APFN
The Bankruptcy of America (Cont'd)
Thu Jun 12 03:30:16 2003
208.152.73.128


Mr. Snow's ill-advised comments over several weeks ago. President Bush's comments over the weekend might have assuaged those concerns somewhat, but they are still looking above for other avenues of investment. Were we in their shoes, certainly we'd be doing the same. The EMEAP's member central banks include Australia, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore and Thailand. Other's may join, making the effect even more material. Snow's comments created a veritable blizzard effect."

If this happen, it will accelerate the drop of the dollar predicted by both John and myself for some time.

For investors, while we muddle through this mess, it will pay to remember: America is bankrupt. Another big inflation is coming. And that's bad for equity investors. From 1968 through 1981 the Dow lost 75% of its value, in real terms.

What should you do? Imagine the 1970s, but on an even bigger scale. Doug Casey says fair value for gold right now is $700 an ounce. And he expects it to go to $3,000. It's hard for me to imagine that he's right. But then I look at my fellow American's finances, at Uncle Sam's balance sheet and the mockery corporate America has made of accounting standards...and suddenly gold looks pretty good.

Dr. Sjuggerud compiled this list of the annual returns of various asset classes from 1968 to 1981, during the last major collapse in the dollar:

* 19.4% Gold
* 18.9% Stamps
* 15.7% Rare books
* 13.7% Silver
* 12.7% Coins (U.S. non-gold)
* 12.5% Old masters' paintings
* 11.8% Diamonds
* 11.3% Farmland
* 9.6% Single-family homes
* 6.5% Inflation (CPI)
* 6.4% Foreign currencies
* 5.8% High-grade corporate bonds
* 3.1% Stocks

Chances are pretty good that you don't have a big position in these assets (with the exception of housing). It might be time to consider moving some of your savings out of stocks and bonds and into things more attuned to the declining value of the dollar.

We'll muddle through...the way we always do.

Your filling-in-for-my-friend analyst,

Porter Stansberry

Editor's note: Porter Stansberry is the founder of Pirate Investor, a publisher of independent financial newsletters. Pirate Investor titles include: Porter Stansberry's Investment Advisory, Steve Sjuggerud's True Wealth, Extreme Value and Diligence, a small cap research service for high net worth investors.
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The Bankruptcy of the United States
A 39 part Series of documents, pertaining to:
The receivers of the United States Bankruptcy are the International
Bankers, via the United Nations, the World Bank and the International
Monetary Fund. All United States Offices, Officials, and Departments are now
operating within a de facto status in name only under Emergency War Powers.
and much more...
http://www.apfn.net/DOC-100_bankruptcy.htm

U.S. NATIONAL DEBT CLOCK
http://www.brillig.com/debt_clock/

"The American Dream" Fire 'em all!
http://www.apfn.net/ 

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