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How Can We Protect Ourselves Against Fascism

By Jay Taylor      Printer Friendly Version
Sep 4 2008 9:27AM

How Can We Protect Ourselves Against Fascism/Communism Economic Life?

There is no good answer to this question. We can only do what we have been doing, and that is to understand how our government’s fascist economic policies are creating opportunities and then act accordingly. Of course our bigger concern and the one that is far more important is the issue of civil liberties and freedoms that are being eroded while statist policies of either venomous stripe grow. But that topic is beyond the scope of this letter. Our concern is to protect ourselves financially as best we can against the destructive forces of government manipulation of markets that serve to protect the rich at the expense of us average middle class people.

The chart on your left shows that until this year, we have been quite successful in beating the S&P 500 which is what Abby Joseph Cohen and other establishment types would like to suck you into. We are still hoping to end up in positive territory for 2008 so that we can improve on our hypothetical Model Portfolio value, which stood at $3,184 at the end of 2007. However, with our Model Portfolio losing 13.61% of its value through the first seven months of this year and even more during the first few days of August, the collective value of our hypothetical Model Portfolio is now worth less than $2,750. Even though that compares to a value of $863 for the S&P 500, our goal is not to simply beat the S&P 500 but to build wealth that far exceeds the rise in the cost of living.

We hope and believe our colleague and trusted friend Roger Wiegand is right in predicting a major rally this fall not only for gold and silver but also for the shares. If he is right, we might yet seek out a gain for 2008. Clearly, we could have done best by simply buying gold and silver bullion and “gone fishing” rather than working so hard to discern which mining and energy shares to buy.

However, I am of the view that in a super bull market, you need to stick with value in the sector that is in a bull market. And rather than seeing times like the present as a depressing environment, we need to see it as an opportunity. It is when others don’t want to buy that you can make the most money by stepping into a market.

I am reminded of the words of wisdom from Richard Russell, who says that the bull in a bull market tries to knock as many people off his back as possible and take as few of them along as possible for the long-term bull market ride. Right now, I think we have some fantastic opportunities to buy stocks that are selling below their cash value and also have ounces of gold in the ground.



Mr. Taylor is editor of J Taylor's Gold & Technology Stocks newsletter. A native of Ohio, he has resided in New York since 1973 when he began working there for Barlcay's Bank International. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Throughout his career Mr. Taylor worked as a commercial, then as an investment banker. Most recently, he worked in the mining and metals group of ING Barings in New York. Prior to that he was involved in the first gold loan made in modern times in the U.S. to Amax Minerals, a 250,000 oz. loan facility led by Citicorp. In 1997 he resigned from ING Barings to devote himself full time to researching mining & technology stocks, writing his newsletter and assisting companies in raising venture capital.

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