Debt Collapse by Mike Maloney

Dear PGM Capital Blog readers, we believe that the year 2011 that came to an end approx. 10 days ago will go into history as the year of the big lie, a year in which you were led to believe that the safest asset on earth is the US-Treasury Bond.

The media lying to investors is nothing new. If we go back 12 years we see the following pattern in the media misinforming the people and leading them in the wrong direction.

In 1998 /1999 the media was broadcasting the magic word of “New Economy” in the sense that in the “New Economy” Internet stocks with no intrinsic value would be the “Asset Class” to invest in and anything with a “DOT COM” behind it, was a free ticket to a great life-style” and that fundamentals like Price to Earning, Price to Book and Price to Cash flow was something of the past.

A Network in the USA had a cake for every time the NASDAQ crossed a 1000 mark in the period from August 1999 – March 2000. From August 5th 1999 to March 10th2000, the NASDAQ appreciated from 2,565.83 to 5,048.62 points, and then the NASDAQ crash started on March 11th 2000.

The same happened in the period of 2002 – 2005, when the media told the middle class that the value of their House would always go up and advised them to take Home Equity loans in order to buy more real estate. NINJA (No Income No Job no Assets) loans were provided and early 2007 Boom……………. The collapse of the Real Estate started and again, similar to March 2000, charlatans told investors to hold on to or even buy more Real Estate. It is fresh in our memory how this event led to the big crash of September 2008 – February 2009.

The problem with common people and the middle class is that they have a short memory and most of the time are balancing between Greed and Fear with regard to their finances and Investments.

History has proven that after a BIG LIE, the UNCONDITIONAL TRUTH will come out.

If we are right that the year 2011, similar to 1999 and 2005 was the year of the BIG LIE, 2012 might be the year in which the UNCONDITIONAL TRUTH will come out.

The problem this time is, that a crash of the bond market is by no means similar to a DOT COM or Housing market Crash. A crash of the bond market in history has proven to be the mother of all crashes. A bond market crash wipes out cash completely, which most of the time has led to a reset of wealth and very bloody wars.

Ladies and Gentlemen, in a fiat currency system, the intrinsic value of money in your pocket is ZERO. On the other hand, Gold is real money for which the markets determine its value.

If you don’t want to hold fiat currency today, why do you want to hold a piece of paper promising you fiat currency in five years? In other words if paper currency has no intrinsic value, what do you think that the intrinsic value is of a treasury bond maturing in 2, 5, 10 or 30 years?

Due to this we advise investors and the middle class to exchange their paper or fiat currency for Real Money: Gold, Silver, and other precious metals.

Before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities, Precious metals as well as the stocks of their producers can be very volatile and that sharp corrections may happen in the short term.

Last but not least we advise you to watch the attached video of Mr. Mike Maloney in which he very clearly explains what the risk of sovereign debt of the West means for your wealth, your prosperity and that of your loved ones.

For the sake of humanity I hope and wish that the points as discussed in this blog article will never happen.

But if after reading this and viewing the video you agree with the content, please feel free to contact us, for us to talk with you about your future and the best investment plan than meets your profile

Yours sincerely

Eric Panneflek
Chairman

One thought on “Debt Collapse by Mike Maloney

  • Dear Eric,
    Excellent article. What this means is that today’s investor is fooled not once or twice but ALL the time. Isn’t there anyone who is looking out for the common man? Or is the common man knowingly and intentionally pushed into the poverty class by greedy banks and incompetent government officials? What a nightmare we are living in! The picture is worse for the babyboomers AND the college bound kids. It will take a full generation for the US to come back to a “breakeven point” and probably another generation for the US to regain its economic super power status, if ever!
    Mark

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