Kerry Lutz's--Financial Survival Network (general)

Brother John F of BrotherJohnF.com is an amazingly popular blogger who's site regularly attracts many thousands of visitors. Through his YouTube Channel and his site, he's become a go to source of information about what's really going on in the economy. And we both agree, it ain't pretty. Declining employment rates, declining standards of living, and political instability are all indications of where the state of our nation and our economic prospects are headed.

However, John believes that you can avoid much of the economic deluge that is currently hitting our shores by the judicious purchase of silver. While the Financial Survival Network sometimes may appear to be a gigantic echo chamber, it is virtually impossible to get opposing viewpoints to go on the record. Perhaps they know something and don't want to leave a record behind. So folks like Brother John are left to spread the word and help us prepare. 

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Gary Gibson of WhiskeyandGunPowder.com and Jeff Berwick of DollarVigilante.com join your humble host for a no holds barred discussion of why they believe anarchy is the best course for humanity. While one can question the practicality of a world without government, Gary and Jeff have really thought things through and believe that we are all grown-up enough to live without the guiding hand of all-knowing government. While this may or may not be the case, governments today are teetering on the edge. We may have no choice but to prepare for life without them.

Certainly government as it is now constituted, represents a threat to every individual's liberty around the planet. Whether it's getting into unnecessary wars, bailing out criminal financial miscreants, or spending their way into the poorhouse, there is something inherently wrong with government as it is now practiced. So if we can devise a transition to anarchy that will not result in humanity's descending into chaos, perhaps it's worth considering. In any event, discussion of anarchy inevitably leads to a discussion of the proper role and scope of government, and this is a debate that has been much too long in coming.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

David Morgan of Silver-Investor.com and Chris Duane of Dont-Tread-On.Me join our second roundtable on silver investing. Did you know, based upon government numbers, the inflation adjusted price of silver, just to equal its prior high of $50 would be over $150 per ounce? If you were to use the true rate of inflation, pursuant to John Williams ShadowStats.com, the price would be over $400 per ounce. Right now, you can buy silver for less than $35 per ounce. Sounds like bargain basement prices to your us!

What form of silver to buy will vary according to your budget and other circumstances. There are no right or wrong answers. But David and Chris agree that Constitutional Silver--pre-1965 US 90% silver coins--should be part of anyone's silver inventory. After you have enough, then you can look at new US Silver Eagles, rounds, 100 ounce bars and anything else you so desire. Just beware of numismatic coins and make sure you understand the basics of coin collecting, if you choose to get involved there. But always be sure that you have a core holding of silver bullion. Lock it up and forget about it. Don't watch the paper price fluctuations, as this is simply a distraction that could make you start selling at exactly the wrong moment. 

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Bob Chapman, The International Forecaster, is back again discussing the imminent departure of Greece from the Euro. While it may seem extremely painful and destructive for now, in the long run it will be a plus. They won't be able to borrow money, which will force them to produce more at home and to build a sustainable economy. They will be on a COD basis with the rest of the world, but perhaps the Chinese and Russians will extend them some credit. And may be GE Capital will come to their rescue. Whenever there's a high profile bankruptcy stateside, GE is often seen rushing in wiht Debtor-In-Possession financing at reasonable rates with good terms. Because under the bankruptcy, their new debt gets paid before everyone else's. So perhaps they'll do the same for the birthplace of democracy.

Elsewhere, in the US things aren't looking a whole lot better. Bob foresees the right of basement revolutionaries. These are children who due to economic circumstances can't go out and buy homes for themselves, so they're forced to live in mom and dad's basement and make due. This generation has missed out on the American Dream and they're extremely unhappy about it. Will they start a new movement aimed at recapturing the American spirit and drive. We all hope so, but no one has seen them emerge from the basement apartments with pitch forks yet.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Peter Grandich was still in a mild state of euphoria over the victory of his New York Giants. Peter works closely with a number of team members in a Bible Study Class. And just like there's some good pro ball players out there, there's some good solid investments, even in an environment like this one. Peter urges you not to be fooled by the so-called investment pros who are always trying to make things look much better than they really are. He calls them the, "Don't Worry, Be Happy," crowd, because they're always playing up the positive and dismissing the negative. Not a good plan for long term financial success.

Peter says everyone should have a written financial plan. This will help you avoid the emotional traps that await every successful investor at one time or another. There are sectors of the market that have great upside potential. Peter thinks this may finally be the year the juniors start to catch up with the ever escalating metals prices their value should be related to. While he is not yet ready to bet the farm on this hunch, he sees many signs that are making him more and more optimistic. But, Peter says you always need to invest with caution and a real certainty in your own fallibility. It's this attitude that has made Peter's career the success that it is.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

A new first for the Financial Survival Network--a virtual round table. Gary Wagner and David A. Banister joined me for a discussion about the current price direction of the precious metals and how best to maximize your profits. Strategy is everything. From personal experience, I can attest to the fact  there's no stronger intoxicant than a rapidly rising investment portfolio. Quick returns have been known to do in even the most experienced investors. Therefore, controlling your emotions and being open to advice from others can help. After all, learning from another's expensive mistake can help insure you don't do the same.

Gary and David agree the recent price increases in gold and silver are indicative of a major upward wave in prices. Right now, they believe gold is in a slight correction trend that shouldn't go much below 1690, if it goes that far. Therefore, buying on slight dips should prove profitable. Always remember, when an investment rises very quickly, it's quite possible it will experience a drop in price nearly as fast. And with your profits locked in, you'll be well positioned to invest in another asset with good prospects.

Send us your feedback. This is the first of many roundtables to help you prepare for the coming global financial reset.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

When Mark Skousen started Freedom Fest in 2002 he didn't think he was giving birth to a movement. Now, it's a decade later and thousands of people around the world are aware of Freedom Fest and routinely attend its events. I caught up with Mark at the Global Financial Summit in the Bahamas last week. As a freedom loving person, Mark was anxious to create a place where fellow freedom lovers could gather and start fighting the ever increases governmental encroachments. Far from being a US phenomena, governments across the globe have had an ongoing undeclared war on individual freedom and rights. At first, the incursions were minor and seemingly innocent. Now, with the Patriot Act, SOPA and so many other anti-freedom acts, the real plan has emerged.

G. Edward Griffin has believed for decades that the ultimate goal of the global elitist financial cabal was totalitarianism and the extinguishment of individual rights. It now appears that his fears are confirmed on a regular basis. Freedom Fest needs to become a statement of mind and a global movement by individuals to reclaim their sovereign rights. Mark Skousen has made an excellent first step.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Ty Andros of www.Traderview.com, a speaker at FreedomFest's Global Financial Summit, believes the economic system and the Dollar, as it presently exists, are facing an extinction event. Not that humanity is, these currency shifts have taken place many times before and will continue. They are simply part of human existence and no matter how we try, we cannot change that reality.

The solution is to understand where you are in the cycle and invest your resources accordingly. Precious metals are certainly an insurance policy against the resulting chaos, and Ty believes Silver is your greatest ally in protecting and building wealth. As a believer in the Austrian School of Economists, Ty says that the current crisis was long ago foreseen, and it was unavoidable. Better to be prepared than to be surprised.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

I'm live at Freedom Fest's Global Financial Summit 2012 in the Bahamas. Trevor Bradley of Georgetown Trust joins me to discuss global banking jurisdictions. Georgetown Trust specializes in helping you obtain asset protection, management, and diversification. All of their work is offshore and is protected with respect to privacy and confidentiality. Trevor and I agree, Belize is one of the best banking jurisdictions out there. Belize has never had a banking failure in its history, and banks in Belize are regulated to keep a 24% liquidity rate all year round.

You need to consider offshoring a portion of your wealth. Investments offshore are not illegal. If you are thinking about owning precious metals, an account in Belize can be facilitated through Zurich. For more information contact trevor_georgetown@btl.net.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

We caught up with Peter Schiff of EuroPacific Capital at FreedomFest's Global Economic Summit in the Bahamas. Peter is never shy about voicing his opinion about the impending crash of the US Dollar and the fiat monetary regime. While he's been warning us about the inevitable collapse, he's putting himself on the line now and believes that time is running short. He expects the event to occur within the next 1-2 years and believes that in addition to living on borrowed money, the government is also living on borrowed time.

As he sees it, interest rates have been suppressed for so long, that they have no place to go but up. Once this occurs, printing and borrowing to somehow achieve solvency will come to an end and then the political establishment is going to have to get serious about controlling spending and ending debt based economics. The unfortunate result will be a decrease in American living standards, however, there is a silver lining. And that is, should the Country adopt sound economic policies, we will rapidly emerge from the quagmire as an opportunity based economy once again. 

Please send your questions to KL@KerryLutz.com or call us 347-460-LUTZ.

Nick Santiago joins us today to discuss technical trading. His exceptional trading site, InTheMoneyStocks.com has been providing investment advice to help the average trader for the last five years. Santiago believes that at best, we’re in a short-term pull back mode. But soon, in the next two months or so, the dow will probably top out. Then, we’ll get a pretty sharp correction that could last a while. Ultimately, the central banks are going to deflate the banks again. If your looking at the Euro, it’s on a one-way train to the downside. The Euro’s going lower and that means the dollar’s going higher. The dollar is holding up pretty well for now. But eventually, the dollar will get deflated again. The only way the market goes up is when the dollar goes down. Now is the time to buy precious metals. You are going to want to own gold and silver. Now is the best buying opportunity we’ve had since the stock market crashed in 2008. Gold and silver are the ultimate indicators of money creation. Nick recommends buying silver. Silver is an industrial metal as well as a precious metal, and it’s cheaper than gold.

Please send your questions to KL@KerryLutz.com or call us 347-460-LUTZ.

Mickey Fulp, the Mercenary Geologist, joins us for a review of how different markets performed during the month of January 2012. If the old saw, "As January goes, so goes the year," holds true, then 2012 could be one for the record books. Platinum was up 20 percent, Gold 10 percent,  and Silver 18 percent. These are huge numbers that could be an indication of things to come or might prove to be a false indicator. The big loser for the month was natural gas down 20 percent! Warm winters in the Northeast, supply gluts, and new technology have made natural gas a perennial dud. But just like sugar, silver, and gold, remember that every dog has its day. And with oil staying up in the $100 per barrel range, it could be sooner rather than later. Time will tell, but Mickey always calls them the way he sees them.

The great news is Mickey's Market Wrap-Up will become a monthly feature at FSN, and few people are as qualified to give the opinion as the Mercenary Geologist himself.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Back for his weekly rant, we check in with Andy Hoffman to discuss gold breaking through its 200 day moving average. As per our expectations, gold's on the up side yet again. Andy however, warns you not to get caught up with short term movements. Consider the manipulation of the markets and the fast pace of the media-- always remember to look at the bigger picture! Don't watch the markets day to day, keep your expectations in the long-term. Gold has only traded below its 200 day moving average about 10% of the time over the last 11 years. The long-term technicals are actually more powerful in gold than in any other business. So don't let your emotions take control, keep your physical holdings--this is no Gold Bubble! Gold is and always has been money.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

David A. Banister is among a small select group of technical traders who foresaw the August 2011 top in gold before it occurred and his subscribers and public followers were not blindsided by the top. David doesn’t blindly follow technical indicators off the cliff, but rather he follows them while keeping the fundamental picture in view. Using his proprietary indicators, he is currently discovering a number of resource plays that are already moving nicely to the upside. When Gold was being overbought due to its parabolic rise and called for a correction, that proved uncannily correct. David applies a proprietary model of market and stock entry timing based on crowd behavioral theory and mathematics.

Now he believes the opposite case is true, and he's calling for a resumption of the bull market, probably heading up to 1880 and even higher. While there's a lot of noise in the day to day markets, the rising trend is unmistakable, and we will probably see record prices sometime during 2012 and beyond. So buckle your seat belts and get ready for the ride. It's going to be a rough one. But Dave believes there's great potential in many of the resource stocks, including gold and silver miners.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Jeff Clark, creator of the CaseyResearch.com publication, Big Gold, reiterates that gold is the best insurance policy available today that will protect your wealth from reckless governmental monetary policies. Much of what he says is beyond dispute. He knows that the current US Dollar paradigm can't last much longer, and a new one will be created to take its place.

He's hoping we can avoid hyperinflation, but he doesn't sound too convinced it's feasible. But, he knows that gold will eventually become a core holding in almost everyone's portfolio--even Apple, no matter what happens with the monetary authorities. Until fiscal sanity is restored around the globe, this is the only protection available.  Should the world decide the benefits of a gold standard exceed the negatives, one will be implemented. After all, all throughout global history, gold has been money. All these factors point to a rising gold price, sooner rather than later. And that's why Jeff is bullish on gold.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Jamie Oliver is a one man healthy food crusader, but he has met his match. He actually expected LA public school students to give up the flavor of a real beef cheeseburger for a wheat bread burger. After all, it's so much better for you. And like a liberal statist, he knows what's better for you and your kids than you do. However, when forced substitution of healthy foods was attempted, guess what happened? Kids voted with their knives and forks and dumped the healthy gruel into the garbage.

Hopefully the same thing will happen with the forced consumption of inferior educational services. The American public education system is an unmitigated failure. It's amazing that it went from being the best in the world, to being among the worst. The education decline took place at the same time as the ascendancy of teacher unionization. And there's nothing coincidental about this either. But now we are at a turning point. Apple just introduced newly created textbooks for the iPad2, and they're amazing. So do not despair, the internet is doing to the the educational monopoly what it did to the travel industry, the stock brokerage industry, the music industry and so many others before it. Pretty soon the educational experience will help students to soar to new heights.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

I finally got a chance to sit down with Chris Martenson. I've been reading his ChrisMaternsonReport for some time now. For years he's been saying the US was going to get into some sort of credit crisis, and "Da Boyz" were going to try and print our way out of it. Chris and I agree, we are all witnessing a debt super cycle that's in the process of coming to its conclusion.

We are living in the tail end of a 40 year global credit bubble. For the past four decades, the entire world has been growing credit/debt faster than underlying economies. Economic growth is measured by GDP, but GDP is a fraudulent measure. GDP doesn't really measure the wealth creation of an economy; it measures consumption, which in our society has become synonymous with wealth. But wealth is really something totally different than consumption. Chris and I agree, the calculation of GDP should not include the effects of going into debt simply to consume. Consider, Bernie Madoff who contributed 65 billion to GDP, but now all that money has just disappeared. Same with other entities that contribute to GDP like MF global.

The government continues to print money mostly for consumption, not investment. They are just kicking the can down the road, and overstating the wealth of the economy. We cannot print our way to prosperity.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Dr. Yaron Brook has led the Ayn Rand Institute for the past 11 years. He believes the most important debate of out time is not economic but philosophic: you are not your brother's keeper. Rather, your primary purpose is to the live the best life that you possibly can. This means being your own master and living on YOUR terms. You will be the most successful when you are the freest to pursue your goals and dreams. Unfortunately, this important debate is all but ignored during most political campaigns. Until we address this threshold issue, not much human progress will be made.

As Dr. Brook puts it, all statists and collectivists assume your purpose on Earth is to care for your brothers in need, whether you want to or not. Even the Founding Fathers made this error, and we are all still paying the price. The big problem is that this thinking is so ingrained in all of our psyches, that very few us even know we should be questioning it. However, through the work of Ayn Rand and her followers, as well as the institute, a true debate about forced altruism is now being had. And this can only be a good thing that will eventually free man from the shackles of unlimited government. 

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Chris is selling his living and dining room furniture, and he's buying silver. He started buying years ago, but now he's arbitraging the furniture; selling the old stuff for cash, using the cash to invest in silver, and buying new stuff on interest-free credit with small payments. While we can't, in good faith, recommend this move to investors, it does open up limitless  possibilities. Perhaps stripping the copper out of your home's walls, selling it for scrap and putting it into gold and silver makes sense. Or, stripping your auto for parts--most cars are worth more dead than alive--and selling them off.

You get the point, you're sitting on items that you're not using or don't want. Those items could be sold for cash, with the proceeds invested in silver or gold. Look around your home! Whether it's tools, clothes, or furniture, go on eBay or CraigsList and get rid of them now. Take the cash you get and put it to work for you. We all have vast resources that we are not aware or conscious of. The time to become aware is now.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Yesterday was a watershed event. The Fed capitulated and acknowledged that the economy will require zero percent interest rates into the indefinite future. Just six months ago they were saying the policy would only continue through to the end of 2012. What happened to change their view of the economy? Perhaps, for once, they decided that honesty is the policy. But that would be too much to hope for. No, they are hell-bent on making things look as good as they possibly can for the upcoming election. And they had to acknowledge that the obvious that the economy is weak and looking even weaker. QE3-Quantitative Easing 3-is just around the corner and the world knows it.

If you've been listening to the show for past several weeks, I did something that I never do, I called a breakout in gold and silver. I usually avoid all pretenses at trying to predict any market. That's because there are so many people who do a better job than I could ever hope to. However, the storm clouds were gathering and it became so obvious, that I went out on a limband made the call. Now, gold is around 1725 and silver's over 33 and they both appear to be headed much much higher. And if this is the beginning of a new breakout, silver may well restart its 11 year bull market rise and we could see its gain far eclipse that of gold.

So keep listening and if I steel up my courage, I may make another call, which you can accept or reject-at your liking.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

"Ranting" Andy Hoffman and I sat down again; fortunately, we did it a few days later than usual. We got to discuss the opening parabolic warm-up shot that gold and silver took today. If you've been listening to Andy and the Financial Survival Network, this should have been just another day at the office. We knew it was coming, it was always a matter of when not if. And today, we got our answer. Because the metals have been artificially depressed, there is still time for some real profits, meaning profits over and above the actual inflation rate. The key is to buy before the big move takes place. The energy and strength of today's upside move means the wait could well be over.

At the risk of being premature, FSN has been seeing unmistakable signs of an early spring awakening for gold and silver. And the stocks could be well-positioned, but my as well as Andy's primary focus is on the actual physical metals. Because no one knows what is going to happen to the economy, both locally and internationally, it is urgent that you have a core holding of physical metals. How much? That is a decision for each individual to make based upon their own circumstances. Some people say 10 percent of total assets is adequate. Others say the number is much higher. But in any event, there is no right or wrong answer. It's dependent upon your needs and wants. 

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Bob, "The International Forecaster" and I sat down for a brief chat about the economy, gold, silver and the mining shares.  Bob explains that frugal management, especially in the early years, is extremely important.  Management should be involved to make profits from the eventual success of the project, rather than cashing in on high salaries and other compensations; share structure is also quite important. When companies have hundreds of millions of shares outstanding, before producing one ounce, this will greatly lessen the potential future share appreciation.

Focus is also extremely important; concentration on a few or even just one project is very important for a junior minor. This will assure management makes the most of every opportunity. But in the final analysis, the price of gold and silver is going to be the main factor. And here Bob is emphatic it's going no where but up. 2012 could very well be the most important year in the history of modern finance. As we were talking, gold went up over $30 per ounce on news that the Fed would keep its foot on the monetary gas pedal. Subsequently, the outlook for the economy was diminished. It is these kinds of economic fundamentals that have shown Bob to be right far more than he's been wrong.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Greg McCoach is a frequent guest on the show. As I've stated before, he is one of the most canny mining stock investors around. His MiningSpeculator is invaluable when it comes to the number of stocks it covers and the depth of analysis it provides. Greg is not one to sugar coat poor performance or less than stellar management. As you'll hear now, "he has a bone to pick" with several companies. But there's a number of other companies that he's extremely bullish about.

Greg is brutally honest and never boring. The Financial Survival Network's thesis for 2012 is this year will prove to be a Gold Rush of epic proportions. Unlike others, we're not going to hedge and give you a bunch of platitudes about if this, that, or the other happens then things will be good. Frankly, we see nothing on the horizon to undermine the newly found confidence in precious metals as preserver and insurer of wealth around the world. We believe that when 2012 is looked at in the rearview mirror, many people will be kicking themselves for missing such easy opportunities to protect and increase wealth.

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.

Ron Hera and I are live on the floor at the Vancouver Resource Investment Conference. There were over 500 companies exhibiting and Ron says that in 5 years, half of them won't exist. Ron explains that for a mining venture to be successful you need three things, experienced management with a track record, a property with decent ore grade and proximity to good infrastructure. Of course capital is required, but without these three important elements, you won't have to worry about raising money because there won't be any. 

Ron talks about several companies he thinks have good prospects. They are nearing production, have a good quality ore deposit, and should easily make the transition from development to production. Of course we do not ever recommend any stocks mentioned on the show, but we appreciate Ron's observations greatly. 

Please send your questions/comments to KL@KerryLutz.com or call us at 347-460-LUTZ.