Precious metals professional, economic analyst, and commentator Jim Sinclair of Jim Sinclair’s Mineset warns that middle class and even upper class Americans who haven’t realized what’s going on and have failed to protect themselves from the coming calamity are destined to serfdom:
“The problem is so serious, the problem is so present time, the problem is so real that it has inherent in it the probability that the economy is not going to have a significant recovery for more than a decade. And the standard of living in the United States, the standard of many who are reading this now, especially those who have taken no measures whatsoever to protect themselves, who simply look at it as reading something of interest but not really acting on it, is going to be so significantly impacted as to make the middle-class or higher middle-class join the serf class. This is as serious as it gets.
Source: Interview with King World News ~ June 16, 2011
Speaking from the perspective of wealth preservation, there is only one asset with a history of being the preservation mechanism of last resort – and that’s gold (actually, precious metals in general). Forget inflation, deflation and all the other economic lingo. What we need to be focused on is crisis and confidence. For now, the American people have been bamboozled into believing the crisis has been averted and that we’re slowly moving into recovery. Nevermind the manipulation of not only the economic data coming from our government, but the perception of that data which has been created by the mainstream media.
A large portion of people actually do believe that things are getting better based on under reported unemployment numbers and misleading official inflation statistics, just to name a few. It’s sad to consider what will happen to these people when the sledgehammer comes down.
While nearly half of Americans do believe another recession is coming, they are still beholden to the opinions of the very same people who didn’t see the first recession coming, told us that the recession was over, and continue to claim that the economy is improving.
Most people realize times are hard, yet they have taken absolutely no action to preserve their wealth, let alone prepare for an economic collapse resulting from a US dollar debasement that may leave global trade systems paralyzed (which, means essential goods become very difficult to acquire).
In the King World News interview, Mr. Sinclair notes that at some point, potentially even this summer, there could be a loss of confidence in the entire economic system, which would lead to a crash in equity markets unprecedented in US history.
Confidence is the key.
The United States’ ability to manage this crisis is spiraling out of control, and other countries have taken notice. That’s why China, Russia, Iran, and even Mexico are moving hundreds of billions of dollars into physical assets – namely gold. They see the writing on the wall.
The majority of the American people, however, still have a degree of confidence in their elected officials and the institutions they cater to.
When that confidence deteriorates and eventually ceases to exist, the streets of the U.S. will devolve into this.
It’s been suggested by mainstream media that alternative news fuels economic conspiracy theories and doom & gloom. Take a closer look around and you will realize that the conspiracy is actually being perpetrated by those very same people who we are told are going to resolve this crisis. Other nations aren’t buying that conspiracy anymore, the big money movers such as the world’s largest bond funds aren’t buying it anymore, and our readers aren’t buying it anymore.
Follow the lead of those who are in the know and understand that this system is going to flat line. People like Ron Paul, for example, who today turned in his personal financial disclosure report to Congress. Look at some of the assets he holds:
Agnico Eagle Mines
Allied Nevada Gold Corp.
Anglo Gold Ashanti Ltd.
BrigusGold Corp. Com MPV (formerly Apollo Gold Corp)
Barrick Gold Corp.
Gold Corp Inc
Hecla Mining Co.
El Dorado Gold Corp.
IAM Gold Corp.
Dr. Paul knows the end result of our monetary, fiscal and economic policies, and he’s protecting the assets he accumulated over the course of his life by investing in, as we mentioned above, the wealth preservation asset of last resort – gold (with a healthy mix of silver and other mining companies).
Not everyone has the wealth of Dr. Paul, but everyone has the ability to prepare in one way or another. For those looking to protect retirement savings and the like, we’ve recommended precious metals and physical commodities. Even farmland is a good investment if you plan on living on the farm, working the land and benefiting from it directly. For those without the means to buy thousands of dollars of gold or farmland, the focus should be on food, preparedness supplies, personal defense, and skills development.
It’s serious, folks. When the government loses the confidence of the public, it’s going to hit the fan.