Kerry Lutz's--Financial Survival Network

David Knox Barker in an article Two Roads out of the Global Financial Crisis http://www.marketoracle.co.uk/article32045.htm believes that if only the politicians will behave just a little bit and make some of the right decisions, the world can escape the current crisis and enter a period of unequaled prosperity. He quotes Robert Frost's epic poem, The Road Not Taken as some kind of model for governmental action around the world. However, Mr. Barker fails to understand that there were many opportunities to travel down the road of economic salvation and that the United States and the World blew by them like Jeremy Clarkson in tricked out Ferrari Enzo going around the Nurburgring Race Track.

Now there are only two options and neither of them have a positive outcome. Governments can stop printing and watch their economies disintegrate overnight or they can continue their current course of action and keep printing new currency units and try to paper it over. The outcome of unbridled currency production is inflation leading to hyper-inflation and the destruction of all savings and the middle class. If there's a more palatable choice, no economist or politician has yet hit upon it, but we certainly wish them luck.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Michael Woody O'Brien has said, "Everybody with a 100 i.q. can see the Mother of All Financial Crashes is Coming...So why are so few people foaming their runways??" Which is just Michael's way of wondering why intelligent, well educated people refuse to see, what is as obvious as the nose on their faces. But we have all been through so much in the past decade, that our capacity to accept and anticipate still more negative events is at an end.

The fact is, the cruise ship is headed for the iceberg. The captain's been informed, but he refuses to take any action as he doesn't believe it's there. But there are a number of passengers who've seen it and know that a collision is inevitable. And they also know that there's not enough lifeboats to rescue everyone. They've decided that they are not going down with the ship and have already gotten into a boat that is most likely to survive and insure their escape from the disaster. Hopefully, you've done the same and you and your family will survive the inevitable sinking.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Martin Armstrong is back on the show to talk about what's really happening to the world financial markets. He explains how flimsy the entire Euro structure was from the get-go. He advised the leaders to unify Europe both monetarily and fiscally, but they rejected that advice, rightly believing that theexpanded European Union would never have been approved. His only surprise is that the entire structure held together as long as it has. He believes that Germany will be forced to inflate, because no one is willing to accept the consequences of massive deflation, complete with bank failures and widespread unemployment. Therefore, the politicians will take the path of least resistance as they always do.

MF Global was another disaster of massive proportions. It is now obvious that your money is unsafe no matter where it is being kept, except perhaps in physical gold and silver. The clearinghouse was always supposed be the ultimate guarantor of customer funds, making good on customer accounts when companies failed. However, this never happened in the MF Global failure and there are many thousands of investors left holding the bag. But more importantly, confidence in an already shaky system has been furtger undermined. The eventual results could be devastating to all investors any place on the globe.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Ian Farrar was fortunate to connect with legendary investor Jim Sinclair. Sinclair has been one of the acknowledged masters of precious metals investing. And he should be, he's been doing it for many decades now. In 2001, he predicted that gold would hit $1650 per ounce by January 11, 2011. He was only a few months off, a pretty amazing call made so many years ago.

What did Jim Sinclair know that the rest of us didn't? He understood what governments do in times of trouble, and he understood that the greatest currency collapse in history was on the horizon. While it is very difficult to predict the price of any security or commodity in the short term, some people are able to recognize and follow a long term trend. Gold and Silver have been in 11 year bull markets. You can trace the beginnings of their moves back to the end of the DotComm (DotBomb) era.

While many others have piled on into the precious metals bandwagon and have provided valuable commentary, only a few were spot on in 2001. Ian has followed Jim's advice to the "T" and has gotten through much of the Global Financial Collapse unscathed. But the good news is, it's not too late for you to do the same.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

According to one of our favorite blogs theeconomiccollapseblog.com, the United States is getting poorer by the day. This is happening on all levels of society, with governments going broke, companies collapsing and household wealth in a serious tailspin. But just because your country is going down the tubes, doesn't mean you have to go with it. As I've said before, there has never been a better time to start a business than right now! For just a few thousand dollars, you can become an international powerhouse. Just like the Colt .45 was the great equalizer in the Wild West, the internet is the great business equalizer in the modern world.

I admit, the economic statistics are bleak. But this can help you in your endeavors. So many people who would be your potential competitors are discouraged and fearful and therefore out of the picture. As my mentor Joel Bauer says, "Everyone has some area of expertise that people will pay them for." What's your passion and can you monetize it?

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

In 2005, David Galland was sitting at a coffee shop with legendary investor Doug Casey and several others. They were discussing the impending collapse of the US Economy and how there was really no way left to avoid it. At the time, few people believed there was anything wrong with in the US or elsewhere. Everything seemed to be fine, there were jobs galore, incomes were rising and real estate always went up. Fast forward 6 years later and the ruminations at that meeting have come true in spades. Also at that meeting, they came up with the concept for www.CaseyResearch.com, which has gone on to become an online investment research powerhouse. The quality of the writing and the information is always entertaining and revealing.

David joins us to discuss the continuing saga of the Global Economic Collapse and what you need to do to protect your wealth and your family. There has never been a better time in history to start a business. Does that statement amaze you? It's true! The internet has allowed people like myself and David and his partners to reach markets that just 15 years ago were deemed inaccessible to all but the largest corporations. Individuals, who just a few years ago had no idea what to with their lives, are now making it with internet based businesses. David's advice is to study what you love for one hour per day and become and acknowledged expert in that field. And then, make your move, get on the web and go global. Success will eventually find you, just like it has for CaseyResearch and the Financial Survival Network.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

As reported by Greg Hunter of www.UsaWatchDog.com, the recent passage of the National Defense Authorization Act (Senate Bill 1867), otherwise known as the “Indefinite Detention Bill,” should scare the heck out of anyone who loves the U.S. Constitution and the Bill of Rights.  This bill effectively hands over control to the military to arrest, torture and even kill terrorists on American soil.  It also allows the military to hold suspected terrorists indefinitely without a trial or due process.  This applies to both non-citizens and citizens of the United States!  With this bill, you are not innocent until proven guilty.  You are guilty until proven innocent, and you may never get a trial to defend yourself.  There is surprisingly little written in the mainstream media about this Senate bill that passed 93 to 7 at the end of November.

There has been very little reporting of this provision in the traditional media. Evidently, they don't find it important enough to inform you of yet another move towards totalitarianism. it is also of note that the military wants no part of this new power. Everyone from the Secretary of Defense to the CIA to the FBI, think it's a bad idea. President Obama has threatened to veto it, but we'll see if he follows through.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Harvey Houtkin grew up amid humble beginnings in Sheepshead Bay Brooklyn. He was always extremely good with numbers. He went on to college and upon graduating headed for Wall Street. In a back-office department, he was responsible for calculating accrued interest on bond trades. This was a laborious task done with primitive electro-mechanical adding machines. When the electronic calculator was introduced, Harvey immediately saw its potential to streamline the department. He pursuaded his boss to buy several of the then $3000 units, and began a wave of automation on Wall Street that continues to this day.

Harvey moved up and then left to start his own stock brokerage business. Business was great until the Crash of '87, when he found himself broke and out of business. He was intrigued by the new Small Order Execution System (SOES) and eventually figured out how to profitably trade on it, with virtually no risk and guaranteed profits. This was the birth of Day Trading and the way that America invests was forever changed. His new company All Tech Direct boomed and had offices around the Country. Eventually the Big Boys caught on, but not until he'd amassed a fortune.

Today, online trading with low commissions and virtually instant execution is taken for granted, but it wasn't always that way. Harvey shook up Wall Street and the way it did business. He passed away in 2008 at age 59, amid a medical controversy, but everything Harvey ever did was controversial.

RIP Harvey Ira Houtkin.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Jeb Handwerger of www.GoldStockTrades.com joins us for a wide ranging interview covering Rare Earth Metals, Uranium and the intractable US Budget Deficit. Jeb has been following mining stocks for many years and is an authority on Rare Earths, Uranium and other mining sectors. He explains why it's crunch time for the Western World to break China's monopoly on these metals which are vital to modern life as we know it. Rare Earths go into just about every electronic item that we require in our daily lives, from cellphones, to computers, to windmills and automobilies.

His view of Uranium is quite compelling. Are you aware that there is a treaty between the US and Russia to dismantle Soviet Era nukes that provides much of the nuclear fuel consumed in the United States? This treaty expires in 2013 and may lead to almost immediate shortages of Unranium around the world. The Chinese are seeking supplies from any place they can find them.

Finally, we conclude with Jeb's concern and ideas for limiting the Federal Budget Deficit. He believes that the problem can only be addressed by revitalizing America's core manufacturing and mining sectors.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Andy Hoffman's weekly rant on the Financial Survival Network has become a regular feature. We got so much positive feedback and so many emails that we had to respond. Today we discuss the The Three Card Monty Economy, where every publicly traded market is rigged by central banks and governments around the world. Whether its stocks, bonds, pork bellies or gold and silver, you can be sure the heavy hand of government is attempting to tilt the scales in someone else's favor. That doesn't leave much for the little guy, other than gold and silver.

The Federal Reserve shelled out over $16 trillion to keep the economy a float during the 2008 Crash. How much more will it take this time? Andy comments that new entities are being created almost daily and virtually no one knows who they are and what they do. Now they're talking about a new government for Europe. What's next? What we do know is that the fundamental problems are not being resolved and they won't be so long as the system remains as it is now. The system is the problem and kicking the can down road, only works for so long. Evenutally the debts come due and no one has the cash to pay them.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

The United States has run up a cumulative $7.5 trillion Trade Deficit. The last time the country ran a trade surplus was in 1976. Nixon closed the Gold Window in 1971. Do you believe it's just a coincidence that the rise of an un-backed Fiat Dollar and the rise of the Trade Deficit haapened so close in time? The Country has been in a pronounced economic decline since the 1970's and when the Gold Window was closed. Since then the money supply has increased many times as has inflation.

While living standards have declined, so  has domestic energy production. This has exacerbated the Trade Deficit and has cost consumers countless billions. The ability to print up currency and dump it on a willing world, in exchange for their production, has enabled the Government to present the illusion that things are alright. But look at the dying industrial cities in America. Detroit, once a paragon of industrial success, has fallen upon hard times. The average Detroit home is going for $6,000, only 25 percent of students graduate from high school and unemployment among men has reached nearly half of the work force.

Such trade imbalances were much less likely to occur under a Gold Standard. Countries were not likely to allow complete depletion of their gold reserves. Fiat currencies can keep being produced regardless how bad the imbalance becomes. Then it is up to the trading partners to decide whether or not to accept the currency. At some point enough will be enough and it will be game over.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

We review Michael Connelly's, the master detective novelist, latest effort The Drop, another Harry Bosch novel. Michael has been writing detective novels for twenty years. His portrayal of Harry Bosch, the rebellious, brilliant and tough as nails LAPD Homicide Detective is always riveting. When Bosch is on the scent, he will leave no stone unturned to find the responsible party and see that they wind up spending the rest of their life behind bars or six feet under.

Connelly works with many LAPD insiders in painting a scene of police politics and intrigue, that Bosch is somehow always able to surmount and solve the case,  despite unwarranted interference and meddling from the Brass. Harry's credo is "Everyone counts or nobody counts." Murder victims from the lowliest element of society to the upper echelons of the ruling class receive Harry's undivided attention and unrestrained efforts to close the case. And no one stands in Harry's way.

Whether you get the audio book or the printed edition, Bosch novels always keep you at the edge of your seat and the endings are always unpredictable.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Millionaire taxes wind up costing everyone more. Jay Hancock of the Baltimore Sun cannot understand why the State of Maryland is rapidly becoming devoid of the dreaded Millionaire. He can't fathom why a little thing like a 25% increase in Millionaire income taxes could possibly encourage wealthy citizens to flee the State for more Millionaire friendly climes. And Hancock is part of the problem. He, like his state's leadership, doesn't understand that self-employed high networth citizens are fleeing high tax jurisdictions all over the country.

California, New York, New Jersey, Massachussets, Connecticut, Rhode Island, Illinois are all seeing these people depart for friendlier low/no income tax states such as Texas, Florida, Tennesse, Washington State and New Hampshire. Whatever your preference for climate, location or quality of life, there's a lower tax state inviting you to flee. It will evenutally get to the point where the only people left in these high tax states will be those who can't get out.

In the past decade, lower taxing states have far outgrown high tax states, both in population and economic performance. The last state to impose an income tax, Connecticut, has seen job growth fall to dead last of the 50 states. There must be a reason!

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

David A. Banister of www.ActiveTradingPartners.com and www.TheMarketTrendForecast.com  joins us for a lively discussion on why gold and silver are now as low as they're ever going to be, and why it's a good time to buy--for many reasons. David is a student of history and understands that while bubbles come and go, the market is the market. One of his favorite titles is Extraordinary Popular Delusions and the Madness of Crowds,  first written by Chalres Mckay in 1841.

David uses a number of different technical analytical methods, but they are all firmly grounded in fundamental reality. Most importantly, David has called virtually all of the major market trend points during gold's lengthy bull market. He's calling for $2300 gold very shortly, which has the main stream financial outlets in a frenzy.

We discuss the new meme on the mainstream financial media outlets, which is the so-called Risk Trade. As someone who's been in the markets for many years, there's no such thing as a trade that doesn't come with some measure of risk. Right now, there are people who consider being invested in cash and bonds as among the riskiest trades out there.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

We discuss a recent article in the New York Post, detailing how, Gov. Cuomo is under enormous pressure from public-employee unions and Democrat Legislators to extend New York’s “millionaires’" tax. The Post says that, "The big irony here is that much of the money raised from any 'millionaire' tax hikes would go to fund the growing phenomenon of public-sector millionaires."

They go on to explain that, "A New York City public-school teacher earning $100,000 can retire at 55 with a pension of $60,000. A private-sector worker would need $1.2 million to buy an annuity..." It's even worse for cops who, ...typically retire in their 40s. The average newly retired city cop collects a pension of $58,563 — plus a $12,000 annual supplement."

The rapacious desires of the public employee unions never ceases to amaze even the most hardened observer. The Country, State, City and many other Municipalities are heading towards inglorious bankruptcies. The citizen are stretched to the max and just like Oliver Twist, these unions always want More.

Cuomo will either make his stand here, or the fate of New York State and New York City is assured. It's really that simple.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

A security researcher, Trevor Eckhart, recently made a startling discovery. Hidden inside every Android and iPhone is a program called Carrier IQ (CIQ), which is capable of monitoring virtually everything you do on a SmartPhone. And then it has the ability to send all that data back to your wireless carrier and then who knows where it will wind up and how it will be used. Perhaps these phones have become too Smart for our own good.

This is our worst nightmare potentially being realized. With our freedoms being eroded at a rapid rate, this is a biggie. A cellphone is an incredibly personal device that we all assumed was private. Now we find out that even if, Big Brother or Big Sis (Janet Napolitano-Secretary of Homeland Security) haven't actually been listening, they could have been. There's percious little that you can do to disable this program, even if you knew it was working.

CIQ claims that it's all being done for our benefit, to help carriers improve the quality of the service they deliver. Well that makes me feel much better. Perhaps now my calls will no longer be dropped when I pass by a bird feeder or go over a long suspension bridge. The carriers, the phone manufacturers and all responsible parties need to be investigated and punished accordingly.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Gary Wagner has been a trader and a market technician for over 25 years. In early in 2009 he began to focus his attention on one market: Gold. The yellow metal, gold, began to rally in 2008, but Gary knew the best was yet to come. He believed that gold was poised for an incredible and explosive upside move. Thus the GoldForecast was born. Gary's daily video newsletter is always interesting and often profitable. He uses a combination of fundamental and technical analysis.

We talked about the invention of paper money by the Chinese in the 10th century and their invention of inflation in the 14th century. Perhaps history doesn't always repeat itself, however, it is rhyming in many chords at the present time. Too many promises have been made without any regard to the abilities of governments to honor them. Gary is by his own admission, "A half full kind of guy," and he believes that humanity will find a way to avert out and out global economic, social and political disaster. However, he believes that the solution will be hard won and very difficult to attain and will be done in the face of disaster. 

Hopefully, Gary is correct in his assessment, but he's still intent in his belief that everyone should be buying to gold as it will continue to dramatically appreciate in price.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Chris and Kerry continue their conversation on the death of the Fiat Money System. Europe and its large banks have been saved once again, but the end result can never be in doubt. Chris believes that we should all be opting out of the bankrupt system by holding physical silver. There's going to be a lot of chaos, which is bad in the short term, but in the long term a new system will be created that will reward producers and savers. The financial ruling elites are at the rope's end and it won't be long before the non-stop money printing and market manipulation ends in failure. History has shown that inflation can never bring about prosperity, but rather it sometimes brings about the illusion of prosperity for various periods of time. But eventually the debt comes due and there's no money left to pay it, or the money that is left has completely lost its value.

Hyperinflation is the likely result of massive Central Bank interventions. Jim Sinclair calls it QE (Quantitative Easing) to Infinity. Others call it wealth confiscation on a mass scale. Or taxation without legislation.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Bob is back! He brings the latest info on what's really happening in Europe, why the bank bailout will be good for a year at the most and why you need to be acquiring gold, silver and the shares of quality mining companies. Bob's been at it for over 50 years, trading the markets, acquiring precious metals and freely and lovingly dispensing advice. He has studied history and understands exactly what's going on now. He believes that the global financial elite has a plan in place to completely dominate and control all of the world's inhabitants. Unfortunately for them, the plan has come off the rails and the collapsing Euro may very well be the "nail in the coffin." We can only hope.

The US Senate has passed S. 1867, which allows the pursuit of terrorists, both American and non-American in virtually any location within the United States. This is yet another example of creeping totalitarianism, which has been well underway for decades. The major media has deliberately failed to inform the American Public of this outrage. It's just a matter of time until we wake up one day with no freedoms and no constitution.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.

Chris Vermeulen a/k/a The Gold and Oil guy explains that traders are made not born. Having an iron constitution, the ability to control one's emotions as well sound money management is the key to being a successful trader. So many people attempt to trade the markets without having the right information or a disciplined strategy. Chris has a group of people who follow his methods and have been highly profitable. He describes that aha moment, when a student becomes a trader. It just requires, discipline, patience and position management.

Chris sees gold and silver prices on an ever upward trajectory. Central Banks' efforts to paper over the continuing crisis will ultimately fail. He's not a believer that society will devolve into an episode from Mad Max and Beyond Thunder Dome. Rather a new system will ultimately be devised to facilitate world trade and avoid a complete social breakdown.

Chris's successful experience makes him someone worth listening to. Always look to those who have succeeded when you're looking for a profitable system to earn profits.

Please send your questions to kl@kerrylutz.com or call us at 347-460-LUTZ.