Here we are, Nearing the end of another year. It seems like they are passing with higher frequency than I remember in the past. I guess that can be attributed to age. It also seems that things are getting stranger and stranger. I believe this can be attributed to the deceit and propaganda that permeates our airwaves day after day to keep people as clueless as possible to our actual situation.

The financial game shows parrot each other about our “strong economy”. Anyone not paying attention is likely to believe the “lies told often enough that become the truth”. The real truth is we have an economy in freefall with no apparent way out besides what is currently taking place- going deeper and deeper into debt. Of course, all of that added debt is counted as “growth”. I believe it is a growth alright- a malignant one.

Already, there is no mathematical way for the USA and most other countries to EVER repay what has already been borrowed (Over $300 TRILLION admitted not including derivatives, etc.) with fiat currencies retaining even a fraction of their value.

The Fed continues their “taper talk” all the while continuing to buy assets knowing darned well that if they don’t asset values would likely collapse immediately.

What it all boils down to is that the “reality” being presented by the mainstream media is the same “reality” that the Soviets used prior to their collapse in the early 1990s. “All is well- NOTHING to see here! What you are seeing with your own eyes is the illusion”. Right up to the collapse.

Those who don’t learn history are doomed to repeat it.

The problem here is that so many are careening headlong into a cliff that is obviously out there somewhere.

While many are being disparaged because of their many calls for a “market” crash on a certain date I find it sad that the “markets” should have likely crashed hundreds of times but the money “printers” have just postponed reality. A crash will likely come when those “in charge” decide its time. That is why it is foolish, in my opinion, to try and time it. The only thing that makes sense to me is to have assets everywhere and be in a position to react when the data shows that we are nearing that point. It could be a minute late won’t be any different than a year late next time. In other words, I would rather be FAR early than a second late. Prepare now!

While many are piling into stocks and apparently doing well, I believe that this whole structure- based upon debt is the classic “house built on sand”. The next downturn is likely to expose this truth.

JP Morgan himself said “Gold is money- everything else is debt”. There is also a saying. Those who own the gold make the rules. Many would have you believe that these sayings are from an era gone by. What they won’t tell you though is that those “in charge” (central banks, major banks and hedge funds along with governments) are purchasing gold in RECORD amounts for 4 years in a row now.

They obviously don’t believe their own rhetoric which is likely just to keep us normal folks out of the way as they hoard all the gold. They know if they have the gold it doesn’t matter if a counterparty (someone who owes you a debt) can’t repay. However, if a bondholder can’t be repaid not only does the bondholder get wiped out but the stockholders get wiped out FIRST.

This is the main reason that I insist that anyone who invests with us has at least a small exposure to an asset that is physical, does not count on anyone to repay and has NEVER gone to zero like many paper assets do over time. YOU CAN NEVER RECOVER FROM ZERO.

Nobody looks at books or balance sheets anymore. Of course, they haven’t mattered in a decade as some of the most unprofitable and indebted companies have provided the best “returns”. This is great for traders but not so much for longer-term investors looking for value. The sad part is that it has gone on so long that most participants now consider this normal.

When the dominoes start to fall those companies with pristine balance sheets and those that hold  assets that are real will be what allow those astute enough to have these things to start over and probably allow them to own assets they couldn’t imagine owning today.

If anyone IS looking at balance sheets you will notice MASSIVE debts with a grossly slowing economy. This is a toxic combination. Many of these companies have made promises to repay tens of billions in loans. I ask again- What is the VALUE of a promise that cannot be kept- regardless of who made the promise? Something to ponder!

This is a season of hope. I hope that as many people as possible can see this message and position themselves in a way they are comfortable with taking into account that things are not as they appear.

Insiders are selling stock in record amounts as the public goes “all in” with record margin debts. If that storm comes and the house is destroyed that debt still remains. This could lead to losses like we have NEVER seen.

I believe that your future financial life depends upon the decisions you make over the next few weeks and months. I don’t believe you have years left.

Be Prepared!

Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.