Debtor Nation:

If you had a stack of $1000 bills 4 inches high, you would have a million dollars.  If wanted a Billion dollar stack of $1000 bills, your stack would be 333 feet tall.  To get a Trillion dollars, your stack would have to be 63 miles tall!   Currently the U.S. national unfunded liabilities, (IE. debt we promised to pay) is now equal to 100 Trillion dollars.   Placing $1000 bills from Bangor Maine to San Diego California, and Tacoma Washington to Miami Florida, would equal the amount of money we have agreed to pay. ( without “health insurance or any other spending)  Can u see how foolish the amount of government spending is?

Greece is the “canary in the coal” mine for Europe.

The Greek Finance Minister Giorgos Papaconstantinou said,  “Since assuming office two months ago, the socialists had been “truly shocked” at the scale of the economic mismanagement. Under the centre-right New Democracy party, government waste had skyrocketed, with out-of-control recruiting policies, a proliferation of public-sector committees and overpaid heads of state utilities. Ministries approved obscenely high phone and newspaper bills, while senior civil servants had spent lavishly on unnecessary foreign trips, he said. “It was as if they regarded the national treasury as the spoils of war and raided it.” Papaconstantinou, doing the interview rounds stopped to explain his situation to UK’s The Guardian where he made comments that should resonate well with American readers.

Yup, sounds like the Greek Finance minister is talking about the “U. S. Congress and the Democratic Party Machine out of Chicago!”  You see, there is one underlying factor about all socialist/communist, they want to “force people” to do the right thing according to their logic. Why, because you are incapable of deciding what is best for you and your family. Ronald Regan said, these are the scariest words the American people can ever hear, ” I am from the government, I am  here to help.”

When more  Americans  believe the  government can help, ” we are definitely on the wrong road to recovery.    The source of all  financial problems is the Government! The “government bureaucrats and elected officials” have caused the financial problems we have today! The newly elected Obama governmental Socialist/economic/Marxist government is on the road to fundamentally change America as we know it.  I feel Obama’s goal is to fundamentally destroy the fabric of the Constitution and Capitalism to achieve his idealistic goals established by his heroes.  The  market media news  matrix is in locked step with the Socialist /Marxist government, who will stop at nothing to impose their agenda on the American taxpayer for generations.  Enslaving the American People with generational debt is the only rational answer to “what the government bureaucrats” are doing.

Meanwhile  you are told to take your “purple  pills” and keep spending and consuming by the market media matrix. The market media matrix relies on pop culture for advertising revenue, witness  the lack of reporting “real financial news vs. Tiger Woods pop news.”   Compare a “Google search using the last week filter of “Greece debt ratings” and “Tiger Woods” story.  It is not shocking to find 166 million stories on Tiger Woods and less than 193,000 stories on Greece’s debt rating.   The market media matrix perpetuates the “happy feelings of pop culture” until reality meets actuality.   Just like the Pearl Harbor attack, information is only important if you have a plan and enough time.  You need to  have a plan before the financial crisis begins.    The reality of the situation is that you have time to protect your “Pearl Harbor Portfolio from a sudden and decisive  wealth destruction attack. If you have the necessary information, but the market media matrix is not giving your the proper information to defend your wealth.

Maybe your stock market gains have recovered a little, but not as well as you would think.  The Sp500 still needs to gain another 40% to reach 2007 highs. If you would have been a long term holder of the Sp500 index since 12/12/2000 to 12/12/2009, a full 9 years, you total return is still down over -15%! So after 9 years of being invested, your total rate of return is still negative!  So much for the buy and hold theory.  The “buy and hold Myth” may be your financial plan based on historical optimism, yet that plan of action will be a recipe for disaster.

During the last financial crisis, the government encouraged you to spend and consume.  What idiot proposed that idea?  You have been condition to spend and consume, in order to create jobs.   The definition of a “JOB” is “Just Over Broke.’ If you are not able to save 10% of your money in a savings account, then you are not being paid nearly enough from your job.  When there are no jobs, who will continue to  spend and consume?  The government will continue to print more money and spend more money, but giving you the taxpayer the i.o.u.s in the form of government bonds.  Digging a hole deeper in debt, so that your children and grand children will be obligated to pay back current government spending. The financially irresponsible road the Government is taking is financial suicide.

The perfect storm is upon us, as I predicted  with the destruction of housing and stock market.  The baby boomers are looking for, no grasping for  help.  Are you a baby boomer, doing the same things you did in the past with your stock portfolio’s and your 401k’?  If you are a baby boomer and doing the same thing, then your wealth is a sitting duck for another Pearl Harbor Attack.  What will you do?  Your choices are  a  “Jimmy Carter” decade or a “Franklin Roosevelt” decade?  Time is running out and the baby boomers are the ones with the most wealth.

Now, some of you voted for “hope and change”, for a man with no business experience, and with idealist social justice goals.  His administration is filled with  idealistic people whose only goals were to tear down capitalism and promote socialism. Your eternal optimism  about who you trust will not be justified by this time next year.    The “new america” is ruled by czars, ex-felons, tax cheats, and other malcontents.  You thought you voted for “hope and change” thanks to the market media matrix,  never knowing you were getting the chains of poverty and bondage of debt .

We are going bankrupt, there is no way out of this perfect storm.  Stay tuned to this blog for more information….

Doctrader

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DES MOINES, Iowa – Another major provider of 401(k) accounts says the typical retirement saver now has more money in their account than they did before the stock market began tumbling two years ago. The Vanguard Group Inc. said …

Younger workers with smaller balances caught up the quickest. Nine in 10 participants under age 25 were flat or were ahead of their balance two years ago. About eight in 10 workers in their mid-20s to mid-30s had recovered to 2007 levels.  However, just half of the participants in their 50s and 60s have recovered or gained slightly while half have not.  This was based on Vanguard’s selectively picking  participant balances between September 2007 and September 2009.   I want to know the total return of all their assets from 2000 to present! Given most 401k plans are for long term results, not just a short two year stint.  The overall stock market is up just under 60%, while the markets are still down from their previous highs of 2007 by 25%!   Since “Joe Six Pack” is not versed in the the way Wall Street uses numbers to lie, what will happen to the 60% gain “on paper” to his 401k plan when the market returns to new lows?

Financial News – http://finance.blogrange.com/

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For free market capitalism to work, both Main Street and Wall Street have to have greed and fear.   Even today, they average long term investor is only “Fearful” of missing the bull next rally.  They do not have any “fear of  losing everything”.  The “baby boomers” have taken the “buy, hold, and hope theory” to the maximum level, being eternally over optimistic with regards to the economy.  After all, they learned investing  during the 80’s and 90’s when the market had spectacular gains.  Now the baby boomers find themselves in a difficult position, believing the market will go up and the value of their homes will go up at the same time!   Currently, many baby boomers are putting off their retirement, once again,  hoping the markets will reward them for the failed theory of “buy, hold, and hope investing strategy“.

Fear and Greed are supposed to rule the markets, yet Wall Street has conditioned you to only have “fear” of missing the next bull rally. So you buy, hold,  and hope for the next bull market rally! You wanted cheap goods, cheap oil, while continuously buying more and consuming more!  I remember in 2008, when people were complaining about gasoline being at $5 a gallon.  I asked them, which is more valuable, a gallon of gas or your 401k plan?  The value of you portfolio in you 401k plan is directly linked to economy of oil, and oil to your stock market gains!

Meanwhile, the market media matrix was touting Goldie locks economy, green shoots, what is their next slogan to get you to spend every dime of your paycheck?

Wall Street has “Greed”, and no fear.  Wall Street tells the politicians as the markets were falling, ” we are all in this together”!    Last year, there were secret cigar smoking strategy rooms, weekend mergers, hostile takeovers, and plenty of back alley back stabbings stealing assets from weaker competitors.  The dog eat dog world of Wall Street, everyone was fighting to stay alive.

Now, just a year later, no one is talking about the “toxic assets” that are still held by those  bailout cry babies.   Meanwhile Bernake, Geitner, and Kardashin, are bringing in tons of cash to shore up the financial services industry with the indentured taxpayer!  The next market crash, will ensure the debts to your children and grandchildren.

OUR country’s  future is foretold  in the headlines of history,  “The 100 Trillion Dollar Note” as  Zimbabwe tries to stifle the fires of hyper inflation.   Politician’s Fear taking preventive actions, only to act decisively during a crisis, always choosing the  politically expedient  incompetent answer. A Trillion here, a trillion there, pretty soon we are talking about “real money”!  Spending 25% of the nation’s GNP has never solved any  nation’s debt problem in the history!   The idiots in congress have never managed a busines, let alone a simple  a “hot dog stand”, yet they want to master mind economic recovery with an estimated100 Trillion in unfunded liabilities.

The Politician’s Greed, for incumbency forces him to take action during a crisis.  He rejects free market capitalism  correcting mechanism,       forgoing the short term temporary pain of a Depression.  He purposes silly fixes and proudly announces that he has solve the problem.

Engineering our way to  a Weimar Republic, which could be worse than a “Great Depression“.   In either case, hyper inflation or depression,  you will still have to have food!  If you don’t have 6 month to a years supply of food, that may be your best investment choice over the next 6 months.  Time is running out, you cannot simply trust in the “buy, hold, and hope” theory any more!

Doc

History Repeats!

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God Bless

Doc

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However, the rational reality cannot hide from the sad performance of General Electric’s (GE) share price.  It is the worst performer within the Dow Jones Index over the last 9 years.  After all, isn’t that what CNBC viewer want, the “long term investor’s point of view.  Well, maybe they have a financial interest in becoming cheerleaders for the Dow Jones Index, since General Electric owns CNBC network. In fact, the worst performing stocks in the Dow Jones Index over the last 9 years, for long term investors, is self explained in this chart.

Is it ironic that none of the CNBC cheerleaders have shown you the actual long term results the Dow Jones Index?  What did you expect?  The never told you it was time to sell, only to buy, buy, buy.  I think their favorite line for morning guests are, ” So, what are you buying now?”  The predictable irrationality good ole boys are only too happy to tell them what they have already bought.  So you will place your orders to buy the stocks they already own.    If you look at the next chart, there are only 10 stocks of the Dow Jones Index which have a positive return over the last 9 years!

Notice the list of stocks in the top 10.  Who would have thought Caterpillar (CAT) would have out performed a technology firm.  I would think that given the furious buying activity within the NASDAQ market, the leaders would be technology stocks.  Someone asked me 9 years ago would the NASDAQ every get back to 5000 points.   I said, sure, around 2018-2020!   I am going to revise that to 2036 for the NASDAQ…. maybe.  Hey, look at the Japanese market, still in the tank from it’s all time highs.  Remember last summer, all of you were complaining about the “greedy oil companies” gouging you at the pump?  I told the complainers, “you had better hope that gas prices rise to $10 a gallon, other wise your 401k plan will be cut by 50%.   Which has more money in it, you gas tank or your 401k plan?  The Fed was trying to create inflation at that time, but they are always behind the curve!  Now they are creating the biggest liquidity trap in the modern  world.

Now the stock market is rebounding only because of the massive government bailouts and those who “day trade” the stock market with programmed trading.  The stock market has been manipulated once again by the “Feds Plunge Protection Team“, which buys stocks and bonds.  Why, just last week, the Treasury issued bonds, which no one wanted.  So the bond were sold to a primary bond dealer…. can anyone guess who’s the dealer?  I bet you a dollar, it was someone who received TARP money!  The Treasury bonds were then sold back to the Federal Reserve in 10 days!   Can you say “Enron?”  Once again, the middle class will pay for the parties for those on Wall Street.

Despite the Irrational Recovery of the stock market, looking at the stock returns on the Dow Jones Index, does not give me hope for the future.   None of the CNBC cheerleader have mention the words “toxic assets”, nor the 9 million mortgage foreclosures.  The commercial real estate collapse has yet to materialize.  Quietly kept under cover as the largest commercial property owners go to the Fed and Treasury to receive bailouts!  You have to understand, all markets are connected easily manipulated.  Everyone is talking about the “Wiemar Republic“, and the causes of hyper-inflation on the economy.  I don’t think we are heading for hyper inflation, but the “Mother of all Depression.”   The economist who are predicting hyper inflation have failed to remember the “baby boomers”, and they are “mad as hell!”    What are the baby boomers going to do?  They were told that if they have invested in a 401k plan, bought a home, maybe a second one at the lake,  they could retire in luxury and travel around the world!  You can bet, Wall Street is laughing all the way to the “Hampton’s” with all they money they have made off the 401k “dumb money.”   The Wall Street insiders call 401k plans “dumb money” because it just keeps pouring in as long as people have jobs.  Some point in time, when people begin to loose their jobs, they will be forced to take some of the “dumb money” out of the 401k plans.   When the baby boomers hit 59 1/2…. there could be massive withdrawals from these plans.  Can you stand another 50% drop in your “long term investment?” Will you be able to work another 20 years before you can retire?

I feel, we have less than 90 days to put a plan together to protect your ass…ets.  The first step will be the hardest for you to take, because it involve learning how to manage your own money, while you still have some.  I am putting the finishing touches on a free DVD to help you get started with the next financial disaster that’s coming.

Please post some comments at the end of this blog.

What financial  information would you like to learn?

Doctrader

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