New Update on Money Management Radio .com October 13, 2013.

Turkey Matters is in full swing- I match your funds to the foodbanks- Mail me a check the foodbank (with their address if out of town) and I match your funds- make check to the food bank of your choice! Mail to exactly as listed below:

PMB 101

578 Sutton Way

Grass Valley, Ca 95945

Marc’s Notes,

I have been gone taking care of my Dad who went to Stanford for kidney cancer surgery.

The new treatment is Cryoablation. Its cool stuff, literally.

He is older so kidney removal is radical and dangerous. This new technique is to freeze the blood to the tumor then the next day freeze the tumor. It is done orthroscopically so there is no cutting. He did well with only a slight setback with blood pressure from the anesthetic but now looks to come home. Now in 3 months we see if they got it all and if not they freeze the remaining. I hope this stuff works but it looks very promising!

If you know someone with cancer, this new technique is done at Stanford and they are great. Check it out.

As for the markets, the debt limit/ceiling spending issue is still out there. The Republicans blew it in my opinion. They elected to fight Obama on healthcare funding and forced a shutdown. People vote with their wallets so the pressure was immense to settle the thing with the Republicans getting most of the blame. They finally gave in which means the Democrats now know the Republicans have no stomach for a prolonged fight and will walk over them in all future issues. The Republicans should have never fought Obama on the funding. I do not agree with Obama Care as it is leading to more unemployment and many full time workers now being relegated to part time with no health care at all. Many of the Unions now want Obama Care fixed or repealed all together. I am of the opinion the Obama Care will force health care costs even higher and the `system` will be like the DMV, a cluster at every turn. We will see.

For now the markets smell a capitulation and are running. Hold those dividend payers but do not add until the Holidays or in January. The Crack Up boom cometh. 

Here is one of many links to the crack up boom:

http://www.paulnathan.biz/commentaries/18-the-crack-up-boom.html

Gold is still in limbo and as I have been saying for many months now I suspect gold to make one more crash along with silver. Silver I see possibly going to $15.00 and gold to under $1,000.00 if the prices keep falling. Eventually gold and silver will be one of the only places to hide but we are not there yet.

It will be interesting to see what INTEREST RATES do. Those are the real issue in all of this. If they continue up that will put all government plans in the dumpster and they will have to face the music of austerity and great economic pain. When rates spike (as they certainly will eventually) the dollar will tank, bonds will tank, real estate will tank as will the markets, but again, we are not there yet.

As in life, things will be calm until they are not. The old saying “that which is unsustainable will not be sustained” and that applies to the US debt problem. Put simply we are too much in debt to go back. Von Mises (economist) said it well. “"The expansionists are quite right in asserting that credit expansion succeeds in bringing about booming business. They are mistaken only in ignoring the fact that such an artificial prosperity cannot last and must inextricably lead to a slump, a general depression."

He also said “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency `system` involved.” 

You will see in our lifetime this play out in spades, each and every word. Unfortunately it will come to pass and it will be miserable for all. Some will suffer more than others. The well-to-do will be able to survive with much of their finances intact but most will lose much of their asset base.

It all boils down to the simple fact the government can never solve economic problems with monetary policy as what the government spends it first must take from others within the same system. Worse yet it takes a cut from what was taken resulting in the amount it puts back is less than what it took out.

Man has always had the hubris to think hecan solve the problem of limited resources with central government policy. If that was the case, previous attempts would have eliminated the problems but in every time frame the problems of poverty and hunger resurface.

It fits the definition of insanity. Trying the same thing even though the results are the same. Keep in mind our economic problems are nothing new. Almost all civilizations attempt to solve the social dilemma yet none of have succeeded. I often hear people refer to this country or that country solving these problems but in reality all the systems have problems. When you think you solved it, another problem arises due to the attempt.

Many of the most popular attempts at policy such as socialism or communism are even faster conduits to massive destruction of the economies than other more benign attempts.

Communism and socialism simply destroy incentive, risk/reward and creativity faster than other policies. These 2 are the worst of all of them.

For now I predict ongoing interventionalist polices of governments worldwide to continue and accelerate, causing further distortions in the markets and worsening economic conditions. The poor will continue to suffer even greater deterioration of their situation. More classes will move DOWN in their rankings and the economies of the world will suffer even more under these failed policies.

Unfortunately the masses will clamor for more of these policies believing such policies will improve their situation.

These policies sound good and survive under the guise of compassion but in reality they will bring about the exact opposite in the long run. I know many of you won’t believe it but just wait. Economic statistics will not improve, more people will need assistance and the rich, who profit from these policies, will only get richer. It is the seductive nature of such policies and why they perpetuate. People just do not understand the nature of money and banking.

 Henry Ford did and this is what he said:

“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”.

Banking and monetary policy go hand in hand with social engineering, for it is the money thrown at this “engineering” that enriches the wealthy and further impoverishes the rest.

It’s why they do it and why they promote it.

Marc

It is not getting any better, in fact it is getting worse, as explained above in our newsletter.