"Kip's VRA financial newsletter is a MUST read for every saavy investor in this country. Disregard it at your own peril. His mantra is my mantra: Buy Gold and China. Sell short on pretty much everything else. Kip Herriage's newsletter is my financial Bible."

--Wayne Allyn Root
2008 Libertarian Vice Presidential candidate
Author, "The Conscience of a Libertarian"

Twitter: @kherriage

Karl Bessey

Mary Dee

Mike Budny 
Twitter: @kherriage

Monday
Nov052012

Hurricane Sandy…Presidential Election…It's Still The Economy...Stupid

We were told well in advance that Hurricane Sandy would be a once in a lifetime storm, and in a major rarity, forecasters actually underestimated a storm.

Katrina, Part Two

It’s hard to find the words for what we are witnessing, but for me, it sure brings back memories from August 2005. Few were prepared for what we are seeing play out this week, and with electricity still out for more than 3.5 million homes and businesses in just New York and New Jersey, and with two-thirds of all gas stations completely out of gas, trust me on this…this situation is about to go from “incredibly bad” to “unthinkably bad”. 

And by the way…we have a Presidential election in just four days (with at least 300 polling places that have no power).

A few observations: 

While it remains to be seen who will win this election, I cannot help but think back to the environment in 2008…and to the VRA update I wrote immediately following Obama’s election:

“It’s the Economy…Stupid!

This now famous line was attributed to George H Bush's mishandling of his re-election bid, when Bill Clinton's victory turned Bush into a one term President. The economy was in the dumps in the year leading up to the election and Bush seemed oblivious to the recession that the country was entering.

Just a year ago anyone paying attention would have told you that the big election issue in 2008 would be the war in Iraq. Then, Bear Stearns went under in the Spring, and 90% of all mortgage co's followed. Once Lehman filed for bankruptcy in September, and the stock market dropped 40%, "Its the economy...stupid" became the central theme of this election as well. 

It's obvious, from Barack Obama's landslide victory, that Obama and the Democratic Party are the big winners of the recession of 2008.

YES WE CAN!

Our new President-elect delivered one of the most passionate and compelling acceptance speeches in history early Wednesday morning, and the whole world celebrated with him. I cannot remember seeing a sight quite like the global party that his victory brought on, but it’s clear that the theme of his speech, "Yes we can", resonated with hundreds of millions everywhere. Whether or not his Presidency lives up to the hype (and I truly hope that it does), this is a moment in time that we will not soon forget...but at this point all the government can do is make things worse. Seriously, when is the last time you can remember

the government taking action and making great decisions? Maybe Obama will be different...but we're talking months before anything he can act on would begin having an affect.

If this sounds really depressing, just remember that it doesn't have to. The opportunities to prosper, even now, are as great if not greater than they have ever been (especially if you are an entrepreneur). This is why a recession serves such a major purpose. It gives us an opportunity to buy "real assets" at bargain basement prices so that when the economy begins to prosper once again, everything that we bought low...we can eventually sell high."

As I look back on that 2008 VRA update, I believe that “It’s the Economy…Stupid” will remain the theme that rules the day for the 2012 Presidential election. And, even in light of the many polls that show Obama with nearly insurmountable leads in the most important swing states, I will side with our good friend Wayne Allyn Root in predicting a Mitt Romney victory. Wayne is even forecasting that Romney will win in a landslide, and history has proven time and again that it pays to be on Wayne’s side. In addition, Karl Rove…the expert’s expert at politics…makes a very compelling and fact based case for a Romney win (the polls siding with Obama are statistically skewed to match the 2008 heavily Democratic turnout, which will simply not be the case in 2012). In addition, Rick Santelli, who I recently spoke with at the New Orleans Investment Conference, is calling for a Romney win. Rick makes a living (on CNBC) at correctly predicting the markets and economy, and his view is that Romney wins by a comfortable margin…with independent voters picking Romney by a wide margin.

Here’s my bottom line. Just as in 2008, this election is about the economy and which candidate can best revive it. Romney has consistently proven himself as a businessman, and love him or hate him on a personal level, the US economy remains in shambles and requires someone with Romney’s pedigree to turn things around. Regardless of who wins this election, things are going to get worse before they get better, and four more years with Obama could be a fatal economic blow. Case in point as to why Obama is the wrong person to lead us out of this mess; on a recent appearance with Jay Leno, Obama admitted that his math skills never made it past about the 7th grade level. Whether a joke or not, all evidence points to the fact that this is simply not the leader that our country requires…not now…not with the real unemployment rate at somewhere between 15-20%...not with a global depression lurking as a very real possibility…not with the global, sovereign debt implosion that’s already underway.

 A Bad Apple

Finally, Apple (AAPL) is telling us that something is not well…with them or with the overall stock market. As I’ve been writing, Apple is breaking down, losing another $20/share today (for a 3% drop), and down more than 17% in just over a month. As THE market leader, this is an incredibly bearish sign, and as of today’s close the stock is now below the all important 200 day moving average. One by one the markets leaders are turning lower, and importantly, are doing so on rapidly increasing trading volumes.

Our sincere thoughts and best wishes go out to everyone being impacted by Hurricane Sandy. This too shall pass….even though it may not feel like it right now. Please do not hesitate to reach out to us here at the VRA and at WMI if we can be of assistance.

Kip   

 

 

Monday
Jan162012

First they ignore you...then they ridicule you...then they fight you...then you win 

 

First they ignore you...then they ridicule you...then they fight you...then you win

Mohatma Gandhi

 This classic Gandhi quote from more than 70 years ago likely resonates with many of your reading this. We are taught from kindergarten on that we should raise our hand before speaking, that we should act with the rest of the group, and that the majority view is the correct, and therefore the safe view. Many times, individual thinking is frowned upon, and as a result, many (if not most) have become accustomed to the mindset that it's just safer to go along to get along.

 Likewise, regardless of your professional occupation, you have probably found that this exact thought process has been ever so subtly forced on you. Throughout life, and regardless of the topic...be it religion, politics, business, relationships, or investing...those that think outside the box, and then have the temerity to share their views with others, can many times be viewed as eccentric and a little kooky, if not radical and slightly dangerous. This is exactly how Gandhi was viewed throughout much of his adult life, as he taught his fellow countrymen and women in India the principles of resistance to tyranny through mass civil disobedience...AND in complete nonviolence...a philosophy that he lived, day-in day-out, for all to see and learn from. Gandhi made independence for India a reality with this philosophy, which also inspired movements for civil rights and freedom across the world.

 First they ignore you...then they ridicule you...then they fight you...then you win 

 But it's a little crazy to compare the accomplishments of one of the most principled visionaries and true leaders of all time to the topic of investing and wealth creation, right? OR...is this the exact approach that we should all work on in order to achieve our most sought after goals and dreams? Independent thinking, in my opinion, is the key to everything important in your life. Too often, we fall into the very dangerous trap of seeking the acceptance of others over thoughtful independent thinking, and then following through with actions that are in our own best interests.

 When you break free from "group think" and begin thinking outside the box, you will develop a level of inner confidence that allows you to reach heights never before achieved. And yes, with big ideas and an independent thought process you will likely find that your ideas are at first ignored and ridiculed. Then, when you begin to make people really uncomfortable, they may even fight you. This is when you will know that you have won.

 No, this is not my typical VRA update, but its a topic I have spent a lifetime thinking about. This mindset that allowed me to create the VRA in 2003 and empowered Karl Bessey and I to start Wealth Masters International in 2005.  It also gave us permission to become equal opportunity offenders...which then enabled us to create the unique, never-before-seen kind of company that WMI is today...beholden to no one. I believe that it's also why we picked up the moniker of The Worlds Premier Wealth Creation Community. We realized long ago that the majority is just about always wrong...and that it's been big thinking contrarians throughout history that have created the vast majority of wealth, and even more importantly, massive personal success through the concept of helping others to achieve what they want out of life.

 In my daily work with Wealth Masters, the VRA and CrashProof Prosperity, I meet and speak with literally hundreds of people each month that I know would benefit greatly from the adoption of this powerful approach to living life...and to living it on your terms. And it absolutely applies to creating massive amounts of wealth. Lemmings don't tend to do too well when they go over that cliff together.   

 This exact mindset is increasingly prevalent in our welfare minded, entitlement deserving state of mind.

 Today, more recipients collect money from the government than pay taxes. 

  • The US is now past 100% debt to GDP for the first time in our nations history. Throughout Europe, this number is consistently 130% plus, and in Japan, it's a staggering 230%. 
  • A record 48 million in the US are on food stamps, and nearly 1 in 4 receive money from the government each month. 
  • When Ronald Reagan took office in 1980, total government debt was $1 trillion...today it stands at more than $15 trillion, and is projected to rise to more than $23 trillion by 2015...less than 3 years from now!
  • Combined, including unfunded liabilities (entitlement programs), the US now has more than $117 trillion in total debt. 
  •  Finally, the US debt is now 5000 times greater than it was in 1913. Why is this year significant? 1913 is the year the Federal Reserve was created...the year that currency inflation became our largest financial threat. The global destruction of the middle class is the end result.  

 First they ignore you...then they ridicule you...then they fight you...then you win

 The facts presented here are just that...facts. By accessing the most valuable commodity on the planet...true knowledge...you are empowered to act in your best interests, and obtain your share of the ongoing $50 trillion wealth transfer. Have you ever wondered why it takes two incomes in your family to enjoy the same standard of living that just one income made possible just 20-30 years ago? Currency inflation...thanks to the Central Banks of the world, have robbed us of our savings, and made most everything we are forced to purchase on a daily basis much more expensive. 

 With the record debts laid out above, do you believe this situation will become better or worse going forward?

 Some 70 years ago, Gandhi made a difference in the lives of hundreds of millions by resisting tyranny through peaceful civil disobedience. Courage isn't easy...but what would you rather be remembered for? Going along to get along or taking a stand for speaking the truth and doing the right thing?

 After all....it's YOUR life. Why live it to make someone else happy?

 First they ignore you...then they ridicule you...then they fight you...then you win

 This $50 trillion wealth transfer is picking up speed...continue to find the courage to make the right decisions.

 Kip        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Friday
Nov182011

Long Term, Independent Thinking - Living Life on Your Terms

I have not always been a long term, independent minded, macro thinker and investor. In my early years on Wall Street, I followed the actions of a senior investment advisor who was an options specialist. He placed anywhere from 1000-5000 options orders DAILY, and his technical analysis was minute by minute, and many times second by second. It took me about a year to realize that this kind of investing just wasn't for me...much too risky and fast moving...with way too much guesswork. Jack (the options specialist) wound up having a heart attack, and while he recovered 100%, he was forced to give up options trading...turns out, it wasn't really his style of investing either.

Within about 5 years into the business, a mentor came into my life that perfectly suited my personality. Ted had been in the industry about 40 years when I met him, and he completely understood how the markets worked and why they worked the way they did. His view was that all successful investing and decision making started with the macro view...the big picture economically and personally. He believed that once you understood the macro fundamentals that you could then choose the specific industries and companies that made the best investment sense. He also believed that having a long term perspective was the only way to go, and that following YOUR instincts...not someone else's...was the key to making great decisions.

Over the years I studied the work of other well known macro investors. Experts like Peter Lynch and Warren Buffet are famous for their macro work, and it didn't take me long to realize that this was the ONLY way to build lasting, long term wealth...not just using the stock markets, but with real estate and commodities as well. Napoleon Hill taught me the same principals about life through Think and Grow Rich. Over the last decade plus I've done my best to describe and teach this style of living, and from time to time I receive emails that illustrate the success my subscribers have had.

Recently, I received the following email that I'd like to share with you here:

Dear Kip,

Thank you for your consistently passionate work and for steering us in the right direction. Before I joined WMI and began taking the VRA, my financial life was a mess. We were way too leveraged in real estate and had never had success in the stock market. If we had not listened to you about 3 years ago, we would have lost everything. When I first shared with my wife your views of the stock market and real estate market, she thought you were crazy. She told me "there is no way we're selling these properties now. Doesn't he know that we are already underwater and will have to take losses"?

We talked about these decisions for a couple of months and then bit the bullet and got out from underneath these properties. If we had kept them, we would be in bankruptcy today, with millions in losses. Instead, we are debt free and we are making money in the VRA and gold and silver.   

Every time we hear you say that you are "equal opportunity offenders" we both laugh, but we also know exactly what you mean by it. Thank you and Karl for being men of your word and for following your instincts. You have lots of fans out here and we are on board for the 50 trillion transfer.

Thank you!

M & M - California  

Solid investment advice is really no different than solid wisdom for life. And no, living your life with a long term, independently thought out mindset is not always the easiest thing to do. Many times you have to fight what might be 10, 20 or even 50 years of wrong way-conditioning, and frequently, this conditioning may come from those that you care about the most (family and friends).    

We deeply believe in the principals that WMI stands for. Authenticity...Loyalty... Freedom...Prosperity...and of course, The Truth. The truth resonates, and when you reach the point in your life where you recognize the truth, when you see it and when you hear it, all of your life decisions become more grounded...more real...and more concrete.

I appreciate the fact that I had both of these mentors in my life, Jack and Ted. They both taught me an incredible amount about myself, and the life that I chose to lead. As you continue on your journey to prosperity and authenticity, may your mentors serve you as well as mine have served me.

Your friend

Kip  

 

 

Sunday
Oct302011

Number 14 is Sure to be Number 1!

 

Houston, TX (October 30, 2011) – Wealth Masters International proudly announces details on their 14th m2 Wealth Conference in Maui, December 5-8. The event also marks a significant birthday celebration for WMI, kicking off their 8th year in business. In addition, it will be the world’s first glimpse of PURE, a company focused on life-changing nutrition, anti-aging and wellness. Dr. Becky and Dan Maes, the industry veterans leading PURE, will be there to deliver a sneak preview of the company’s innovative 2012 launch plans.

To mark the occasion and encourage the entire WMI community to be there in force to experience it, Kip Herriage, WMI CEO & Co-Founder has released this special media statement:

"Since opening our doors in January 2005, Wealth Masters has sponsored 17 world class, sold out events (thirteen m2 Wealth Conferences and four m3 Private Wealth Groups). What makes WMI events so popular? Based on the feedback we’ve received over the last seven years, we would have to say that their success is in large part due to the time-tested, TRUE experts that we feature as keynote speakers on Wealth, Health and Wisdom. And, with the $50 Trillion Wealth Transfer picking up speed, #14 looks to be our best line-up EVER!

FIRST, one of the three US-based major news networks will be there to film one of our most successful WMI Member stories to date, as he gives an incredible, must-see keynote presentation!

These are just a few of the additional m2 highlights and 20+ Keynote Presenters:

•Mike Maloney, of GoldSilver.com fame, and THE recognized global expert on precious metals.

 •G. Edward Grffin, bestselling author of the Federal Bank expose, "The Creature from Jekyll Island"

•Rob McCaulay, CEO of Falcon Oil and Gas. Is this really the energy story of the century? •

Wayne Allyn Root, Vice Presidential Nominee 2008, best selling author, relentless self-made multi-millionaire entrepreneur •

John Perkins, bestselling author of "Confessions of an Economic Hit Man" •

Joe Sugarman, the original infomercial and copywriting expert, and founder of the sensational global phenomenon that is "BlueBlockers"

And of course... the WMI staple... Wealth Creation! No fewer than EIGHT, game-changing wealth creation opportunities... no longer are these strategies reserved only for the elite 1% of the world 

WMI’s 14th m2 Wealth Conference is set for December 5-8 at the Westin, Maui. This is an extremely popular destination at a highly desirable time of year and WMI expects available space to fill up quickly.

We look forward to seeing you in Maui!

 

 

Sunday
Oct302011

European Bailout Package Announced - $1.3 Quadrillion Derivatives Implosion May Be Next  

European Bailout Package Announced  - $1.3 Quadrillion Derivatives Implosion May Be Next 

The announcement from the EU has been made, with the initial size of Europes bailout package announced as $1.7 Trillion USD. Details? What details! 

As I write this (at 3:30 am cst), the stock markets seem to like the news, with Dow futures up 180 points, and similar gains happening globally. The question is, will the party last? 

First, the details as we know them…followed by the HUGE risks that I see coming from this plan.

Here’s what we know so far, and one specific part of it is going to scare the ---- out of the $1.3 quadrillion (in size) derivatives markets, specifically the CDS market, or Credit Default Swaps. 

First, the size. Trust me when I tell you that the announced size of $1.7 trillion USD is just the beginning. This “European TARP”…or Euro bank bailout, which is exactly what I predicted would be announced…will allow for a 50% soft default on Greek government debt. This IS a sovereign debt default, and incredibly, Greece got off without any real forced austerity measures. I can tell you immediately that every bankrupt country across Europe is licking their chops at this deal. Why? Because Portugal, Italy, Ireland and Spain just realized that this is the EXACT deal that they will be able to negotiate as well! And, they will be able to do so without having to announce major changes to entitlement programs, or any other forced austerity measures that would have reigned in their ridiculous levels of beyond bankrupt spending.

Second, and this is where everyone reading this should be furious, it’s clear that a large portion of this bailout money will come from the International Monetary Fund, or the IMF….folks, that’s me and you….taxpayers of the world! How much you ask? Well, even without the official details right now, I can tell you that based on history, my educated guess is that about 20% will come from me and you…so, let’s call it $340 billion USD or so. Hey, this bailout stuff is fun, huh.

Third….next up we will learn how the European Central Bank (ECB) plans to participate in the party. Following the model from the US TRAP and stimulus bailouts of 2008/2009, we saw Ben Bernankes Federal Reserve initiate massive amounts of paper money printing, which they called Quantitative Easing…first QEI and then QEII…which combined totaled more than $2.5 trillion (just that we know of), which was used to by our OWN government and mortgage debt. So….we can look for the ECB to do pretty much the same thing…they will soon begin printing massive amounts of Euros, which will be used to buy European debt. Again, because NO ONE else will!  

Folks, the financial playbook that we have seen play out in the US will now be played out in Europe…almost to a tee. Here’s what it means for our future….massive currency inflation…and eventually, hyperinflation.

Finally, here’s my big concern from what I’ve seen announced so far. This “soft bailout” of Greece, is amazingly being pitched as a “non-default”…meaning that investors that purchased CDS’s against Greek debt as insurance against the exact default that is now taking place, may see their insurance policy (CDS) deemed nearly worthless! If this takes place, I cannot emphasize how big of a deal it could wind up becoming.

Consider this, if the worlds largest investors…those that dominate the credit default swap market, along with all derivatives markets…begin to fear that ALL of their derivatives holdings could be made near-irrelevant at the drop of a hat, then we could be early witness to complete insanity in this MASSIVE and UNREGULATED $1.3 quadrillion marketplace.

How big is a quadrillion you ask? It’s a 1 with 15 zeros. Or how about this…it’s a actually a thousand trillion. It’s also an amount that’s more than 60 times the entire globes GDP. So…if the next collapse starts in the derivatives markets…well, it would make the economic crisis that we’ve seen so far look like a walk in the park.

For now, it looks like the powers that be are willing to do anything and everything to re-inflate the worlds bubble economy. No deleveraging, no real austerity measures, and no economic sanity.  We will continue to aggressively buy gold and silver. And, all of this money printing and debt issuance makes shorting government debt all the more attractive.

The VRA is perfectly positioned to take advantage of every idiotic move our powers that be make. Those that have the courage to make these investments will be the big winners over the next 2-3 years, as this $50 trillion transfer of wealth enters its next phase.

Also, do whatever possible to make it to WMI's 14th m2 Wealth Conference, December 5-8 in Maui. More details on this in the next update! 

Kip    

 

 

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