If universal healthcare is socialist what about schools, the police service, fire service? Are they more or less socialist than giving access to healthcare for all? Or do we prefer to subsidize insurance companies and maintain an inefficient expensive system?

    Investment oppotunities? Commodities and foreign currencies. Oil will eventually surpass $150 even if it takes a few years. Sorry Martin the dollar has not gained traction as your team indicated it would.

  283. Question, Martin,

    What do you know about the ways in which our markets are manipulated ? Why is it that as of January 2009, all securities will be held in ” street name”; there will be no more certificates of ownership, as entities such as CEDE & Co. now hold title to YOUR SECURITIES You are no longer the owner; YOU ARE NOW THE BENEFICIARY, NOT THE OWNER, as CEDE & CO., etc. IS THE OWNER.

    As far as I can tell, the game is played whereby “Cede & Co.” is controlled by the Wall Street Banks, in particular, JP MORGAN, which is joined at the hip with the privately owned FEDERAL RESERVE, through the NY FED, Goldman Sucks, etc. What is to keep their computer programs from manipulating the markets ?

    The FED’s manipulations have stolen trillions from the public repeatedly through their history, creating 95% inflation over 95 years of their existence, and the FED is largely responsible for this “financial crisis”, keeping rates in the toilet, in cahoots with the brokers & Banks, Greenspan refused to regulate the derivatives, let Fannie/Freddy get away with their crooked ways, turning a blind eye.

    They are doing what they did to create the 1930’s depression; even Bernanke admits that the FED caused the depression, and “We’re sorry !” The problem this time is that they have gone too far in this stupid Keynesian idea that we have to spend multi trillions more than we have to “save the financial system” They have created, whether by accident, stupidity, or by intentionally deciding to bankrupt this country, the next depression and made this country a debt slave through eternity.

    We have a president that thinks the we should turn over this country to the UN , for everything, so they can control the world. ( And he can be SECRETARY GENERAL !) The “Cap & Trade” is the means they apparently are going to use to complete the destruction of this country, while enriching the likes of Al Gore, and taking over the rest of the land and water of the US. (See Sovereignty International for a precise run down as to what has been going on behind our backs, instituted by the UN and it tentacles, the IMF, Bank of international Settlements, World Bank, etc.) .

    The debt they are creating is going to be responsible for the Zimbabwe style inflation, in addition to the scheme to socialize/communize the country we are already seeing. Mugabe seized the Rhodesian farms of the whites, turned them over to the blacks that had no idea of how to farm or run a business; now they buy a loaf of bread with millions of dollars. We have “CAR CZARS “running the auto industry that have never really worked a day in their lives, except for some government entity, which is true of so many of our elected officials.

    Seems to me it’s going to be a matter of devaluing our currency OFFICIALLY at some time. So is holding physical gold and silver of help in self protection of their schemes ? It could be exchanged for whatever currency replaces the US dollar (FEDERAL RESERVE NOTE).


  284. The government will not stop spending and the derivative manufacturers in Conn. will not stop because they work for the Gov in some cases so all we can look forward to is the fire sale of anything in Amerika that can be sold. What a joke?

  285. It is very sad and worrying about GM AND ALL THE OTHER COMPANIES THIS IS GOING TO AFFECT, how do you think it will affect S.A. as Gm has many branches here as well. Iam not in
    finanance, and maybe understand very little about it, but am worried about the South African
    Banks as i have most of my money invested in ABSA bank.
    We all pray that this is not going to get worse, in any country as i am only worried about all
    the people and children and the elderly it effects.

  286. It looks like China made it clear what the next century will look like for the American auto industry. Virtually everything else is made in China, why not cars. For years now America has been selling out to cheap labor in foreign countries and sending manufacturing of all kinds out of the country, in the name of profit. It doesn’t matter that it’s people don’t have work. We will give them cheap goods as long as we can make a profit, who cares where it is made. Guess what, cars are goods as well. What makes us think this shouldn’t happen to this industry? Greed started the downward slope and greed will have it continue. Where do we stop now?

  287. I enjoy reading your information, and it is all so true.I also have been wondering if America will survive. It could be a downfall and we could be in another government so help me God.When
    do businesses get so big that they should not go down? It is devastating about GM. i WORKED
    for a Ford Dealership 25 years and know all about the operation as I went in every dept. as manager. I t will touch so many lives ! aMERICA IS NOT TOO BIG TO FAIL ALSO. My dad used
    to say that during a recession the largest ones went under. I didnt realize what he meant until now. He went through the depression in the 30’s.
    Keep giving us you feed back. I hope people start waking up !!! Thanks Thelma

  288. Wow! Seems nobody can make a cent these days. Well, if I had divested myself of all my stocks (RIG, COP, CLNE, VIP, SIF, BHP, EEM, HPQ, FCX) that have gone up SIGNIFICANTLY since 3/18 deadline (made about 90k since then on a crippled 400k portfolio which was 900k in 12/07 with investment advisors Fischer – lost 50%) i would have lost big time on inverse ETF’s which I bought as a hedge. I think I can do as well as anyone these days.Noone can predict it all, but high fliers don’t often touch ground. Executive Cruises and high end hotel conferences with valet service may be why they are so delusional and mislead investors – do they care? hardly, they would lose 50k and charge me 2500 for the pleasure. And why should they care anyway? It’s your money they are investing. Let’s see, 8500 suckers for the contrarian portfolio x 2500 each = 2,000,000. How could you lose? Million dollars to lose, still make a million. Wise up. They are putting on a magic show. Educate yourselves. Nobody cares about you but you. Think things through. What investments that would be good in down times, and better in good times – what do people always need, what is in peril, what can we we do without? Who is going to build the future? Do I need a Hummer -NO. do I need to keep my Accord or Camry going two more years? of course! That’s easy. Should I maintain my house, do a few improvements I can enjoy and add to the resale value (which may be down now, but not forever) I’m no investment advisor – my career was a computer dude. But thoughtful, common sense is your best bet. If I hadn’t let a money management company (Fischer or Fisher or whatever) I could have TRIPLED my money. But they knew better -sold 10k shares @26, when 4 months later MSFT paid 66 a share. I’ll never trust another investment mgr. They said “We don’t follow them” Might as well have invested with Beavis and Butthead Co.
    Don’t know why I got involved here. I got scared watching everything go kaput in 2008. Will America go broke? Some say so, but think about that. Are we going to go neandrathal? Will we have to chase the Hairy mammoth? We are way past that. Will China blow us off? Not hardly, it’s the old MAD Mutual destruction theory. We all need each other in this world, now more than ever. Don’t be paranoid, think positive. Invest in Positive new situations. Intel and Cisco, Brocade and those similar will rebuild the worlds infrastructure along with FCX, SIF, NUE maybe CAT if they survive. Saying “America wake up” is pointless. You might as well stand on a freeway offramp asking for a dollar for food (or wine). Nobody is listening. Think for yourself. Don’t expect government to take care of you. Look what they’ve done for Chrysler and GM workers. Be Pissed they give AIG execs millions – we can’t fix that or ever get a real answer how that happened -it’s corrupt to the core, you can challenge your govt reps on how they let that happen. But don’t expect them to EVER give you anything more than a peanut butter sandwich at a food bank. May health and Peace be with you, I doubt the government or money managers will ever provide you with either. But they will have it all in their gated communities, homes in six states, and life long health care. Don’t forget that.

  289. Hello Dr Weiss and colleagues,

    I agree that the latest rally in the markets is no more than a sucker bounce.
    When the market collapse once again will it affect all shares or will I be fairly safe with my gold mining shares.

    Cheers Dave.

  290. Actually, I sent my comments to your ‘’ rather than putting the comments here. My comments were essentially a positive reaction to reading your “Ultimate Guide” – – rather than a rant against the current situation. Also I attached my chart showing the decay in the purchasing power of the US$. A lot of people think that chipping away at their purchasing power is a recent phenomena – – it isn’t; it’s been going on for all of the last century.
    In the above, I read mostly comments about losing money big time in the debacle of last year. Sure, I lost a few bucks, but am clawing my way back (one penny at a time). And anyway, who ever gave anyone the right to a retirement? There were no retirements much before the late 19th century; retirement is a recent (and perishable) situation. The state has screwed up family relationships mostly by “guaranteeing” that the so called social security would “always” be there. Of course, when an administration in the 1960s rolled the SS fund into the governmment’s general fund, there went that!
    At any rate, be happy that you’re alive; some of our fellow citizens didn’t make it through the regularly occuring wars.

  291. Yes, the USA will survive. We will have a depression but we will survive.
    I have 3 children in their 20’s, 2 college graduates and 1 a year away and I am most heartened by the fact that their generation is far more conservative than the media makes them out to be.
    The depression changed the politics of this country from the republican to democratic party for 70 years. I see Obama being the natural culmination of these politics as well as the trigger that will change country back for another 70 years. He will be the Hoover of future generations.
    I read your book and see what you said about bonds starting to happen now. When do you project time in future to get best long term yields?

  292. Unfortunatly I can say this is a simple problem that has gotten out of control. I was raised to live within my means. I have many friends that always had the better things. I myself had too much. I always had little debt in case of an unforseen situation. The problem we all are facing is we simply have too much and too much on credit. If you can’t pay cash for it wait for it. Two exceptions in the past were your house and car. I have a friend who lives in Mexico and years back he mentioned to me that there is not too much difference between the US and Mexico except the american has access to easy credit. There is alot of truth to this. One good my father always said is the US is blessed with natural resources and that we are. Now the future is to study hard, work hard, keep the faith and never forget what our generations before us had to do.

  293. Martin,

    I have been listening to your advice since the latter part of 2008. Markets have rallied 40% since march. If you are a true contrarian investor should you not make money when the markets are going up as well as down? Hanging around for things to fail is fine and dandy, but it is more important to take advantage of say a 40% rise in the overall market. Buying bank short ETF’s has really backfired for anyone that did that. At this point your portfolio has underperformed the S&P by over 20%. I signed up for the service in mid-May and I will be withdrawing from the service within 90 days if I continue to see losses piling up in the midst of a bear market rally. I own a small business and my business is doing very well. I’m an auto repair shop and we have seen an increase in volume with the drop in new car sales. I can thank God for this.


  295. If there’s still a bit leg down ahead after this rally, shouldn’t we be worried about more deflation first and inflation/hyperinflation later? There are still alot of mortgage defaults ahead if you look at the adjustable mortgage charts for 2010 and 2011.

  296. I’ve purchased WalMart and Microsoft within the past year. Your recommendation of dollar store seems sound, but their return on equity and dividend was not mentioned.
    I also bought GE at $13, thinking it was a steal, even though they have real estate problems, they have good income, good return on equity, and should not have to sell assets to survive. I also like that they are into wind generators, which will be a big money maker for them. I own Exxon and won’t sell it to raise cash because their oil finding ability is superior to all competitors and oil will be pricey. Although our oil consumption is going down they should be good for ten years or more.

    I know you have been correct so far and believe you will be correct about this being a very bad depression. But, I think American capitalism will survive, I just hope we learn something, capitalism and a republican form of democracy really work well together, very efficient and responsive. I’m with you in that I think we’re in for a tough ride the next six years or so, but optimistic about the long term. We do need to reform our political system, however, to eliminate bribery of elected officials through campaign contributions. You correctly criticize bias by rating companies in your book, but what about politicians who accept campaign contributions for the direction of policy matters and sponsoring legislative favors. Accepting a campaign contribution should eliminate a politician from voting on matters beneficial to the contributor. Our politicians are a motley lot, with a few exceptions.

  297. silver is in a real bull phase and could have a long way to go. silver options could produce outstanding capital gains

  298. I heard a good story today that kind of relates to Government and Banksters.
    This traveller reaches a recession cratered town, he asks the hotel owner how much for a room, $100 a night responds the owner.
    The visting traveller plunks down the $100 in cash, the owner gives him the key to the room and hotel owner takes the $100 to the butcher who he owes the $100 for past meat credit debt.
    The butcher than takes the $100 to the baker who he owes money to and when the baker gets the $100 he is obligated to give it to a madame who he had pleasure with one night.
    Well the Madame is in hawk with the hotel owner for using the hotel to entertain her clients and gives him the $100.00.
    Then the traveller who was passing through decides that the hotel is not to his liking and asks for his $100 back and takes off.

  299. I do not believe the problem can be fixed. I think that we are headed for a one world government with a one world currency. I do not know what is safe unless it be gold and silver etc. I pray the Lord returns soon because it appears we are losing our freedoms fast! What would you recommend to two 60 year old people. We have our real estate which is our home and one lot at a nearby lake. Our home and 20 acres has 5 separate cottages that we run as a Bed and Breakfast. We are barley able to stay afloat.
    Very Very Concerned!

  300. Do you think the dollar will soon be replaced by the Amero and the USA replaced with the N.A.U.? It seems to me as our leaders are supposed to be intelligent people then how could they not know the USA can not continue on this path??



  302. So everybody says inflation is good for real estate holdings, but I am questioning that because technically inflation devalues the dollar. So if we have run away inflation, the value of the dollar and therefore its purchasing power is diminished right? Simultaneously, we have a collapse of the long term bond market and therefore subtantial increases in interest rates? Again, not good for real estate holdings because increased payments means less principal value. I have a 5-year arm coming due and I have the ability to convert it to a 30-year mortgage. But my rate will be higher by almost two points. I am guessing if inflation is coming I should just accept the increase and try and get the right to assign the loan even if the interest rate is 6.75%. That should be cheap down the road right? I can always pay down the loan as I earn chuncks of money. Help, your thoughts would be appreciated

  303. I agree with you Martin – This debt that Washington is laying on the American taxpayer is devastating!!! It must stop now – but how?? We need to start something like – SOS.


  304. Physical gold and silver are the best bets in my opinion. I think Silver is a real bargain at the current price. Other than that, my portfolio is in cash as of a few days ago. I think we are looking at another market crash soon, and Martin Weiss has called this mess correctly every step of the way. A special thanks to Mike Larson for helping me preserve my money. You guys warned everyone just before the big crash.

  305. asked for my opinion, here it is.

    I was an early supporter for Obama. I was horribly disappointed that he chose, when elected, to shaft Howard Dean, head of the DNC, and whose great idea, the fifty state strategy, WORKED. Were it not for Howard Dean, Obama would not now be president.

    Obama immediately welcomed the Clinton Trojan Horse into his camp, with all their followers included. The same folks who brought us the first of the financial disasters, were back ( where is the CHANGE Obama spoke of, anybody found it yet? Obama welcomes the Clintons and their Clintonistas: Robert Rubin, Summers, Rahm Emanuel, heaven help us. Clinton/Rubin did away with the Glass- Steagall act when Clinton was president…. why hasn’t Obama re-instated it? That would have done a lot to stem the tide of greed and corruption we are forced to deal iwth and observe day to day now to our loathing and disgust. That ACt back on the books, would have kept the investment banks and the other banks apart, separate entities, like they ought to be. The hedge funders could then go look for an honest job.

    GM brought a lot of what is happening to it, onto itself. Creating Hummers, SUV’s, etc.,more luxury sedans, when the rest of the world is scrambling to have energy efficient transportation. Can’t blame this on the government. Blame the CEO’s of GM and their shortsighted stupidity, throw in their cupidity as well.

    But, what is this I hear about Robert Rubin and his buddies going after the pension funds of GM to get the workers’ money to pay back the CEOs of Citibank and Morgan
    billions of dollars? Is that true? And if it is, that would be illegal, wouldn’t it? Who in the hell is minding the store? And where is Obama? Off to Egypt. Why isn’t he home with a big broom sweeping out his cabinet and getting rid of the rot that is already creating a stench there?

    I handle my own portfolio, which for me, is sizeable. I am cautious and conservative.
    I purchased stocks that supply things we cannot live iwthout. Water, for instance.
    I have a nice portfolio of water/utility stocks, and some insured municipal bonds.
    I receive nice dividends, many TAX FREE.. So far, they’re not being cut.

    I also like some communication stocks….and I bought a Fund which brings me 4.5 % monthly, and is TAX FREE. I buy preferred stocks rather than common stocks, generally speaking. There are exceptions.
    I love tax frees….no money goes to the military for their bombs.

    I can donate more to charity…..we need to save our oceans from the oil companies new thrusts into drilling all over the planet…depending on how careful they are, or how profligate, millions of lives of sea creatures, particularly the Cetaceans ( whales and dolphins) are at risk. We must take a position here and be activists. That is what I do.

    I study hard, try to be as shrewd an observer of the political scene as I can ( always been active, I pounded on doors for John Kennedy)….and believe all of us
    must do the best we can as good citizens to vote and act responsibly, even, and more importantly, when those charged with the responsibility of governing us ( and I don’t mean ruling, I mean governing) are falling down miserably on their jobs.

    I support Howard Dean’s Democracy for America out of Burlington, VT.

    Howard Dean is a great AMErican hero, and he is being treated like vermin by Obama and his ilk.
    But Howard Dean will win out in the long run. And I will be there to support him in his plans for universal health care ( he would have been a fantastic choice for the Dept. of Health , Education and Welfare). I do not send any $$ to the DNC, now that Dean is gone from that position.

    The Democrats are split…between the Democratic Leadership Council ( read that, SHILLS FOR BIG BUSINESS ) and the grass roots democrats like me and the other followers of Howard Dean.

    We have the DLC’ers in the WHITE HOUSE, and I suggest that Obama had better watch his back before we have to bear the sad spectacle of seeing and hearing him utter to Summers, or Rubin, and their ilk, ” Et tu, Bruté??”

    Thanks for all your words of hope and wisdom. Our economy is tanking, and I have no idea beyond today what is going to happen. I look forward to your sage words of advice.


  306. I am in a state of confusion. I am positioned for some kind of pullback in the market, but I have my doubts. How long can this surge in the market last? No amount of bad news seems to have an effect. I am certain I will feel a reality check if it happens. What I want to know is “if” and “when”?

  307. Martin, I appreciate your courage in showing us what will happen, but market timing is critical and the recent rally has broke me. You guys will eventually be right but you missed the boat on this bear market rally. Remember everyone is eventually right, about everything. But when investing , timing is critical in being right. You guys are months late in predicting a further market down turn. and it has cost me dearly.Eventually you will be right BUT WHEN???

  308. Thanks for your interest in my opinion Martin.You ask which sectors of the market will show substatial profits soon. I believe we will see this in gold mining stocks, silver miners and oil producers. Commodities will likely move upwards a lot also.
    It apppears that inflation is striking now too, with the first area hit being the stock market as surplus cash generated by the stupid Federal Reserve (SLR) begins to flood in to the market, as well as precious metals and other commodities.
    However lets bear in mind that the SLR may arrange to turn against the market and drive it down so that money will swarm back in to the US dollar out of fear.
    What a mess when government agencies start trying to manipulate the market and the economy. It seems the more they manipulate the larger the underlying problem becomes.

  309. As sad as it is to admit, we will not survive. It started with Nixon taking us off the gold standard and opening our trade to China. He was hellbent on that.

    The insane “growth” of our country and it’s businesses is the downfall of what was once a model of democracy…and that society has been destroyed by greed, corruption, and the demise of humanity in our value system.

    Remember the bucolic days of the Eisenhower “recession” a fond memory compared to the mess our politicians and corporations have created.

  310. enjoy reading your e-mails and you have been right on so fare. how do I see it ? when we humanbeings think we are in control and we are our own gods then we will find out that we are under God’s judgement. it is all recorded in the word the (bible) just what happened to the humans in the past who turned away from our creator and tried to control our own destiny. do not know how you believe, we believers do not haft to worry he promises his kids will not beg for bread our need’s will be met.

  311. I am grateful for the honest advice that you and all your talented staff provide each week. Keep it coming! If I had not lost most of my money during the last 12 months, I would be more active , especially in your million dollar subscription. We live in hopes, and my portfolio is progressin cautiously at the moment
    One thing puzzles me, though. I bought SRS(extra short real estate) at the peak in July, 2007. It has gradually declined since that time, even though real estate has tanked. I was under the impression that this ETF would increase in value as real estate declined.
    I would appreciate your information on this ETF. Are the fund managers incompetent, or am I wrong to expect SRS to appreciate in value.

  312. A great American Mormon pioneer, Brigham Young once said: “The day will come
    when a bushell of wheat will be worth more than a bushell of gold.” Although this
    may seem a long way off, we thought the financial crises we are in now was also a
    long way off, I believe anyone who expounds staying out of debt or getting out
    of debt, having a measure of prepardness, learning how to grow food and preparing
    for any kind of eventuality will weather the future storm of hard times which will
    surely come.


    JIM I

  314. I really don’t have high expectations for the outcome of these several crisises. It seems to me right now there’s too many people, a lot with better educations than I, that subscribe to this idiotic spending binge by our fed government. I have relatives(wish I didn’t) that buy into this hogwash, hook, line & sinker. I honestly don’t see how we can re-eduate at least 3 generations of people(yes, some are my age & older)about financial responsibility. I didn’t vote for that power mad social engineer, but me & a few others have to live with this ego-maniac.
    Our government has tried spending it’s way out of trouble before, & it didn’t work then, & never will work. But so many people think that the money printing presses can run till the bearings are smoking.
    My faith in our national leadership has gone out the window, & if I had the rescources I would invest only in non-union companies, with a good market share, & p/e ratio..Everett

  315. Will America survive?? USDX today is at 78.54, Gold at 984.40 spot price, bonds are tanking,
    the Euro is $1.43 and Obama said the government is out of money. There must be a lot of money people who don’t think so.

  316. if america goes god help the rest of the world i dont think that will happen the world will see to that. a tip for you that you might make some money on try TULLOW OIL PLC a small irish oil company rated by me as a 5star. also try nighthawkenergy a small oil company

  317. Hi Martin,

    How far can this rally go? S&P broke through 200 day moving average. There is a lot of optimism about the Dow going to 10000. Economies around the world are seeing better economic data. Does this rally still have legs? Is a correction for the markets still a long way away?
    appreciate any comments

  318. I like many of your followers respect your oppinions and well find it interesting following your downcast oppinions of all that is coming.You are obviously a very focased group of people. It would be nice if you could stear your conversations to resolve senarios a little more. I sometimes think although you are correct you loose yourself in your own words.
    Repartition is I suppose is important to translate your message to so many of us who quite honestly look at what your saying with our mouths wide open. It is interesting living in South Korea, everything appears to be behind by 6 months. I no this creates opportunity but not sure how.

  319. The expected inflation will drive up the price of all precious metals. I believe holding the metals and buying them is the key to holding on to value and increasing it. Real Estate is also a good investment now. I prefer to find notes (mortgages) to purchase at a discount now on nice properties. They are easy to resell to an investor. Have you any to sell? Please let people know about me. See my website! I can get cash for them now! Let them invest it in your “futures.” Perhaps I can do the same! I am also a Collection Manager for a small , well run Bank. I can see the big picture and feel the pulse of my customers, most of them actually like me. I treat people with problems as I would like to be treated with the same circumstances. I hope you can help a lot of people with your advice.

  320. Here is my attempt to answer your questions directly.
    How do YOU feel rising interest rates and record-shattering money-printing will impact your income and investments in the weeks ahead?
    OK… Things go up and they go down, but never just one way. By the time we start to discuss heavily the direction of interest rates for example, it is probably time for the direction to change. I’m probably missing something on the money printing issue, but I just see this as a non-event. Just because the banks have mountains of cash doesn’t mean anyone is going to loan or borrow it or is everyone getting a huge raise and how are we going to spend all that extra cash and on what — a GM car? I see money velocity slowing and deflation encroaching (in spite of short-term commodities run ups). My investments: long the markets short-term (maybe a couple of months), and then way short (except for the comparitively short rallys) the better part of several years.
    Which investments do you expect to spin off substantial profits next? Select U.S. stocks? Foreign stocks? Currencies? Precious metals?
    OK… repeat the markets comments above, Foreign markets are all pretty much one market, so I believe they will all begin to tank in ernest relatively soon. We are still in the middle of a deflation that is orders of magnitude stronger than all governments combined, so I see commodities continuing downward as this bear market rally turns back downward. The Dollar is still the reserve currency (like it or not), so I see it strengthing as time goes on. Just my opinions. Thanks, Dana

  321. Amazing how people are using this blog to try and advance mis-guided political agendas.
    The current adminstration did not create the mess we have now. If you’re looking for whom to blame look to the previous 8 years of GOP for that.

    Obama finds himself in the position of trying to find a solution for the problem he inherited. And there is no easy solution. No matter what he does it will not be pretty. They have tried to delay and easy the pain by spreading the pain across everybody and future generations. Probably not the best solution. The other choice was to truly let the ones that caused the problem pay for the solution. ie the high priced bankers and financial institutions that made (and continue to make) millions on gambling and scams with our money. However, this path would also inflict pain across everybody and future generations.

    As far as investing, what would be good for this blog to concentrate on is what is going to provide the best opportunity to grow our money based on the fact that we are already on this path created over decades and which can’t be changed at this point. The timing is also critical as the markets have up to this point ignored the reality and have continued to rise higher. So being right about the facts is OK, but it’s more important to deal with the reality that up to this point the markets have not cared about reality. When will the current rally end?


  323. I appreciate your advice and have allocated part of my investment funds to the Contrarian Portfolio. However, I haven’t given up on other advisors. Even though the markets are confusing and times are tough, we can either sit in a corner and wimper or jump in with both feet and take the ride of a lifetime. This past couple of weeks have been incredible – my trading account is up more than 25% in two weeks. Investments in precious metals, oil, and Ford stocks and options have gone up significantly and I am glad that I didn’t sell everything when I signed up for your program. I hope I can use multiple points of view to make the best of a crazy time.

    Praying direction for myself, for our leaders and for the USA,

  324. I’m 77. Born in the depths of the depression. Last of six. Worked my way thru UNC with a wife and child. PHI BETA KAPPA. Did it all according to the book. Officer in the USAF. CPA with a large regional firm. Thought I knew all there was to know about finance. I’m baffled. Followed Mike’s advice from summer of ’07 till now. Lost lots of money. Gov’t intervention turned the world upside down. Followed your advice. The only thing that worked was to cash everything in. Followed Claus’s advice. Lost on Sef and Psq. Recouped somewhat on GLD and mining.

    It seems that nothing works. I think that we could quite well suffer hyper inflation. When the kids in China laughed at the Secy. of Treasury, that was the death nell. Where do we go from here?

    Sorry I can’t help. I guess born in the depression, probably will die in the depression. At least I will have gone full circle.

    My deepest regret is what will happen to my offspring and theirs.

    The takers have overtaken the providers. The last laugh will be on them.

  325. I just need to not lose money on dollars and make a decent interest rate. I just turned 67.


  326. Put some gold in your portfolio as a safety net.

    What do you predict will happen next?

  327. I think all bets are off, we are in totally uncharted waters here, any pretense that
    the folks in DC really know what the outcome will be is just that a pretense, they really
    don’t know. The only way I can see the US being able to payback this debt is to gradually
    inflate their way out coupled with and increase in income taxes. Both must occur, it can’t be done with taxes alone as that will cripple any possible recovery, and if they try to only inflate their way out of it, the debt buyers(China), will put the breaks on further purchases & the party
    will be over. This all could have been prevented, enormous levels of greed and shear stupidity on the part of those that are supposed to know better were at the root of it all. Unfortunately Joe American will be footing the bill for this. If they hang together possibly TIPS could provide some hedge against the inflation. Martin, tell us what you think of the relative safety of TIPS?

  328. I came to US 24 years ago, leaving Eastern Europe socialist country. I worked nere for a relatively very good money in Detroit ( not auto ).
    I went thru all the changes in post-war comunism in my former country. Money reform, e.g. change of currency, when the paper becomes the really paper and the money in the bank “dissapear”. They just printed new, differently looking money and everybody had to start from scrach. My parent’s money ( 800,000) were recalculated in ratio of 1:5,000 and it really ment nothing. We had to wait for my father’s paycheck, but government was so “nice”, every family got little bit of the new money right away, so everybody could buy milk and bread. They let my parents to keep a summer house, but they put in it tenants. The tenants were displaced farmers, who’s property was confiscated. In their farm, they estabilished a co-op. They susceeded for years, since they just got a well cared for farm with all machinery etc.
    Obviously the prospect of socialism in this country does’t exite me. But from my point of view, there has to be a balance in the word. America was far better off then the rest of the word. People were for generations protected by government, so they trust it. They also forgot, how to think independently. And that’s the way, how the enemy got in. Rich country, like USA, should be on instant alert for somebody, who wants ithe money, too! It should be continuesly protecting itself. But this interfere with the constituion, if it is done the way, how let say Saddam did in his country. Maybe it could be done by better education…I think too late now.
    I think, that now is the time, when the wellness “be spread”, but in the all world!
    I think there are ways, how to protect some investments and I’m hoping, Martin, that you’re on the right track!
    Wishing you the best!

  329. I think our country did it’s self a huge mistake when Obama was elected President of the USA. I did not vote for him as an Indepentant voter. And I had a father who was on the Joint Chiefs of Staff when Eisenhower was President. He called Nixon a crook during a Staff Meeting and my mother’s pension went up when he was purgured out of office. The Navy never forgets.
    I wish this country would wake up and and do the same to Obama before he causes this country to destroy it’s self. He set out to do just that before he was elected.


  331. In 1972 I was privliged to visit the Hiroshima factory of our joint-venture partner Nihon Seikosho, who were allied with Mazda Motors as well. What they showed me was truly amazing: a multi-hundred-ton sheet-metal press about four stories high and, when loaded with pre-cut steel, could stamp out an entire cab and fenders for a normal-sized pickup truck! Nobody else in the world had that capability in 1972. I immediately recognized the labor-saving ability of that technique but was sworn not to relate the details at that time which I did not. I’m sure the American auto/truck manufacturers became aware of that technology in short order but also had their hands tied by union contracts which prevented them from taking advantage of it! It is my contention that that is just one example of how the weakness of American industry has grown over the years until today a fine company, General Motors, has been ‘done in’ by lousy legal steps which have tied their hands over the years and prevented them from modernizing their products and production to the point of abject failure.
    So, stop remonstrating about how highly paid management caused the failures… it was the fault of the government which has been moving ever closer to totalitarian Socialism and screwing up our free economic model of how to properly run an efficient economy and don’t weep for the ‘poor, poor’ workers who have unfairly collected more than they deserve for way too long. It’s sort of analagous to the theives in the banks who made an infinite number of imprudent judgements about loans and what characteristics were required to approve loans. Specially, the loans issued to immigrants, both legal and illegal, under the CRA (Community Reinvestment Act) mainly sponsored by BofA from 1996 through 2000 and then suddenly cut off to cover-up the audit trails which would have led to prosecution of the executives behind the BofA program. And, to cap the entire program, all of the CRA team was summarily laid off and then the president and chief of the BOD retired with a severence pay of $110 million! Neat, clean and tidy, no?
    So, now you want to blame it all on the Ken Lewis’ and others who stepped in to cover for the ones who did the dirty deeds? Sorry, but your anger is once again misplaced. The real culprits are long gone with their undeserved bank balances and no time to serve in jail.

    My point… our snail-paced government and its regulators are always too late to place the blame where it belongs but, we the people cannot escape the unfairness of galloping inflation and unreasonable taxation… listen to Martin Weiss… he knows the truth but probably meet his demise if he ever told you what he really knows about whom is really responsible for our great national failure.
    Dave W.

  332. What on God Earth is going on here???!!! I’m really enraged! Why is dickhead cheney, mouthin off on President Obama? Is he the cause of this loss of jobs, inflation, high gas prices, the overpriced housing market, of the early 2000, did he send his secretary of state to the U.N, to prove a basis for an Iraq-U.S war with a vial of anthrax, & some misleading arabic conversations that WMD’s are being moved around, & hidden?! Did he focus on fear of the american people with misleading color alerts, & terror imminent plots against america? Did President Obama, neglect the economy, to pursue his own war ego, for the “sea of oil” that, he once said that Iraq sits on? Did President Obama let bin laden get away, using some quirky nothern alliance with a handful of Special Ops, & the airforce? The answer is a big NO!!!!!!!!!! This Gentleman (President Obama) means amerikkka well! Keep knocking the man. It seems rather apparent, that not only dickhead cheney, wants President Obama to fail, BUT TO SET HIM UP TO BE ASSASINATED!! (cheney you creep!)

  333. My contrarian portfolio is about break-even right now (thanks mostly to the gold plays) so I don’t feel too bad about having strong etfs in place against a sudden race for the bottom by the big boys. These guys are right, we won’t see it coming because they are all setting us up for an ambush. I see it as cheap insurance, not a chance to profit but a hedge against more disaster. When you live in tornado alley you learn to appreciate insurance against losing what you have even more than a chance to get rich. My grandfather said that during the last depression he had no cash but thanked the lord he could raise food and feed his family, which was more than the city people could do. We just finished canning the Feb – May crop and are replanting for Jun – August. After solarizing the soil we will put in the Sept – Dec winter crop. If you don’t know what I am talking about, you might want to learn more about it. Also how to raise your own seedlings: there were almost no slips and plants available this year, it will get worse. If nothing bad comes, if Weiss is all wrong and the storm clears magically, you still will have a garage full of food and fertilizer that is worth more than you paid for it. You will also be able to avoid salmonella and be healthier. I am not telling anyone to do what I do, we all have to make up our own minds, but you might want to buy some protection too. The people who put this administration in power are not big on respecting the right of other people to keep the fruits of their labors.

  334. I feel the rising interest rates will put housing in a worse situation than it already is.

    It was my understanding of government; that paper money matched the gold in the reserves. I don’t feel that is the case now and things could get worse for a lot of people.

  335. You are swimming upstream against a torrent of contrary market opinions. The gurus are chortling about a new bull market. What is it that makes you so confident your are correct? i have read the case you make in your letters, but it doesn’t seem to be relevant.

  336. Martn,
    In my opinion, the answers to your questions are following:

    Will America survive? Of course! America survived Great Depression, won 2nd World War over evil of Hitler, beat Russians in the moon race and cold war and will get out of this mess as well. Like Ronald Reagan emerged after weak Carter, another strong leader will come after Obama and will return America to its roots, hard work, ingenuity, honesty and pioneer spirit.
    How will high interest rates and money printing affect my income? It will give me an opportunity to get some high yielding bonds when they finally bottom out like in 1982. High interest rates will eventually stop gold bull market. I hope that you will help us to pick the time.
    Which investments near term? It is too late for me to pick the stocks, I have just retired and will need some income producing investments. I would think to stay in the safe cash with most of my savings right now, part in US dollars, part in Canadian dollars, about 15 to 20% in gold (GLD plus gold mining stocks or mutual funds). I bought some DOG at your advice in Safe Money Report (am hurting on it right now), also some TBT (this should be fundamentaly correct but how to handle frequent gov’t interventions in this market?). Thinking of getting some FXI to offset my DOG but need a little market pull back for that. I am fundamentaly in agreement with your overall philosophy and will follow your advice in Safe Money portfolio, somewhat modified to my limitations.



  337. I am really scared to spend any money that I have left. My mother moved in with us after she sold her house for $80,000. My father worked in the meat packing house and took care of us eight children. I put her money in C’D’s. And while I was out of town the broker that had my husbunds retirement talked my husbund into putting an 87 year old women money in the stock market. That was last June. I was furious because my parents never ever were in the stock market. Plus I didn’t gives the broker my permission. When the papers came to sign them I was angry at the broker and my husbund. The broker said, “it was a good time to be in stocks. She lost it all in September. I am so sickend for her! All my dad’s earnings gone. He would roll over in his grave! I pray every night for my mom. I feel like she was raped!!
    I’m sorry I’m going on but it is hard to know what to do when you have very little left.
    I wish I had known about you sooner.
    The retirement we lost is one thing, but my mother, who was NEVER in stocks but 3 short months is so heart-wrenching!!!
    I look at her and want to cry. She gets very little social security.
    God willing I will take care of her.
    I pray for you and your staff during these difficult times.
    God bless

  338. Not only am I convinced this country will not survive. I am positively persuaded that it DOES NOT deserve to survive. This country has taken greed, viciousness, callousness and cruelty to vertiginous heights. Corporate greed and the medical establishment of which I am part, are only but two examples. I am deeply ashamed of being an American citizen, and after the zenith of mongoloid reasoning Bush and his demented goals, this country deserves no respect and no help from anyone. All my investments and all my help as a physician and as a humanist go outside this country.

  339. President Obama, with the help of the Democratic Congress is driving a financial dagger into the heart of America. This could result in the failure of the economic system. It has been said that when free societies fail they are usually replaced by a dictatorial system. If the present policies result in rioting in the streets, the president could call out the National Guard and establish martial law. If the military complies he would become a virtual dictator. Please tell me that this is not his plan and that it could not happen in America.

  340. gold silver oil currencies, short or bearish etf’s.i have participated in this suckers rally i think your contrarian views are spot on but were not there quite yet there is probably upside to the soon to be artificially inflated dowwith cisco $travelers to aprox. 12000.i am in long out of the money calls in silver and gold and select junior and midsize miners. i am salivating @the incredible oppurtunities the market is never right or wrong it just”is”, cheers david

  341. My husband works for the Federal Government. We have our retirement the the Thrift Savings Plan. We had moved it all to the G fund. This is short-term U.S, Treasury securities specially issued to the TSP. Payment of principal and interest is guaranteed by the U.S. Governmant. Thus, ther is no “credit risk.” Now, with all the talk of inflation not to mention the crap our government is pulling with the banks, GM, Wall Street etc. What are we to do. This is terrifing. We have 6 years to retirement and can’t afford to lose any more money to the crooks. We do not even have to option of taking it out and putting it safely in the bank. Don’t even know if the bank is safe. If you know anything about the TSP could you please help us and others by telling us which is the safest way to go. We have stopped contributing past what the government matches. Should we be buying gold?? Help!!

  342. I’m inquiring about government backed Gennie Mae Bonds. Is this a safe place to put your money. My understanding is their yield is higher then Treasury Bonds and are 100% government backed. Would appreciate some input.
    Doug A

  343. As explained in my book “American Refugee” nothing new is happening in terms of world history. The USA is exactly where Rome was in 400AD. The govt mechanism has never been reversed that’s why all those famous civilizations went extinct. Policies are set by the lowest common denominator so the more idiots that vote the more idiotic policies become.

  344. I continue to stay in my Fidelity ‘Oil Services’ holding for these reasons: 1. It is not tied to any country, but is a universal position. 2: The demand for the product is probably beyond the whims of any politician, as moving people to mass transit and bicycles will not be popular. 3. This commodity cannot be made obsolete by any politician’s fiat as all fuel substitutes will act like Ethanol has: The reality is beyond the complexity of the politicians’ to understand until it fails. Obama’s fear of the word ‘nuclear’ means that carbon-free electrical power is soon destined to be a cause of riots.

  345. Martin , Your messages to me are right on the money , I and most people I know follow the Markets on a regular basis just watching the manipulators push the Dow up up up , for NO APPARENT GOOD REASONiING , with all the bad debt that is being created ,just printing money hand over fist , what are we passing on to the future , more & bigger debt . Why would anyone with any foresite buy into the Stock Market , The Markets are controlled & It’s there CASINO , it has been severely manipulated even a novice can see that . Any one with resonable intellegence stays out , It’s just unbelievable what sheer GREED has done to our Markets it’s NO LONGER LEGITIMATE & the average person that I know is staying clear of investing in the Markets . BUT, yet the DOW goes UP, UP, UP in spite of all the sourrounding terrible economic debt and most Corporations struggling to stay alive. BS is the only thing they have to sell in the Markets & the Media keeps pounding away , every day .So Sad . Thanks for your daily reports . Anthony.

  346. Dr. Weiss~ 4 and a half month’s ago, (It’s June 2nd,09) I began to turn my money into true liquidity by initiating the cashing out of the checking and “money market” account’s at the 4 bank’s that I had spread these monie’s out at, before the FDIC increase to $250,000.00, to make sure they were all covered and it has been a difficult endeavor. Told at the first bank that I couldn’t do that, that I would have to accept $10,000.00 in cash and the rest in a cashier check or have it electronically transferred to another account. I offered to pay a fee for the purchase of the money and the salary of the employee’s who had to spend “all that time counting it”, since this seemed to be a major problem. After politely asking every 2 week’s or so, the ladie’s , (1)cashier/teller~~front end manager and (2) the CEO’s right hand assistant quietly ordered the money and made arrangment’s with me when to come in and pick up my money. The other 3 were not as hard but there was resistance and “You can’t do that” all the way.

  347. I have followed the trades in the portfolio. However, I was not thrilled about adding AAN & First Dollar. I did not really want to get into picking individual stocks. Again, I pulled the trigger and followed the recommendation.

    As for thoughts on investments, I think we should be more heavily weighted in gold. I have purchased physical gold separately. What about some currency trades? If you are so certain there will be devaluation of the dollar, is there some way to play this without being too reckless? Also, I would have liked to see a play in oil since I think that is on the way back up.

    Finally, I DO NOT WANT TO GET OUT IF THE MARKET RALLIES! I own a very large consumer bankruptcy law firm in Las Vegas. Every day, I see first hand the impact of the current economic circumstances. I have front row seats to the carnage. I am overwhelmingly certain that there is no economic recovery in site. Consumers are tapped out, foreclosures will crush the banks, and the market will eventually capitulate. I want to double up on positions if the DOW hits 9500 in this rally. I will not get out. I will keep buying more of the ETF positions.

  348. I think it is the time to buy precious metals However I do Not see a silver lining for the dark cloud that is coming it is Not Spring rain It will be PURE ACID RAIN that will burn holes in even the safest houses We Will have run away inflation and WE WILL HAVE FOOD LINES and soup kitchens and everything that goes with it,You see I am an ex-mortgage broker I saw this trouble back in 2006 and now I am a asset manager who does a lot of foreclosure business and most of the stuff we get out of the trash outs we take to auctions and Guess what a year ago you could make good money at an auction sometimes a few thousand dollars for the stuff I would sell…. Now the same batch of stuff we only get a few hundred dollars, Why Because Nobody has any money and the main reason seems to stem back to last years 5 dollars a gallon, people are only now just getting caught up with the fuel bills one of my friends owns Highhouse Oil Co (Bobby) and he showed a pile of accounts that are over 120 -180 days behind its no joke and now wait until October …. My predictions were as follows 2008-the summer of denial….2009 the summer of tears and fears…..2010 the summer of civil and social unrest and mass mayhiem…Not to mention the other things that I have talked about.

  349. I think the U.S. is about in the same position that the British Empire was near the end of World War 1. I think we may have reached our zenith and will slowly give away to
    a power that is more hungry to become dominant. This has happened in the past and will continue in the future. As far as I am concerned, I expect to see very little change in the balance of my lifetime as I am 95 years of age.
    This may seem heresy to many people, but I am convinceda that religion has been
    responsible for much of wars over the ages. If one looks at the Bible, and really studies it, He will see that it is the original Grimm’s Fairy Tale. It falls apart when
    it mentions Cane and Abel get married. If Adam and Eve and Cain and Abel wire the first humans, where did Cain’s and Abel’s wives come from. Sly operators early got gullible people to make live sacrifices of animals etc. so they would not have to grub for food, and devekoped tithing. It is true that religion has done some good things but it is miniscule to the antagonism it has caused.

  350. What have we learned in 2,063 years?? “The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.” – Cicero – 55 BC

    Whoever came up with the saying ” history repeats itself “, nailed it. The sad part of the equation is that there are so many people out there who do not want to hear that things are bad and going to get worse. If you think that the dollar is going to collapse (given the amount of money we are printing); stock up on food and all essential needs. People who are concerned about their portfolio or 401K might want to reconsider things. What can happen to food and essential supplies if there is a currency collapse, fuel disruption or power disruption? For those who think that may not happen, you probably thought Martin was wrong about GM going bankrupt. Optimistically, an alterantive way of looking at food and supplies is they are insurance against any one of those catastrophes.

    Additionally, convert spare cash into strong foriegn currency… pick one or more. Just look at the chart for the dollar verses the Swiss Franc, Australian Dollar, Euro, Pound or Canadian Dollar. Most of them will end up being stronger than our dollar in the world market. Really, we are printing TRILLIONS of dollars and still people in America think it will hold its value!!! Comparatively, when Geithner told a group of Chinese students “Chinese assets are very safe,” the audience laughed loudly at Geithner.

    Instead of worrying about your portfolio or 401K, worry about your family and friends and their wellbeing. Like the person before me wrote…AMERICA, WAKE UP!!!

  351. I appreciate the work you’re doing to help us understand what is happening around us. Based on your recent posts, I thought sure the GM bankruptcy would “sink the economy,” to use your phrase. Lo an behold, the day of the GM bankruptcy, the stock market doesn’t blink. It fastens on the Chinese manufacturing index instead. The orderliness of the auto industry bankruptcy process, and the lead up in general over the last few months, seemed to make the bankruptcies a non-event for the market at least for now. So, it appears on the surface that we didn’t sink, yet. Last year, last fall, we flat out sank. Maybe it’s less stressful if your big business sinks in an orderly well publicized way. Thanks for your hard work keeping us appraised of the present while the market seems to be looking way in the future…??? Let us know if we sank or not. The disparities between the apparent fundamental situation and the market response are incomprehensible to me. I don’t get it. There also seems to be a disparity over what is happening in bonds: you are seeing vigilantes dumping treasury bonds and Bloomberg is reporting the Fed sees a 3% net gain in treasury purchases in May? Hoo boy.

  352. I don’t see how we can live with Obama’s reckless spending. Why would the equity market improve under these irresponsible stimulus spending?
    I live off interest on high yield bonds, and not sure about these compainies to survive either. Dean here. What think you?

  353. I think you guys at Weiss Research do a good job addressing things important to Americans. The problem with General Motors, outside of its debt is the cause of the debt, an outdated business model crumbled by large pension and healthcare obligations. While $5 Billion a year doesn’t seem all that high it eats away at free cash flow and the companies ability to pay down existing debt. I’ve spoken to 1,000 GM employees in my previous roles and I understand their concerns have now become reality. The deindustrialization of American started in the 50’s when we first started outsourcing jobs and we had a shift from a manufacturing based economy to a service based economy. I believe we will see another great bull market and new innovations to fill the void left by GM, but people should be realistic with their time tables. Markets still have a great deal to work through, specifically the coming earnings season.

  354. There can be no question that a treasury secretary who denies that his central bank and currency are in any trouble, is, indeed, a man covering up a truth that cannot be denied.

    The US currency has been thrown under the bus of a Fed bereft of sanity, increasing its debt, and giving no consideration to the source of paying for the servicing of the debt or its repayment. There is also no recognition of the fact that there is insufficient money in the world to fund this government’s largess.

    An economy is, after all, people exchanging things, services and financial instruments with each other. The Government is a middle man which creams off a commission from the commerce of others, and it (Government) is supposed to use the “cream” to fund projects which a free enterprise system cannot. It cannot “be” the economy, as Obama suggests.

    The Government creates no commerce and does not build goods and services which make up the commerce of the economy. The spending promulgated by this administration will bankrupt the federal system and endanger those foolish enough to invest in government financial instruments and bonds. The spending plans will build nothing of tangible, fungible value. The bailout plans will place a pall of suspicion on every company that would try to float a new bond or stock issue, when the Government no longer respects the priority of a secured creditor.

    The only intelligent means of rebuilding our economy and ultimately reducing our debt is to place spendable cash in the hands of consumers and business and let them do with that money what they always have, namely, build a great and prosperous economy.

    For now, I am investing in the stocks of “creditor” nations, like Australia, real estate, oil, gas and coal, mining stocks or ETF’s and I will be slowly exiting all bonds, including municipals during this summer in anticipation of the inflation to come this fall. I expect another October surprise and it will be negative.

  355. In my opinion, GM did not just go bankrupt. It seems to have decided that its corporate future was best secured as a global enterprise. Accordingly, they built assembly plants in Russia, China and other locations around the globe with, some say, currency expropriated from pension and other funds thus leading to insolvency here in America. Do we see GM going bankrupt in Russia or China? The answer is no.

    In addition to the general terrorist attack brought on by the croupiers of Wall Street (with their voodoo economics of CDS’s, derivatives and other sleazy financial engineering) and the Federal Reserve’s (it’s not federal, and they have NO reserves) fractional reserve Ponzi schemes…the UAW insisted over the years that GM pay outrageous wages and perks as a result of what was euphemistically called “collective bargaining.” The UAW nibbled at the edges of GM’s flagship enterprise here in America until it finally sank.

    As far as one can tell the Russian and Chinese GM facilities are humming right along. The absolute bottom line is that, though somewhat inflationary, the Treasury Dept. should have given the ten thousand billion dollars (give or take a trillion) to the American people to spend on autos, homes and credit card payments. The banksters would have gotten their greedy hooks on it anyhow, but by adding one step to the so-called bailout the American people and economy and would have been helped.

    Now, with all that fiat currency down the double dealing rat holes of corporate bonus greed we are seeing the true colors of the nepotistic/conflict of interest relationship between WDC and Wall Street….and the whole thing not subject to any SEC, judicial or legislative review…thanks Ben. We have purchased property on a certain island which will probably be the last place that the next false flag inspired martial law will be implemented. Come out of her before she is punished for her sins!

  356. Dear Dr. weiss,
    We have not educated the public in economics or money & banking thus Capitalism is now dead. What schools teach is not economics, it is close to socailism or at best keynesianism. Best example is Obama. I am sure he believes what he was taught, but why couldn’t he think beyond his political bias for the good of the Country. He has bankrupt this country by throwing all of his socialistic programs into what he called a stimulas package. Can’t stimulate the economy through the Macro side, has to come from the Micro side. No Micro, there can’t be Macro. I don’t think this mess can be corrected in time to change what is going to happen to this country. Better start learning Chinese or Manderine.
    On the personal side, I can’t even get my house financed. have a 7yr fixed interest only loan and have tried to change that to a 30yr fixed, no one will touch it because I have good credit and haven’t missed any payments. We bailed them out!!!, Go figure?

  357. Hello Dr Weiss and fellow readers/investors:
    I would really hope that the US can pull itself out of the economic quagmire that it has gotten itself into but I don’t know how it can do it. You have way too much foreign debt and these countries could eventually be your new masters.
    It is going to take generations to climb out from under the debtload you have made yourselves. There will be a day of reckoning. The only hope is that you “reinvent” yourselves. You still have a wealth of knowledge, workforce and the resources to make this happen.
    Gone are the days of being the world’s policeman. This is costing you way too much to keep up and is a major part of your debt woes. You can thank Mr. Bush for that.
    As an investor with most of my foreign portfolio being moved away from US holdings, I await the day that I can turn this around.
    Good luck!

  358. what do you recommend investing in this time in our countrys time of economic trials ?

    Thank You for you time and and your staffs services

    Elwood Jolly

  359. I think the question of U.S. survival refers to U.S. economic dominance. All great empires eventually fall. Although no one can be certain about the timing of such an event, I believe it quite possible that we are now at a critical juncture that could indeed be the beginning of the end. Politicians repeatedly avoided attempting to fix social security, medicare, and healthcare during the last 25 years, and that in itself increases the likelihood of decent when the current crisis is compounded on this. As for question #2, rising interest rates and dollar printing will lead to stagnation of growth and dollar devaluation respectively, thereby potentially limiting labor income. With regard to question #3, as for investment themes going forward in the near to intermediate term, I believe gold will rally at least 30%, the dollar will continue to be pressured(commodity currencies are probably the best choice), and equities will continue to have significant rallies when hopeful fixes are falsely perceived, only to be followed by significant breaks when the true underlying fundamentals emerge. Anyone thinking they have a certain view of the long term is fooling themselves, I believe. For instance, almost everyone is expecting hyper-inflation because of money printing. But there is an example in the modern era when re-inflation attempts have failed in a large economy. Japan poured money into its system, yet never re-inflated its economy. Helicopter Ben must believe they didn’t pour enough in. History will decide if he is correct.

  360. Martin, we are in some deep poop. I believe that this is all by design and the insiders want to bring our once great and still great country down to the level of the third would countries. That is one reason that the southern border issue has never been dealt with. They want to erase all of the borders and have the Amero (like the Euro) printed up already so that when the North American Union is put in place, we will have one currency. Too many Americans are asleep–too much apathy.

  361. Hi Martin,
    I am 51 and a small business owner in Pennsylvania. I have spent most of my adult life investing my time, efforts, and money in the things that I do. I have been extremely disturbed by investor attitude and thinking since the mid 90’s. I am a person who relies on very fundamental approach to everything in my life – my businesses, my home, my family, and my investments for retirement.
    Because of the bubble market conditions that we have experienced and the lack of any fundamental thinking in the markets, I have remained mostly on the sidelines for the past several years. The current state of the economy and market rallies in the face of blatant bad news and fundamentals have led me to write on your blog. I just can’t make logical sense of much we are faced with today. I hate debt, but our modern economy is built on it. I have always believed that “you can’t borrow yourself into prosperity” but yet all of our policy makers seem hell bent on it.
    I would love to be a part of a movement that would put us back on the right path – toward strength, sound financial thinking, a family oriented society, and a one-ness of pupose. Please let me know your thoughts.
    Greg Paul

  362. Your emails to me are very appreciated. I’ve done a lot of research about our country and our precious earth. We have a few short years remaining to do good to others, help the weak, sick and needy, join together with willing neighbors, friends to help each other. Rampant marxism, totollarianism, brutality, enslavement, etc. will continue. All mighty GOD is the only help we’ll have to go through a complete Purification and cleansing of the planet, etc. “Behold I create a new heavens and a new earth wherein dwells righteousness”. While we enter this time of great troubles, changes, upheaval of earth turned on it’s side by the passing of Nibiru, the destroyer, let us practice love, prayers and expectation of a brand new Earth.

    PREPARE TO SURVIVE is the message I get over and over. God’s richest blessings to you all. Lynne in TN

  363. Hello Martin,

    First off I would like to thank you for your e-mails to me and thank you for sharing you
    knowledge of economics and investing to the man in the street and average Americans.

    I see a watershed coming upon the United States of America ==it is two rival groups
    emerging // one is the private sector with the people who do the producing of food =
    business = comerence and all things of everyday needs //and the other group which is
    the Government sector [ which the bankers and the federal reserve who are =but more
    bankers ] The government sector politicians live in a bubble world and most are mostly
    parisites living off of the tax payers confisgated money ! Now there are some honest
    politicians but very few with backbone and courage . But the people in government have I believe very little respect for the man on main street and some even gone over the edge to believe the government should control the people to their political agenda !

    This is a very dangerous situation == They have ignored the constitutiion of our founding fathers == and if they do not reverse course this will teare this country apart = we are now in unchartered waters ! we all will be in a world of hurt !

  364. What is going on in the USA today has been written about and planned for many years by the banksters and industrialists. They want to ruin the USA in order to gain control of it. The Federal Reserve and the Bank of International Settlements are key players, privately and family owned and controlled, entities. Congress is basically bought and paid for our have been compromised, so they will do he bidding of their paymasters. This includes the obamanation, which is in the White House.

  365. Thank you for letting us post our comments. I’m always happy to read your emails, because they don’t treat us like morons that the mainstream media think we are. Our government has been taken over by the Central Bankers & Wall Street, they are not even looking into what has happened that got us to this point, they are just reacting, poorly I might add. The incompetence is mind blowing. I have no money saved, no one in my life has a clue about money, politics or economics, even the economic books I have read were little help in waking me up to the massive fraud that our government and wall street is. We are all scrambling and the media keeps telling us that it will soon be over, hah. I think that it is going to get really bad, before people realize that it’s not going to get better.

  366. Sir, So the questions are: How do YOU feel rising interest rates and record-shattering money-printing will impact your income and investments in the weeks ahead?

    Which investments do you expect to spin off substantial profits next? Select U.S. stocks? Foreign stocks? Currencies? Precious metals?

    My feelings mean nothing. Your calculations are more important. You’ve made it clear for years and then carefully this year that more debt and fiat money is a death knell.

    I’m a believer in owning physical goods rather than promises. In an economic collapse a promise to pay is nothing, and more trading thus creating more dollars from thin air only exacerbates the problems. IF I had money to invest I’d buy gold and silver, oil, food, COAL, pay for a modest house and keep it — pay it off — mortgages are dangerous. Be like the old world Italians. You don’t own it until you OWN it.

    It’s very old fashioned but we’ve become so undisciplined about debt. And this false prosperity has ruined the entire moral core of this society. Prosperous people “spoil” children who grow up profoundly considering that they are the center of the universe. They are selfish, heartless, and without moral guidance. This “sea change” is far more than a money issue. It is an issue that will alter America forever.

    Mark me, by the end of 2012 your life and your portfolio’s will be unimaginably alterned.

  367. I have a nagging question,Why doesnt anyone blame the rating agencies??? Moodys and Standard & Poors are the major cause of the sub-prime mess but they got away scott-free……..And one more question;If the US consumer has lost 20 trillion dollars in wealth over the last few years,then why cant the government just print that much money and not worry about inflation

  368. Before a lamp goes out , it splutters and glows the brightest!. Likewise ,the US dollar will have a LAST hurrah before it is dramatically devalued .It may well be a one shot surprise! .So be prepared for a vicious US dollar rally that would render a defaltionary blow to all asset classes-except US treasury bonds. Like in Sept-Nov 2008 , the bonds will rally hard from here and go parabolic causing a global stock market collapse of a magnitude greater than what we have seen. Gold bullion may hold up for a while ,but,if asset liquidation turns horrendous resulting in margin calls ,gold may be sold off too.The gold equities will once again get crushed alongside the equity market.

    First we will see defaltion take hold .And if the federal reserve begins bailing out US households like they did the banks , I will bet on a hyperinflationary outcome.Till then , US will be moving towards a socialistic-communist model wherein all critical production modes and services will be owned by the US Government. Goodbye capitalism,welcome communism.Once communism has been instated,the US can be handed on a platter to China for control and takeover.

  369. Martin,
    Our current government is totally out of control and I am deeply concerned that the
    fiscal damage and socialistic policies being created will never be able to be corrected.
    I have been supporting your efforts in congress, however it appears to me that it is
    falling on deaf ears. In order to cope with the deteriorating effect on the purchasing
    power of my income my investments are being heavily weighted toward the precious
    metal miners and commodities for the near term. Longer term I will be following Claus’s
    comments in the million $ portfolio. Appreciate you sound advice and guidance.

  370. I realize the gov’t. no longer publishes the M1,M2 & M3 statistics any longer but a rough estimate on my part as best I can discern it appears that the M3 money supply seems to be going down; while the M1 is rising rapidly. This at first seems a bit baffling in light of the craziness coming out of DC. If the M3 money supply is trully shrinking , we are heading head long into deflation it would seem to me. Thank you for any clarifacation that you can bring this possibility.

  371. Martin,

    How do you feel about high yield (junk) bonds such as PIMCO high yield income fund managed by none other than Bill Gross himself?


  372. I am no financial expert but it seems to me the government wants our currancy to fail.
    There are rumors it will be replaced by a new “world Currancy” based on what I don’t know. I think even if you are able to keep some gold and silver coins the government will confiscate them. A friend of mine was buying some gold coins and silver coins and the coin shop insisted on getting her license and address. They said they needed it because of the “Patriot” act. The people in the present government are radicals and hate private business. A friend who buys banks spoke with one of the Obama people who told him “We don’t want to make anymore millionares! Of course he was patient and reminded the women that ” You do not have anymore money”! Its hard to know what to do espeacially in this environment.


    Chris T. Nuno

  373. I liken the economic and political events of the last year to a NIGHTMARE. Hard to believe our nation has turned into a socialistic/fascistic entity and it appears there may be no way to stop it. Even Pravda/Russians are surprised at the speed at which our country has vered towards marxism.

    In this anti-freedom/socialistic environment methinks anything can happen as the events of the last year have proven. IMO logic and common sense have been thrown out the window and most of us are scratching our heads wondering what in the world is happening.

    It is my belief that the markets and our economy is in the process of being taken over by the state and therefore logicical investment strategies may not work as before. Good luck to all in surviving the coming storm.

  374. Martin,

    What is going on in this country is so wrong. Government doesn’t nee to be in the
    business of getting involved in the economy in running free market companies.

    What is really unbelievable that this country has such an outdated system as to let someone elected to the Presidency of the USA can violate laws, and do whatever they
    want with no checks. Political speaking, there needs to be a major change in protecting the legal people of this great country. We are living the history of the wiemer republic and can’t do a dam thing about it.

    We see (only on Fox news channel) a country that is at the whim of the elected President who can do whatever he wants. His popular vote and the root of the character of this individual is to vote “present”. Why can’t there be something done
    that can mitigate this redefining of America. What in the hell is going on. We have a political system that governs itself with no outside controls anymore. There is no balance in the three venues of government, the Executive branch, the judiciary branch, the stupid congressional idiots who get a life pension for a one term legacy.

    That’s my story and I am sick of this arrogant attitude. There is no two party system anymore, the republicans are going in the same direction of the democrats, just at a slower speed.

    I am so ticked off, I am signing off. How in the heck can a country not have better checks in place. We are becoming Venezuela and Chavez, what the heck is going on????

    The progressive movement has finally gotten a hold in this great country and we have no alternatives. Vote for who? They are all in the same bucket.

    Shovel ready my A*&. No manufacturing in the USA, ability to print money and devour the future generations.

    I am done, blood is squirting out of my eyes and my tolerance for liberalism is somewhat non existence at this time. This country was built on make your way. Progressives have finally made their mark, too bad, we are heading towards socialism, next (aint going there), how in the hell has this country allowed itself to give up freedom and let some clown change this country all by itselft?

    I don’t vote “present”, I vote “freedom”, no elite people who think they know what is good for the nation. How disgusting is this that this country has a system in place that someone can take over and change the country without even having to do it Militarily, Venezuela.

    I am done, this is gross with no way to stop it. I will continue to vote that is all we have, needs to change. Bring manufacturing back to the USA, quit selling out, regain what made this country great!

    Rory Roemmich

  375. Greetings Martin
    I have been a reader of your publications now for some time and I greatly appreciate what you have said and done. Your accuracy is relentless. Credit based economies do not work, lets go back to the gold standard.

  376. Well,

    I never thought I would see this in my lifetime. I am 43 yrs old & I read everything I can get my hands on. I first started to track gold roughly 5 yrs. ago & have been a buyer of the Noble Metals for some time now. If you look at the chart that compares the Dollar to Gold since we were taken off of the gold std. it is a reverse trend. I made the conclusion that all currencies are worthless. I keep only enough cash to pay my bills. Other than that I do not put into 401K or IRA’s any longer. Who & what do you believe?

    The sad fact is we did this to ourselves, we have transferred our wealth to China by buying their CHEAP products. I make it a point to purchase items made in the U.S.A or our allies. China IS NOT OUR ALLY!!!!!!!

    The major problem we have is Politicians who think they know how to manage money. These people are pathetic.

    May the Lord bless us all for what is coming. I wishh everyone who reads this Peace & Solace in the future. My hope is people have listened to Martin Weiss the man is sheer genius. I have been getting people I know charged up.

    God Bless You All.

  377. Firstly, GM can reinvent itself with hydrogen powered/Electric cars. About 70% of vehicle trips are to and from the shops or to and from work. It is a big market and would reduce U.S. dependence on fosil fuels. The Japanese originally broke into the car market by copying other car manufacturers products. Maybe GM could re tool and re gain their strength once more. There is such a car already.

  378. I’ve been reading a lot. Read your book as well. I’m not smart enough to figure this all out and I suspect I’ve read more than 99% of Americans. What is the safest way to diversify my assets? Gold, silver, foreign currencies or treasuries (like Canada, Australia or Euros) land?

  379. I wish I could afford your service, but have 3 kids in college and all my money goes to them. I will buy gold if it pulls back soon. I won’t buy it at these toppy levels. What I am concentrating my wealth on is FAZ, TZA, SRS, etc. You get the picture. I’m like you and betting that this whole thing collapses like a house of cards! I use to be a Financial Advisor and left the business to the Wall Street cheats. I invest my own money and do well. You’re doing a great service for the retail investor; however, Obama and his cohorts will fail in the end and it will all collapse! Then I’ll make money like your Dad did in the Great Depression!


  381. I think that our country is in deep financial trouble. To wit, we send nearly worthless paper to China in exchange for poisonous/defective products. Still, your advice has been useful to me personally. I really appreciate it.

    Tom Senter

    P.S. I am investing in oil, natural gas,gold,etc. I also followed your recommendations regarding long-term T bills and am happy with the results, thus far.

  382. Martin,
    We have no choice in this matter. I do not have a specific solution to what we are facing, but I do know that we must prevail in what we believe to be the greatness of America. There is too much pent up emotion in this country at this time and as an entrepreneur I find that this is the time for a breakthru. I keep hearing about how brilliant the current administration is , but I be-
    lieve they are ten bricks short of a full hod. They have overreached the authority that is theirs
    constitutionally and we must use proper means to bring them back into the proper place for them.. I believe that selective recall elections could be employed to get the attention of members
    of Congress and the Senate. I also would advocate use of the Internet as a communications venue, because we could spend billions in “ink” and end up with nothing. There are people who
    know how to use cyberspace far more effectively than I , but they are the ones to bve led by
    the “brains” that are going to lead us thru the Red Sea. I don’t know who our Moses is, but I am convinced he is out there and if we are truly a “nation under God” we will have Him to lead us in this battle for existence and rebuilding the land.

    I am not one to suggest how someone else can do the job. I do recognize my limitations, but I sure am ready to put my shoulder to the wheel and make things “hot” for several of my “favorite” Congressmen and administration hacks.

    Count me in for whereever i can do some good in this critical time in our history.

    God bless you ,Martin.

    George Foster

    P.s. I live in Yuma, Az, and talk to many people everyday. Many of the Mexican population are
    beginning to question what is happening to their future here. Quite a number of these people are illegal, but they know what is going on.

  383. Greetings: Your expert advice and knowledge pertaining to the area of your expertease is very interesting reading. It’s distressing though, knowing that at last
    America is now paying for all those sins committed as per it’s citizens screwing their
    neighbors in the name of business as usual. I sincerely believe this latest war was
    conceived under the guise of WMD for more business via oil and contractor political
    appeal involvment. No doubt about it, war makes for business and Bush provided a
    an opportunity at the right time by being in the right place. This also was helpful for
    the sinking of the economy. I’m 77, retired, good income, good health. This is being rich. Love reading your stuff, keep up the good work. Hope your customers get rich.
    Risk for me would be skydiving and I’m goint to delay that for a while.

  384. Why is Claus not adding other countrys to our portfolio? Why so focused on the USA only? Examples: Canadian Minimg or Commodities, China, Indonisia, Brazil?

  385. Firstly, I want to say that I think your assessments are basically right on. The net of all of this being caused by as you mentioned in the beginning during the 50’s but then accelerated in the Regan years as the banking regulations were lifted in earnest. You would think that someone would have brains enough to realize that the lessons learned from the depression about the influence of the banks, borrowing, and leverage on the ecomomy is somthing that must be regulated – how short the human memory is.

    There are a couple of things though that you have not addressed that I believe should be looked at more closely or at least explained to your clients in clearer terms. These have to do with what really drives the markets and why derivitives were created in the first place.

    You haven’t mentioned the fact that Mutual Funds actually were created during the hay day of the 20’s boom and some people believe that they had a lot to do with the eventual collapse. The government has had to bail out more than a couple of Mutual Funds so far but their over all influence on the markets is still great. One of the main problems with these funds though is that they are so big they cannot enter and exit the markets without causing a great influence. The same is true of many hedge funds. In spite of the failure of many of these funds there are still many more out there managing huge sums of money.

    Also, as you probably know the Mutual funds that qualify for IRA and ROTH and the like are regulated by the government. This means that what they can hold, the ratios they can hold these positions and how much they can buy and sell are all dictated by the government regulations. Although these regulations were put in place to protect the funds with a conservative guidance, in certain situations they will have a very negative impact on the fund construct which can force buys and sells at the wrong times. Just how much of an influence this is going to be will be interesting note and how many of these funds will the government attempt to save?

    Even more important though is that fact that these kinds of funds are getting their money from retirement contributions and the like that are on going. Thus, the money continues to pour into these funds and hedge funds and it has to go somewhere – which is mandated – into the markets. It is this fact that has I believe has driven the markets up way beyond any reasonable measure of true company evalutation thus making the markets an unrealistic measure of any kind of economic performance.

    In addition, so much money has poured into other forms of investments like hedge funds banks and investment houses from similar sources that they could not put the money in any kind of conventional investment like stocks and bonds because the amount of money they have available to invest would drastically affect the prices of the equity every time they try to by or sell. Thus, alternative investment forms had to be created that would work outside of the markets – derivitives and the like. If this trend continues with a thriving economy there will continue to be some kind of alternative investments that must be created to deal with this money – or the money has to be slowed down which is what tried to happen recently.

    The fact that the goverment is actually subsidizing this situation is going to end up being a very big problem especially with the huge sums of money that are also being leveraged in these investments.

    On the markets, I believe that for the most part they are determined by greed, fear, velocity, trends and money available. Greed fear and trend analysis drive the short term moves. In the current case fear drove the market down and now greed is driving it back up with the idea being sold that the worst is over – have the realities set in yet – no.

    Velocity has to do with the fact that when the market moves very quickly either the exchanges will step in and slow it down or the gaps will make it untradable. At this point it will have to stop or pause for a while before continuing. There will also always be rebounds from any sharp decline. This is because there are a lot of profit takers on the side lines ready to pounce on these situations and there is enough money there to make the prices rise. If you look at the market in it’s current position it is in a “Stall” or horizontal. From this state it could go either direction but the most likely direction is going to be down or remain at this stalled position due to money input.

    The money input is due to the fact that the Mutual Funds are still receiving billions of dollars of IRA money and the like and by their mandate they must put the money in the markets. They can only keep so much of the money in cash.

    In the end, I also believe that we are not in exactly the same situation as we were during the great depression. It could be much worse or it could be much better. There is no doubt that the government policies over the last few years with regard to trying to sustain an economy that was failing on many fronts by printing more money is not a good thing and as per ECON 101 the end result could be severe inflation. This kind of inflation however usually is accompanied by virtual economic collapse where supplies are short and demand is high. Whether this is going to happen or not remains unseen.

    Frankly, I am not surprised by the GM bankruptcy or the failure of the auto industry as a whole. Just like the airlines wages got out of hand and something has to happen to bring them back in line. It is too bad that the management didn’t see this on the wall but large companies tend to move like the government. Every major industry has had to go through this and will probably continue to go through this as long as the unions over step reality. And in fact the whole transportation industry has been going through this process and other industries will eventually have to do the same- could have been better timing though.

    One of the other things about the banks and investment firms that is interesting is that they have taken their toxic assets and put them into separate holding companies that are not on the market. Then they only show the profits from their profitable operations. So, how are all of the continuing losses going to be absorbed? They have to end up draining someones pocket?

    I am into currencies and short term trading. I don’t think any long term positions are advisable at this time.

  386. 1. A suggestion:

    Slow down. Get a medical check up. Strokes and shingles attack suddenly when you are overtired and stressed.

    2. A question:

    Do you think silver is a flash in the pan, or here to stay as a store of value?

  387. I appreciate your guidance and am very much in the camp of those respondents who believe the worst is yet to come in the financial markets. I don’t however feel it is productive to paint obama as the evil one. This path was laid out long before he burst onto the scene. Have we forgotten the last 8 years? Additionally, the Contrarian Portfolio seems to rely heavily on analysis akin to the elliot wave—which does not argue about political parties.

  388. I have received information from Martin Weiss and his group for a long time. I really do respect them. I have felt uneasy about paying a large fee for advice as our portfolio doesn’t have a lot of room for losses. I recently lost approximately 50% of my portfolio containing IRA’s and 401K. After watching the Dow’s spiral downward, I cashed out when the Dow reached 6500. I get a lot of finamncial advice through the internet but am very leary of what to do. I believe rare coins may be better than all gold or common silver for maybe 50% of my cash. What do you think about this? We are 78 years old and don’t have a lot of years to wait for the portfolio to grow.

  389. I would have thought your inverse ETFs would have worked,but not so, except TBT. Maybe the Government will declare bankruptcy and wipe out all the investors like they have been doing with all of the other companies, then China won’t have to worry whether their bonds are good.We furnished a room and not one item was made in this country-can’t continue to exist that way. I think the answer is-let China annex us-we can get rid of all our failed beaucrats and a failed American style capitalistic economy that was supported by the world purchasing our treasuries and other debt instruments.

  390. Dear Sirs…….One year ago I purchased a fixed Annuity (single life w/period certain) from the HARTFORD..I am currently 73 years old..I paid $250,000.00,,,,and receive $1,926.00 per month..I live in the state of Washington which stands behind annuities up to $300,000.00….After reading a great deal from the folks at Weiss as well as others I have become very concerned about the viability of HIG and therefore my monthly income which I rely upon heavily…..Sincerely….Lee Scott

  391. everything will be all right for a little while and then the problem of paying off this dept will surface–the new president was left with a mess and has no idear of what will happen and he is pulling straws .. THE GREED IN THIS COUNTRY ==CEO’S ‘UNIONS AND THE CROOKED POLITICIANS HAS RUINED THE AMERICA’S AND IT WILL NOT RETURN AGAIN–WE USED TO BE NUMBER ONE–BUT NO MORE—WE OWE EVERONE AND WE WILL BE TAXED A LOT TO PAY FOR OUR MISTAKES

  392. In a 5 year time frame, to me the question is whether we will experience hyper inflation or deflation? I have read and thought about this at length.

    Printing money and increased taxation is definately inflationary, on the other hand unemployment paints the picture of deflation because suppy will outweigh demand if there are no buyers.

  393. Martin:
    I live in southern California and I feel the next b.f.d is the chapter 9 filing. Chapter 11 for GM is nothing compared to a 9 filing for California. I actually welcome this event as I would rather have a federal judge and a trustee running things than the clowns in Sacramento. Let us abrogate the insane labor union contracts and start over. It is the only way out of the hole we dug for ourselves.

  394. As uncertain as it is to predict the future based solely on the past it is however a guide. If we trace the success & failures recorded in Biblical history , when mankind obeyed God, He blessed them and they prospered and had times of peace. To directly disobey Him always led to disaster, slavery, impoverishment, humility, death, starvation, captivity, rape of the peoples and lands and total ruin. In my lifetime we have spit in His face, murdered the innocent children, abandoned the widows, and as unrepentant rebels have defied Him at every turn.
    You ask “do i think America will survive”? Not without the steady hand of God Almighty guiding, protecting, and delivering us.
    The once bright light set on a hill for all nations to see is so tarnished no one in the world can begin to see so much as a dim glow form North America.
    We may have to learn a very hard lesson our forefathers learned in the desert.

  395. Many companys have gone over seas because of high taxes, theres alot, of what this
    country is made up of not to mention the jobs. In Calif, lots of jobs are lost to other states because of the dispicable goverment runing this state.
    As you have described in your letter, the traggidy of our country is the direction it’s
    taking with the masterful stupidity of or so called leaders (bums) buming of the people.
    I can only see it getting worse before it may get better.
    God bless us all, semper fi, Randy J

  396. Martin
    Thankyou for all your very acurate advice over the past couple of years. If the Fed continue to pump money into the economy causing the US dollar to drop even more against other currencies then what would be one of the safest currencies to hold cash in going forward.

  397. Your question, “Will We Survive?” begs a Yes answer.  I suggested to President George W Bush that he declare bankruptcy for all of us, both as a nation and individually in one fell swoop by presidential directive.  In other words, everyone is absolved from all debt wherever noted or recorded.  Then we all start over again with a clean slate, from scratch.  That way, the complete bankruptcy that is America would start everyone out on a level playing field.  Instead of dragging it out over a period of years where everyone is slowly positioning themselves to stick the other (Like Ruff’s definition of the Old Maid Game), there would be no recovery by the sharks circling the money.  Those shark bankers would also suffer greatly.That is where we go eventually.  There is no turning back.  Our nation is bankrupt.  But the sharks still wound up with the money.  Bankrupting the whole nation would at least declare it to the world, and let the whole world start over.  What a sorry mess that will be.  There is no do-overs in this game.  The bad outcome is guaranteed because of the larceny in most everyone, all around the world, China included.  The only bubble remaining is the giant money printing machine alluded to by Doug Noland at Prudent Bear Advisors.  What a collapse that will be.

  398. I am semi retired and have approx. $400k in cash. What would you suggest?

  399. What we are witnessing in america and around the world is the dismantling of one
    system for another. The greed has distroyed the system and has run its course.
    Any system that feeds off of its self will soon die. The people who plan the future
    of America are wise, the system was milked dry. So now a new system.


  401. I am operating from Sri Lanka. I am always following up US economy status. I am teriibly shocked to see your letter I received today. What is happening to US and us in Sri Lanka. We have finished the 30 year war and we have to now develop our small island. Our main economy is Tourism, Tea, Rubber and Garments. I want your comments about our economy.
    I am in the real estate brokering business. I have not done any deals for the past six months. Why not people with some money in hand come to SL and invest in real estate and start a simple life. Is it possible to encourage them?. Then I am sure I can also make some money.
    I need your clarification of the situation.
    Best egards and thank you.

  402. Martin first I wish to thank you for first for the information you gave us by telling us what to watch out for and second for giving those able to a place to put their money during this deep dark time . I wish all those invested with you best of luck. I don`t have the money to get into the game or I`d be in it up to my elbows .
    The problem I`m seeing is that the playing field has never really been even . The general public has been two steps behind with insider trading that goes on as well as the put offs the public never has a chance unless by some miracle they get lucky . You are giving them that can that chance i applaud you and your company for helping . The system is broke I don`t think once this hits bottom it is ever going to come back there is too much hidden greed and deception on Wall street not enough understanding and compassion for the little guy and with out the little guy there is no one to steer the ship . Best of luck once more ……………… Rick

  403. Ed Pulido
    I had the opportunity to work for a great company and retired in 1994, luckily with a decent pension a good profit sharing. Our house is fully paid and we don’t have a extravaganf life style. We are economically OK. We believe in buying American, in fact we are loyal to GM and the last 8 cars we owned were GM’s. The american people killed the auto industry, they fell in love with cars from Japan. Driving in New Jersey all the cars on the roads ara japanese. Another thing wages and benefits of the auto workers are exorbitant compare with US Toyota, etc

  404. i hate to see my america decay.i love gm and all it does for the all of us.i love model trains also and am wondering what will gm become.all i do is look at how lionel has panned out.i will admit they make some wonderful fun smart items now,but paying up first and then waiting a year to get it,not so much fun.who said it was going to be fun work work.think like a ant and you will is never really yours anyway if you really think about it.we only borrow it then someone else gets it

  405. Martin,

    Thanks for reading our posts. It is a sign of humility which is rare among financial analysts.

    I’m not a financial planner or economist but I have had a lifelong interest in history, psychology, economics, sociology and philosophy. This leads me to look for deep causes and turn away from simple explanations. I have a great respect for your views, not because I always agree with them, but because I know they are grounded in experience and wide reading.

    I notice that you are able to change quickly as your perceptions of events and facts change and I don’t see that as a weakness but as a strength

    The facts are there and the fundamental laws of human nature and of human interchange don’t change even if our understanding of them sometimes does.

    We live in perilous times and it is essential to keep our eyes on facts and to continue reading our classic works to help us interpret the facts. I’m confident that you will continue to do that.

    My only possible contribution to your work would be to remind you not to forget the deep irrationality of human beings which is demonstrated by our history. You are often accused of being a Cassandra but you are simply a realist who knows the past.

    Keep the faith,

    Jim Street

  406. Dear Martin
    Just 1 thing the australian dollar will slaughter me if i invest with u , rising aussie sinking us dollar , my profits will run away

  407. When you look at the historical precedents, all indications are that the United States, as now structured, is toast. Even the governor of Texas recently discussed the possibility of secession, and Glen Beck recently surmised what would happen if the majority of people and states simply refused to pay federal taxes. Surely you all realize this–do you have any favorite Survivalist authorities that you would like to quote or refer us to? Its just a matter of time, which will be hastened if we have any natural disasters, like hurricanes, earthquakes, or even another prolonged winter. I know Martin Weiss has a second home in Brazil–perhaps some more information along the lines of where others could find suitable refuge during the coming desperate times would be helpful.

  408. Martin, if you and your team don’t know the answers to these questions, how do you expect me to know? I look to you for guidance.

  409. I have been investing in gold, gold stocks, and commodities this year and have been doing quite well. I do have a question about about a certain ETN. It is a “Double Long” ETN. Could you explain to me how that works if it goes up or down when I purchase “X” amount of shares? Thank you very much.

  410. i do not think america or the world will survive economically or environmentally. i published a letter to the editor in 1974 advocating a depression for environmental reasons. if u do not have a depression u will not survive & if u do have one u probably will not anyway but in any case a depression is needed is my position. see econcomist e j mishan. the collapse of gm is a great start towards one. it seem; to me mr weiss u miss the point as u grieve over the above..

  411. This whole mess can be attributed to the Federal Reserve system and the money masters.

    They have been setting this up for years to own the world!

  412. I grew up in the Eastern European country between 12-49 of my age.After many trial I succeded to immigrate in the best country in the world.I worked hard sometimes 18 hours a day and I considered to have my retirement assured. With this economic crush I lost more than 60% of my investments.But this is nothing,comparatively with the real CHANGES in this country.I am scare by the speecheses of our leaders.They are exactly like in Cuba,Russia(before the 1989)Hungary,GDR and Romania of Ceausescu.It’s so frithening that many times in the night I wait to heart he knock on my door and ask to go with them.Everything is going toward Socialism-Comunism.No doubts that AMERICA goes TOWARD PROMISED CHANGES.GOD BY FREEDOM,

  413. Here in the Detroit area the bankruptcy of Chrysler and now GM has devastating effects on a local economy already at 10.8% unemployment. The government takeover was strictly to preserve and protect the unions until the next election. The UAW and Teachers Unions contributed the most to Obama’s election. After the 2012 elections, the Federal government will hardly be able to wait to get out of the car business, and they won’t care what happens to it, but yet again this is what happened with Amtrak. The Federal government will not be able to build cars that Americans will buy. Every Congressman is going to have their hand in the pie trying to protect plants in there own Congressional districts. A Senator from Kentucky didn’t even know Saturn was part of GM until yesterday!

  414. I attended a “Rich Man” seminar in Sydney, Australia over the weekend and the information we gathered from Robert Kyosaki and his team combined with what I have been reading in “Money & Markets” for some time has inspired us to come home & get the hell out of the Australian Stock Market because America is sneezing big time and we believe (in spite of the positive publicity the media has been spinning lately) that Australia is about to get the flu. We are heading for bullion and cash – to take advantage of the opportunities that we believe are about to present themselves.

  415. we have invested ALL of our assets in a Vanguard treas MM. How safe is this with the gov printing money etc. I am rally geting scared that there is no safe place for our retirement savings.WPH

  416. It appears that the Fed is hell bent on flooding the economy with new money. This will lead to high inflation. This scenario; they hope, will lead to big increases in asset prices. The hope is then that these asset values will get close to the level of liabilities held on balance sheets. This will result in the Fed holding all the countries debt. The next job will be to get this down without raising interest rates to levels that are unsustainable.

    Is this what you think can happen. ?

  417. Is it possible the stimulus money will prop up the economy, improve certain statistics and bouy investor’s confidence for now? Is it possible we could be in for a “W” type double recession with the next big downturn happening as a result of the stimulus fund’s impact (real or immagined) eventually winding down, perhaps in a few to several months? In the interim, in following the current trend, regardless of whether it is commodities or any other sector, tight sell “stop loss” orders would be prudent. Some individual or multiple events, announcements, etc., could shake investor’s confidence. For now, the markets are being driven upwards mostly, but not universly, based on emotion rather than fundamentals. Please feel free to contact me for an investment possibility that may be worth consideration. With every good wish for success and best regards to all, Walt B.

  418. I am worried about bonds. I have U.S. Savings Bonds – I Bonds. Are they in danger?

    Thank you.

    Kathryn Bowers

  419. I am of the opinion that we are a nation of hustlers. I am ashamed of the legacy we will leave for the next generation. I and most of my friends have lost all faith in financial institutions and the financial community as a whole. It is unfortunate that our society cannot produce or allow people of “substance ” to step up and become our leaders in these troubled times.

  420. Paul Wegeman story is the same as my wife and mine. We wached as our net worth go into the tank. We live in Michigan and have been caught in a one state recession for the past 8 years. Now the rest of the country has caught up with Michigan. I would move except I can’t sell my Home for enough to allow me to relocate. I have a second home which is a rental that barely covers mortgage. Based on the current market on my rental I am under water on my mortgage. I am 66 and still working. I work for a supplier of GM, and that can blow up any day. I never thought I would be in this position. I am not sure being a burden on my kids is an option because the current administation wrecking the economy, printing money,and creating hyper inflation I worry about my kids and grandkids future. We all could end up living under the overpass. This is change we can believe in. I America dose not catch on soon It will be too lake to undo the damage.


  422. You are very seldom wrong,BTW I think our Aussie Government also gone mad on putting every one in dept.(we actually had a surplus but after short time our new Gov has rearranged that…..)
    I do think the Governments of the world are desperate to get some (blind) confidence in the people wanting the people to start spending more money.The governments have completely missed the point …. that the world financial problems were caused by greed and lending/spending beyond repayment ability in good times what is going to happen now things are not great.Blind Freddie should see more spending/borrowing will not fix the problems Might for a couple of months its it is like giving a junkie a months supply of fixes .Somewhere I saw a blog that says if the US government does not inject $$$ into GM that a lot more CDO’s will fail causing many more financial problems all around the world. As for the rising Stock market I think its more money being pumped in to draw people to the belief all is going well.