Received this from my Investment Advisors Today

[Shylmysten]

We put together a few of the key facts. We are interested in hearing from you if you have any contravening information. We always want to understand the other side of the argument... but so far, we haven't learned anything that sways our opinion.

We would urge you to share these facts with anyone you care about.

Here are the top seven factors we believe MUST lead to the end of the global U.S. dollar standard.

1. The price of gold has gone up for 10 years in a row. We can't think of another market that's ever risen for 10 consecutive years. This is a historical anomaly, and it means something has gone badly wrong with the world's reserve currency (the U.S. dollar). Markets, if left to find their own equilibrium, will naturally fluctuate. Gold isn't fluctuating. Its steady move up proves something strange is happening to our money.
   
2. Our government's deficits are out of control. The government's annual deficits now routinely surpass $1 trillion. The first $1 trillion deficit came in 2008 – and the government explained it away as the consequence of the financial crisis. But we racked up another $1 trillion deficit in 2009 and yet another in 2010. We'll have another in 2011 and so on. Our national debt has doubled since 2005. We've borrowed more money in the last five years than we had in the entire history of our government until then. This isn't sustainable.
   
3. The government cannot increase tax revenues enough to cover our spending or repay our debts – ever. Our annual deficits have become completely unlinked to taxes. Total federal income taxes and corporate taxes generate $1.1 trillion a year in revenue, and we still ran a $1.3 trillion federal deficit last year. So even if we increased tax revenues by 100%, we would still have fallen $200 million short. This is totally unsustainable.
   
4. Special-interest groups – particularly government unions – are looting our Treasury. Self-serving special interest groups have completely hijacked government spending. We now spend $200 billion a year on federal pensions. We're spending another $450 billion on welfare. This spending, combined with our defense spending ($700 billion), exceeds total federal tax revenue and leaves nothing to pay the $200 billion in interest on our debt, nothing to pay for actual government services (like roads), and nothing to pay towards the inevitable Social Security/Medicare shortfall. Remember… most voters do not pay taxes. It's politically impossible to reform this interest group-based spending. These people are robbing the Treasury. They will cause our currency and eventually our government itself to collapse.
   
5. We're printing money just like the banana republics we used to mock. To support the government's runaway spending, the Federal Reserve is now continuously buying government debt. This process was commonly called "monetizing the debt" or, more simply, "printing money." The Fed creates new money to buy government bonds. This kind of Ponzi financing destroyed every previous experiment with paper money. If printing money were truly good for an economy, Zimbabwe would be the world's wealthiest country. Perhaps even more worrisome than the practice itself is the leadership of the Fed, which has alternately defended this practice and then denied using it. If the Fed continues this practice, it will eventually cause a global run on the dollar that will destroy the value of our currency overnight.
   
6. We can't repay our debts. Total debt outstanding in the U.S. currently exceeds $55 trillion. That's $681,165 in debt per U.S. family. There is simply no way to repay (or even maintain) debt of this magnitude using the income of the average American family, which is slightly less than $50,000 per family. Interest alone on these debts (based on a 5% rate) would total $34,000 per family every year. Total debt in the U.S. economy is unsustainable and can't be financed without printing vast new sums of money.
   
7. Shockingly, new debt issuance in the U.S. is soaring, with the lowest-quality debtors borrowing record amounts. Despite all the evidence that the U.S. economy carries far too much debt, both public and private debt issuance soared to new record levels in 2010. Overall, more than $3 trillion in new corporate debt was issued last year – the second record year in a row. And junk-bond issuance set a new, vastly higher record. In 2010, 509 speculative-grade corporate borrowers sold $287 billion worth of new debt. That compares to the previous record (2009) of $167 billion. Our economy has become so warped by its debt load, it cannot function without ever-larger amounts of debt. Anyone looking at these numbers must realize this is not safe and will not last long.
   

Why No One Else Is Issuing These Warnings

You may read these facts and ask, "Where are the ratings agencies? Why does a small newsletter based in Baltimore, Maryland seem to have the jump on everyone in Washington and most of the people in New York? Why aren't these facts in the newspaper? On the news at night? In magazines?"

The answer: Government spending now makes up more than 40% of our economy. No big business can afford to offend its best customer. And most also depend on the government for protection from competition, in the form of licenses or permits.

Take the ratings agencies. The SEC licenses them, and their business model depends on SEC regulations that require all new debt issues to be rated. The ratings agencies can't say anything bad about the government's finances because a single act of Congress could put them out of business immediately. Listen to what Standard & Poor's said recently about the federal government's deficits and the risk the U.S. faces of losing its world reserve currency status:

The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar... But that may change. We can't rule out changing the outlook... No triple-A rating is forever.

It's clearly a warning. But it's not specific. And it was issued from an S&P employee in France. Believe me, all of the debt analysts know how much trouble America is really in... but they're not going to say anything. It's a game of "see no evil; hear no evil; speak no evil."

Why? What's the point of everyone keeping his mouth shut?

The government believes the average American won't understand what's happening as the dollar collapses. When prices begin to explode higher (as they are already doing) the government will pin the blame on commodity producers, like oil companies or the big food conglomerates.

No one will notice or care that prices for these commodities are set on global markets and none of these companies has anything close to monopoly pricing power. But the crowd will not care. The crowd will believe anything on the nightly news. NBC, CBS, ABC, and Fox will all go along with the government's line – their broadcast licenses depend on it.

And so, the game will continue. The middle class will be wiped out. The poor will get vastly poorer. And the rich – the folks who own plenty of assets to protect themselves from inflation – will get vastly richer.

What could go wrong?

Well, what about our creditors? Sooner or later our creditors will notice what's really happening. They won't care what Brian Williams or Katie Couric says. And eventually one of our major creditors – China or Japan – will demand some kind of compensation for the decline in the value of the dollar. Or else.

If you're not out of the dollar by then, it will be difficult for you to maintain your wealth. The dollar will collapse almost overnight.

This will happen.

Today, no one believes it could. But our government and private debtors have no other way out. There's simply far too much debt to be financed. It must be inflated away.

We know most of you simply can't believe this forecast. You can't imagine America could suffer the fate of a banana republic. You will look at our numbers. Then look again. You'll re-read our list four or five times. You might even double-check our numbers. (They're right.) But still... you'll tell yourself, something will change. In a few years, these numbers won't look so bad. Or perhaps you'll simply think, "These numbers are so bad and they foretell of such bad times that I simply don't want to think about them."

People often struggle to imagine their lives changing in a profound way. So as a prelude to what's going to happen to the country as a whole... to help you prepare emotionally for what's going to happen... we give you the municipal financial crisis.

And it goes on about 27 states going bankrupt in 2011 and Municipal bondholders being basically screwed and left with worthless paper.

[aliveandcare]

Its about time someone else understand my line of thinking....Good post

Its going to start with Hyperinflation in USA, then the dollar looses its value... It is then worthless.They then introduce a new currency.....the Amero.

Edited January 16, 2011 by aliveandcare

[Econman33]

I agree with most of the above. However, I just learned that Bond holders are the first and primary to get paid in the event of a state going bankrupt. The state unions and pension holders will have to sue. I found this very interesting. This is what they expect to happen in CA. That is why I moved away from there in 93.

[EBIInvest]

So how do we protect the assets and money that we currently own? What is the solution?

[aliveandcare]

So how do we protect the assets and money that we currently own? What is the solution?

This is why I firmly believe the dinar will RV. Because it will DESTROY the usd almost overnight. It would be wise to take your earnings, pay off you debts and put most of your money into either other currencies or silver.... Not gold.

[Action316]

This is all part of a biggger plan that has been in play 4 a very long time! If any adult is just starting to see the BIG picture then they have been in the dark 2 long and need 2 step in2 the light I can not believe so many with kids have ignored these facts 4 so long. Good post... +1 from me

[aliveandcare]

I will most likely be putting all my dinar money into gold or something incase the dollar does collapse. First is to pay everything off, buy all the necessary things for survival for 5 years, build a new home with lots of good security and bunkers, buy some toys, give to the Lord, and then put the rest in gold. I wont really care if the dollar collapses after I do this. Although, I still hope it doesnt.

I agree with what you say... except for the Gold. Do not put it into gold. Put it into Silver.

[Shylmysten]

I agree with most of the above. However, I just learned that Bond holders are the first and primary to get paid in the event of a state going bankrupt. The state unions and pension holders will have to sue. I found this very interesting. This is what they expect to happen in CA. That is why I moved away from there in 93.

2 days ago, there was a very breif interuption in the regular news programming for an alert. The alert was that 27 states were being DENIED new loans by the big banks the Taxpayers bailed out. In short, the states will go bankrupt within the next 3 months, they will simply run out of money for their programs, like medicare, medicaid, police, etc. The only way the states would be able to get more money was if the FED printed even more money for an even bigger "Stimulus/bailout" than the first one.

Here is what my Investment Advisors said about Muni Bonds:

All across the country, state and local governments have run up the same kind of enormous debts as the feds.

According to a study from the Pew Center on the States, state and local governments will need at least another $1 trillion to meet their obligations over the next few years. Total outstanding state and local debt is currently $3 trillion. It's unlikely the states can borrow the money they need or raise it in new taxes. Widespread defaults are imminent. Why?

The states can't print money. Their financial problems can't be "kicked down the street" or monetized. These debts will explode in a crisis this year.

Yes, we know... Everything that can be done to prevent an outright default will be done. Numbers will be fudged. Insurance companies will begin to pay debt service rather than allow a muni bond to actually default. But eventually... some politician somewhere will say, "We're not going to pay." And they will default.

What happens next? No one knows.

If the default stands, the entire muni bond market will shut down. Investors have long assumed muni bonds would never default. They have an implied triple-A rating based on the assumption that state governments would always bail out any issuer who went into default. They would do so to avoid a statewide downgrade that would make borrowing more expensive for all of the municipalities in the state.

If there's a big default (and we believe there will be dozens in 2011), states like California, New Jersey, Illinois, and New York may simply be unable to bailout the issue because of their own budget problems. Default may become the logical political choice.

[aliveandcare]

This is all part of a biggger plan that has been in play 4 a very long time! If any adult is just starting to see the BIG picture then they have been in the dark 2 long and need 2 step in2 the light I can not believe so many with kids have ignored these facts 4 so long. Good post... +1 from me

That is exactly why I didnt get into it too much. People will start calling me a conspiracy theorist. lol. When in reality, I am not. I just follow facts.

[Action316]

I will most likely be putting all my dinar money into gold or something incase the dollar does collapse. First is to pay everything off, buy all the necessary things for survival for 5 years, build a new home with lots of good security and bunkers, buy some toys, give to the Lord, and then put the rest in gold. I wont really care if the dollar collapses after I do this. Although, I still hope it doesnt.

This is also my plan!!! Good 1!!!!!!!!!!!!!!!!!!!!!!!! another +1 also make shur the home is Energy efficient! Solar, geothermal, ect... prices will rise!!!

[Shylmysten]

I will most likely be putting all my dinar money into gold or something incase the dollar does collapse. First is to pay everything off, buy all the necessary things for survival for 5 years, build a new home with lots of good security and bunkers, buy some toys, give to the Lord, and then put the rest in gold. I wont really care if the dollar collapses after I do this. Although, I still hope it doesnt.

In 1934, under Roosevelt I believe, All gold was confiscated from private citizens by the U.S. Government. It was made illegal for US Citizens to own gold and carried a $10,000 fine and up to 10 years in jail.

Don't think it can't happen again.

Here's another one that went out over the news and was being debated.

Buried in the Bush Tax cut's extension was FIVE NEW TAX LAWS.

One was very interesting, given the fact that this year, beginning Dec. 31st 2010 the FDIC Insurance cap was removed.

That tax law states that a US Citizen cannot own an OFFSHORE account.

I have no Idea when it goes into effect, but the former explains the latter.

[scott0916]

so where do we put our dollars to protect them in such an instance ?????

i see the doom and gloom but no answer to it!!!!

Edited January 16, 2011 by scott0916

[aliveandcare]

My dad did tell me that silver was something to look into also.

One thing that is of concern with me is if the dollar did collapse, what would people pay their mortgages and loans with? The contracts through the banks for the loans are set up for dollars being paid for the purchases. This is what boggles my mind and I cant comprehend it. Why would banks even be giving out loans to anyone if the dollar could collapse?

Your father is a very smart man..

Silver is the next gold, in essence...

There is less of an abundance of silver in the world than there is gold. Silver is used in almost everything we use everyday. Medical, electronics. It conducts better than gold in electronics. It is used in light switches... It is used in about everything we use everyday..

As the price for gold keeps increasing, companies are going to start going to silver more often because it will be cheaper. When that happens, it will SKYROCKET.

[Econman33]

2 days ago, there was a very breif interuption in the regular news programming for an alert. The alert was that 27 states were being DENIED new loans by the big banks the Taxpayers bailed out. In short, the states will go bankrupt within the next 3 months, they will simply run out of money for their programs, like medicare, medicaid, police, etc. The only way the states would be able to get more money was if the FED printed even more money for an even bigger "Stimulus/bailout" than the first one.

Here is what my Investment Advisors said about Muni Bonds:

All across the country, state and local governments have run up the same kind of enormous debts as the feds.

According to a study from the Pew Center on the States, state and local governments will need at least another $1 trillion to meet their obligations over the next few years. Total outstanding state and local debt is currently $3 trillion. It's unlikely the states can borrow the money they need or raise it in new taxes. Widespread defaults are imminent. Why?

The states can't print money. Their financial problems can't be "kicked down the street" or monetized. These debts will explode in a crisis this year.

Yes, we know... Everything that can be done to prevent an outright default will be done. Numbers will be fudged. Insurance companies will begin to pay debt service rather than allow a muni bond to actually default. But eventually... some politician somewhere will say, "We're not going to pay." And they will default.

What happens next? No one knows.

If the default stands, the entire muni bond market will shut down. Investors have long assumed muni bonds would never default. They have an implied triple-A rating based on the assumption that state governments would always bail out any issuer who went into default. They would do so to avoid a statewide downgrade that would make borrowing more expensive for all of the municipalities in the state.

If there's a big default (and we believe there will be dozens in 2011), states like California, New Jersey, Illinois, and New York may simply be unable to bailout the issue because of their own budget problems. Default may become the logical political choice.

Yes, and if they default they can break up all the under-funded pension plans that they gave away. My point being that they will use bankrupcy to break their Union contracts. Then renegotiate at a more manageable level. All of which I favor. Save for your own retirement like the rest of us.

[Action316]

That is exactly why I didnt get into it too much. People will start calling me a conspiracy theorist. lol. When in reality, I am not. I just follow facts.

let them call us what they will, i call us AWARE!!! I have Alot of Native American Blood in me so i dont care what i am called i care about my lill girl and the rest of the kids in this world!!!!!!! Not like most in power who only care about themselfsss... If one believes in God then One must believe in the Devil and he iz hard at work with many followers!!! and most of them dont know who they work 4! the 1 thing i know is that i am not afraid!!! i serve a God who is above all and i know he will lead me down the right path and i talk 2 him all day and i listen 2 my heart!!! i dont care what man has 2 say, no Negative energy in this force field only PoZiTiVe ViBeZzz Go RV>>> ASAP :)

[aliveandcare]

In 1934, under Roosevelt I believe, All gold was confiscated from private citizens by the U.S. Government. It was made illegal for US Citizens to own gold and carried a $10,000 fine and up to 10 years in jail.

Don't think it can't happen again.

Here's another one that went out over the news and was being debated.

Buried in the Bush Tax cut's extension was FIVE NEW TAX LAWS.

One was very interesting, given the fact that this year, beginning Dec. 31st 2010 the FDIC Insurance cap was removed.

That tax law states that a US Citizen cannot own an OFFSHORE account.

I have no Idea when it goes into effect, but the former explains the latter.

It is actually very easy to get around that.. Almost anybody can get dual nationality or dual citizenship. You can then open a bank account in whatever country you want.

[Lawman33473]

That is exactly why I didnt get into it too much. People will start calling me a conspiracy theorist. lol. When in reality, I am not. I just follow facts.

I'm not a big market guy, but do you guys think silver is a better investment because it hasn't received quite the attention gold has, and it's still reasonable price wise? I don't want to sound all Mad Max but my wife thought I was nuts when I said I would

build an all concrete reinforced house to withstand any "hurricane" that man or nature could throw at us. The have nots will be hunting if things really go south.

I remember reading a long time ago that if the economy crumbled silver coins or the smaller ounce and up bullion bars would be the currency of choice.

Now, where do I get those pedal powered generators again for when we can't find gasoline?

Thanks liberals and rhinos for making a Mad Max scenario not just science fiction anymore.

[Shylmysten]

It is actually very easy to get around that.. Almost anybody can get dual nationality or dual citizenship. You can then open a bank account in whatever country you want.

I'll file that one away for later - didn't know that!!

[aliveandcare]

I'm not a big market guy, but do you guys think silver is a better investment because it hasn't received quite the attention gold has, and it's still reasonable price wise? I don't want to sound all Mad Max but my wife thought I was nuts when I said I would

build an all concrete reinforced house to withstand any "hurricane" that man or nature could throw at us. The have nots will be hunting if things really go south.

I remember reading a long time ago that if the economy crumbled silver coins or the smaller ounce and up bullion bars would be the currency of choice.

Now, where do I get those pedal powered generators again for when we can't find gasoline?

Thanks liberals and rhinos for making a Mad Max scenario not just science fiction anymore.

Yeah, basically. Silver will NOT stay where it is at for much longer. Within a few years at will SKYROCKET when all these companies stop using gold. See my above post for more information as to why.

[Shylmysten]

I'm not a big market guy, but do you guys think silver is a better investment because it hasn't received quite the attention gold has, and it's still reasonable price wise? I don't want to sound all Mad Max but my wife thought I was nuts when I said I would

build an all concrete reinforced house to withstand any "hurricane" that man or nature could throw at us. The have nots will be hunting if things really go south.

I remember reading a long time ago that if the economy crumbled silver coins or the smaller ounce and up bullion bars would be the currency of choice.

Now, where do I get those pedal powered generators again for when we can't find gasoline?

Thanks liberals and rhinos for making a Mad Max scenario not just science fiction anymore.

Silver historically has had a price that is 1/16th of gold. If you look at the price of Gold and Silver right now - Silver has ALOT of room to move and it's only going up. This is where the common man will stake his investment by the time he finds out what is going on. Chris Weber - who some say is the world's greatest investor - says gold could possibly reach $5k an ounce if both the Euro AND the Dollar collapse, which they are both on a track to do just that.

[aliveandcare]

I'll file that one away for later - didn't know that!!

Just make sure that you choose wisely.. I suggest UK. That was the easiest for me. And I have accounts in Switzerland through that. Funnel money to UK. Then transfer it to Switzerland... Its not that hard really.

[Lawman33473]

Energy efficiency is another good one! Also, a couple of very good in house generators and a 5 year supply of gas or diesel fuel if that is even feasible that it will survive storage that long.

Diesel and fuel will last that long but you need fuel stabilizers (they're pretty cheap). Also if you're using tanks fill them up to where there is a minimum of air in them initially to slow down any breakdown. I'm also looking at large in ground propane tanks, mabye a couple 2500 gallon tanks, as propane is popular in the south as is natural gas, but if it stops flowing you're in trouble. I heard there are some generators that will run on propane/natural gas so a very good option would be to run on nat gas and if it becomes unavail you have a large propane backup.

It's expensive ( more than 25k) , but you could look into an inground diesel tank. My police department had one installed that was a 500 gallon for about 35k I believe. We would need at least three to five times that for an extended run.

Solar may be an option in the South and Southwest if you're on some acreage (possible with a nice dinar score).

Stay safe and pray for the best, while preparing for the worst!

[Scooter]

Perfect timing!

Thank you so much for this post as it was exceptional work!!!!! I've intentionally stayed away from this topic because it's a very hard subject to discuss with people. Honestly, there are no words that can describe what we're about to encounter. You are correct in that it will be swift and immediate, as the world has become significantly smaller since the internet has come to streamline communications. Nevertheless, thank you again for the post. I know my game plan is very clear and their is very little USD involvement.

Thanks again for the post and I hope the members here at DV take this into account when they cash out.

Best,

Scooter

[saslas]

I am just wondering why Aliveandcare is saying silver instead of gold. That is not a meant to be a stupid question, I truly would like to know and understand why! So would really appreciate an answer from them. You hear a lot lately about the dollar losing its value. So would like to make good investments.

[Lawman33473]

Edited January 16, 2011 by Lawman33473