Tuesday, December 06, 2011

Safe Refuge During the Coming Police State

You may call this an opinion piece because I have no "solid evidence" to support the following":

As of today, Dec 6, 2011, my sources are telling me,

1. If you value your freedom and liberty, the United States is no longer the place to be. It will take another couple of years, but if you don't want to live in a police state, you had best begin plans to move out-country, preferably no later than summer 2012. see 3 and 4 below.

2. Both Newt and Romney are fully co-opted; to a lesser degree, so are most of the other GOP candidates. The only candidate who - so far - won't conform to the agenda is Ron Paul. But my sources have no data on Bachman, Huntsman or Santorum - too far out of the pack for the elite to pay any attention to yet. My sources are saying that whether Newt or Mitt is elected, they will both play the game and conform to the agenda laid out for them - essentially, nothing will change, although surface changes may occur to placate the "unruly."

3. Obviously, Obama is fully "in-camp." The only way to prevent a socialist-fascist-police state is for a non-co-opted candidate to win in November AND for both houses of Congress to elect a GOP majority.

4. My sources state they see no "human" solution to this mess. The only solution is to follow God's lead and do whatever He tells you to do. Just be sure it's God leading you.

5. Safe Refuge: the number of "safe refuges" in and outside of the United States has been reduced to the following. Although no place will truly be safe, these will all be better than the US. Two of these may come as a surprise. Seminole Res in Florida, Hopi Res in Arizona, Baja California Sur in Mexico, Aborigine lands in Australia, desert areas in Jordan, Israel, deep Sahara, Hong Kong, China (!?). Altho, if you're a Christian, you won't be able to practice your belief in Jordan or China, the situation in the US is planned to become so dire that all of these places will be far better and safer. The safest areas will be where no one else is, no one knows you're there and no one can find you.

6. If you choose to remain within the US, expect the following within a few years (with ANY human solution): midnight to dawn curfew, police or troops patrolling the streets, you won't be able to move money or take cash out of the country, food shortages, possible temporary spot electrical outages or brownouts, gasoline shortages, scattered rolling checkpoints on roads and highways across the US with other more stringent measures probable at a later time.

Caveat: Usually I tend to extremes, all of the above represents one extreme. The other extreme is that everything turns out exactly as we hope, the fed gov shrinks and begins turning a surplus. We pay down our debt, the troops come home because there are no more wars to fight, gas prices keep decreasing, the fed stops printing money, the dollar gains strength worldwide, the US returns to Constitutional principles, the TSA adopts a pragmatic method of airport screening without violating the Constitution, the FDA stops raiding homes and farms for "illegal" food or food supplies, cheap renewable energy sources are released, the economy recovers and millions of jobs are created, foreclosures stop and everyone pays off all their debts, people switch from a debt economy to a credit economy, regulations restricting private enterprise and restricting the free market are dropped, - anyone have anything else?

What usually happens is often in the middle of the two extremes. In this case, the middle would seem to be that nothing changes. Or, that only slight, primarily "cosmetic" changes occur.

I know I will face derision and ridicule from this post, but I feel it is necessary to post this to help - maybe that one person who may heed this advice - people who will listen. Sometimes people listen to what I say, sometimes not: for example:

Iraq War - prior to the invasion, I was vigorously opposed to any war because 1. the war would drag on for years and not take just a few weeks or months as we were being told, 2. "we would not find any wmd" - specific quote I made, 3. the cost of the war would be "at least 400 to 600 billion dollars" not 40 to 60 as I believe was being projected, 4. thousands of American lives would be lost not hundreds, 5. the invasion would trigger the activation of groups around the world to begin openly fomenting against the US and some of these groups - within and without Iraq - would take action destroying innocent lives, 6. nothing much would change regardless of what happened - the US would not be safer, the world would not be safer, Iraq Might be a tad bit safer, but there would be no clear cut increase in safety for American citizens, if anything, things might get a little worse - in my opinion they have - huge deficits, millions out of work, rapid decline in dollar, security not substantially increased, loss of freedom & liberty in the US.

2005 - In 2005 I began telling people about the real estate bubble and how it would burst within a year or two. I figured people had 1 year to get out and divest their real estate assets - and I advised them to put their returns in cash and ride out the consequences. Then be ready to jump back in and snap up property at bargain basement values. I began advising to Slowly get back in the market as of June of this year - keep 50% in cash and estimate a property may lose up to 30% current revenue. If it is still paying a profit, buy it - or flip it.

Begin your plans for safe refuge now, time is running out.

Monday, December 05, 2011

The Solution That Will Save Our Nation

It seems obvious to me that we as a nation, and we as a people, do not have the answers to the questions that divide us; we cannot even agree on the questions. It seems obvious to me that neither the Occupy Wall Street demonstrators, nor the Democrats, nor the Republicans, nor the Tea Party, nor the independents, nor Obama, nor Newt, nor Ron Paul, nor Romney have the solutions that are best for this nation.

Further, it seems obvious to me that although we all agree that the path we are on is the wrong path for this nation to travel, none of us can agree on what the right path is.

Therefore, I think we should forget about politics and about all the problems this nation has. We are not going to agree on the answers, we are not even going to agree on the questions.

No one knows who the best candidate is, but God knows. No one knows what the best solutions are for our nation, but God knows. No one knows how to heal the polarization between the parties or in Congress or how to unite us when so much seems to divide us. I don't have the answers to these questions nor does anyone, but God does.

We need to place all our concerns, questions and worries at the feet of God. Then we need to get down on our knees and pray. God has promised that if we are sincere and earnest and bring our concerns to him, he will meet us halfway and provide the answers to our prayers, the solutions to our questions and relief from our worries. He will dry our tears, remove our fear and bring us through safely to a new, brighter, better day.

We need to stop the bickering and ask God to show us the candidate who will be best for our nation.

We need to stop arguing amongst ourselves and ask God to show us what solutions are best for our country.

We need to stop blaming each other and ask God to show us what each of us must do personally to help God bring each of us and this nation back to Him.

Finally, we need to stop in our haste and the busyness of our every day lives and enjoy the life that God has ordained for us. We need to stop wondering what to do and ask God to show us what must be done to restore those things that made this nation great and made us a light to all nations.

We don't know the answers, we don't know the solutions, but God does, and He will show us what they are, if we but honestly, humbly and sincerely ask.

Friday, December 02, 2011

Building Wealth, Making Money

Beginning with industrialization, governments sought to expand their economies by replacing the long-term and slow growth modality of capital creation with the faster and more expedient means of debt creation. But as economies expanded, debt ballooned. Over time, as a nation's market expanded at a fairly steady pace (with the occasional downturn and setback), ensuring a commensurate increase in incomes, apparent wealth and living standards, the total debt increased at an exponential rate exceeding by many magnitudes the growth rate of the economy. As a result, at any major downturn and national or regional setback, nations businesses and individuals are left foundering in a sea of debt.

There can be no "fix" to an economy based on debt nor for a business' or individual's debt load unless the "fix" originates from the capital creation side of economic philosophy. However, as capital creation is slow and uneven this solution is unpalatable to nations and peoples accustomed to quick repairs, fast connections and instant gratification. To be told that a solution to debt can be guaranteed, but only after 10 or 20 years of hard work, with very little to show for the first half of that period, people and nations may opt for the more expedient solution of expanding their debt. Although this solution seems to solve the immediate debt, the existing debt doesn't go away, it is merely subsumed within the new debt. This seems to solve the immediate debt situation but in fact only moves the problem to a future date.

There is no solution to a debt crisis using the current model of debt creation. Under this model, current debt never goes away, it is only added to future debt. The only solution to a crisis of debt is debt that provides periodic income in excess of the periodic payments necessary to acquire that debt. Debt based on this new model is based on tangible assets, i.e. hard, fixed assets which cannot be easily dismantled or destroyed.

There are only four asset classes of production. These four classes are land (or real estate), labor, capital (cash), and intellectual property. In the modern era, each of these asset classes bears varying degrees of mortality risk based on the further distinction (subcategory) of that asset category, its location on the planet, competition and the market from which its revenues are derived. No place is absolutely safe; fires, earthquakes floods and storms can destroy a factory, warehouse or subdivision just as surely as war, a terrorist attack, competition or market decline.

Investment in debt is never a safe option. Debt is a soft asset, an intangible or paper asset which can lose value or be destroyed as easily as it was created. Whether the soft asset is student loans, mortgages, commodities, foreign exchange or highly leveraged derivatives, there is no assurance that any investment made today will be secure tomorrow. The characteristic of a soft asset which makes it easy to generate high returns over short periods of time is leverage. However, this leverage of return also leverages the degree of risk. The farther removed an asset is from a hard asset to a soft asset, the more inherent the risk built into the structure of that asset. Although this risk also leverages the potential rate of return, the increase in the return is simply not worth the increased risk as the current real estate crisis, worldwide currency crises, the slow decline of the dollar and international governmental debt crises all attest.

Income generating assets exist in a variety of forms and their return can exceed that of the more familiar debt model based asset vehicles. One of the most popular forms is stock ownership. Although this seems a contradiction in the capital creation concept, it is in fact a core concept; buy assets, not debt, buy ownership, not a promise. With stock, you are buying a piece of the company; when buying a student loan package, you are buying a promise.

Equity in a commercial enterprise is perhaps the easiest, least expensive and lowest risk means of initiating a capital creation strategy. To assure the proper perspective on equity purchases, an investor must view the asset for the periodic income it generates, not the projected cash-in value of the asset at some indeterminate time in the future. Each investor must view the asset as one that they will hold forever and then pass onto their heirs because of the income it generates (and additionally the value it adds to their estate). No investor should view such an asset as one they plan to sell in 10, 20, 30 or 40 years.

Indivduals, businesses and governments must all adopt the long view. This long view rests on a foundation of capital creation. Capital creation is the acquisition of assets which produce periodic, current income in excess of the payments required to purchase that asset.



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