Without massive money creation, the game is over in the short-run.
With massive money creation, the game is over in
the long-run.~Gerald Celente
Note: You will remember that we advised that newsletters may be sporadic as we prepare for our indepth investigation of Chile. Our current target date to Chile is the 21st of this month. But that is subject to change. We just don’t want you to wonder what happened to us if we briefly disappear.
GOVERNMENT SHUTDOWN
We, along with you, continue to watch the shutdown. While we think no one really knows the future, we still believe that we are looking at theater. When they can’t “afford” to open the Veteran’s Memorial while they spend $5 million on new glassware for the embassies, and we are told that retirees just might not get their retirement checks, but the checks of Congress are never in question, we become rather skeptical. But while we don’t expect that a crisis is imminent, we do think the fallout is serious and eventually will have a serious effect on Americans. Now is the time to position ourselves for that crisis–and even to benefit from it. Remember that the sun is always shining somewhere, and that every crisis presents opportunity. Let’s look for where the sun is shining, and where the opportunity is!

AMERICA IS LOSING THEIR STATUS as RESERVE CURRENCY!

America is starting to lose their reserve currency status. The U.S. has gotten away with all the money printing for only one reason. They arranged with Saudi Arabia and others, years ago, to sell their oil only in dollars. Therefore, every country that bought oil had to buy with dollars. That gave the dollar the advantage–world wide.

But the USD was backed by gold back then. Now it is backed by nothing. Countries are starting to figure that out.

When Sadam Hussein said he was not going to take dollars any more for his oil, some of my financial newsletters said immediately Sadam isn’t long for this world. Sure enough we soon heard the war drums and saw what happened to Hussein. Sadam was even protecting Christians and allowing them to hold office in the government. Now they are being martyred and fleeing the country. Lucifer does have his tricks, doesn’t he?

Being in Argentina has been an education for me. Argentina, like the US, spends more than they make and print or borrow whatever they want, thus producing inflation. Consequently the inflation rate is unofficially reported to be about 30% and other countries do not want the peso. Inflation is a hidden tax since it causes the citizen’s peso to buy less this week than it did last week. Since the USD is the world reserve currency, the US can ship their inflation all over the world. Argentina cannot. It stays right at home, causing a lot of pain. If the U.S. ever loses their status, Americans will experience the same.

With that regard, here is an item from this week’s news:

Russia has recently agreed to sell oil to the Chinese, accepting renminbi as payment. Fortune 500 companies from McDonalds to Morgan Stanley have issued bonds denominated in Chinese renminbi. Even the London Stock Exchange now has a thriving renminbi bond business.

The U. S. sent the military after Sadam. Can they send the military after Russia and China? Sadam broke the ice. He paid a big price but it didn’t stop the trend. We see it as an alert to get ourselves positioned for the changes that may be ahead. We think no one has a crystal ball, but our best guess is that it will probably take a while, giving us time to prepare. Buy gold and pre-1964 silver.

(Disclaimer: Always check with a licensed financial adviser before making any investment. These statements are for entertainment and information purposes only, we are not licensed financial advisers!)

NEW AMERICAN IMMIGRANTS IN PARAGUAY
A subscriber, “Brad from  Paraguay,” sent us the following:

“We are getting cedula’s for me and my son and were in the Immigration office in Asuncion.  There is one office to go to for any foreigners who are getting paperwork done, so it’s like a little UN there sometimes.   Normally in past years  when we go there the only Americans you run into would be the Mormon missionary kids and maybe some Peace Corps kids.  This time it was literally packed with Americans.  All of them being led around by the “helper” attorneys and ex pats who run businesses (mostly Euro’s) helping newbies out.  As our immigration status is ground-breaking and likely be written about in future Paraguayan legal text books, we finally employed a lawyer who only occasionally does immigration work (but he’s a hell of a real estate and civil attorney).  He mentioned that expatting is finally becoming “big business” in Paraguay as the spigot is fully turned on recently from Canada and the US.”  ~ Brad from Paraguay

For some time the immigration offices in Uruguay have been swamped with new applicants for residency. So much so that the process has become even more inefficient than it was to start with. We think that influx of expats to Uruguay is taking place because every publication having to do with immigrating to South America recommends Uruguay. While residency is still possible in Uruguay the process takes a lot longer than it used to. No surprise there. But we were a little surprised by Brad’s note about Paraguay since Paraguay doesn’t get nearly as much press.

The following collage of subjects by Catherine Austin Fitts, although not new, applies in every way today and effectively explains what is happening in America and, in fact, the world. It is a U.S. Economics education in a capsule. Her explanation of what we are dealing with right now is a good foundation for where we here at Four Flags Journal are coming from. She also gives us some possible ideas for plans of action.

We are always interested in  your comments. There is a place to add comments at the end of this page.

http://www.youtube.com/watch?v=MWUSrZLaTf4#sthash.wI2xDqhg.dpuf

http://www.youtube.com/watch?v=MWUSrZLaTf4#sthash.wI2xDqhg.dpuf

http://www.youtube.com/watch?v=MWUSrZLaTf4#sthash.wI2xDqhg.dpuf

Until next week, hasta luego . . .

Arlean

email: info@fourflagsjournal.com