This is how much do-do we are in right now!

Posted on by The INO.com Team

This is how much do-do we are in right now!

Forget your political position for a moment. Going off the gold standard and any kind of fiscal discipline has got us where we are today.

That's my take. What's you viewpoint. Please feel free to leave a comment on this post.

Adam Hewison
President INO.com
Co-Creator of MarketClub.com

69 thoughts on “This is how much do-do we are in right now!”

  1. Rolster77,

    Don't worry about rambling your insightful viewpoint and comment you made was one I'm sure readers of this blog will enjoy.

    There is no question that we are printing too much money in this country. Other countries are also inflating which can only lead to one conclusion, eventually there's going to be inflation.

    When that happens, we'll see real estate go back up as well as other commodities.

    Thank you for your feedback.
    Adam

  2. Gold gold gold... although I must admit being a commodities trader... not been to impressed with it lately... immediate short term... this coming week.. we may get a dip and time to buy then...

    What has me scratching my head is why no one is talking about the other commodities... eg... sugar, wheat, corn, all of which will increase exponentially in the coming years...

    What is strange is that all the countries right now are printing a lot of money; so does all this printing of money offset one another.

    The us dollar is being liquidated right now. eg.. short covering a flawed currency in many ways... it will provide a great short in the coming months.. don't know if anyone will read this but if you want to play it safe and ride out the gold waves... why not buy a long term gold futures contract...eg 2011, 2012... and ride it out... you'll be rich and thank me for it later:) on dips short against it with a front month contract.. sorry rambling a bit here...

  4. Fractional banking simply goes like this: individual "A" deposits one dollar in the local BankofWellsAmericaWachoviaTD branch and through the magic of law (Federal Reserve Act) and Federal Reserve system policy, the same bank can then create money out of thin air by making nine one dollar loans from that one deposited dollar.

    And then those nine one dollar loans could be redeposited by those nine borrowers and now the banking system can make eighty-one one dollar loans, and this can go on ad infinitum.

    I am being very simplistic but it's not that complicated a scheme. I'll be real radical now, ready? It's a legal Ponzi Scheme, period end of story. If every depositor went to the local bank to withdraw all their savings and checkbook money, an activity you may of heard referred to as a "run on the bank", the bank could not satisfy each obligation. Because all the money is lent out and then some. Yes, it's true.

    Just google Fractional Banking. You dig around and you'll find the meaty bits.

    Read The Creature From Jekyll Island.

    Also try http://lewrockwell.com/ and http://mises.org/

    You access a lot of free resources about Austrian School Econ and explanations of all you econ questions.

    The best to you on the path to higher learning.

    MP

    1. Michael,

      Thanks for taken the time to help our readers understand fractional banking. I am familiar with how the quote, unquote Ponzi scheme works at the bank's I just was not familiar with the term of the fractional banking. I think the name says it all.

      Every success in the future.

      Thanks again,
      Adam

  5. What is best if inflation comes,stocks,gold,commodities,cash or none of the above? Also please explain what is Fractional Banking. Thank you for your answer. BOB.

    1. Rocket,

      I believe the best hedge against inflation will be commodities and gold. I'm not sure where you got the fractional banking from as I am not familiar with the term.

      Thank you for your input.
      Adam

  6. I think the USA is in serious trouble this time.
    However, as in the past, we will most likely be the last man standing after the rest of the world goes "Postal".
    China, India, Pakistan, Russia, North and South Korea, civil war and nuclear weapons. Mix it all together and the USA lucks out again, thanks to two oceans and some facsimile of political stability.
    Just like after WWII.
    Wow!
    That was a close one!

    1. Roger,

      I agree with you. I believe the USA is in serious trouble. How we get out of this mess is beyond my pay scale. I believe you have to be and can be proactive in the markets and make money during this time.

      One of the great concerns I have is if they close the markets. This would not be a good thing for anyone.

      All the best,
      Adam

  7. I'm waiting for the next super bubble to burst; the bubble of big, interventionist government. Maybe then we can be rid of this evil, at least for a while.

    Regarding the impending inflation, see the following, http://www.lewrockwell.com/north/north682.html

    Due to new Fed rules that allow the Fed to pay interest on bank deposits over and above the minimum reserve requirement, a whole lot of money potential is sitting collecting a low risk rate of interest instead of being lent to far riskier Joe and Jane Publick.

    When government gets around to mandating those banks to lend that money to Boobus Americanus the flood gates releasing our next wave of inflation will have opened.

    Have some savings in tangibles because paper will burn.

    In the meantime read, Mises, Hayek, Rothbard, Hazlitt, Ron Paul, and become equipped with real economic intelligence.

    Adam, thanks for the forum.

    1. Michael,

      Thank you so much for taking the time to make a comment, I appreciate your views and your viewpoint.

      We are living in very interesting times as the Chinese would say. It is going to be interesting to see how we get out of this.

      Every success,
      Adam

  8. Glenn Beck didn't get this initial data from the St. Louis Federal Reserve... Beck's hired minions picked this up from the Ron Paul Forums / Liberty Forest website!

    Glad to see Glen is finally shaking his NEOCON ignorance or a Pragmatic Leberatian intellect.

    The US Government and the Bank/Financial systems that controls the Puppets in Washington DC ARE a PONZI scheme.

    Oh, what's that? CDS? MBS? CDO? yeah pure government enabled PONZI schemes add that to the FEDERAL RESERVE / US TREASURY's upsidedown Pyramid Scheme = Financial Disaster and the PEOPLE WILL PAY!

  9. Douglas,

    People are making money in this environment. There are always opportunities to make money one has to find them.

    All the best,
    Adam

  10. O.K. from reading the comments it seems very few understand the Gold Standard. Simple evaluation of the standard, the same amount of gold it took to buy the top of the line rolls royce or ford or chevy in 1960 will buy the same vehicle today. This stands true for any product. The old rule was that all the gold and silver in the world was equal to all the goods and sevices and products produced at any given time." Why does the United States Constitution state that only gold and siver coin may be used for the payment of debts public and private? " Our founding fathers new. Educate yourself. Read Roger Shermans: " A Caveat on the Injustice of a Fluctuating Medium of Exchange" if you can find it. It was read by these founding fathers.
    Good Luck and Good Day

  11. What is the purpose of the technology provided by Market Club?? To trade the triangles and make money in A N Y market, up, down or sideways. USD goes down? Gold, Yen, Pound all up. The market is down?? Fantastic!! Look to the Monthly Triangles for the down trend and the Weekly Triangles for entries and exits. Maybe I am being too simple, but people ARE making money in this environment!!

  12. Nixon is villified over Watergate. His real crime was to drop the gold standard. The banks and wall Street loved it. The economy adjusted to the fiat money and took off. Fractional banking created money, 10 to 1;Now 40 to 1. Borrowing was encouraged, velocity was high. GDP=MV. The dollar was king and the accepted global reserve currency. Who needed gold? Then came the Carter inflation. Interest rates sky-rockeed, gold followed. Lending dropped, velocity contracted, hello stagflation. Volker provided the bitter medicine. Rates dropped, gold followed. The charts of gold and interest rates,that is dollar stregnth, show the relationship of the two. Now rates are at bottom but gold is still rising. Does that indicate that the market anticipates rising rates and a weaker dollar? You decide. Forget any thoughts of return to any type of gold standard. Our debts at home and globaly are so huge that only a weakened dollar will keep us solvent---for a while.
    The corresponding weakness of foreign currencies is partly due to an effort to protect their dollar holdings. With all the manipulations in curencies and markets, My comfort lies in gold and silver. Herach.

    1. Henry

      I totally agree Nixon's crime was basically dropping off the gold standard. It allowed Wall Street and anybody else just to create money out of nowhere with no backing.

      Thanks for your input.

      Adam

  13. Now let me ponder like Socrates would!!

    If you want to get rid of the deficit and the debt you can do it easily through a small tax on currency speculation. Just the U.S. dollar is traded in $ 4-5 Trillion a DAY!! ADD Eurodallar, Dow, ES, beans, corn, coffee, silver..etc...you get the picture.

    But hey...they got you where they want you. When the minimum wage was high the country prospered in 1945-1970 and there was something to back money.

    Me thinks whatever has happened was meant to happen. The Fed those private bankers get richer eveyrtime their is a crash. This time this loot they are taking will make them quadrillioinaires.

    How can the richest and strongest country in the world go to the toilet....This is Globalization for you. One World Government controlling everything....but nobody gets it. Globalization has made paupers of the people in North America, except for the guys controlling the government. Suckers is all I can say. Fooled like a bunch of fools we are. I see a revolution happening in the streets in 2-3 years and this is just what they may want to happen.

    I wonder when will one world currency come up...after the Amero does I guess and the next debacle....2034 probably and then we done.

    1. Cle,

      Thank you very much for your input and your viewpoint. I appreciate you taking the time to put into words what many people are thinking right now.

      It's the future.
      Adam

  14. Everyone likes to talk about all the new money being created but what about the money being destroyed? What about the debt bubble that popped which is deflationary? Could it be possible that all the new money being created will just be absorbed to pay down debt? I believe the Fed will fail at any attempt to re-inflate the economy until they add a zero or two to the amount of new money already created. I haven't had a dollar bill land on my head from a helicopter yet.

    1. Junior Jackson,

      I think everyone's waiting for a helicopter. I just don't think we can afford any more helicopters.

      Every success in the future.
      Adam

  15. ok so with all the problems the states and the whole world is going through and the TARP2 spending that is about to start to hopefully kick start the economy what would be your opinion on uranium, uranium stocks and particularly uranium one. In the next 5 years can you see the stock back where it used to be at around $19.00 Thanx.

    1. Mustafa,

      I haven't even thought about uranium, so I'm certainly not the expert to give you an opinion on that market.

      Adam

  17. Alan,

    Re: Gold standard didn't help in the '30's

    It didn't help because in 1933 FDR confiscated, stole and
    relieved the sheeple of their gold money (gold WAS money)
    for $20paper/Oz. Then he changed the gold fix price to $35/Oz.
    overnight. Instant dollar devaluation. Helped the Government,
    screwed the people. The gold standard (where one actually pays
    with gold) has been sabotaged relentlessly by central banks
    and governments whose power is paid for with fiat paper money.

    JC

    1. Jim,

      And we all thought we were getting smarter. What a crazy world this is and the politicians don't help.

      Best regards,

  18. The twin villains you mention, Adam, are definitely in there -- (1) fiat money (no metal link) and (2) Congresscreatures (utter lack of fiscal discipline).

    But we must also give credit (not intended 🙂 where credit is due -- to (3) Federal Reserve (fractional reserve banking) and (4) Wall Street (passthrough instruments devised by evil minds).

    (1) and (2) are the root of the problem; (3) and (4) made it much worse.

  20. The American Sheeple don't want to hear this. They don't want to hear the truth. The movie IOUSA came out last year detailing how much do-do we are in. No one went to see it. We had a Presidential candidate Ron Paul who campaigned to try and show people how much do-do we are in. The sheeple didn't pay attention. It was easier to vote for the candidates that the MSM media shoved down our throats. Yes, we are in deep, deep do-do. When the Day of Reckoning finally occurs, most will be unprepared and won't know what hit them.

    1. John,

      I for one watched the movie IOUSA and it was very interesting. The movie was not particularly well made and did not tell a very compelling story. However the facts were spot on and that cannot be denied. I think if every American knew that each of us owed approximately $180,000 in national debt it would freak people out.

      One of the reasons no one voted for Ron Paul was simply that he was not a very charismatic TV personality. Unfortunately that is how we elect people in the US, you have to be attractive and have glib one liners.

      It's a sad fact but that's the truth.

      Cheers,

      Adam

  21. The consequences of Beck's polemic are carefully disguised but he is bold in scoffing at global warming and the sort of compassion that cares for the less well-off, the dismissed and the marginal. Obviously it is absurd to say forget your Politics when the speaker is nothing if not political. I regret that you give him a platform and you do not do your investment site or the subscribers any favor. IMO.
    Perhaps we could get back to trade triangles, red and green, and leave the right wing to fulminate elsewhere. I would be disappointed, though not equally so, were the left to appear for that matter, though it is unlikely they would get a hearing on this platform. The more calm among them appear to be concerned with real issues like food, health care, and shelter.
    Parenthetically calling for the gold standard at this time seems both vain and untimely.

    1. Tom,

      I appreciate you taking the time to put down your thoughts and share them with us on this blog. I like to think of us as being politically neutral. The point of the video that has caused a great deal of commentary was to show exactly what has been happening to the money supply. As we are in the money business and the trading business it's important for us to be aware of facts as they are perceived in the market.

      On a personal level is we need to be more disciplined. We see no discipline in today's society when no one seems to take personal responsibility for anything anymore. This is not a good thing in the long run. What gold did in the past was to give society that discipline.

      Having said that I have to admit that I am a trader and as long as the markets move I'm happy.

      Once again thank you for sharing your viewpoint.

      All the best,
      Adam

  22. Lies and statistics!!

    I agree we have a problem of huge proportions. I agree the Phi Beta Kappas at the Fed and Treas don't know what to do. Kinda makes you want to hide under the bed doesn't it?

    However, to compare a $billion in 1919 with a $billion today is intellectually dishonest. MAny charts go parabolic if you stop them at the right time. Constant dollars should be used or a semi-log y axis might tell a very different story. I know this sounds geeky but a graph of money over 100 years must compare apples to apples.

    1. George,

      I'm with you on this one. $1 billion in 1919 is certainly not representative of $1 billion in 2008.

      Every success.
      Adam

  23. It is generally conceded that over the next two years the Euro will be abandoned, the Yuan will be a tier 1 currency (backed by money in the bank (American money we sent them)) and the dollar will have Gideon Gono on its obverse face. What is not shown in Beck's chart is the 56 trillion dollars needed to cover Medicare, Medicaid, Social Security, etc. over the next 20 years. Note to all boomers that did not spent instead of saving. Get ready for 10 pound boxes of powdered milk, 10 pound boxes of powdered eggs, 25 pound bags of flour and beans, 5 pound cans of peanut butter and 5 pound blocks of American cheese product; exactly what was handed out by Johnson during the beginning of the Great Society to get those with nothing a decent meal.

    1. Ed,

      Thank you taking the time to give us your thoughts. I appreciate you doing that.

      You right, no one's talking about the $56 trillion needed to cover Medicare, Medicaid and Social Security. That's not even on the radar screen my friend. Johnson was the Great Society ... we just recently had the Great Entitlement Society. What's next?

      The age of conspicuous consumption is over.

      All the best,
      Adam

  24. Although inflation will return, it won't until we get through this deflationary period that we are in. Most people expected Gold to soar to all time highs - which it probably will - but wtih the collapse of the credit markets, we are experiencing deflation. When deflation occurs, the largest currency, the USD rises against all other asset classes as investors move from hard assets to cash - which is what's been going on. As deflation subsides and inflation picks up, gold will rise and the dollar will fall.

    1929 was only the beginning of the crash - the market didn't bottom till 1932 - we appear to be in worse shape now vs then.

    my 2 cents,
    Mike

    1. Mike,

      Thanks for your $.02 worth and for taking the time to post. You are right, the market peaked in 1929 and did not bottom until 34 months later. If I'm right with the stock market we still have further weakness ahead if it follows the same pattern as the '29 crash. That would take us to the early part of 2010 by my estimation.

      Just when we think things will be all clear, inflation will kick in, its inevitable given the path we have taken.

      My idea was to basically to give small businesses 2 years tax free and to cut capital gains taxes to zero. This would help jump start the economy he would give people confidence. We would see more job creation from small businesses than we will ever see from the US government.

      That's my $.02 worth.

      All the best,
      Adam

  25. Well the boys with the money and the previous administration decided after 911 to finish poking the tax payer . it is to late to fix anything. the troops are in place and the detention camps are ready to open . All that is left is for the people to say enough is enough and start to take matters into their own hands. Gun purchases have skyrocketed and people are getting ready to riot.

  26. Lies, damn lies, and Statistics.

    I agree we have a problem of unknown proportions. I agree that the Phi Beta Kappas in the Fed and Treas. don't know what they are doing. Kinda makes you want to crawl under your bed doesn't it?

    However, to compare a $billion in 1919 with a $billion today is not intellectually honest. At the very least constant dollars should be used or a semi-log y axis on the graph. I know it sounds geeky but lots of graphs go parabolic if you don't compare percentage changes on the y axis

    1. George,

      It's just not the Phi Beta Kappas who know nothing it's the other people that have been there forever who just keep screwing it up. All too get reelected.

      Thanks for taking the time to post, we appreciate your feedback and your honesty.

      All the best,
      Adam

  27. I haven't written a book but I have written a lot of checks to the IRS over the years and for me, I'm pissed. Contrary to popular belief, George W. did not cause this. It was caused by the career politicians who have rested on their backsides for decades and did not have the courage to address the problem when it started. No energy policy, no leadership and an entitlement mentality to boot. Our society is crumbling around us as we dance around the May Pole. No one seems to want to take responsiblity for their actions. "Give them more, they will be pleased and go away". Wrong! If you are not concerned, check into why semi-automatic weapons are being sold like "hotcakes" and their is a 6-12 month wait. The current administration has certainly stimulated the economy. Where is "Mr. Smith goes to Washington"? Damn, we need Jimmy Stewart in a bad way. Oh well, it seems the herd continues to move along and when the cliff comes, oops!

    1. John,

      You're right we do need Jimmy Stewart in a bad way.

      Thanks for taking the time to post your thoughts.

      All best,
      Adam

    1. Smacktie,

      You're absolutely right. Like a bunch of ostriches bearing a hidden fan hoping it's going to go away. It's not going to go away and is going to be a lot of hurt and sorrow to go around. But in the midst of this great carnage there will be opportunities... there's always opportunities.

      All the best
      Adam

  29. I wrote a book back in the late 70's titled "America's Monetary Mess." In it, it explained that we have never been legitimately on a gold standard, that we have always been on a silver standard, and we are still on it to this day, although it is not being adhered to due to the criminal activities of that bunch of gangsters in Washington known as the Congress of the United States. Articel 1, section 5, requires the coinage of gold and silver coin, and A1, S10 requires that the states use only gold and silver coin as a tender in payment of debt. The Coinage Act of 1792 established the silver standard and it is still on the books, never rescinded nor amended. A1S5 tells the congress to "fix" the standards, and once you fix a standard, you establish it and you don't unfix it or change the standard without having an amendment to the Constitution. Gold was never the standard, it was subsidiary money, but the standard is a silver coin, 371 1/4 grains of silver .9 fine, called the dollar, which came from the Bohemian word, "thaler."

    1. I believe the US goverment is still "coining money of gold and silver", so technically they are still obeying the constitution. But realisticly they have adopted the Federal Reserve System, which has no restrictions dictaded in the constitution.

      Yes the (ignorant) people are getting screwed by the politicians that they have voted for, and voted for, and voted for.

      As far as gold goes, don't forget it's basicly a commodity and trades as such.

      1. Steve,

        Your right gold is basically a commodity but it's one that has being looked upon to be a store of value in times of trouble.

        Thank you so much for your comments and insights. We appreciate you taking the time to post.

        All the best,
        Adam

    2. Lawrence,

      It's good to have your round.

      In my many years I have come to a conclusion that one useless man is a shame, two is a law firm and three or more is a congress.
      John Adams

      Suppose you were an idiot. And suppose you were a member of Congress. But then I repeat myself.
      Mark Twain

      Cheers,
      Adam

  30. Adam,

    No doubt we're heading for serious inflation when the velocity of money picks up, but:

    1) Being on the gold standard didn't help us in the 30s, and
    2) Buying commodities to hedge against inflation should be good for your business (and my portfolio), no?

    Regards,
    Alan

    1. Adam,
      Thanks for all you do.
      You help us a lot.
      I believe in gold/silver like it says in
      the US Constitution and Leviticus,
      honest weights and measures.

      Of all sins, I think inflation is the worst.

    2. Alan, thank you for your feedback.

      It's almost impossible to believe that was not going to see some sort of inflation coming down the road with all this money that is been printed and printed and printed.

      I would not buy the CRB indexed until it turns up and gives a signal with our "Trade Triangles" that it's trending higher. I also think that individual commodities are going to move on their own supply and demand statistics.

      I hope this helps.

      Thanks
      Adam

  31. Hi Adam
    Could you send emails to forex trader whensitoation changes from long to short or short to long weekly position-only majors.
    Thanks
    Rami

    1. Rami,

      The best thing I can suggest if you are not a member yet of MarketClub is to join and you can do this yourself, it's not that complicated.

      We give you all the tools and explain how we filter trades. Once you put this into our e-mail alert program, alerts will be sent to you automatically via e-mail when a price point is broken.

      It's an invaluable tool and service and it's all part of your membership which is included in your subscription.

      Every success,
      Adam

  32. Adam, I very much appreciate your thoughts and words on Gold, and the Gold Standard, you are on point. The truth is Government has manipulated monetary standards since before the Romans. Trade, and trade wisely, but save in Gold -- you wont be let down. I suggest americans one by one put THEMSELVES back on the Gold Standard -- at least hold Gold in a Self-Directed IRA -- especially with the amount of inflation headed our way. And judging by the video -- we will have plenty to go around, and around, and around.

    2. Increases in the money supply are said to be inflationary. More recent thought says if increases in the money supply are accompanied by an increase in productivity inflation will be held in check. However, the recent spike in the money supply has occured during a period of declining productivity. Government officals say once the economy returns to normal the money supply excess will be sopped up. I doubt it. More likely we will have runaway inflation.

    2. Adam,

      Thanks for the heads up that left the link in there for users to see and hopefully enjoy the video. Personally Glenn Beck's video because it does not have those stressful photographs of war and famine everything else that has taken place in the last century.

      All the best,
      Adam

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