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RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging
TBI ^ | 3-30-2012 | Sam Ro

Posted on 03/30/2012 10:10:51 PM PDT by blam

RICHARD RUSSELL: A Massive Stock Market Collapse Will Wipe Out 60 Years Of Inflation And Leveraging

Sam Ro
Mar. 30, 2012, 8:23 PM

Richard Russell, writer of the Dow Theory Letters, is just looking for the right time to buy stocks.

But that time isn't now. And until that time comes, Russell will be keeping his wealth in gold.

He writes in King World News:

What I want to illustrate is that great fortunes are made at super-bear market lows. But you must have the money at the lows. Which is why gold is so singular and valuable. If you have gold at the bottom of the next bear market, you can exchange it for a collection of great common stocks or funds, and then sit back and relax.

You are then betting on the lasting power of the US. If the US comes back, you will be rich beyond your wildest dreams. But you have to have the guts to hang on to your gold. And you need patience -- the patience of ten men.

And when the time comes, things will get messy before they get good.

And I wonder -- is there a super bear market waiting for us somewhere in the future? The great ride from the end of WWII to today has never been fully corrected. Some day it will be. And impossible bargains in stocks will be lying around.

...My thinking is that sooner or later we will be subject to a major correction (bear market) that will wipe out or correct 60 years of inflation and leveraging. When that happens, I want to own the only kind of money that the Fed can't destroy.

Read Russell's entire commentary at KingWorldNews.com.
(Richard Russell: Hang On To Gold, Massive Collapse Coming)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; gold; inflation; investing; markets; preppers; shtf; stockmarket

1 posted on 03/30/2012 10:11:04 PM PDT by blam
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To: blam

One heck of an adjustment.


2 posted on 03/30/2012 10:13:44 PM PDT by doc1019 (Romney will never get my vote!)
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To: blam
NYSE: We'll Allow The DOW To Crash 3900 Points In One Day, But That's It
3 posted on 03/30/2012 10:14:32 PM PDT by blam
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To: blam

i’ve said (for years now) the VIX has never since approached its 1987 highs. the “Greenspan Put” has become the “IMF Global Put.”


4 posted on 03/30/2012 10:16:17 PM PDT by the invisib1e hand
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To: blam

And when the market open again?


5 posted on 03/30/2012 10:16:35 PM PDT by doc1019 (Romney will never get my vote!)
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To: blam

ping


6 posted on 03/30/2012 10:17:30 PM PDT by unkus (Silence Is Consent)
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To: blam

There’s always tomorrow and another 3900 points.


7 posted on 03/30/2012 10:24:56 PM PDT by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: blam
a major correction (bear market) that will wipe out or correct 60 years of inflation and leveraging...

But doesn't that mean that the gold he is buying now at $1700/oz will only be worth $35/oz after 60 years of inflation are corrected?

8 posted on 03/30/2012 10:47:53 PM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: Jonty30

This has been my plan for quite some time now. I figure a Dow of 2900 is the time to pull the buy trigger.


9 posted on 03/30/2012 10:50:22 PM PDT by Wingy (Don't blame me. I voted for the chick. I hope to do so again.)
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To: VanShuyten

“The Gold Confiscation Of April 5, 1933
From: President of the United States Franklin Delano Roosevelt
To: The United States Congress
Dated: 5 April, 1933
Presidential Executive Order 6102
Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled

An Act to provide relief in the existing national emergency in banking, and for other purposes~’,

in which amendatory Act Congress declared that a serious emergency exists,

I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States by individuals, partnerships, associations and corporations and hereby prescribe the following regulations for carrying out the purposes of the order:”

and when the Fed confiscates your gold what you gonna do then ? friend.


10 posted on 03/30/2012 11:00:50 PM PDT by MrDaddyLongLegs (You dont need any qualifications to be a Politician)
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To: blam

Good old Richard, I’m glad to see he’s still working. Like all in his field he’s had his hits and misses, but he’s always interesting. I hope this is a miss.

But I’m short the S+P 500 (and hedged) in case he’s right.


11 posted on 03/30/2012 11:07:23 PM PDT by SaxxonWoods (....The days are long, but the years are short.....)
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To: MrDaddyLongLegs

“and when the Fed confiscates your gold what you gonna do then ? friend.”

Let ‘em try. Too many people now have gold, and guns.


12 posted on 03/30/2012 11:12:23 PM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
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To: blam

The knowledge that the market can close early and stay closed makes sell offs worse.


13 posted on 03/30/2012 11:13:15 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: blam

If all that really were to happen... You can’t eat gold...


14 posted on 03/30/2012 11:14:51 PM PDT by DB
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To: blam
"NYSE: We'll Allow The DOW To Crash 3900 Points In One Day, But That's It "

The Elliott Wave has never been wrong.

yitbos

15 posted on 03/30/2012 11:15:51 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: MrDaddyLongLegs

I don’t think so. Most of the gold are held by central banks, very few by individuals. 1930’s was different. Gold was in US coins and US issued certificates that one can redeem in gold. FDR did not want the gold to leave the US during depression thus he had it removed from money, and individuals who owned it in US coins, certificates or bullion bars had to turn it in for the new dollars we still use today. Since we are off the gold standard, there is no monetary value in confiscating privately owned gold. If we go back to the gold standard, the US currency will be reset. Those in debt will be impoverished, those who hold hard assets will have their wealth preserved.


16 posted on 03/31/2012 12:22:19 AM PDT by Fee
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To: Fee; blam

ShadowStat’s take on when the wheels are coming off...

http://www.shadowstats.com/article/no-414-hyperinflation-special-report-2012#_Toc315271679


17 posted on 03/31/2012 1:58:46 AM PDT by EasySt (Life is precious. Live it well.)
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To: Fee
those who hold hard assets will have their wealth preserved.

So having gold in stocks is not good?

18 posted on 03/31/2012 2:53:26 AM PDT by presently no screen name
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To: presently no screen name

If one reads the mail of Goldman Sach in the late 1920’s and e-mails in 2007 in both cases they were pushing junk on their cleints.


19 posted on 03/31/2012 3:20:00 AM PDT by scooby321 (h tones)
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To: VanShuyten
But doesn't that mean that the gold he is buying now at $1700/oz will only be worth $35/oz after 60 years of inflation are corrected?

But doesn't that mean that $35 will be worth $1700?

20 posted on 03/31/2012 3:29:29 AM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: scooby321
Did you hear about Greg Smith, 33 yrs old? He quit.

Mr. Smith, a previously obscure executive who ran Goldman Sachs’s United States equity derivatives business in Europe, the Middle East and Africa, burst onto the public scene in a widely read Op-Ed article in The New York Times on March 14. In the article, he described “derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them.”

21 posted on 03/31/2012 3:43:05 AM PDT by presently no screen name
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To: PLMerite

Let ‘em try. Too many people now have gold, and guns.


That’s pretty tough talk there fella.

You are worried about your gold while the IRS, state and local taxing authorities are robbing you blind? Gold is simply “icing on the cake” for them.


22 posted on 03/31/2012 5:45:12 AM PDT by DH (Once the tainted finger of government touches anything the rot begins)
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To: DH

we are nearly to 25 posts and still no boasts about lead and brass holdings

Something must be afoot


23 posted on 03/31/2012 5:52:23 AM PDT by bert (K.E. N.P. +12 ..... Crucifixion is coming)
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To: DH

You are correct, but in the narrow context of gold confiscation my point was that people would not go along with it like they did in 1933.


24 posted on 03/31/2012 6:30:50 AM PDT by PLMerite (Shut the Beyotch Down! Burn, baby, burn!)
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To: bruinbirdman
The Elliott Wave has never been wrong.

Bob Prechter issued a buy call the morning of October 19, 1987. Still makes me laugh.

25 posted on 03/31/2012 6:52:29 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: bert
"We are nearly to 25 posts and still no boasts about lead and brass holdings

"Something must be afoot"

Why Does The Department Of Homeland Security Need 450 MILLION Hollow Point Bullets?

26 posted on 03/31/2012 7:29:18 AM PDT by blam
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