Many people have asked me, “How do choose what to write about?” This is easy to answer, I usually watch CNBC in the morning and usually after only 5 or 10 minutes I hear something that is blatantly false and point my finger at the TV and call “BULL.” Many times I will read Drudgereport and see an article of interest and “think forward” as to its true meaning or what it could lead to. Other times I will read a piece of news and know that “that can’t be,” something else is going on behind the scenes and what is being reported is what “they” “want us to see.”
Several people in the finance business have told me that they can’t believe I can come up with a topic every day. Again. this seems to be quite easy. In fact it seems to be getting easier because as each day passes, more and more news, opinions and forecasts just don’t add up. This I guess is the politically correct way to say that lies, falsehoods and misdirection have become the norm. I have written a couple of times that the very first page of the first book that I cracked in college was a Keynesian economics book. After reading “We don’t know why the Great Depression happened but we do know that it can never happen again” I viewed nearly everything from a skewed, skeptical standpoint. Yes I was young, only 18 years old at the time but I knew that this didn’t make sense.
This epiphany led me to “dig” for the truth. Not the truth as seen by the masses but the logical truth. Not the “convenient” and status quo truth (accepted because it always was the “truth”). No, I always wanted to know “why.” Just like the little 5 year old constantly asking “why,” I always questioned everything and wanted to know “why.” I also would compare “truths” and find out that if one thing was the truth, another “truth” that was logically incompatible with the first one didn’t add up… so one or the other was wrong. I must say that the advent of the Internet has been a wonderful tool of information and made “digging” much easier than it otherwise would have been.
Today, “truth” is almost synonymous with “consensus.” If everyone believes something… then it must be true, right? WRONG! But this is what it has boiled down to. “Perception” is everything… or at least 90% of the battle. This concept is very important to understand because if you cannot you will never really understand what is in fact happening. This concept is not new by any means, just think about the use of the bullish/bearish consensus. When everyone gets to one side of the boat, contrarians position themselves in reverse because they know that the buying or selling is about to end because there are no “masses” left to continue the trend. Or on a far grander scale, think of how “perceptions were managed” by people prior to dictatorships being set up.
Think about where we are today, perception is everything and without it we would live in total chaos. I could go down a list that would never end but at the core of managed perception is that the world’s completely unbacked currencies have value… they don’t other than the fact that they still spend. The perception has been “planted” that Gold and Silver are “risky,” they are not. In fact they ARE money, money that competes with all of this unbacked global currency. The “printers” have done a wonderful job of planting and cultivating this idea as evidenced by less than 1% of Americans having any ownership at all when this is exactly what will protect them. Think of where we were just a few years ago. The perception was that real estate could never, EVER go down… so much for that “truth.” Or how about “deficits don’t matter?” Well, they didn’t…until they did and now we know that the Treasury’s ability to borrow is not unlimited no matter how high Congress raises the debt ceiling.
Several people have asked me “why” I write. I write for several reasons. First, I write because what I see coming is going to be very dangerous and many good and unsuspecting people will be ruined. Through logic and common sense I hope that some will (have) figure(d) it out and move to protect themselves and their family. Another and I guess you could say “selfish” reason is that I wanted be on the record. Back in late 1997 or so I began a big push to get my clientele some ownership in metals because the prices of Gold and Silver were below the cost of production (a no brainer if you will). But the reaction to my logic was mind boggling. I was called crazy, stupid, ignorant, a conspiracy nut, a barbaric thinker, mentally unstable and even “dangerous”… because everyone just knew that Gold was a bad investment. So after retiring from retail brokerage where I was nearly completely “muted” because of “firm” (Wall Street) policy, I couldn’t tell the truth! I could speak it, I could position clients correctly (with many and numerous questions from the compliance dept. as roadblocks)… but I couldn’t put what I believed to be the truth “in writing.” Too much liability they said and my view was not the “policy” of the firm. By the way, I never got better than a C+ in any English class and owe a debt of gratitude to my wife Kathy for “adjusting” me. Though my writing is still not technically or grammatically correct it is leaps and bounds better than what it was back in late 2006.
So there it is, “what and why.” The “what” part is so easy because spin, propaganda and generally illogical bullcrap has reached all time highs and choosing topics are like picking low hanging fruit. I wish it weren’t this way but it is. It would be wonderful if we lived in a peaceful world where truth was cherished and a man’s word was his bond but we don’t. We live in a world where contracts and the rule of law are no longer which is why you must do everything you can to protect yourselves!