"There are two sorts of wealth-getting, as I have said; one is a part of household management, the other is retail trade: the former necessary and honorable, while that which consists in exchange is justly censured; for it is unnatural, and a mode by which men gain from one another. The most hated sort, and with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural object of it. For money was intended to be used in exchange, but not to increase at interest. And this term interest, which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of modes of getting wealth this is the most unnatural."
- Politics, Aristotle, 350 B.C.
"The Jew alone regards his race as superior to humanity, and looks forward not to its ultimate union with other races, but to its triumph over them all and to its final ascendancy under the leadership of a tribal Messiah."
- Goldwin Smith, The Jewish Question, October 1881
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
- President Woodrow Wilson 1916
“We are grateful to the Washington Post, The New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost forty years. It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is now more sophisticated and prepared to march towards a world government. The supranational sovereignty of an intellectual elite and world bankers is surely preferable to the national auto-determination practiced in past centuries.”
- David Rockefeller, Baden-Baden, Germany 1991
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
- Henry Ford
“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”
- Franklin D. Roosevelt, letter to Col. House, November 21, l933
“One of the least understood strategies of the world revolution now moving rapidly toward its goal is the use of mind control as a major means of obtaining the consent of the people who will be subjects of the New World Order.”
- The National Educator, K.M. Heaton
"We Jews, we, the destroyers, will remain the destroyers for ever. Nothing that you will do will meet our needs and demands. We will for ever destroy because we need a world of our own, a God-world, which it is not in your nature to build."
- Maurice Samuels, You Gentiles, 1924
“We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.”
- David Rockefeller
“Today, America would be outraged if U.N. troops entered Los Angeles to restore order. Tomorrow they will be grateful! This is especially true if they were told that there were an outside threat from beyond, whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will plead to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well-being granted to them by the World Government.”
- Dr. Henry Kissinger, Bilderberger Conference, Evians, France, 1991
"Never argue with stupid people. They will drag you down to their level and then beat you with experience." –Mark Twain
If you want to begin to understand and appreciate the work of Mike Stathis, from his market forecasts and securities analysis to his political and economic analysis, you will first need to learn how to think clearly. For many, this will be a cleansing process that could take quite a long time to complete depending on each individual.
The best way to begin to clear your mind is to first move forward with this series of steps:
1. GET RID OF YOUR TV SET (at least cancel your cable)
2. REFUSE TO USE YOUR PHONE TO TEXT
3. DO NOT USE A "SMART PHONE" (or at least do not use your phone to access the internet)
4. STAY AWAY FROM SOCIAL MEDIA
The cleansing process will take time but you can hasten the process by being proactive in exercising your mind.
You should also be aware of a very common behavior exhibited by humans who have been exposed to the various aspects of modern society. This behavior occurs when an individual overestimates his abilities and knowledge, while underestimating his weaknesses and lack of understanding. This behavior has been coined the "Dunning-Kruger Effect" after to sociologists who described it in a research publication. See here.
Many people today think they are virtual experts on every topic they regard with relevance. The reason for this illusory behavior is because these individuals typically allow themselves to become brainwashed by various media outlets. The more information these individuals obtain on these topics from the media, the more qualified they feel they are in these subjects, without realizing that the media is not a valid source with which to use for understanding something. The media always has bias and can never be relied on to represent the full truth.
A perfect example of the Dunning-Kruger Effect can be seen with many individuals who listen to talk radio shows. These shows are politically biased and consist of individuals who resemble used car salesmen more than intellectuals. These talking heads brainwash their audience with cherry-picked facts, misstatements and lies regarding relevant issues such as healthcare, immigration, Social Security, Medicaid, economics, science, and so forth. They also select guests for interview based on the agendas they wish to fulfill with their advertisers.
Once their audience has been indoctrinated by these propagandists, they feel qualified to discuss these topics on the same level as a real authority, without realizing that they obtained their understanding from individuals who are employed as professional liars and manipulators by the media. Another good example of the Dunning-Kruger Effect can be seen upon examination of political pundits, stock market and economic analysts on TV. They talk a good game because they are professional speakers. But once you examine their track record, it is clear that these individuals are largely wrong, but they have developed an inflated sense of expertise and knowledge on topics for which they continuously demonstrate their incompetence.
One of the most insightful analogies created to explain how things are often not what you see was Plato's Allegory of the Cave, from Book 7 of the Republic.
We highly recommend that you study this masterpiece in great detail so that you are better able to use logic and reason.Although we recommend you read and study The Allegory of the Cave, you can get a flavor for its meaning by watching the following video.
If you can learn how to think like a philosopher, specifically one of the great ancient Greek philosophers, it is highly unlikely that you will ever be fooled by con artists like those who make ridiculous and unfounded claims in order to pump gold and silver, the typical get-rich-quick or multi-level marketing (MLM) crowd.
“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”
King James Bible - Matthew 7:15
"It's easier to fool people than to convince them that they have been fooled." –Mark Twain
All Viewpoints Are Not Created Equal Just because something is published in print, online or aired in the broadcast media does not make it accurate. In fact, more often than not the larger the audience, the more likely the content is either inaccurate or slanted. The next time you read something about economics or investments, you should ask two main questions in order to assess the credibility of the source. Is the source biased in any way? That is, do they have any agendas which would provide any type of benefit accounting for their views? Most individuals either sell ads on their site or are dealers of precious metals or securities. That means their views are biased and cannot be relied upon.
Is your source is credible?
Most people associate credibility with name-recognition. But more often than not, name-recognition serves as a predictor of bias if not lack of credibility because the more a name is recognized, the more the individual has been plastered in the media. And every intelligent person knows that individuals who have been provided with media exposure because they are either naive or clueless. The media positions these types of individuals as “credible experts” in order to please its financial sponsors; Wall Street.
Instead of name-recognition or media celebrity status, you must determine whether your source has relevant experience on Wall Street as opposed to being self-taught. But this is just a basic hurdle that in itself by no means ensures the source is competent or credible. More important, always examine the track record of your source in depth, looking for accuracy and specific forecasts rather than open-ended statements. You must also look for timing since a broken clock is always right once a day. Finally, make sure they do not cherry-pick their best calls. Always examine their entire track record.
“Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.”
King James Bible - Matthew 7:15
The above questions require only slight modification for use in determining the credibility of sources that discuss other topics, such as politics, healthcare, etc.We have compiled the most extensive publication exposing hundreds of con men pertaining to the financial publishing and securities industry, although we also cover numerous con men in the media and other front groups since they are all associated in some way with each other.
There is perhaps no one else in the world capable of shedding the full light on these con men other than Mike Stathis. Mike has been studying the indistry for well over a decade. Alhough he has published numerous articles and videos addressing this dark side of the industry, the entire collection can be found in our ENCYCLOPEDIA of Bozos, Hacks, Snake Oil Salesmen and Faux Heroes.
At AVA Investment Analytics, we don't try to pump gold, silver or equities like many others you see because we are not promoters or marketers. And we do not receive any compensation whatsoever (including from ads) from our content. We provide individual investors, financial advisers, analysts and fund managers with world-class research, education and unique insight.
If you listen to the media, most likely it is costing you hundreds of thousands of dollars in lost money at minimum over the course of your lifetime. The deceit, lies and useless guidance from the financial media certainly is a large contributor of these losses to the sheep you pay attention.
But a good deal of lost wealth comes in the form of excessive consumerism which the media seeks to impose on its audience. You aren’t going to know that you’re being brainwashed or that you have lost $1 million or $2 million over your life time due to the media, but I can guarantee you that with rare exception this is the reality for those who are naïve enough to waste time on the media.
It gets worse. By listening to the media, you are likely to also suffer ill health effects through the lack of timely coverage of toxic prescription drugs or through the ridiculous medical shows, all of which are supportive of the medical-industrial complex.
And if you seek out the so-called "alternative media" you might make the mistake of relying on con men like Kevin Trudeau or Alex Jones. This could be a deadly decision. As bad as traditional media is, the so-called "alternative media" is even worse.
Why Does the Media Air Liars and Con Men?
The goal of the media is NOT to serve its audience because the audience does NOT pay the bills.
The goal of the media is to please its sponsors, or the companies that spend huge dollars buying ads, and in order for companies to justify these expenses, they need the media to represent their cause. The media does this by airing idiots and con men who mislead and confuse their audience.
By engaging in "journalistic fraud," the media steers its audience into the arms of its advertisers because the audience is now misled and confused, so in the case of the financial media, it seeks the assistance of Wall Street brokerage firms, mutual funds, insurance companies, precious metals dealers. This is why advertisers pay big money to be promoted in the financial media.
We see the same thing on a more obvious note in the so-called "alternative media," which is really a remanufactured version of the so-called "mainstream media." Do not be fooled. There is no such thing as the "alternative media."
In order to be considered "media" you must have content that has widespread channels of distribution. Thus, all "media" is widely distributed and the same powers that control the distribution of the so-called "mainstream media" also control the distribution of the so-called "alternative media."
The claim that there is an "alternative media" is merely a sales pitch designed to capture the audience that has since given up on the "mainstream media." The tactic is a very common one used by con men.
The same tactic is used by Washington to convince naive voters that there are meaningful differences between the nation's two political parties. In reality, both parties are essentially the same when it comes to issues that matter most (trade policy, healthcare and war). Anyone who tells you anything different simply isn't thinking straight.
On this site, we expose the lies and the liars in the media. We discuss and reveal the motives and track record of the media’s hand-selected charlatans with a focus on the financial media.
No one has generated a more accurate track record in the investment markets over the past several years than Mike Stathis. Yet, the financial media wants nothing to do with Stathis.
You aren't even going to hear him on the radio being interviewed.
You aren't going to see him mentioned on any websites either.
You won't read or hear of his remarkable track record unless you read about it on this website or read his books.
You should be wondering why this might be. Some of you already know the answer.
The media has banned Mike Stathis because the trick is to air clowns so that the audience will be steered into the hands of the media's financial sponsors - Wall Street and gold dealers.
And as for the radio shows and websites that either don't know about Stathis or don't care to hear what he has to say, the fact is that they are so stupid that they assume those who are plastered in the media are credible. And since they haven't seen or heard Stathis in the media, even if they come across him, they automatically assume he's a nobody in the investment world simply because he has no media exposure.
Well, if media exposure was a testament to knowledge, credibility and excellent track records, Peter Schiff's clients would be a lot happier when they looked at their account balance.
Others only care about pitching what’s deemed as the “hot” topic because this sells ads in terms of more site visits or reads. This is why you come across so many websites based on doom and conspiratorial horse shit run by con artists looking to cash in on ads.
We have donated countless hours and huge sums of money towards the pursuit of exposing the con men, lies and fraud. We continue this mission but we cannot continue it forever without your assistance.
We have been banned by virtually every media platform in the U.S and every website (mainly because we expose the truth about gold and silver).
We have been banned from use of email marketing providers.
The fact is that the Jewish Mafia has declared war on us because we have exposed the realities of the U.S. government, Wall Street and corporate America.
Note that we only began discussing the role of Jews in criminality by 2009, three years AFTER we had been black-listed by the media, so no one can say that our criticism of the Jewish Mafia has led to being black-listed, not that it would even be acceptable.
You can talk about the Italian Mafia, and Jewish Hollywood can make 100s of movies about it...
BUT YOU CANNOT TALK ABOUT THE JEWISH MAFIA.
We rely on you to help spread the word about us. Just remember this. We don’t have to do what we are doing.
We could do as everyone else and focus on making money. We are doing sacrificing everything because in this day and age, unfortunately, the truth is revolutionary. It is also critical in order to prevent the complete enslavement of world citizenry.
On Exposure: No one who has significant exposure can be trusted because those who are responsible for permitting such exposure have allowed it for a very good reason, and that reason does not serve your best interests.
On Spotting Frauds: Whenever you wish to know whether someone can be trusted, always remember this golden rule..."a man is judged by the company he keeps."
This is a very important rule to remember because con men almost always belong to the same network.
You will see the same con artists referencing each other, on blog rolls and so forth.
In the past, I have addressed the errors made by Peter Schiff's analysis of the economy and healthcare.
For those of you who are still behind the curve and actually think Schiff knows what he is talking about, (i.e. being more right than wrong) you should question how a man who has no expertise in healthcare thinks he knows how to fix the problems.
Now if you think he does have a clue about healthcare, you obviously have not read my book, America's Healthcare Solution. This is a book that (I feel) positions me as a healthcare expert.
[I think anyone who has read my books will agree that they don't contain fluff. And they are written by me, as opposed to some ghost writer. They are filled with an enormous amount of data. And they provide a good deal of education as well as unique insight. Unlike the vast majority of investment-related books on the market today, the books I have written are not marketing tools that have been dumbed down so as to appeal to the largely unintelligent masses, otherwise known as sheep.]
You should not assume I'm claiming to be a healthcare expert only after doing some research and writing a book. This is what most people do. I actually work with healthcare venture capital firms. This is why I have accumulated a good understanding of the industry over the years.
Needless to say, due to the fact that I held nothing back in this book, I stand to lose a good deal of business since venture firms want to stay away from any criticisms of the industry, much in the same way as Wall Street.
But as you may have realized, I cannot be bought off. That is specifically why the media has banned me. People like me are viewed as a threat to the lies, fraud and corruption delivered by the media.
I have been banned for the same reason that most Americans have lost a great deal of money in the stock market over the past decade; the media works for corporations, NOT you. And the last thing they would want is someone with no agendas, and someone who is unwilling to sell out. The last thing the media wants is to air someone unafraid to tell the truth because you would be positioned to avoid losses. And your losses become Wall Street's gains.
By now, you should realize that no one you see or read in the media can be relied upon for valuable insight. On the rare occasion the media interviews an expert with credibility, it is likely that this person is playing to the sheep in order to profit. This is the reality based on my own observations spanning well over a decade, so if you trust me and you trust my judgment, you need to accept this as fact. Otherwise, you stand to suffer.
Here, I continue with Peter Schiff's latest extreme analysis. Make no mistake, I could spend all of my time picking apart many of his forecasts if I wasn't involved with research and helping investors make money. However, part of the way I can help investors make money is to show them how the guys in the media club are more wrong than they are right, and how the media specifically works to deceive you. I have addressed this in many publications in the past.
In fairness to Mr. Schiff, despite the fundamental weakness of many of his views, the fact is that he is more right than the other members of the media club. However, in an absolute sense, Schiff is more wrong than he is right. That tells you just how atrocious the media is.
In the end, no matter how much more right you are than your misguided, highly ignorant, agenda-laden peers, the bottom line is that you are not likely to help investors unless you get the fine details right. Schiff has, by my analysis, failed to do that. Hence, I do not see how his views provide any real value. In fact, some of them are, in my opinion, potentially dangerous to investors.
Now, before I begin what might seem like some kind of personal vendetta against Peter Schiff, (and I have none) I want you to understand that much as the same with every other member of the media club, Peter Schiff’s views are subject to much scrutiny because he reaches a large audience.
Thus, when Schiff makes what I feel to be ridiculous claims, even if a small percentage of his audience believes him, it could adversely affect millions of investors. As such, I feel these claims need to be addressed.
As one can verify, it is a rare occasion to see Mr. Schiff matched up against anyone with real credibility. Instead, he faces extremists from the other side of the spectrum; usually liars and hacks, if not complete idiots. So what you get are two extremists going back and forth, both lacking real value.
The result is that the audience is led astray, all while thinking they have been provided with valuable insight because there is always a winner to each debate, right? The problem is that most people fail to realize that even the winner can be a loser.
This has been an intentional move by the media. For if Schiff were to face scrutiny by individuals who have no agendas and who possess a superior understanding of things, such as me and many others, his views would not provide the drama sought out by the financial media.
More important, it would not accomplish the real agenda of the media; to air the views of extremists so that in the end, investors flock back to Wall Street’s perma-bull market myths after the views of the doomer extremists failed to pan out.
If in fact Mr. Schiff truly believes what he is saying, it would appear that his sense of reality has become a bit distorted, perhaps due to his motives, which are to sell you gold, or to get you to buy it so as to raise the price. This too aids the media's agendas, as gold dealers also include Wall Street firms.
After all, in addition to being a stock broker, Mr. Schiff is also a gold dealer. And he has a sales pitch. Any good salesman will tell you that the best way to sell something is to repeat the same thing over and over. And there can be no in-between. You must hold firm with an extreme view of things, so as to make your pitch most convincing.
Similar to other gold bugs that have a financial stake in pumping up gold, instead of discussing the pros and cons, you'll only get the pros from Schiff when it comes to gold.
Understand that, just like everyone else you find in the media, Schiff's mission is to market himself, his firm, and his investment "philosophy." It's a sales pitch and Schiff is a salesman. He's a good saleman too. Unfortunately, this often conflicts with reality.
When you place financial agendas at the top of your priorities, you become a marketer, not a forecaster. And rather than provide valuable insights, you generate sales. This is always good for business, but often bad for those who have been sold the illusion created by the marketing campaign.
Let's take a look at some of Schiff's investment strategies.
According to Schiff, all U.S. stocks should be avoided. He even held firm with this view when the Dow hit 6400. Although I warned of a collapse to these levels in America's Financial Apocalypse and several times thereafter, I advised investors to start buying when the Dow reached 6500.
Even then, I did not come out and say "buy like you never have before." I warned that the market could go lower because it was a possibility.
I'm not an extremist, and I realize that there is no white and dark, up or down, on or off. There is always a shade of grey to everything. At some point, you have to realize when to act. I think I did well to realize when that time came.
Thereafter, I kept investors in the market all the way through the tremendous rally, as subscribers of my newsletter can confirm.
Meanwhile, most investors have been left out of the largest stock market rally since the Great Depression because they have allowed themselves to become brainwashed by the gold pumpers scattered throughout the Internet and media.
According to Schiff, the dollar is headed to zero as the result of hyperinflation, despite the fact that the vast majority of dollars created from the Fed’s printing frenzy have not reached consumers, and despite the fact that the dollar is backed by oil. This by itself means that it is absolutely impossible for the dollar to go to zero (which is the result of hyperinflation) or anywhere close to zero.
Apparently, Schiff (and virtually everyone else) is unaware of the dollar-oil link as I first discussed in America's Financial Apocalypse, and many times since. I would advise Mr. Schiff to read my book. His clients should insist on it. In fact, he might consider contacting me for investment strategies and market forecasting.
According to Schiff, Chinese, Australian and Canadian stocks are gems, despite the fact that globalization has all but shattered the decoupling myth, at least for now. Furthermore, these three nations are experiencing a real estate bubble that is likely to burst at some point.
While I like the future prospects of the Chinese growth engine, (and have since discussing it in America's Financial Apocalypse) I have remained cautious for several months, as discussed in my newsletter. China represents several potentially lucrative investment opportunities. However, it has some unique risks not found with U.S. investments.
Furthermore, regardless how good you think an investment might be, you must always manage risk because the buy-and-hold philosophy preached by Schiff and others on Wall Street ultimately leads to disaster. Surely by now you realize this.
The bottom line is that one cannot buy-and-hold. You must be nimble. Things change, often on a daily basis, so you must focus on active management. That is the foundation of risk management.
On the other hand, Schiff is not stupid, unlike many of the others in his doomer, gold-pumping circle. Schiff sticks to a buy-and-hold philosophy because he runs a brokerage firm. Brokerage firms typically do not practice active management due to the restrictions placed on them by FINRA. This is something very few who have never worked in the industry are aware of.
In addition, it is a very difficult task to manage accounts. Most stock brokers do not possess these skills. They are merely salesmen.
Now, if you think you are better off investing in mutual funds, you obviously haven't read my analysis; an analysis that no financial professional would dare mention even if they understood how funds work because this provides a portion of their revenues.
When the global markets were near collapse in late 2008, China’s economy led the way down after the commodities correction. As a result, the Shanghai stock market collapsed to what we now know were the lows, plummeting by some 70%. At the time, I released a report into the public domain that advised readers to buy Chinese equities.
The point I am trying to make is that there will be times to be in Chinese equities and times to be out of them. The same is true of U.S. equities and equities from other nations. Schiff's sales pitch is in opposition to this common sense investment strategy.
Rather than U.S. equities, according to Schiff, investors should own gold, commodities, short the dollar, and avoid real estate and banks. While I agree with some of these conclusions, I strongly disagree with others.
Clearly, the banks and real estate-related stocks are characterized by poor risk-reward characteristics, so we agree there. But this should be obvious to every investor. If it isn't, you shouldn't be investing. I feel that I argued my case for the risks in real estate and the banks more convincingly than anyone else in America's Financial Apocalypse. I'd like to see any other analysis readers might think can match it.
When assessing whether Mr. Schiff really knows what's going on, you need to ask yourself whether he made specific written predictions for real estate in any of his books. I don't even think he has made any specific forecasts on any of his thousands of broadcast media appearrences.
By the way, how can you be an investment strategist if you are managing a brokerage firm and giving interviews to the media every day? Think about it. Is Schiff a real strategist who does extensive research, or a marketer in disguise?
Did Schiff predict real estate values would decline by 30-35% as I did? Although I'm willing to bet that he didn't, I cannot say if he did or didn't because I don't waste my time reading books with generalizations, backed by very little data. And I know this characterizes Schiff's book because I picked it up and scanned it, and put it down after 60 seconds. In my opinion, it is a useless book. Rather than providing specific forecasts, it served more as a marketing tool to promote his once tiny brokerage firm (which has now grown due to the CNBC sheep) more than anything else.
Has anyone bothered to count how many times he mentions EuroPacific Capital in his book?
Did Schiff mention that a decline in real estate prices usually leads to a decline in the stock market twice the magnitude of the decline in real estate? I know I did.
Did Schiff advise his readers to short Fannie and Freddie and other mortgage stocks? I certainly did.
If Schiff REALLY thought the banks were in trouble, why didn't he recommend shorting them as I did?
Does Schiff REALLY know what he is talking about? Or is he merely taking a contrarian approach as a way to appeal to the market of investment skeptics. This is a common sales strategy used by some stock brokers.
If so, why hasn't he laid down specific forecasts in print? Perhaps Schiff is just a salesman.
Now, there's certainly nothing wrong with being a salesman. They are an important part of every economy. The problem arises when you are a salesman disguised as an investment strategist.
In fairness to Schiff, Wall Street does the same thing. The big Wall Street firms position their investment strategists as experts, when the reality is that they are usually very clueless. They are nothing more than salesmen.
Gold and commodities are also in a bubble. While the economics of the commodities bubble are somewhat justified (at least for the present time), there are no economics that can justify the price of gold.
Unlike silver, gold has no intrinsic value or industrial use. Gold is priced exclusively on desire rather than demand. Investors desire gold because many have been led to believe hyperinflation myths propagated by Schiff, Faber and many others. The size of their agendas dwarfs that of their credentials.
On the other hand, I agree with Schiff on commodities. I am bullish on commodities, especially oil and have been for some time now.
However, I have emphasized the need to manage risk because commodities can be quite volatile. As I first warned in America's Financial Apocalypse, investors must actively manage their portfolios. One example that illustrates the need to manage risk can be seen from my forecast that the commodities bubble would face a severe correction. I told readers that would be the time to buy. As we now know, it was an accurate call.
In contrast, everyone else who has been bullish on commodities (like Jim Rogers, Peter Schiff and the rest of that crew) only knows one direction; up. They never talk about the possibility of huge corrections when they are addressing the sheep who watch CNBC. By the way, Jim Rogers would do well for himself if he also read America's Financial Apocalypse.
The problem with Rogers is that he actually believes the hype CNBC attaches to him. But I am willing to bet that his own portfolio has been blasted apart, and only salvaged by his ability to average down. Guys with a lot of money who know what's going on don't waste time being media whores.
If Rogers really knew what he was doing, he would focus on managing his investments. But you see, when you are as clueless as everyone else, you can make money if you lead the sheep into the dark.
Before you place any seriousness to anything Schiff and others say, you had better consider the big picture. First, look at agendas. Second, look at track records.
Finally, look to see if they are in the media, (or if they are merely followers of others in the media) because if they are, you can bet that what they say will be wrong or so generic that it won't help you.
When screening for extremists, you should look for individuals who only know one direction. The perma-bulls will always claim the stock market is headed up, while the perma-bears will state the opposite. In both cases, they will never help you navigate the ups and downs, where the real money is lost and made. Their purpose is to sell you their pitch.
We cannot forget that Schiff continues to place the majority of the blame for this mess on Washington, so as to minimize Wall Street’s involvement. What else would you expect from a man who works in the industry.
Schiff has also defended Goldman Sachs, and has insisted that Washington is to blame for their fraud. It is clear to me that Schiff has agendas. It is clear that he is an extremist.
Is this a man you want in the Senate? Don't we already have enough pro-Wall Street Senators as it is?
Always remember that you will never get anywhere with your investments if you listen to extremists. Moderation is the key. Without moderation, one cannot exploit the actions of the herd. Schiff is a salesman for a brokerage firm, so having a buy-and-hold and extreme view of things fits well with his sales pitch.
In the past, Schiff has made many vague predictions. Some of them have come true; mostly the ones that many were already aware of. But vague predictions don’t exactly do much for investors. Unless you get the details right, you can suffer as much if not more than others who miss everything, especially when you denounce the U.S. capital markets as an investment alternative.
While I am bearish on U.S. stocks, that does not mean you cannot make a good deal of money with these investments. As long as you can forecast the market, you will do quite well. Unfortunately, market forecasting is one of the most difficult tasks of the investment process. Fortunately, it is one of my strengths, as subscribers to my newsletter can confirm. But there are other opportunities as well if you are able to select the right industries.
Regardless whether you are able to forecast market movements or select securities and industries that outperform, active management is critical.
Many of Schiff’s predictions have been dead wrong. As far as I’m concerned, if you’re going to be dead wrong, you'll have more credibility if you were wrong after having made specific predictions because it demonstrates you actually conducted extensive research and you laid your reputation on the line.
In the past, Schiff has likened the fate of the dollar to the Zimbabwean currency. This could be the most ludicrous analogy I have ever heard. Come on people; can you take this man seriously? If so, God help you.
Furthermore, it has recently come to my attention that Schiff is forecasting a similar situation for America as that seen in Greece. This too is ridiculous.
Those of you who are familiar with my forecasts know that I predicted gold to soar. I predicted commodities to soar. I predicted real estate to collapse. I predicted the stock market to collapse. I also advised investors to keep a good deal of cash and wait for the storm.
Why? Because I saw what was coming and I was not encumbered with the need to generate securities or gold sales. I only sell research and analysis. Unlike Schiff, I do not sell securities and gold.
In contrast, Schiff was telling people to load up on foreign investments, unaware that the globe would be affected. I specifically mentioned that the collapse of the MBS market would lead to a sell-off in the global markets.
More important, I provided specific estimates. Most of my forecasts thus far have been spot on.
But I know when to ease up. For instance, I have never discussed hyperinflation as a possibility in the U.S.
Anyone who thinks hyperinflation will occur in the U.S. (at least in our lifetime) might also be diagnosed with paranoia or schizophrenia. Others have agendas or have been brainwashed.
In my May newsletter, I mentioned that America was digging a huge crater for itself that could end up being much worse than the situation in Greece. However, I explained that it would manifest differently due to the vast differences between the two nations. I didn’t go into much detail, but I will add to this analysis so that you can see where Schiff is wrong.
First, I mentioned the fact that America’s biggest problem lies with unfunded liabilities for entitlements. I explained that instead of a default, the American people would feel the effects in the form of drastically reduced benefits and much higher premiums for Medicare and Medicaid. Let's have a look...
“I have warned about the ramifications of national debt in the U.S. since writing about the problem in AFA. I have continued my discussion of this problem, providing updates since 2008. Most recently, I summarized the extent of the problem in the past few issues, after adjusting for recent budget estimates. The charts on this page tell the full story.
The first chart shows the percentage of GDP attributable to Medicare, Medicaid and other government healthcare spending such as the VA and public medical assistance. Without some difficult adjustments, the economic growth of the U.S. will face severe problems starting around 2020. These problems will get worse each year for many years.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights: Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.