Stocks or Gold?

Those that bought into gold and silver may have to wait a while for prices to soar. The fact is- the market may remain irrational longer than you can stay solvent. The last market crash initiated with a systemic breakdown. Until another one begins, stocks will continue to perform. One must be able to play the game with perfect timing, otherwise it is not worth the time and effort. Right now, it is not the time for gold and silver.  That begs the question, when is the right time? That depends if you are buying as an investment or insurance. If you don't have insurance then now is always the answer. For those that already have insurance, the time will come when the system decides to break again

It is over as soon cost of living doubles

Back in the 1980's, rent is around $500 for most. We doubled that by 2014. Double down again and we will collapse. You know it is close, because a real copper penny is worth more than 1 cent. Wait until $100 paper is worth more than $100. This is a losing game.

Stocks making new highs is a good set up

By now, many of us are aware of market manipulations. The best ones are the ones we don't see. As long everyone keeps their eyes on the market, they won't see the real trick coming until it's too late. Hint: it doesn't matter if your stock portfolio jumps 50% if the currency you get is worth zero.

Misguided fear of collapse

The status quo is fixated on maintaining higher stock prices and inflation. People are led to believe a crash in those categories is something to fear. The real problem is the debt and currency. If we get hyperinflation then it doesn't matter what the price is, because it will be worth less than toilet paper. Those with 401k plans and IRA has the most to lose because they rely on it.

Yellen saved Wednesday from Thursday

The recent market rally was short lived after Yellen's goal post move of keeping 0% interest rate longer than anticipated. Anyone reading "Mainstream news" will notice the lack explanations from the sell-off. For the last several years, every sell-off was due to a negative event, and followed by new highs. The real question now should be, "What is not being reported?" For a long time, the talking heads touted economic recovery despite negative fundamentals. We may have reached a point where no one is buying into that fairy tale, and fiction may soon became reality. Things may get ugly really soon.

Yellen saves the day

The market rallied again on Federal Reserve Chairwoman Janet Yellen's comment on keeping 0% interest rate a little longer. For those feeling compelled to join the rally, ask yourself, why did the market sell off? Were you able to profit before it occurred? How long until Janet Yellen saves the market again?

The fact that the market needs to be saved should raise concerns on what the costs are and why are we trying to save it? Unfortunately, the costs most likely compounded to a point where civilizations are at stake.

How capitalism began and why it matters

Capitalism is an economic system in which individuals choose to engage in productions for private profits. To fully understand its benefits, one can look at history for answers.

In the 18th century of England, society was based on feudalism in which peasants serve and produce for the nobles. If man was born as a peasant, then he will remain a peasant, and if he was born rich, then he will always remain rich.

As the population of peasants increase, problems arose as nobles did not know what to do with them. They were simply outcasts and the numbers continue to grow. In addition, raw materials became scarce, and the nobles could not find a solution.

Out of the crisis, some outcasts began organizing shops to produce cheap goods not for nobility but for everyone else. This innovation marked the beginnings of capitalism; mass production satisfying the needs of the mass. The people who produced the goods are also the consumers of the goods. It is a cycle that increased living standards that did not exist before.

In today's world, people lost sight of what capitalism is, such as misunderstanding that consumers are different than the producers, when in fact they are one and the same. There is also criticism that capitalism is evil, but fail to realize that it enabled the increase of living standards and population growth. Take away capitalism and we will go back to what it was before- peasants serving nobles, and low living standards.

Unfortunately, capitalism also lost the conditions that allow it to succeed as well. Originally, producers  had the benefits of producing and consuming. Those in power interfered heavily through market regulations and taxation. This created an environment similar to peasants serving nobles, in which all the efforts of the producer were indirectly being stolen to benefit those in power.