Kerry Lutz's--Financial Survival Network

Wisconsin Congressman Paul Ryan released his budget last week. At first blush, it appeared to be a substantial move in the right direction. It cut spending while decreasing taxation. But the reality is that his budget completely misses the mark. It is still a redistributionist plan that forcibly takes money from the producers and almost as lavishly bestows it upon the beneficiaries. This budget takes less and consequently gives less. In the final analysis, the budget doesn't go nearly far enough to help restore confidence in the rapidly deteriorating status quo.

A fiat currency that can be created by the click of a mouse is what facilitates the ever expanding scope of government and the quickly evaporating purchase power of the once almighty dollar. The results of these policies can lead to nothing but global financial collapse, and we can already see the storm clouds on the horizon. Enslaving the current and future generations with debt is a surefire recipe for lower standards of living and a declining culture. One can only try to be prepared for the inevitable chaos. 

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Late Friday afternoon is always the time when Da Boyz love to release damaging news. In hopes, of course, the news will get lost in the weekend spin cycle. Today, a rehashed disclosure came out about "Knows Nothing" Jon Corzine. A memo had been located, which showed that Corzine had specifically directed client funds be used to cover an MF Global bounced check to JP Morgan Chase. While this was a partial rehash, in light of recent findings, it adds clarity to Corzine's actions when MF's S hit the fan. Edith O'Brien, an assistant treasurer at MF sent the email as part of a CYA effort to avoid being scapegoated by Corzine for the theft.

The e-mail states JC (Jon Corzine) directly ordered $200 million in "segregated" customer funds be used to pay the overdraft. Corzine is, of course, saying he had no idea client funds were used for this purpose. You must doubt the veracity of this claim. Would a mid level employee take it upon herself to raid the customer's accounts, to effectively stave off MF's collapse? This is a good question, and one that needs to be answered before a grand jury. Perhaps an offer of immunity or a reduced sentence will help jar O'Brien's memory.

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Chris Duane has just done a new YouTube video about deleting Facebook. He believes Facebook is emblematic of what's wrong with American culture and society today. Everything about Facebook is superficial and unreal: the way people look, the messages communicated, and the friends people claim to have but don't really. What passed to meaningful and important in contemporary society, is but an illusion. Just like our money and the nutritional value of our feed, there's a fundamental lack of substance.

This false paradigm is quickly coming to an end. With the eventual collapse of the dollar and the return to real honest money, soon much of the fake structures in today's world will cease to function and will no longer exist. While getting to this place will be challenging, it is well worth the journey. 

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There has been a number of alarming governmental actions in the past few months that should give all freedom loving people cause for concern. From the National Defense Appropriations Act, to the latest presidential edict concerning control of the nation during an emergency, it appears that the noose is tightening. Why is the government passing these measures? What is the Fed expecting, and why aren't they telling us more?

Ty believes that you must prepare now. While the situation is scary, it is not hopeless by any stretch. Therefore, get ready with your financial survival plan, your family's survival plan, and your community's survival plan. Hopefully, you won't need any of them, but who knows for certain? The situation is fluid. It is constantly changing, so we can only hope for the best. But, based on the last 80 plus years of growing and uncontrollable government, we should always prepare for the worst. 

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When it comes to Nanny Statism there's no greater proponent than New York City's Mayor, Michael Nanny Bloomberg. As a liberal know-it-all, he believes he has the personal right to tell you what you should be eating, smoking, inhaling, and probably thinking as well. His campaigns against smoking, salt, fast food, and trans fats, just to name a few, are the stuff of legends. Nanny Bloomberg commands a vast legion of pointy-headed petty bureaucrats who are ready, at the drop of a hat, to enforce his will. 

Witness the latest episode where the mayor has personally banned private food contributions to the City's burgeoning empire of homeless shelters. The mayor is alarmed that homeless recipients, who might otherwise be starving on the streets, could be getting food too high in calories, salt, and fat. In his stilted view of the universe, he probably believes he's doing God's work. After all, if he doesn't watch the diet of the homeless, then who will? This is exactly the type of policy that inhibits people from helping those in need and performing a vital service to their fellow man. 

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Today, we had another one of the increasingly popular roundtable forums. Mickey Fulp, the Mercenary Geologist, and Ron Hera, of Hera Research, discussed their individual approaches towards investing in junior mining companies. One thing I learned, as if I hadn't know it already, you either need to be a professional in this area or you need to closely follow other proven professionals. This doesn't mean you shouldn't do your own due diligence, quite the contrary. It means you need to study this group of proven professional extremely carefully. Look for industry experts who get it and can effectively speak to you.

While some compare investing in mining stocks to be analogous to gambling at the casino, Mickey was very clear about the contrary. It may entail taking risks, but when you are armed with the right knowledge, you can realize excellent profits. However, as Ron said, if you can't do the research, you might want to stay clear of the sector because there's such a high failure rate. It's easy to make mistakes and lose money.

They both agree TAKING profits at the right time is a must. All in all, this is a very informative and engaging discussion.

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Ron Hera of Heraresearch.com joined us today to share his latest opinions on why paper money is often equivalent to theft. While there are many things wrong with fiat money, the main thing is it enables government to easily pick winners and losers. If you want to take advantage of an opportunity and you're part of the in-group, all you need to do is contact your connections, get a government license or a cheap government loan/subsidy and you're in. If you're an insolvent banker who doesn't know how you're ever going to get all those mortgages paid off, you call your friendly Fed and the next thing you know, you've gotten a generous bailout and the bonuses are flowing.

Obviously such inequities increase resentment among the not-so-connected group. This group is being fleeced for the benefit of the elites and cons, and they want justice. Judging from the aftermath of the financial collapse, this group is never going to get vindication because the elites look after each other and keep one another from being held accountable. Therefore, it becomes necessary for the average citizen to invest in places where he/she will not be subject to government confiscation. Ron Hera is a master at this fine art of evasive investing. This was a far ranging but extremely relevant discussion. 

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Leave it to the fascist state to eliminate the little guy, when they perceive even the slightest threat. Phil Accordino thought he had the solution to exorbitant cigarette prices. Invent and market a machine that enables consumers to roll their own cigarettes, on the spot, thereby saving tons of taxes in the process. Seems Congress, as usual, screwed up when they last increased cigarette taxes. They left pipe tobacco alone and only applied the increase to cigarettes and cigars. 

Sensing an opportunity Accordino started marketing these machines to tobacco shops around the country. He cleaned up but will soon have to stop operations if Congress and Big Tobacco have their way. While they won't be raising taxes on pipe tobacco, they are going to kill his business with over-regulation. Any company producing tobacco anywhere, will be subject to killer regulations and safety rules. This means the stores will have to affix warnings to all cigarettes that are produced on their premises. Another step towards Turnkey Totalitarianism!

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"Ranting" Andy joined us for his Monday recap. Both he and I agree that something very bad is on the horizon. Even if the Israeli Cabinet hadn't voted in favor of war with Iran, even if gas prices weren't going nuts, something terrible is imminent. The chart for government debt spending is starting to look ominous as well. So don't worry about paper assets, focus on accumulating the kind of physical assets that you can keep close in times of chaos. This is the only way to actually protect and perhaps increase your wealth.

Remember, what's taking place in the financial markets today is largely a result of government intervention. While Apple Computer today announced a large dividend and stock buyback program, it can't hide the fundamental weaknesses in the US and World Economies. Things are not improving as the government would like you to believe, but rather conditions continue to deteriorate at an increasing rate. So even though gold and silver have taken their share of hits recently, their prices continue to hold up well under pressure. 

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Freedom to pursue your own happiness was guaranteed in the US Constitution. It was a novel, ground-breaking, earth-shattering ideal that has left statists scrambling ever since. The way they take away your freedoms is one at a time. First, they go after freedoms that most people deem unnecessary or repugnant, like using drugs or advertising tabacco. Then they go after the freedoms that matter to you, like speech, the right to defend yourself, buying light bulbs or so many others that are currently under attack. Marijuana prohibitions are supported by law enforcement lobbyists who cash-in, big time. Just follow the money, and you'll see. How much of our law enforcement infrastructure would be turned into surplusage, if the number of prohibitions was dramatically cut back?

And now word comes out that the largest NSA domestic spying center in history is being constructed in a remote part of Utah. As William Binney, former head NSA mathematician and whistleblower said, "We 'this' close to turnkey totalitarianism." Think about that the next time your child asks you about what freedom was like when you were a kid. 

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The Financial Survival Network hit a major milestone two weeks ago. Our 1 millionth download! For this, we issue a heartfelt thank you to all of you listening out there. You all are what make the show possible. You are the reason why we do this. Your financial health and your family's security is why we're here and why we've been successful. The show has been growing 20-30 percent a month, and we only started in August of 2011. So obviously you see the value, and we are grateful.

We're going to keep giving you information that is often difficult to obtain. If you believe the main stream media, right now you'd be dancing in the streets because the economic recovery is here. But we all know that this is a farce. The recovery hasn't arrived, and it won't for quite a while. This is why you need to be prepared so that you can get through this depression with a large portion of your wealth in tact. So we hope that you'll continue to listen and spread the word. 

Don't forget to go to KerryLutz.com and sign up for an instant free Financial Survival Toolkit and the Weekly Newsletter.

Ty Andros of Traderview.com was here for our Friday special, The Wrap. There's so much happening in the world right now that it is impossible to keep track of. Many of us just throw up our hands and just ignore. But ignore the world financial crisis at your own financial peril. Things are happening now that will have a tremendous affect upon you and your family. It is extremely important to get an accurate picture of the world financial chaos so that you can preserve your wealth and even increase it. 

The banksters got paid by Greece, and everyone else wound up taking it the hard way. This cycle is going to be repeated over and over until there's no one left standing. The precious metals are getting a lot of unwanted attention and selling pressure from parties who are, charitably termed, non-profit sellers, i.e. the elites. Don't be deceived, you need to keep your core metal holdings safe. Ty recommends dumping cash and putting as much as possible into the precious metals. While this may seem a bit extreme, who out there predicted the financial crisis would reach the epic proportions that it has?

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Mickey Fulp, the Mercenary Geologist, is always trying to see the world in different ways. When you can break from the pack to gain unique insight into the way markets behave and participants react, there's a great potential for profits. When we talked to Mickey back in October, Platinum was trading below Gold, an occurrence that has happened only very rarely in the past. Every time it's happened before, Platinum has posted large gains, and this time has been no exception. Today, 3/16/12 it's at $1670; Mickey was a buyer at $1500. Now, it's back over Gold and the fundamentals look extremely favorable.

The undervalued commodity play of the decade has to be natural gas. It's trading just over $2 per mcf, and the ratio of btu's against a barrel of oil just shot up 50! Of course there are very good reasons why this is happening. The shale gas boom in the US has given us an extreme NG surplus. It's a regional market, and the gas is very hard to move and export to other places in the world. But, be sure that as long as the world is hungry for energy, someone will find a way to get that gas where it needs to be. Especially when gas trades around $10 per mcf in Europe and $15 per mcf in Asia. But patience in this market is clearly a requisite and a virtue.

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The rats are fleeing the burning tenement of Wall Street. First, Greg Smith from Goldman Sachs who resigned in horror over the the firm's alleged disregard of any ethical limitations upon their ability to separate their clients from their money. Then today, an anonymous insider at another large bank comes out making numerous allegations about rigging off the silver and financial markets. We have no evidence to base any conclusions as to the veracity of these allegations, but certainly we have seen numerous Wall Street clients end up in the poor house.

Surprise, surpise, just when you thought the bad guys at MF Global and their network of enablers had won, the MF's Trustee in Bankruptcy turns up another $685 million, which just a few days ago seemed all but lost. Perhaps they found it in John Corzine's filing cabinet, or maybe it was in the supply closet along with the records of all that other money they haven't been able to find. Or perhaps some of the banks who were holding these funds decided it just wasn't worth the bad PR. Either way, FSN is always skeptical of coincidences. Especially now, when the global collapse is perhaps switching into high gear, and we're going to get a sample of those weapons of mass financial destruction that Warren Buffet has been losing no sleep over. 

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Don Watkins and I discuss the unsustainable state of America's Entitlement Society. It is clear that the system is going to collapse; we are certainly at the height of corruption when half the population is allowed to live at the expense of the other half. The geometric growth in entitlement programs and expenditures is also mathematically unsustainable. Therefore, people need to be educated about entitlements, which actually make society more poor and ensure a lower standard of living for everyone. 

The alternative to enlightening and raising the population's consciousness will be far worse than ending entitlements programs. While there is certainly a core of individuals who physically or mentally cannot participate in society, the extra wealth created by the elimination of the parasitic class would more than make up for the loss of entitlements. Before the advent of leviathan government, who's sole purpose was to take care of an ever increasing portion of the populace thereby insuring it's own perpetuation, it used to work this way in America.

Please fill out the subscription box at KerryLutz.com to instantly receive your free Financial Survival Toolkit & weekly gold and silver newsletter.

Please fill out the subscription box at KerryLutz.com to instantly receive your free Financial Survival Toolkit & weekly gold and silver newsletter.

Jordan Roy-Byrne of TheDailyGold.com believes the existing gold and silver stock indexes, such as the HUI or the GDX, are not giving an accurate picture of where metals stocks are really heading. They're highly weighted towards the major producers who have been underperforming for years. As a result, the good performers' results have not been accurately reflected or recognized. Jordan doesn't necessarily attribute their under-performance to manipulation but rather sees the market asserting its fundamentals.

This is a reflection of the phase of the bull metals market. Consolidations can last for several years and valuations can vary. However, you should remember to look at technicals and sentiments. A lot of breakouts in the sector tend to be false. Gold has bottomed so many times in the last couple of years, on the day where it appeared to make a technical breakdown. We are undeniably seeing a very difficult market, and according to Jordan, we are within 2 weeks of a very important bottom. You have to wait for things to reach an over-sold point, these are the times when you want to buy and take advantage of the manipulations. Once the markets get extremely oversold, the manipulators buy to help themselves. You want to be on the correct side of this, so DON'T FREAK OUT and sell! 

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Bob Chapman joins us today for our biweekly precious metals check-in. Gold is down to around $1650, and there is mountainous trouble in Europe. Bob says what we're seeing is just a diversion to distract you from what's happening over in Europe. The US is blatantly in the market, and according to Bob manipulating it. The central banks of many countries like India and China are buying gold at anything under $1700. Bob has traded for 25 years as a professional, and he says BUY!

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We talked about the Department of Energy's idiotic $50 LED light bulb that's going to save energy and make the world a better place in which to live. The DOE even gave out a $10 million prize to Philips for creating this loser. Who's going to spend $5,000 to outfit their entire home with the wondrous energy savers? As time goes on, more and more traditional light bulbs will be banned, leaving you few choices.

However, Congress in its finite wisdom left open a glaring loophole. The ban does not apply to rough service light bulbs. These bulbs are used in areas subject to high levels of vibration and movement, such as train stations or industrial areas. In addition, these bulbs last longer and are readily available through numerous sources. Let's see this become a major civil disobedience movement. Let the Congress know that they may be able to control your toilet, dishwasher, washer and dryer, but not your light source.

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Jason Burack of WallStforMainSt.com is currently writing a comprehensive report about opportunities in the junior oil drilling sector. The majors tend to dominate all the headlines. But, when it comes to building reserves you should look to acquiring juniors. One of the nice things about drilling for oil is that after making a discovery, the company can be producing cash flow in under a year. Contrast this with that of the mining industry, where approvals can take a decade. 

While Jason believes we're not running out of oil, he also believes that much of the easy to find, cheaper, light sweet crude oil has been depleted. This means more deep drilling, more fracking and more non-traditional sources of hydro-carbons.The subsidies that many producing countries offer their citizens are a mixed blessing at best; while shielding from market forces, consumption continues to rise. All of Jason's projections assume no Middle Eastern Black Swans appear. If they do, no one knows where oil prices will wind up. 

With this in mind, we're looking forward to Jason's report.

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"Ranting" Andy knew exactly when the Elites were going to hit gold and silver again. In fact, he has a chart where he is able to show with fairly good accuracy when the next raid will occur. When you've followed these markets for as long as Andy Hoffman has, the constant rigging and manipulation starts to become as predictable as the lunar calendar. While there may not have been a full moon last night, the powers that be are often found howling at the moon in an effort to maintain the status quo.

According to Andy, you shouldn't be surprised to see another raid in about one week's time. Trying to keep gold and silver from breaking out to new highs can be a full-time job. This is because an uncontrolled rise in the metal prices will eventually lead to a loss of confidence in unbacked paper currencies. You should know by now that Da Boyz wont allow a loss of confidence in unbacked paper currencies to occur, not matter what the cost. 

Tune in next week and see if Andy's chart hits pay dirt. 

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