Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Is a Stock Market Crash Imminent or Does this Stock Market Bull Still Have Legs - 25th Apr 18
Gold Price Focusing on May Cycle Bottom - 25th Apr 18
Cash “Vanishes” From Bank Accounts In Ireland - 25th Apr 18
Is the Malaysian Economy a Potemkin Village - 25th Apr 18
Land Rover Discovery Sport Rattling / Knocking Sounds From Car Pillars - 25th Apr 18
China Takes the Long View on Gold-Silver... and So Should You - 25th Apr 18
Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves - 24th Apr 18
Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - 24th Apr 18
CRYPTOCURRENCY MASTERCLASS #CRY90 - 24th Apr 18
UK Gambling Statistics - What the Numbers Say - 24th Apr 18
Chaos Capitalists Short Countries - How Chanos Got China Wrong - 24th Apr
Artificial Intelligence Defines the Political News Narrative - 24th Apr 18
Stock Market "Oops, They Did It Again" - 24th Apr 18
Fox in the Henhouse: Why Interest Rates Are Rising - 23rd Apr 18
Stocks and Bonds, This is Not a Market - 23rd Apr 18
Happy Anniversary Silver Investors! - 23rd Apr 18
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

The Educated Socialism of Obama

Politics / US Politics Feb 16, 2013 - 06:37 PM GMT

By: DailyWealth

Politics

Porter Stansberry writes: In Wednesday's essay, I laid out the "great lie" that is bankrupting America.

At the heart of this lie – told by so many of our political leaders and believed by so many of my fellow citizens – is a horrifying turn of events. As I mentioned, the drive for freedom and a better life through hard work, saving, and independence has been replaced by a craven need for the illusion of security.



Rather than trying to leave our children in possession of a better world – with more financial security – political leaders around the world now bicker about how to change the rules so that still more debt can be stacked upon their grandchildren.

For an idea on how things will turn out, a few lessons from history are instructive...

The Spanish Empire destroyed itself by "finding" money, rather than by building industries. And the key to its temporary wealth was a single mountain in Bolivia, "Cerro Rico" – the Mountain of Riches.

At least, that's what the Conquistadors named it. In Bolivia, they call it "the mountain that eats people." Thousands of slaves died trying to satisfy Spain's lust for treasure.

In Cerro Rico today, silver is still mined by people making a few dollars a day using pickaxes in dust-filled shafts with no ventilation, no light, and no safety features of any kind. The 10,000 miners who work there every day toil under the constant fear that the entire mountain could collapse on them. After 400 years of unregulated mining, it's like Swiss cheese.

Bolivia's politicians use these conditions to demand more power and implement more socialism. Of course, it's the poverty caused by decades of socialism that actually prevents modern mines from being built.

Last month, Bolivia's current socialist strongman, Evo Morales, published his Ten Commandments Against Capitalism. He starts out broadly with No. 10...

Economic development must not be oriented to the market, to capital and to profit; development must be comprehensive and be oriented to human happiness, harmony and equilibrium with Mother Earth.

Then he gets to the real point...

We must free ourselves from that colonial bond called the External Debt, which serves only to blackmail us, to oblige us to hand over our assets and privatize our natural resources, and to destroy the sovereignty of peoples and states.

The colonial External Debt is the mechanism of exaction and impoverishment that afflicts the developing countries and limits their access to development. We call for canceling this unjust External Debt. No more inequality. No more poverty. It is time to distribute the wealth.

These aren't just empty words, either. In June 2011, Morales nationalized the Toronto-listed South American Silver exploration firm, promising only compensation "later." Six weeks later, Bolivia decided that the compensation paid to the Canadians would be zero. Nada, zilch, nothing. Apparently, it was time to seize their wealth.

The people of Bolivia cheered this madness. As their reward... Bolivians will continue to work in some of the most dangerous and least-efficient mines in the world. Their real wages will continue to fall. That's because without capital investment, without savings, without property rights... without the responsibilities of capitalism... there will be no increase in wealth.

Bolivia's socialist policies will have the same economic effect as similar activities in Venezuela and Argentina... The black market rate for dollars in Venezuela is three to four times higher than the official exchange rate. In Argentina, the "blue" dollar rate is 50% more than the official rate.

The looming crisis in these countries interests us in two ways... First, because so much of the world's raw materials (including food and hard commodities, like metals) come from countries like these, a return to socialism will undoubtedly cause shortages and price spikes around the world.

But on a more important and deeper level, ask yourself, what's the real difference between Evo Morales and our current American political leaders?

President Obama and his puppet at the central bank, Federal Reserve Chief Ben Bernanke, are also calling for us to cancel our external debt. They're just saying it in a smarter way, calling it "quantitative easing."

And what's the real difference between what Morales advocates in his Ten Commandments Against Capitalism and what's happened in the U.S. over the past decade? First, President Bush granted free medicine to every retired American. Then, Obama pushed through "free" health care for everyone. In his State of the Union address, he labeled these benefits, plus Social Security payments, "civil rights."

That's pure madness. Rights are something you're born with as a human being. They describe what people can't do to you or take from you.

The government cannot guarantee you any benefit or service without first taking it from someone else. That's why the promise of socialism is merely the promise of plunder. Whether it will benefit you depends on where you stand. However, the nation as a whole cannot become wealthy through the plunder of its own citizens. This one fact explains why Argentina – which was the fifth-wealthiest nation in the world 100 years ago – now ranks 50th.

That's where we're headed. Make no mistake. By 2020, the costs of Social Security and Medicare alone will reach $2.5 trillion a year. That's more than the U.S. federal government collects in all forms of tax ($2.4 trillion) today.

The only things funding these programs are lies and taxes. We've been paying for these programs out of current revenues all along – just like convicted hedge-fund scammer Bernie Madoff used new money to create the illusion of returns for existing clients. There is no way we can afford these obligations without making them far more redistributive and increasing payroll taxes enormously. Obama says "of course" we need more taxes. And he's going to do everything in his power to levy them.

It's time to distribute the wealth, all around the world.

The true costs of the world's return to socialism will strike the mining industry first. That's because mining requires immense capital investments over long periods of time. These mines are sitting ducks for politicians, who can tax them or nationalize them easily... all while the public cheers them on...

But that greatly reduces existing supply and makes new supplies incredibly difficult to procure. In short, you can print money, but you can't print metals. And this explains the price spike in gold and silver over the last four years.

Still, all these precious metals do come from somewhere...

While we don't believe that mining companies are a good investment in the long run, they can be incredibly lucrative as short-term speculations. Politically driven market disruptions make mining stocks soar. That's why gold- and silver-mining companies have also long been thought of as crisis hedges – just like refined metal. And we're about to enter an extended – perhaps decades-long – period of unprecedented, politically caused market disruption.

That's why I'm encouraging my readers to buy precious metals like gold, silver, and platinum. Although these metals have appreciated in value over the past 12 years, they have much further to run.

Good investing,

Porter Stansberry

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules