The Morgan Report:
From
January Edition
This month is our
huge annual
January 2009
forecast issue (30
pages total) and we
started with a quote
that nearly every
visitor to this
website knows rings
true...
“It is impossible to
grasp the meaning of
the idea of sound
money if one does
not realize that it
was devised as an
instrument for the
protection of civil
liberties against
despotic inroads on
the part of
governments.
Ideologically it
belongs in the same
class with political
constitutions and
bills of rights.”
Ludwig von Mises
Annual Forecast
Clip...
The overall trend of
financial hardship
continues on a
global basis and the
monetary powers are
doing their best to
right the situation.
However, the problem
is too much debt,
and by continuing to
add more debt to the
system we either
risk a
hyperinflation or a
complete mistrust of
the U.S. currency
and therefore a
default. As
difficult as it may
be to comprehend
that the U.S. would
default on its debt,
we only need to
think through that
no buyers show up in
2009 when,
officially, more
than one trillion
dollars
(unofficially,
nearly two trillion
dollars) must be
rolled over.
It is not too hard
to imagine that
China, Japan, and
others already have
enough U.S. debt
instruments (bonds)
and do not want to
buy any more—rather,
they want to greatly
reduce their
holding. This will
put upward pressure
on interest rates,
and bond prices
(values) will
decline. Certainly
we are well aware
that the Federal
Reserve is the buyer
of last resort, but
at some point the
market will catch on
and an unofficial
“death of the
dollar” will take
place.
A pseudo
default—“No one
wants your debt, we
have enough already
and do not trust you
to manage your
affairs properly.”
Before the end of
the dollar we look
for the U.S.
government to begin
new tactics that
force U.S. savers to
put part of their
401(k) retirement
plans into U.S.
bonds and also
require some
Individual
Retirement Accounts
to purchase U.S.
debt.
Read more
We went on to
forecast ten events
we think are very
likely for 2009. We
also provide the
outlook for Rare
Earth Elements by
one of the best in
the industry.
Additionally, we
completed our annual
mining company
review which sets
the basis and the
tone for the rest of
the year for serious
investors. Many tell
us this annual
report alone is
worth many time more
than an annual
subscription. We
reviewed over 30
companies.
This may be the only
newsletter service
that actually
contacts all of
these companies and
asks what is their
plan for the next
year? Frankly, this
much work is
exhausting but we
did it because you
(our members) are
worth it.
The Silver Investor
P.S. We have a
special "gift" or
offer for our loyal
subscribers or
anyone that signs up
by the end of
January. You can
read more about that
by
clicking here...
Next
issue scheduled
Monday
February 2, 2009
