Lebed.biz Alert – CATASTROPHE ahead, pray for your loved ones!
Read This Full Alert, it is EXTREMELY important…
An economic catastrophe is coming in 2010, but this crisis will be the complete opposite of late-2008/early-2009…
I’ve been saying for months that I believe the stock market is ridiculously overvalued. Many companies that are dependent on the American consumer have stocks that are trading above where they were in 2006, at the height of the Real Estate bubble. A couple weeks ago we saw the beginning of a stock market correction, which should continue for some time to come.
In the past year, I have seen thousands of self-proclaimed "stock gurus" appear all around the Internet, creating web sites with fake track records… hyping worthless pink sheet stocks with no assets, revenues or any hope of ever succeeding. Most of these people probably know less about the stock market than my dog, yet I see some of the stocks they hype trade tens of millions of dollars in volume, before they ultimately crash.
To me, this is a sign of a dollar bubble. If there are so many people out there willing to buy the stocks of worthless pink sheet companies (stocks I would never mention in my newsletter no matter how much money I was offered), it means the world is awashed with dollars and a hyperinflationary catastrophe is likely to come a lot sooner than anybody expects.
What I strongly urge you to do right now… is take advantage of these bargain basement prices in silver. JP Morgan controls the paper silver market, with a massive naked short position that is unparalleled to the size of all short positions that have ever existed in the history of all commodities. But I’ll get back to that in a second.
There is a good chance that the country of Greece could soon default on its debt, which many people are concerned will spread throughout Europe and cause a sovereign debt crisis. The conventional wisdom on Wall Street today is that the U.S. economic crisis is over and the U.S. economy is recovering, but now Europe will experience the same economic collapse we saw in late-2008/early-2009.
Therefore, the Euro, which in October surpassed the U.S. dollar as the currency of choice for new foreign currency purchases by central banks around the world, has been taking a hit. The U.S. dollar has risen vs the Euro for four weeks in a row and the Euro is now at a 7-month low vs the U.S. dollar.
Unfortunately for Greece, they don’t have a printing press that they can use on their own. It’s similar to the crisis in California. Greece might need the European Central Bank to bail them out, just like California might need the U.S. Treasury and Federal Reserve to bail it out.
I find it unlikely the European Central Bank will bail out Greece and in my opinion, a default by Greece wouldn’t be enough to collapse Europe’s economy. But in the U.S., I find it extremely likely the Federal Government will eventually bail out California, which would create tremendous inflation and crush the U.S. dollar.
Investors that are selling Euros and buying U.S. dollars as a safe haven, are making the worst possible decision. If you go by the REAL U.S. GDP, and not the fluffed up consumption based GDP, the U.S.’s total debts are a lot higher percentage of GDP than Greece. Also, the U.S.’s budget deficit as a percentage of tax receipts is more than double Greece.
The real financial crisis is RIGHT HERE in the U.S. and NOT in Europe. The Europe sovereign debt crisis is being used as a DISTRACTION to prop up the U.S. dollar for a little while longer, allowing the U.S. to get deeper into debt.
What’s even more crazy is that many people are now calling China’s economy a bubble! China has a population of over 1.3 BILLION people and most of them still don’t drive a car. It’s IMPOSSIBLE for China’s economy to be a bubble. They are the world’s largest CREDITOR nation. I was against China’s $586 billion stimulus plan which certainly overheated certain parts of their economy, but at least they funded it with their own money (unlike the U.S. which borrowed and printed their stimulus money). Certain pockets of China’s economy need to correct in the short-term… but over the long-term China is GUARANTEED to take over the U.S.’s status as the world’s superpower!
Anyway, because of the so-called "sovereign debt crisis" in Greece, and China cutting down on lending to cool down their growth… as well as Obama calling for a "spending freeze" in the U.S., which is a joke because Obama’s spending freeze will cover only a tiny portion of discretionary spending but not until 2011 after another 7% raise in discretionary spending in 2010… the U.S. dollar has been rallying. Gold, but especially silver… have been HAMMERED down from their recent highs.
Trust me… this is the BUYING OPPORTUNITY of a lifetime for gold, but ESPECIALLY silver. Is this definitely the bottom for gold and silver before they reach new highs later this year? I don’t know… maybe not. But if you look at the silver ETF SLV trading 31.7 million shares on Friday more than 2.3X its average volume… this flush out is VERY close to being over, in my opinion. Margin calls, panic selling (with 2008 still fresh in people’s minds) and other factors helped contribute to the sell off…
JP Morgan was responsible for the bulk of silver’s decline… driving it down through the moving averages. They manipulate silver paper prices without physically delivering any silver… and it’s my belief that their silver short position is covered by derivatives that will be impossible to unwind because the physical silver simply isn’t there.
I am hoping and praying that COMEX implements new contract limits in the months ahead… because this silver manipulation is blatant and shouldn’t be allowed to continue. Try to find a 1 oz silver coin for sale for $15! You can’t, NOBODY wants to sell physical silver for $15 per ounce! If we had a fair market on COMEX, silver would trade based on supply and demand, and would already be above $25 per ounce. Like I said the other day, the U.S. mint sold more American Silver Eagles last month than the entire YEAR of 1996. That’s just here, China is now encouraging their citizens to buy silver bullion.
As you know, I am a believer that Goldman Sachs would be bankrupt today if it wasn’t for the bailout of AIG… and Goldman’s ability to borrow for free from the Fed. Goldman Sachs and JP Morgan are the two biggest EVILS that exist in our country today… and will lead to its downfall. Their record bonuses to their employees, who speculated with taxpayers money (with the implicit backing of the U.S. government) … will soon work its way through the system… driving up the prices of consumer goods and services.
Americans are already becoming outraged at JP Morgan and Goldman Sachs paying out record bonuses while real unemployment (including those who are underemployed or gave up looking for work) is north of 20%… but the REAL outrage will come soon when massive price inflation becomes evident. Major civil unrest will soon be here when the cost of filling your refrigerator with food is more than the average American’s mortgage payment.
It’s such an insult for Goldman Sachs to actually say they are launching a $500 million small-business loan program, when they paid $16.2 billion in compensation last year. I know so many honest, hard-working young entrepreneurs with great ideas looking to start a small business and can’t get a loan. The Microsoft’s, Coca-Cola’s and disease curing companies of the future now have ZERO chance of being founded in the U.S. They will all be formed overseas and New York will lose its financial capital of the world status to Shanghai, Hong Kong, London, Tokyo, Abu Dhabi and others.
Even if the Federal Reserve starts raising interest rates in the near-future, the damage has already been done. It will be impossible to mop up the excess liquidity that exists today, without raising interest rates to 10% or higher.
Therefore, Americans will soon have a choice…
1) Do we continue buying overvalued stocks, many of which are likely to correct substantially this year.
2) Do we once again speculate in Real Estate, with banks about to flood the market with foreclosed properties that have been held off the market in order to artificially suppress inventories.
3) Do we hold U.S. dollars, bonds and treasuries, with Bernanke getting ready to monetize our $12 trillion national debt, $60 trillion in unfunded liabilities and $2 trillion per year plus in deficits for years to come.
4) Do we buy gold and silver, which have always retained their purchasing power and will protect from inflation better than any other asset.
The world will choose OPTION 4 once they WAKE UP! There is NO DOUBT in my mind about it. Gold and silver stocks will see the biggest gains, but only if you pick the right companies… that’s why I flew all the way to Mexico to explore the mine of my #1 pick. I care about my members more than anybody else in the world, which is why I work 15 hours a day researching companies and studying the economy, and maybe go out drinking at a bar in NJ only once or twice per year.
It sickens me seeing all these celebrities bragging about the money they donate to Haiti, just for good publicity. Although I believe all humans are equal and I feel bad for what happened to the people of Haiti, I have donated ZERO dollars to Haiti. NOBODY in the U.S. can afford to donate to Haiti… we need to spend our time and money getting the word out about our problems HERE!
When I was in Guanajuato visiting my #1 pick, I visited the most beautiful church in the world… The La Valenciana Church. This church was made possible by the silver produced by my #1 pick’s La Valenciana mine (it’s no longer in production but they plan to reopen it soon), which for 250 years produced 1/5 of the world’s silver! Here is a picture of me in the church:
I was overcome with emotion while in this church. What I realized is, I no longer care about myself and I certainly don’t care about making money for myself. I care about helping as many people as possible survive the real crisis that lies ahead. I said a prayer there for all Lebed.biz members that god help us do as much as possible to spread our message to everybody we love.
I feel very blessed that ‘The Dollar Bubble’, which I produced with the help of some of my best friends… has surpassed 472,000 views since Thanksgiving. It wouldn’t have been possible without all of your help. Thank you again for spreading the word about ‘The Dollar Bubble’. Steve Liesman from CNBC called us to feature it on his show, but we turned him down because CNBC did nothing to warn about the Real Estate bubble and collapses of Fannie and Freddie like we did in 2005/2006. CNBC is nothing more than a propaganda tool for the elite.
On another topic… there is ZERO chance of another deflationary spiral period of forced liquidations driving gold and silver back down to October of 2008 levels. When you have India buying 200 metric tons of gold, they are a real buyer without the use of any leverage.
TAKE ADVANTAGE of these gold and silver prices! I never said before that you should LOAD UP on an option like I did on Friday with the SLV January 2011 $20 calls at $0.80, but I STRONGLY believe in what I say and don’t think it is possible I will be wrong.
Please remember options trading is extremely risky and not suitable for all investors.
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Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: www.lebed.biz/disclaimer.htm
Jonathan Lebed
Lebed.biz
Staff
Lebed.biz
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