Watchlist for Friday

CNUV (China Nuvo Solar) .0046 this is trading slow and steady in an upward trend , lithium stocks such as LEXG recently trading from $1 to $10 share and today LTUM trading over 500% , there is a craze with LITHIUM and rightly so with oil price at $113 a barrel, its upcoming merger with FREYA lithium battery co. is well on schedule today announced update:

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- China Nuvo Solar Energy, Inc. (OTCQB: CNUV) updated today its progress with the previously announced Freya Energy, Inc. acquisition and its financing plans. As previously reported, the Company is seeking substantially non-dilutive and non-toxic forms of financing. In that regard, the Company said it has received documentation from an investment fund outlining various types of available financing including purchase order financing, factoring of accounts receivable, equipment leasing and equipment sale leaseback. None of these financing alternatives involves any type of equity. Based on discussions with principals of the investment fund, the Company believes the fund can tailor certain financing solutions to meet the Company's needs.
In addition, the Company has received several term sheets relating to equity-based financing transactions from funds with significant experience working with the needs of micro-cap companies. Although equity-based transactions involve a certain amount of dilution to stockholders, the company is focusing on those types of financings that would be based on sales of restricted stock.
The Company and its legal counsel have also completed the initial definitive documents for the acquisition and is presently circulating them among the various parties.
About Freya Energy
Freya is a producer of safe large format lithium ion cells and batteries for demanding applications. Freya believes its proprietary separator provides greater safety than competitive products and provides a higher energy density than others on the market.
Freya's technology is protected by patent filings, ready for manufacture without the need for additional research and development. Freya has developed a commercialization plan for rapid market entry. Its personal relationships with known and established customers position the company for timely sales in the United States and Europe. Subject to initial funding and satisfactory prototypes, Freya has millions of dollars in letters of intent that can be converted to purchase orders.
Freya has an experienced management and technical team led by well respected innovators in battery technology.

DTRO (Deltron Inc) .0015 a stock that trades with volume and recently filed 8k rumor buy out and also huge following by groups today traded as low as .0012 to close at .0015 , rumored news next week buy out watch for entry short term .003

Dollar Plunge!

Dollar Plunge!

 

 

The dollar continues to plunge verses not only hard assets, but other fiat currencies as well. This morning's economic indicators didn't help at all, unemployment claims surged to 429,000, economists were expecting claims to fall to 395,000. GDP also came in at 1.8% pace in the first quarter, a drop from a 3.1% pace in late 2010. Gold, as we write this has surged to a new ALL TIME HIGH of $1,538.51 and silver has recaptured all of its losses from earlier this week, silver is now at $49.50. The dollar index is at 73.07.

 

Here is a one year chart of the dollar index, sometimes pictures speak louder than words, or in this case, a chart of our fiat currency vs. other fiat currencies.

 

 

 

Understanding The Gold & Silver Correction

 

FutureMoneyTrends.com believes that the best way to understand what is happening with metals is understanding the correction. With the COMEX, silver shortage, ETF's, and the amount of currency in the system, it is important to understand that when the precious metals go up in fiat dollars, that is the correction. With less that 1% of global financial assets in gold, any move up in price is gold correcting to its real value. Historically gold, in a modern society, has been around 20% of global financial assets. So, as you can see with it currently being less than 1%, the imbalance is the gold price being too low. Imagine what will happen if pension funds and other investors just move a small portion of their portfolios to gold, even seeing gold rise to 5% of global financial assets could put it at $8,750 per ounce!

Food and Energy Inflation is Not Transitory

Food and Energy Inflation is Not Transitory

Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the Fed Funds Rate at a record low of 0% to 0.25%, where it has been for an unprecedented 28 months. The U.S. economy is flooded with U.S. dollars and is close to overdosing on excess liquidity. The fact that our financial markets are not falling on the possibility of the Fed not unleashing QE3 immediately at the end of QE2, shows that we could be on the verge of hyperinflation with or without QE3.

 

The Federal Reserve currently has a mandate of both maintaining price stability and facilitating job creation. However, central banks don't have the ability to create real employment. If any jobs happen to be created as a result of a central bank's policies, they are only temporary jobs created due to the errors and distortions of phony asset bubbles. All phony asset bubbles that are fueled by monetary inflation eventually burst, sending unemployment through the roof.

 

Almost every major central bank besides the Federal Reserve, understands the truth about job creation, and has a mandate that focuses solely on keeping price inflation low. The Bank of Japan, Swiss National Bank, Bank of Canada, and Bank of New Zealand, all have mandates that are entirely about low inflation and don't even mention the creation of jobs or the rate of employment. Bernanke said on Wednesday that, "while it is very, very important for us to try to help the economy create jobs and to support the recovery, I think every central banker understands that keeping inflation low and stable is absolutely essential to a successful economy."

 

Bernanke has decided to go down a route that no central banker has ever gone before. Bernanke has literally invented countless ways to create inflation that nobody else has ever thought of. If keeping inflation low was ever Bernanke's slightest concern, the Fed Funds Rate would currently be north of 5% and the U.S. economy would be in a steep recession. Bernanke has never once thought about keeping inflation low. He has literally implemented every measure he could possibly think of to create as much inflation as possible, while outright lying to the American public and saying that he isn't printing money and that inflation is under control.

 

Bernanke would like the public to believe that his policies of expanding the money supply through cheap and easy money will cause the U.S. economy to recover and unemployment to decline back to pre-crisis levels, and that right before price inflation spirals out of control, he can raise interest rates and prevent massive price inflation without disrupting the recovery. Unfortunately, this is impossible because the recovery isn't real and massive price inflation is already here. Bernanke's policies may have created 1 million artificial jobs since December of 2009, after 8.75 million jobs were lost in the previous two years, but he did this at the expense of 310 million Americans already seeing double-digit percentage increases in food and energy prices.

 

Since after the Real Estate bubble burst in late-2008, the primary economic concern of Americans has been finding a stable job in order to make mortgage payments and put food on the table. Under the pressure of Congress, the Fed printed enough money to prevent a much needed recession that would be healthy for the long-term U.S. economy. In its attempt to reinflate the Real Estate bubble, the Fed has been destroying the free market and creating new economic distortions, which caused an artificial bounce in the rate of employment. Unfortunately, when you add together the money the Fed has either printed or committed for bailouts and stimulus programs, over $4 million has been spent for each job created. The Fed would have been better off just crediting the bank accounts of unemployed Americans with the average U.S. income.

 

When asked about rising gas prices, NIA is very happy that Chairman Bernanke acknowledged that gas prices "have risen quite significantly" and are "creating a great deal of financial hardship for a lot of people". Bernanke admitted that gas is a "necessity" as "people need to drive to work" for the artificial jobs Bernanke created at a cost of $4 million per job. However, Bernanke seemed to be confused when he said "higher gas prices add to inflation". The truth is, Bernanke's zero percent interest rates and quantitative easing are the inflation, and inflation leads to higher gas prices.

 

Bernanke is directly responsible for gas prices rising back to $3.87 per gallon, yet refuses to admit it. Bernanke placed the blame on the growing global and emerging market economies, and their strong demand for oil. He said that America's demand for oil is going down, which NIA believes is actually due to the U.S. dollar losing its purchasing power and Americans seeing their standard of living decline. Bernanke said there is nothing that he can do about rising oil and gas prices "without derailing growth entirely". The truth is, Bernanke already derailed growth entirely when he derailed the free market. It is impossible to see real economic growth when a government and central bank is interfering in every aspect of the economy and impeding the free market in every possible way. All nominal GDP growth in the U.S., along with growth in retail sales, is solely due to inflation. Even when the government adjusts GDP and retail sales growth to the rate of inflation, it is based off of the consumer price index, which NIA believes is currently understating price inflation by approximately 4%.

 

Although Bernanke denies he has the ability to reduce gas prices, he claims he can prevent "gas prices from passing into other prices and wages throughout the economy and creating a broader inflation which will be much more difficult to extinguish." Bernanke obviously doesn't want Americans to see higher wages because he believes it could lead to broader inflation, but NIA believes rising wages would be a good thing. Inflation hurts Americans most when the rate of inflation is far outpacing wage increases. The fact is, the U.S. is already experiencing broad inflation even without wage increases.

 

Bernanke's brand new favorite word as of late seems to be "transitory", which he used about a dozen times during his press conference. Despite what Bernanke says, NIA strongly believes that rising food and gas prices are not transitory. Bernanke likes the word "transitory" because he can use it to try and pretend that rising food and gas prices are only just a temporary phenomenon and that their current high levels aren't here to stay. Many Americans can remember the day 40 years ago when a can of Coca-Cola cost a dime and a Hershey chocolate bar cost a nickel, with a gallon of gas back then costing only thirty-five cents. Have rising food and gas prices over the past four decades been transitory?

 

NIA first predicted two years ago in its documentary 'Hyperinflation Nation', that rising food and gas prices would soon become the primary concern of all American citizens as a result of the Fed's dangerous and destructive monetary policies. Bernanke back then claimed that inflation would not be a problem and said that the U.S. risked deflation. If Bernanke has been so wrong about the inflation that Americans are faced with today, NIA doesn't see how anybody can possibly believe that Bernanke will be right and that current high food and gas prices aren't here to stay. In our opinion, the food and gas price inflation that Americans have experienced over the past 40 years, is likely to occur all over again during the next 4 years. NIA believes that 4 years from now, Americans will look back at the good old days of having cheap $4 a gallon gas.

 

The last thing the U.S. government wants is for the American public to realize that Bernanke is responsible for rising food and gas prices. If the public demanded to end the Federal Reserve, the government will no longer be able to spend recklessly knowing that the Fed will be there to monetize their deficit spending. In an attempt to make up excuses for rising gas prices and deflect attention away from the Fed, Congress has been pressuring the U.S. Attorney General to investigate the matter. Attorney General Eric Holder just announced the formation of the Oil & Gas Price Fraud Working Group. The stated purpose of this working group is to monitor the oil and gas markets for potential violations of criminal or civil laws to safeguard against unlawful consumer harm.

 

NIA considers this to be complete insanity. Any government interference in the oil markets will only drive oil prices up even higher. Oil prices are rising solely do to supply and demand. Demand is going through the roof because the Federal Reserve is creating a lot of inflation, and inflation always gravitates to the goods that Americans need the most to live and survive. Oil supplies are falling because President Obama has ordered U.S. troops to occupy Libya. In the past we at least made up excuses to invade countries like Iraq over oil by claiming they had weapons of mass destruction. Today, the U.S. government doesn't even bother. Obama campaigned as an anti-war President, saying he would bring our troops home from the middle-east. Instead, he has increased our middle-east troop levels, and the sheep who voted for him are showing absolutely no signs of outrage.

 

http://inflation.us 

All Eyes on the Fed

 

All Eyes on the FED

 

Today the Federal Reserve is doing their first ever press conference. We have one question we would like to contribute, if anyone has a media contact please forward them this email.

 

Question: Mr. Bernanke, despite everything going up in price you continue to show a lot of concern for deflation, not inflation. Can you please review the chart below and explain how this inflation chart is deflationary?

 

 

 

The Illusion

 

FutureMoneyTrends.com has mentioned on several occasions that our recovery and economy is like an illusion. With that said, it shouldn't surprise us anymore when we see just how deep the fraud goes, but once again, we come across a statistic that really shows us how screwed we are. USA Today recently did a report that shows from using Census Bureau data that 18.3% of all income in the U.S. comes from government handouts. That's right, food stamps, unemployment, and other benefits account for 18.3% of ALL income in this country. It gets scarier though, only 50.5% of personal income comes from wages, the lowest since (wait for it) 1929! Government revenue was recently reported at 2.2 trillion, government benefits (wait for it) 2.3 trillion.

 

Gas Prices and the Double Dip

 

Gas prices are starting to become a major problem for policy makers, the U.S. is about to enter a double dip according to our calculations. With Japan still trying to recover from one of the largest natural disasters in history, certainly the largest natural disaster to hit an industrialized nation, the world economy will begin to see the effects of Japan in the coming weeks and months. That of course could be just the final straw that breaks the camel's back. 

 

When it comes to fuel and food prices, we are definitely heading for the second wave down in the economy. Food costs are now taking up 15% of consumer spending, 2 years ago when the official recession ended (not something we accept) food costs took up 12.7% of consumer spending. Looking at other modern day recessions, food only took up 8% of consumer spending. We are already nearly double that percentage amount. When it comes to energy, historically, average energy costs are about 4% of consumer spending, however, when they cross 6%, it has always led to a recession. Today, energy costs are exactly 6%, now rising food and fuel is pretty much mandatory spending.

 

So, it is safe to say that Americans will have less to spend on everything else? The math is simple, Americans are going to spend less in a consumer driven economy which will equal a recession or what we would refer to as the next leg down in the long recession we have been in that never ended. Gas prices have risen over a dollar in the last year, 33 cents in the last 30 days! Suncoast Energy in Orlando, the highest gas station in the country, is already charging $5.69 a gallon for regular. Gas has risen 35 straight days and currently has a national average of $3.87 a gallon. AAA has reported that since March, they have seen an 18% increase in roadside assistance calls for people running out of gas. Now most analysts agree that gas prices will go down as a result of people driving less. However, we believe any contraction in driving will be offset by the FED printing currency and dollar devaluation from a reckless government. We do see short term deflationary forces, especially in non needed items, but the reason we tend not to focus on them is because we are looking at the bigger picture of a U.S. dollar crisis. Our definition of a crisis is the dollar losing reserve status, no longer needed, no longer loved, and no longer of any value to the world. Now this may take 10 years or 10 days, we are not about to even try and put a date on one of the biggest financial scares in history, certainly the biggest financial crisis in our lifetimes.

 

Judging by Tim Geithners Recent Statements, Dollar Devaluation Could Be Imminent!

 

U.S. Treasury Secretary Tim Geithner stated yesterday that he would never follow a strategy to weaken the U.S. dollar. He said, "our policy has been and will always be, as long as I will be in office, that a strong dollar is in the interest of the country." In fact, he really upped the ante and said, "we will never embrace a strategy to weaken the dollar." Translation, get ready for one of the biggest dollar declines you have ever seen. Anytime a Treasury Secretary comes out with a strong dollar policy speech, it usually means they are getting ready to trash it. The more they advocate for a strong dollar policy, the more they plan to destroy it. Let's just say their words have about as much backing as the dollar. So far year to date, the dollar verses other currencies has lost 6.5%. Gold, which is real money by definition, has risen substantially along with silver. In fact, commodities across the board have been rising due to monetary inflation of the global reserve currency. The dollar index, just in anticipation of what the FED is going to say, has dropped to a new year to date low of 73.58. It should be noted that in the last 10 years the dollar index is down 41.5% and gold has risen 473%. During this time, Treasury Secretaries have always made it a point to let us know that they believe in a strong dollar policy. Right...

 

Don't worry, everything is under control.

 

 

Our official prediction when it comes to QE3 is that it will happen, it just may not be called QE3. They may repackage it and call it something else. For instance, QE is just another name for printing currency. Ending it now is really not an option for the Keynesians, especially with the FED responsible for purchasing 70% of our treasuries, it is not going to just end with an annual 1.6 trillion dollar deficit.

Watchlist for Thursday

CNUV (China Nuvo Solar Energy) .0042 This stock is trading slow and steady awaiting merger news with  Freya Energy acquisition Lithium Ion Battery powerhouse  , we first alerted this stock at .0016 range. The charts are in full uptrend and with oil prices hitting 113$ a barrel and inflation , alternative energy will be stocks to trade , watch for entry , this stock has potential to surpass all expectations, this is a buy and hold quite possibly .01-.02 short term

DTRO (Deltron Inc) .0015 the stock traded over 128 million shares on Tuesday hitting a high of .0022 from .001 over 100% and closing at .0018 , Wednesday trading had little over 77 million shares and went as low as .0012 before closing at .0015. the company has ties to Skateboarding company Billabong , last 10k showed 31 million revenue and float of just around 421 million , the company is rumored to be expecting huge news quite possibly a buy out ,also a golden cross on chart , short term I could see this .003

Watchlist for Wednesday

DTRO (Deltron Inc) .0018 The tech stock saw huge volume today traded as high as .0022 with over 128 million in volume, volume precedes price and the way this stock is trading there could be news coming. The stock is an OTCQB stock 2nd tier , safer trade in pink sheet markets and the charts are forming nicely , there are buyout rumors on IHUB message boards , with this speculation alone we could see a huge run


COWI (CoroWare,Inc) .0009 the stock is coming up from recent lows, this is a tech company with ties to Microsoft and has developed a service like Skype ,the company recently released 8k and 10k April 14 and 15 2011, this is an OTCQB stock , charts are forming reversal , watch for volume

Watchlist for Tuesday

BRZL .0104 the stock first mentioned at .005 range and chances to add as low as .003 range. The company is awaiting news on acquisition with RENFRO oil , the merger was pushed to another date last time around the stock went from .008 to .018 range we may see a similar run

TECA .001 the stock had an amazing run from .0001 to .0012 , this stock recently had news re-unstated and also a merger speculation over 400 million in volume could be a stock to trade with momentum over 1000% gains so trade with caution , watch for entry

BYSD .0027 the stock was as low as .002 and managed to close at .0027 with quite ease , this is another stock with merger speculation , rumor is that there will be news this week , keep on radar

EXRG .0008 although very frustrating the stock level 2 extremely thin and the company is late with financial 10k they submitted an extension so there has to be reason why they are late and if the company was planning not to release then why even pay for an extension. With inflation hitting the world economy we believe that this stock will trade a lot higher from this price

Silver safest investment of the decade

20 Reasons to SELL Your Physical Silver


20 Reason to Sell (BUY!!) Your Silver : Bix Weir Part 1
http://www.youtube.com/watch?v=gvM_t6nAgVI

20 Reason to Sell (BUY!!) Your Silver : Bix Weir Part 2
http://www.youtube.com/watch?v=FwbqqkFOL4k&feature=feedu


Make no mistake..I am a Rabid Silver Bug!

I have written countless articles on why silver is the #1 best investment in THE HISTORY OF INVESTING. There is nothing, and I mean nothing, that even comes close to the supply/demand dynamics, investment fundamentals, investor participation ratios, fraud/manipulation realities, monetary importance or even national security issues and all of these support a hyperbolic move to the upside for the price of physical Silver in the very near future. The truth of the matter is...

Buying Physical Silver can completely change your financial reality!

Having said that it doesn't mean that there will NEVER be an appropriate time to sell your physical silver. The cardinal rule of smart investing is not to get too emotionally attached to your investments and to rationally think through your investment reasoning. After you have outlined your reasons for investing you should keep track of whether or not those reasons are STILL VALID.

So in that spirit I have listed the 20 issues I monitor related to my original reasons to invest in physical Silver. After a good majority of these expectations are fulfilled I will seriously consider selling my entire stake in physical Silver.

Here's the list in order of current importance:

1) The removal of the gigantic concentrated short position on the COMEX Silver market as reported in the CFTC Commitment of Traders and Bank Participation Reports.

2) The announcement of charges filed by both the CFTC and the FBI in the pending investigations of Silver market manipulation by JP Morgan.

3) The shut down of the iShares Silver ETF (SLV) and the subsequent attempt by SLV investors to transfer into physical silver in their own possession.

4) The implementation of COMEX Position Limits in Silver of no more than 1,500 contracts and the enforcement of the Disruptive Trading Practices law.

5) The winding down of the outrageous and manipulative Silver derivative positions held by both JP Morgan and HSBC as reported by the Bank for International Settlements.

6) The mass redemption of paper Silver currently held in Pooled Silver Accounts and Silver Certificate Programs into physical silver held in the possession of the owner.

7) The Silver to Gold Price Ratio reflects the true physical relationship between above ground gold and above ground silver that is available for sale on a free and open market.

8) The realization by industrial users of silver that the supply of physical silver is rapidly depleting and with the future of producing their products in jeopardy they begin stockpiling physical silver.

9) The reversal of Silver's ever increasing use in industrial applications due to either high prices or the discovery of a viable substitute with similar physical properties and attributes.

10) The realization by the remaining 99.9% of the investing public that does not currently own any physical that Silver is extremely undervalued and should be held by all investors interested in portfolio safety and value appreciation.

11) Acknowledgment by the Bullion Banks and US Government that they have been involved in the price suppression of Silver for over 50 years in order to support and extend the global confidence in un-backed fiat US Dollar.

12) All Silver statistical reporting companies have completely revised their historical numbers to reflect the true supply/demand realities of the past and admit to the massive annual physical silver deficit going forward.

13) The USGS alerts the world to the reality that at the REAL current Silver consumption rates there is less than 10 years of known below ground Silver reserves remaining in the world.

14) The realization by investors that significant increases in the price of Silver would not curtail industrial demand as silver is mostly used in very small amounts in each product produced.

15) The mainstream media highlights that the investment drivers for Silver far out weight the investment drivers for Gold.

16) The US Mint starts to produce US Silver Eagle coins "in quantities sufficient to meet demand" and no longer illegally rations their dwindling supply.

17) When investors stop saying that silver is "too hard to store" and start worrying that silver is "too valuable to leave in a bank's safe deposit box".

18) When Central Bankers around the world stop printing money every time there is a "bump in the road" on their never ending quest to foster perpetual growth and end the extraordinary transfer of wealth from "the many" to "the few".

19) The US Government and the Citizens of the United States recognize and acknowledge that Article I, Sec. 10 of the US Constitution specifies that only gold and silver coin can be legally used as money.

and finally...

20) The price of silver has risen so high that it has fulfilled all my hopes and aspirations as an investor and I can now sit back and enjoy those other pleasures of life that I had put off in pursuit of FREEING THE SILVER MARKET FROM THE CLUTCHES OF MANIPULATION!

So there it is. That's the list of events that must take place for the fulfillment of my Silver investing motivations.

MAKE NO MISTAKE:

The price impact to silver when each one of these events takes place will be STUNNING...and sooner or later they will ALL take place!

Once these are fully addressed and reflected in the real "Fair Market Value" of Silver...I will SELL ALL MY SILVER in search of the NEXT BEST THING.

BEFORE THEN I AIN'T SELLING AN OUNCE...and you can take THAT to the BANK!

Now compare the reasons "TO SELL" with my reasons "TO BUY" and the true potential of your investment in physical silver starts to emerge!

Melt The Witch

http://www.roadtoroota.com/public/136.cfm

May the Road you choose be the Right Road.

Bix Weir


http://www.silverbearcafe.com/private/04.11/sellsilver.html

Watchlist for Thursday No trading Friday

GOHG (Global Holding Inc) .004 the stock has been trading with increasing volume , awaited its financial and filings after its 10 day extension and updated its share holders yesterday , with a solid share structure rumored news at open and also multiple newsletters jumping on this one , this could be in for a great ride.

EXRG (Ecologix Resources).0007 the stock low volume and selling driving the price down to .0007 52 week low , the company extended its days for filing financial 10k , unfortunately the company has yet to release but this is a real co. with real revenue and assets , I strongly believe that an entry here will pay easy 100% and more , this is a commodity stock and with Dollar Index down , commodity stocks will be stocks to trade

BYSD (Bayside Petroleum) .0025 the stock touched .0024 today , i think these prices are extremely cheap, with Merger news rumored to be 10 days away and oil prices surging we may see a nice rally in this stock there are also rumors of gold property acquisition , this can be a company that can do quite well in a commodities market

Geithner Should Resign as Treasury Secretary

Geithner Should Resign as Treasury Secretary

 

The biggest headline in the news so far this week has been S&P's decision to downgrade their U.S. credit outlook to negative. After S&P made their announcement, almost everybody in the mainstream media proclaimed it to be a "wake up call" for the U.S. government, saying that if they don't make a real effort to cut the budget deficit, a fiscal disaster awaits. Despite lowering the U.S. credit outlook to negative, S&P left the U.S. credit rating at AAA.

 

The real story in the media this week should be, how is it possible that the U.S. credit rating remains AAA? After all, AAA is the highest rating possible. Shouldn't a AAA credit rating be reserved for countries with budget surpluses, low levels of debt, and low levels of price inflation? Treasury Secretary Timothy Geithner was quick to say after S&P's announcement that there is "no risk" of the U.S. losing its AAA rating. NIA respectfully asks Mr. Geithner to resign from office for making those comments. How could there be "no risk" of the world's largest debtor nation losing its AAA rating?

 

As NIA first exposed in its critically acclaimed documentary 'Meltup', S&P, along with Moody's, rated mortgage-backed securities AAA during the mortgage crisis that didn't just decline in value, but went to zero. In our opinion, the credit ratings agencies have absolutely no credibility left and will be out of business in a few years. S&P and Moody's still rate U.S. debt AAA because they fear the negative backlash that would come immediately if they lowered its rating, which would undoubtedly include calls from members of Congress to take away their licenses to be ratings agencies in this country.

 

NIA believes the U.S. credit rating should be junk. Including unfunded liabilities and the backing of Fannie Mae/Freddie Mac, the U.S. currently has a real national debt that is five times higher than our GDP. There is no chance of the U.S. ever paying back its debts without printing the money and creating hyperinflation. There is no chance of the U.S. ever balancing its budget, without eliminating the so-called untouchable entitlement programs like Social Security, Medicare, and Medicaid.

 

Our nation has reached a point where it is paying out 90% of the money it raises each month from the sales of U.S. treasuries, just to pay back the holders of maturing U.S. treasuries their principle and interest earned. The U.S. needs to continuously sell larger amounts of new debt, just to stay afloat, so there is no conceivable way that any unbiased organization can possibly give the U.S. a credit rating of AAA. The only reason we haven't defaulted on our debts is the Federal Reserve's ability to create monetary inflation and the world's willingness to hoard U.S. dollars due to its status as the world's reserve currency.

 

Despite the euro-zone debt crisis with nations like Greece defaulting on their debt, over the past ten years, the U.S. dollar has fallen from being 70.7% of foreign exchange reserves down to 61.4%, while the Euro has risen from being 19.8% of foreign exchange reserves up to 26.3%. The other currency category, which includes currencies like the Canadian dollar and Australian dollar, has risen during the past decade from 1.2% to 4.4%. The world is clearly diversifying out of the U.S. dollar.

 

Not only is the demand for dollars declining as a percentage of foreign exchange reserves, but there are now calls for our largest creditor nation China to reduce their total foreign exchange reserve holdings. China's foreign exchange reserves have increased by $200 billion this year to over $3 trillion and are mostly invested in U.S. dollars. Zhou Xiaochuan, governor of the People's Bank of China, said this week that, "Foreign exchange reserves have exceeded our country's rational demand, and too much accumulation has caused excessive liquidity in our markets, adding to the pressure of the central bank's sterilization." In other words, China is likely to begin selling their U.S. dollar reserves and accumulating real assets like gold and silver with this money. The biggest ever rally in precious metals is just around the corner, which means the U.S. dollar's purchasing power is about to plummet.

 

NIA constantly receives emails asking us if Paul Ryan's proposed budget were to be implemented instead of Obama's, would the U.S. be able to prevent hyperinflation. The truth is, both Obama's budget and Ryan's budget would leave us with just about the same national debt five years from now. The constant battles between the Democrats supporting Obama's budget and the Republicans supporting Ryan's budget are simply being used to distract Americans from the real issue, the Federal Reserve's monetization of our debt and the record $1.4 trillion in excess reserves that are currently parked at the Fed.

 

The Federal Reserve's balance sheet has just reached a record $2.65 trillion. However, excess reserves parked at the Fed are now rising even faster than the Fed's balance sheet. NIA believes that come later this year, the Federal Reserve is likely going to stop paying interest on excess reserves banks have parked at the Fed, in an effort to push this money into the economy. This high-powered money will multiply by as much as ten times as it circulates throughout the U.S. economy, increasing our money supply by $14 trillion. A rapid increase of our money supply by $14 trillion could potentially cause a run on the dollar, with the world rushing to dump their U.S. dollar reserves for just about any real asset they can get for them.

 

Inflation is beginning to spiral out of control even by the U.S. government's artificially low calculations. The Bureau of Labor Statistics just reported that the consumer price index (CPI) rose in March by 2.68% over a year ago, compared to the February increase of 2.11% and the November increase of 1.1%. Year-over-year CPI increases have risen 144% since November as a direct result of the Fed's destructive policies, yet the Fed continues to say that inflation is not a problem. Even though inflation is now way above the Fed's informal inflation target of 1.5% to 2%, the Fed continues to ignore the CPI and only looks at core-CPI, which excludes food and energy and is mainly based off of rents. All gains in U.S. retail sales are now solely due to inflation and all U.S. economic growth is phony. Any temporary decline in the unemployment rate is only a result of the distortions caused by the Fed's printing of money.

 

Gold has just surpassed $1,500 per ounce and silver has now broken $45 per ounce. These latest movements in gold and silver prices indicate that there is a major risk of hyperinflation breaking out as soon as the second half of 2011. Average U.S. gas prices are now $3.84 per gallon and are rapidly approaching the all time high of $4.12 per gallon from June of 2008. Unlike 2008, there are no leveraged up hedge funds buying oil futures contracts today. Oil prices are rising as a direct result of the Federal Reserve's zero percent interest rates and quantitative easing. Unless the Federal Reserve acts now to dramatically raise interest rates, $5 per gallon gas is possible by the end of 2011.

 

When gas prices reach $5 per gallon, there won't be a drop off in demand. It will only encourage the Federal Reserve to print more money so that Americans can afford $5 per gallon gas, which could push gas prices to $6 or $7 per gallon in 2012. Saudi Arabia is reducing oil production because they have to, their oil reserves have been overstated by 40% and they are past peak oil production. As bad as rising gas prices are for all Americans, they will be hurt by rising food prices even more. Inventories of gas are not as tight as food inventories, which are now at record lows for such agricultural commodities as corn. NIA has been warning about low agriculture inventories since its first documentary 'Hyperinflation Nation' and accurately predicted this past year's record rise in agricultural commodity prices in its October 30th, 2009, article "U.S. Inflation to Appear Next in Food and Agriculture".

S & P Fired a Warning Shot (S&P downgrade)

S&P fired a warning shot that most economists thought could never happen. Even we have to admit, after they gave sub prime AAA-credit along with Lehman brothers and all the others that went bankrupt, we didn't think any of the rating agencies had an ounce of credibility left. Which actually makes us wonder if S&P knows more than they are revealing. We are not trying to enter into the realm of conspiracy theories, but why would the rating agencies who have always been complete frauds, all of the sudden be somewhat honest? Where were they for the entire sub-prime bubble? Or where have they been for the past 4 years as our debt has gone from 9 trillion to 14.3 trillion. Our total debt obligations have gone from 45 trillion to 81.5 trillion. A pension fund recently took physical delivery for their gold bullion, gold bugs we understand, but physical delivery for a pension fund? 

 

This of course all comes off the heels of China and other emerging markets publicly stating that they want to see a new world reserve currency. They even went as far as making agreements with each other to do some transactions in their own currencies, not the dollar.

 

A few weeks ago we released an article about a potential dollar crisis. In it we stated several different reasons why we thought one was inevitable. Judging by the worlds' reaction to the S&P report, we would have to assume that if any U.S. creditors weren't getting ready for a currency crisis, they probably are now.

 

Solutions? They Will Fix It, Right?

 

In our opinion, it is politically hopeless. After seeing the drama over a fantasy 38 billion dollar cut, this was confirmation that nothing can stop what is coming. Congress and the President approved more spending and borrowing than they did in 2010. It is a fact that 2011 will be a record for spending and debt, yet the national narrative is that they actually cut something. All the while, not one media outlet has reported that the debt ceiling has NOW been technically breached, crossing into the 14.3 trillion dollar mark, the 50 billion dollar buffer will only last a few more weeks.

 

Time Frame For the Obvious

 

S&P said the U.S. has until 2013 to show that it can get a handle on its rapidly growing deficits. Good luck with that one. A dollar crisis could happen at any time and any one holding cash is going to realize that even the worst stock listed on the S&P 500 will be better than a suitcase full of Benjamin's.

 

The Illusion

 

For the past 80 plus years we have built an entitlement society. We are now at the point where half of Americans don't pay income taxes. 43 million people are on food stamps, and our citizens rely on redistribution of wealth for housing, college, groceries, and a thousand other things. Government spending has infected all aspects of our economy and our lives, they are constantly distorting prices and encouraging citizens to borrow. Taking it away will crush the phony economy and the illusion we have all been living in. America's economy is completely dependent on low interest rates, easy money, and a constant credit expansion. America trying to live within her means will bring about a healthy depression, but none the less it will be a great depression. Which of course makes it politically impossible to fix, since both sides, when it comes down to it, don't want to be blamed for collapsing the illusion. In the end, they would prefer to let the chips fall where they may and then deal with it when it's a full blown crisis. This is why you see them arguing over 38 billion dollars in cuts (1% of the annual budget), when we're borrowing 45 cents for every dollar we spend. If these people in Washington were serious, they would roll up their sleeves and tell the American people the truth and then begin to reform or abolish most government programs. 

 

 

Watchlist for Wednesday

GOHG (Global Holdings) .0033 this company has seen bottom at .002 range and today released filings after hours we could see huge increase in price per share. The company is owner of multiple patents and has traded as high as .51

http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=48097

BYRG (Buyers Group International) .0035 the stock has been driven down , recently had a reverse split but showed bounce from .0021 level , although very risky, could be an opportunity watch for entry and possible bounce

USSIF ( U.S Silver Corp) .73 this silver stock adding on pull backs this is my buy and hold and with silver breaking 31 year highs of 43 oz we see this stock trading over $5 long term

SPOTLIGHT STOCK to watch this Monday

BYSD (Bayside Petroleum) .0029  this oil stock has been expecting a merger for quite some time now huge rumor that the stock maybe finalizing merger within 10 days. The stock last ran during oil surge a few weeks back and has since re traced to .0026-.003 range. With oil just around $110 a barrel and expected to go to as high as $150-$300 a barrel , this stock could pose great opportunities. The company has been updating its share holders through website and an investor has posted this on popular forum:


To: louport <louport@aol.com>
Sent: Fri, Apr 15, 2011 1:56 pm
Subject: 09 - BYSD


Block reason: This message is above your Auto Block threshold | Approve sender | Approve domain

Hello Sir,
I have heard from other investors that they have had good look with getting email responses from you so i thought i would give it a shot, i have been in the company for awhile and we havent really had any updates in along time.. PR's, although the posting that has been on the bayport corp website has been nice. Was wondering if there is any information that you could give me to keep me on the right path in reference of the company!? Anything would be great! Goodluck to the company and your future endeavors!

Thank you for your time, Tyler.

His response..

Louport <louport@aol.com>
Date:Fri, Apr 15, 2011 3:36 pm.
I've been going as fast as I can, you will be pleased and should have it finished within ten days. Lou Porter CEO Bch Bayside.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62142837 


"I just spoke with Lou Porter finally. He said that they just recieved the paperwork from the OTC on the STOP WARNING, and that it should be taking care of early part of this week. The hold up on the filing according to him was the state of Nevada. He also stated that the filing should be done within the next couple of weeks, that there is a lot of companies are involved and has been a little more complicated than expected. He told me to pass on to everyone to calm down and everything will be fine."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61934932

shortly after the website was updated with this :

Posted on April 11, 2011 by admin

Dear Friends and Investors,

We’d like to thank you all for the many inquiries regarding our progress and the many requests for inclusion on our email newsletter list. The Company anticipates that a bi-weekly or monthly newsletter will be circulated regularly just as soon as the Company is in a position to distribute new information regarding its present filings with state and federal regulators.

Interest in the Company’s progress has been very high and the volume of inquiries makes it prohibitive to answer each email individually. Please stay tuned to this web site for continued updates as they become available or you may contact the the company directly @ 1-888-799-3070 Ext 5  or email us at InvestorRelations@BaysideCorp.com

http://baysidecorp.com/?p=15

With pending merger along with updates by company as to getting current on pinksheets , I believe we have a good opportunity here .Oil is currently at 110,28 a barrel and is expected to go as high as 150 -200$, this stock has rallied before with buying pressure and volume we can see a nice run in the days ahead.

http://baysidecorp.com/?p=11

As many of you know, the Company has been in the process of restructuring subsequent to the acquisition of BYSD.PK in December 2010. Accordingly, BYSD is completing the required filings, registrations and audits. The Company will also be filing an S-1 to bring BYSD up to fully reporting OTC Bulletin Board status.  The Company is required to provide a ten day public notice announcing details of a reverse merger valuation of it’s stock, which the Company hopes to accomplish before the end of March 2011.

Additionally, Bayside’s Officers and Directors have in no way been a party to the recent volatility in the BYSD stock valuation. The Company’s officers or directors have not been issued any stock as of yet nor have they sold any shares to date; the company does not intend to sell any shares until is a position to do so under the regulations.

The Company is in serious discussions and negotiations with Wall Street Investment banking firms and fund managers who have expressed a a great deal of interest in underwriting it’s offerings in the public markets once the Company’s filings are complete.

We look forward to updating you regularly once the Company has completed its filings and quiet period. Please bookmark our web site’s URL below and sign up for our RSS feed for more Updates as they become available.

For Investor Relations Inquiries Dial 1-888-799-3070 or

Email the Company at investorrelations@baysidecorp.com

Coming Soon !! http://www.BaysideCorp.com

Avalon Oil & Gas, Inc., ("Avalon") (OTC Bulletin Board: AOGN) announces it has completed the first phase of the workover of the Baxterville Field Prospect in Lamar County, Mississippi..  Avalon is purchasing an 18.75% working interest in the Baxterville Field Prospect from Bayside Petroleum Company, Inc. (Pink Sheets: BYSD).The two hundred (200) acre leasehold contains three wellbores; two wells are equipped for production, and a salt water disposal well.

"We are excited to have completed the first phase of the workover of the Baxterville Field Prospect," said Avalon's CEO, Kent A. Rodriguez. "The salt water disposal well passed inspection.  In addition a hot oil treatment to separate the oil and water in the three 200-barrel tanks was successful, and Plains Marketing completed a pick-up of oil.  We plan to  pull all existing downhole equipment, clean out the wellbore, run a gamma ray log, re-perforate the Upper Tuscaloosa zone, re-run tubing and test the flow rate for initial fluid entry rates on the Moody 31-9 #5, in the next few days," added Rodriguez.  

The Baxterville Field spans over 13,000 acres, with more than 300 producing wells.  The field has produced 262 million barrels of oil and 450 billion cubic feet of gas, primarily from the Tuscaloosa formation.  The wellbores on the Baxterville Field Prospect have produced from the Lower Tuscaloosa Sand at a depth of 8,800 feet.  The Tuscaloosa oil in this field has a very low gravity, around 17 API, and is produced with a large volume of salt water. The three wells have produced more than 500,000 barrels of oil and were producing 200 barrels of fluid, with a 5% oil cut, when they were shut-in in 2006.  

About Avalon Oil & Gas, Inc.  Avalon Oil & Gas is an oil and gas company engaged in the acquisition and development of producing oil and gas properties.  In addition, Avalon's technology group acquires and develops energy production enhancing technologies.  Through Oiltek, Inc., Avalon's majority-owned subsidiary, Avalon is building an asset portfolio of innovative technologies in the energy industry to maximize enhancement opportunities. To learn more about AOGN, please visit: www.avalonoil.com.
About Bayside Petroleum Company, Inc. is an energy exploration, development and production company in the process of building oil & gas reserves and production in some of the most prolific hydrocarbon bearing regions of the United States. Specializing in the reworking of wells in oil and gas fields with proven reserves to enhance production, Bayside is well positioned to substantially increase its proven reserves, cash flow and shareholder value over the next 12 to 18 months.   To learn more about BYSD, please visit: www.baysidepetroleum.com.

These are the 3 recent Nevada registry links....


http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=7f7bHamNd3CR7LyC9PmShw%253d%253d&nt7=0

http://nvsos.gov/SOSEntitySearch/CorpDetails.aspx?lx8nvq=%252bq0576rDNtcBWnxiyJP08w%253d%253d&nt7=0

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=G9FjBTO2qvNXFPbT2jyS4w%253d%253d&nt7=0


BYSD re instated and ACTIVE as of March 2011

http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=7f7bHamNd3CR7LyC9PmShw%253d%253d&nt7=0

  Bayport Corporation as reinstated on March 01, 2011 as per NV SOS

the company possible R/M with BYSD

  (CEMG) is a wholly owned subsidiary of Bayport Corporation in Tulsa, Oklahoma USA. Bayport Corporation"-or Bayport who owns this private Co will take over BYSD not sure yet how this will work out

   Link http://cosmicgroup.wordpress.com/about/  

Dollar Status

Dollar Status

News out this morning from China shouldn't surprise any of our FutureMoneyTrends.com subscribers. The BRICS (Brazil, Russia, India, China, & South Africa) came out with a statement calling for a revamped global monetary system that relies less on the U.S. dollar. Meeting on the Chinese island of Hainan, the group agreed to establish mutual credit lines denominated in their local currencies, NOT in U.S. dollars. They also stated that the current financial crisis had exposed the inadequacies of the current monetary order (code word for dollar). The BRICS are very concerned right now about the inevitable dollar devaluation due to out of control spending and deficits in Washington. They also were frustrated with the advantages and privileges that the U.S. has controlling the reserve currency, calling for a new "broad-based international reserve currency system providing stability and certainty" in an official statement. These statements all come out just after congress and the President agreed to spend and borrow more for fiscal year 2011 then they did in 2010. If congress is to follow through on what they passed to avert a government shutdown (shutdown in name only), then the U.S. will need to borrow at least another trillion in order to get us to October. Of course the debt ceiling is currently by law set at 14.3 trillion which it's at now, so we are headed to at least 15.3 trillion within the next 6 months. Amazing isn't it, the first trillion took 204 years and the next one is projected to take 6 months.

So the BRICS are starting to do transactions in their own currencies, pushing for a new reserve currency, and importing record amounts of gold and silver. Yet, more than likely we will have to suffer through more gold bubble talk from the main stream media, when in reality they should be talking about the mother of all bubbles, the dollar bubble.

Mandatory Spending

 

Doing a comparison of the year 2000 Vs. 2010, we can see that the national narrative and assessment of our current fiscal condition is fatally flawed. Lets look at the changes we have seen in the last 10 years. In the year 2000, 49.3% of Americans had jobs, we also had about the same number of non-working adults as we did children. In 2010, 45.4% of Americans had jobs, 66.8% of men had jobs (the lowest on RECORD), and the non-working adult population grew 27 million, while children under 18 grew by just 3 million. Why note non-working adults and children? Because with 77 million baby boomers, this change in demographics matters big time!

 

Public school education costs tax payers around $10,000 a year, however a baby boomer entering their retirement years (social security & medicare) costs around $25,000 a year. Now it is important to note that the Federal Government picks up the tab for the retirees and educating a child is shared. What we are trying to point out is that when it comes to how much we are going to have to spend and borrow in order to keep up with entitlements, we have barely scratched the surface. In the year 2000, our fiscal budget was 1.8 trillion, with 197 billion going towards medicare and 232 billion going towards entitlements. By 2010, our budget nearly doubled to 3.4 trillion, medicare spending went up 128% to 451 billion, and entitlement spending went up 140% to 558 billion. Now, the first baby boomer didn't turn 65 until this year, so all of these spending increases were done before this huge wave of baby boomers began to enroll in these programs. In the last 2 years, our government has already been spending so much that just 2 years ago when President Obama took office, Medicaid spending has gone up by 50%, and as a percentage of the economy, government has gone from 35% to 44%. The advocates for taxing the rich simply don't understand economics nor our demographics. FutureMoneyTrends.com believes we will see significant changes either to our currency status or our entitlement programs in the next 5 years. If it's a currency crisis first, then by default the entitlement changes will happen. So which one will happen first? Well, let's just say at this point changes to the largest voting blocks retiree benefits is politically impossible.

The Truth About Silver and Inflation

 

The Truth About Silver and Inflation

 

Silver futures surged today to a new 31-year high of $42.80 per ounce. Silver is up 146% since NIA declared silver the best investment for the next decade on December 11th, 2009, at $17.40 per ounce. All we need is for silver to rise by another 15.5% and silver will reach its all time high set in 1980 of $49.45 per ounce.

 

Keep in mind, silver's high of $49.45 per ounce in 1980 would equal about $140 per ounce in today's dollars adjusted to the consumer price index and about $400 per ounce in today's dollars adjusted to the real rate of price inflation. Despite silver's huge gains in recent months, we have yet to see silver rise by $2 or more in a single day. When we start to see a true "silver mania" with investors around the world rushing out of their U.S. dollars and panic buying silver, we expect to see silver gain by $5 to $10 in a single day on more than one occasion.

 

Back in February of last year when silver dipped to below $15 per ounce, we sent out an alert saying, "NIA believes this is a once in a lifetime entry point for those wishing to go long silver at a bargain basement price". NIA suggested silver call options in February of last year that ended up gaining over 1,000%. NIA's latest silver stock suggestion is currently up 175% from our profile price.

 

In NIA's top 10 predictions for 2010, we predicted a major decline in the gold/silver ratio, which was 64 at the time. The gold/silver ratio declined in 2010 down to 46, and in our top 10 predictions for 2011, we predicted another major decline in the gold/silver ratio and projected for it to decline this year to 38. NIA has been the most bullish organization in the world on silver, yet recent gains in the price of silver have surpassed even our short-term expectations. The gold/silver ratio is now down to 35 and we believe it will decline to at least 16 this decade, and possibly as low as 10.

 

The artificially high gold/silver ratio of the past century will be looked back at as an anomaly caused by the silver price suppression scheme of the Federal Reserve, which was in cahoots with Bear Stearns and now JP Morgan. NIA's President Gerard Adams exposed this scheme in NIA's critically acclaimed documentary 'Meltup', which has now been viewed by over 1 million people with an overwhelming 96% of its viewers giving it a thumbs up, a world record for an economic documentary. According to Mr. Adams, the Federal Reserve chose to bail out Bear Stearns and not Lehman Brothers, because Bear Stearns was the holder of a massive naked short position in silver that they were on the verge of being forced to cover.

 

It is not a coincidence that Bear Stearns failed on the very day silver reached its then multi-decade high of $21 per ounce. Bear Stearns was on the verge of being forced to cover their naked short position, which could have sent silver from $21 per ounce to $50 per ounce overnight. By bailing out Bear Stearns and allowing JP Morgan to acquire Bear Stearns' assets with the promise to cover any losses derived from them, JP Morgan was able to continue managing the silver short position and orchestrate a manipulative take down in 2008 from $21 per ounce down to $8 per ounce.

 

Only ten times more silver has been produced in world history than gold and from the years 1000 to 1873, a period of 873 years, the gold/silver ratio remained between 10 and 16. In fact, the Coinage Act of 1834 defined a gold/silver ratio of 16. The gold/silver ratio started to rise after silver was demonetized in 1873. Despite silver being demonetized, we saw the gold/silver ratio return to 16 on three occasions during the past century: in 1919, 1968, and 1980.

 

It was only ten months ago in June of 2010 that the gold/silver ratio was 70. With the gold/silver ratio now at 35, it means that silver investors have seen their purchasing power double over the past ten months, while those with their savings in U.S. dollars have seen their purchasing power decline by 20%. That's right, forget about NIA's silver call option that gained over 1,000% and forget about NIA's most recent silver stock suggestion that is currently up 175%; the simple act of following NIA's most basic suggestion of getting rid of your U.S. dollars and buying physical silver means that over the past ten months, your purchasing power has doubled while non-NIA members with U.S. dollars lost 1/5 of their real wealth.

 

The Federal Reserve can claim all they want that there is no inflation, but as we write this article we are eating Ben & Jerry's ice cream that we just bought at Quick Chek for $5 a pint. Three years ago, the same pint of Ben & Jerry's ice cream at Quick Chek cost us $3. Three years ago, one ounce of gold would have bought 295 pints of Ben & Jerry's ice cream and it still buys 295 pints of Ben & Jerry's ice cream today. Three years ago, one ounce of silver would have bought 5.7 pints of Ben & Jerry's ice cream and today it buys 8.5 pints of Ben & Jerry's ice cream.

 

Americans with their savings in U.S. dollars can today only afford 3/5ths of the ice cream that they could have bought three years ago, but those with their savings in gold have maintained their purchasing power, and those with their savings in silver have greatly increased their purchasing power. NIA is 100% sure that the gold/silver ratio will decline to at least 16 within the next few years, and that will mean those with silver will once again more than double their purchasing power. Considering that the gold/silver ratio overshot to the upside and was as high as 100 in 1991, we fully expect it to overcorrect to the downside and possibly reach a low of 10 this decade. That would mean a more than tripling of ones purchasing power from the current ratio of 35.

 

When silver rose to $49.45 per ounce in 1980, the government said that the rise was due to the Hunt brothers "cornering" the silver market. The truth is, silver reached $49.45 in 1980 due to the massive inflation that was created by the U.S. government during the 1970s, and the Hunt brothers were used as a scapegoat. The Hunt brothers were accumulating silver in order to protect themselves from a collapsing U.S. dollar, just like NIA has been encouraging its members to do in a countless number of articles and videos over the past two years.

 

When the Hunt brothers were accused by the U.S. government of "cornering" the silver market and trying to manipulate silver prices higher, they only owned a concentrated long position of approximately 100 million ounces of silver. JP Morgan today has a concentrated naked short position in silver of approximately 122.5 million ounces, but the U.S. government doesn't seem to have any problem with it.

 

The problem with the Hunt brothers' strategy of accumulating such a large concentrated long position in silver is that after silver prices rose, their position was simply too large for them to ever sell without causing silver prices to crash. With silver reaching $49.45 per ounce in early 1980, the world was about to lose confidence in the U.S. dollar, which would have caused an outbreak of hyperinflation. In a desperate attempt to save the U.S. dollar and prevent hyperinflation, the CBOT raised margin requirements and limited traders' positions to only 3 million ounces of silver futures. The COMEX also limited traders' positions to 10 million ounces of silver futures. Not only that, but the COMEX and CBOT only had a total of 120 million ounces of silver in inventory, and the COMEX was likely going to default from futures contract holders requesting physical delivery. The COMEX was forced to go into "liquidation only" mode, ending all silver futures contract buying.

 

Combined with the Federal Reserve rapidly rising interest rates, silver prices began to plunge and the Hunt brothers were hit with massive margin calls. On one single day in March of 1980 when the Hunt brothers were forced to liquidate a large part of their position, silver lost 1/3 of its value, declining by over $5 to $10.80 per ounce. That represented a total decline of 78% from its high two months earlier.

 

NIA has been receiving a countless number of emails asking if now is the time to sell silver, and if silver could crash by 78% once again like it did in 1980. The fact is, while the Hunt brothers' 100 million ounce concentrated silver position was on the long side, JP Morgan's 122.5 million ounce concentrated silver position is on the short side.

 

While the Hunt brothers' long position was impossible to sell without causing silver prices to crash, JP Morgan's naked short position is impossible to cover without causing silver prices to explode to the upside. Being that the CFTC was so quick in 1980 to support the position limits that were then imposed by the CBOT and COMEX, NIA believes it would only be fair for the CFTC to mandate similar position limits today. This is unlikely to occur because the U.S. government believes JP Morgan's silver manipulation to be a good thing, since it is giving the phony appearance that the U.S. dollar still has purchasing power. The free market will ultimately win in the end and silver prices will soar through the roof to where they belong based on supply and demand fundamentals.