This is
G&G Investment Society (GGIS)
e-Newsletter
U.S. Inflation hits 10% … You are About to Get Robbed
Karibu (Welcome) G&G Readers,
According to CNBC, inflation is running at a white-hot 10%. At least this is the number they are releasing to the public.
Incredible! Ten cents of every dollar you earn are being taxed away… before you even pay the IRS.
There’s more than one way to get robbed.
A burglar could break into your house or car. Or they could walk up behind you and tell you to “stick ‘em up” (like they do in all my favorite old movies). But the most dangerous thief is one that’s invisible… slowly embezzling your wealth while you are asleep.
And he doesn’t just take your possessions. He destroys your savings. He eats away at your paycheck like a cancer. He causes your family to work longer and harder each year to buy the same basic goods and services.
As you may have guessed, the thief I’m talking about is inflation. And he’s about to go on a crime spree that makes Bonnie and Clyde seem like a pair of girl scouts.
Millions of Americans Will be
Nickel and Dimed to Death
Look… When inflation is considered “tame,” it still robs you 3-4% a year. Most people don’t notice it.
But when it spikes higher to 5%, even 6%… it can quickly spiral out of control. All it takes is a government that is willing to print too much money, and a central bank that doesn’t want to fight inflation soon enough. (Sound familiar?)
And now, it’s happening again.
But for those who see clearly through the chaos, a few assets stand to prosper… including select commodities and currencies.
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How to get a triple-digit return on "real money"
The unanswerable question I get about precious metals is... has silver run too far, too fast? Has gold become far too expensive? Is it too late to buy precious metals? Is it time to sell?
There are no "right" answers to these questions. Unlike stocks or bonds, there's no reliable way to judge the intrinsic value of an ounce of metal. The value of gold and silver quite simply depends on the security of the U.S. dollar. In other words, when you talk about valuing gold and silver, you're really evaluating the quality of the world's reserve currency (for now) – the paper (fiat) U.S. dollar.
Judging by the market action in silver and gold today (hitting all-time highs), the dollar has serious problems. The price of silver has gone completely hyperbolic. In only 60 days, silver has gone from the mid-$20s to over $40 per ounce.
There are two explanations. These answers aren't necessarily mutually exclusive – they could both be happening. So let me tell you what I know, what I can prove… and what I believe about silver.
I first recommended silver to investors in the February 2007 issue of my newsletter. I explained why I believed we were in the early stages of an enormous monetary crisis. I explained why the silver ratio was likely to fall – a move that would send silver prices soaring. That's exactly what has happened and that stock I recommended to GGIS subscribers back in 2007 now has profited more than 1200%.
I believe the price of silver is set to explode higher, to well over $100 per ounce. The price will be driven by demand for silver as money, something we haven't seen since the inflationary days of the late 1970s. Yes folks…your dollars didn’t always say Promissory notes; it did use to say silver and gold certificates meaning your dollars were backed by gold and silver.
Believe me; I know how "kooky" this will sound too many people. But… when I look at America's debt load and I witness what's happening right now at the Federal Reserve (which continues to buy 70% of all our new Treasury debt), I don't see any other logical alternative to vastly higher silver prices.
In my mind, the final endgame, where the dollar truly collapses, is unavoidable now. Nevertheless, I recognize this is unthinkable to most people (wake up please). I think it's critical to understand why silver is going up so much and what it means about our money. One newsletter after another, I warned silent and bright eyed readers that the prosperity they believed in – a prosperity made "real" by soaring real estate and stock prices – was only a monetary mirage. Let me show you a great example of what I mean…
You might recall Warren Buffett bought 130 million ounces of silver in 1997 – roughly 37% of the world's supply at the time. It was rumored Buffett sold his stake in 2006, providing supplies to the newly formed silver ETF managed by Barclays. But because Berkshire shipped its silver to London warehouses, where there are no reporting requirements, the truth about Buffett's silver hoard can't be confirmed.
We don't know if Buffett owns silver today or not. But… whether he should own silver or not is, a no brainer. What would you guess has done better since 1997 – silver or the shares of Berkshire Hathaway? The answer… is silver. Almost three (3) times better.
What most people still don't understand is that ALL the prosperity we believed was occurring after the big "tech" bubble of 2000 was nothing more than a lie. It wasn't wealth at all. It was actually debt. And rather than pay these debts back in sound money, our monetary authorities have chosen to debase our currency, by massive amounts.
Why is the Fed doing this? The answer is simple: It's the only way out of the massive obligations we owe. In all, Americans owe over $50 trillion today. Our total debt continues to increase, mostly because of government borrowing. There is no conceivable way to actually repay these debts, so they must be inflated away by printing more and more money.
The question is… how much inflation will the system tolerate before people simply abandon the dollar?
Silver's recent explosion began last summer, with the announcement of the Fed's second round of quantitative easing. Silver is warning the Fed that it has gone too far. Silver is warning that the euro is unlikely to survive a bailout of Spain, which after Portugal, is the next major economy that's likely to fail because it can't pay its debt. Silver is warning us that the Fed won't stop with "QE2" – that it will be forced to continue buying Treasury bonds as the only means to finance our soaring debt load.
Silver is warning us that the day the dollar dies is fast approaching.
But today, you can start to learn how to insulate your financial portfolio to protect yourself from the dollars ultimate decline.
Sign up today to become a GGIS paid subscriber and finally take control of your finances. Stop doing what everyone else is doing because the masses are clueless of what’s about to occur. Again, to sign up for GGIS: just send an e-mail to GGIS@gngassoc.com and/or visit our website at www.gngassociates.net and click on the “Products & Services” link and we’ll get you signed up right away.
DON'T WAIT ANOTHER DAY!
- 1 year subscription - $99
- 2 year subscription - $189
- Lifetime subscription - $399
*** Membership Guarantee ... If you don't make your back from being a GGIS member by the end of your subscription...we'll refund 100% of your money back. That's how confident we are that this will be one of the best financial moves of your life.
So, Sign up today!!!
If you need a one-on-one consultation to learn how to implement these investments or any other on the GGIS portfolio, feel free to contact me to setup an appointment.
Until the next time!
Ankh Uja Snb (Life, Health & Strength)
Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net
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LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Black Improvement Economics is a service ofThe Imani Foundationhttp://www.imanifoundation.com/ These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.
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