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Monday, December 27, 2010

The Dire Predictions of Porter Stansberry.

By George:

Let me first point out that this is NOT a sponsored link to an Infomercial.  I did receive an email last week that was hawking an Investment Research firm (which I have since heard advertised even on radio), and I was intrigued enough to check out what they were trying to sell (I guess that would constitute a successful advertising).  I listened to the presentation, I printed out the presentation so I could reread parts that piqued my interest, and then I logically analyzed what I learned.

After a few phone calls and emails, I have gotten permission from the Stansberry & Assoc. Investment Research firm to give you the link to their "video". Just click on this link to check it out. Be aware that this is a quite lengthy presentation, so make yourself a bucket of popcorn, a tall glass of soda, and put your feet up. (If you would rather read than listen, just click to close the presentation, then on the next window click on "Stay on this Page", which will give you a readable copy.)

So you're asking, "If you are not getting paid for this, why would you give this company FREE advertisement?" And my answer to you would be, "Because this way I can give you my HONEST logical impression of their presentation. And I WILL do that.

However, I thought that before I give you my analysis, I would ask my readers to give me their assessments first. Listen to (or read) the presentation, then give me your comments. This is either the scariest scenario that you have heard in a long time, or it's the biggest B.S. ever.

Now, I have strong opinions on this, but I will reserve my comments for a few days. I want your feedback! My readers are all intelligent (well, mostly), and I would like to see how many people actually come to the same conclusion as I did. In a few days, I will update this posting and offer my evaluation. I will leave you with this comment - my assessment will not be based strictly on financial considerations.

So comment away, and let us know what your analysis is.

And now you can continue on to my analysis of the "Predictions."  Click here to read : Is it REALLY the End of America?


  1. I enjoyed it, although lengthy. Not many points I could argue but I didn't do the research like he did. It is possible that the implosion of the American star is likely next year. That is based on much information I read and have listened to for about 5 years. The hard part is calling the implosion at the right time. Usually, this stuff creeps, but this does appear to be accelerating. Truthfully, we are in a quagmire where good and evil people play the same damned evil game (disgusting). I do believe there is a bond issue coming, and the forces the world over are making their bets and aligning with their allies.
    Bottom line, we do have a bunch of elite tards running the world (happened decades ago). The good and evil side of this coin want the same things for different reasons. "Evil ones", want America to go down for different reasons. "Good ones" want America to be competitive, which requires us to devalue and gives us inflation. It is a half full, half empty thing and it applies to every issue we could raise. Both sides want world conquest, again for different reasons. It is estimated the derivatives are set around 1.5 quadrillion (not all a loss because of investment) which is unpayable. It appears that these elite gamblers are losing bets and increasing our debt while simultaneously invading countries and increasing debt. This will only be resolved one of two ways. One fix is massive inflation, and the other is, massive war, in which they need our support. Either way will produce the same result and either can be perceived as good or evil depending on circumstances and perception.
    I think he may be right (70%) and I also think that the elites made a bad judgment call as to timing. To finish conquering the world, they need more money. Fewer countries are willing to support that because of their own debt problems. Either side is unwilling to lose this fight, so I believe we will see massive inflation, and if they can pull it off, we will see war. The perception of the people will make it or break it. Remember, inflation is good for business, it's an opportunity to adjust profit margins and justify the same.
    God help us, we will need him through the hearts of the people to save this mess.

    P.S. There is probably an element of advertising in this :)
    We really don't know how fast this will go down, but go down it shall

  2. There is a BIG element of advertising in this. Since I posted this, they have started advertising this Video on both Internet (Drudge Report) and radio (WABC NY) at least.

    I will reference this aspect in a few days when I present my take on this.

  3. This is a rehash of things that people like Howard Ruff and others have said for many years. The difficulty for the predecessors to Stansberry has been that it took a long time to get in our current bind, and few people have taken the warnings seriously. At some point, you can't kick the can down the road any longer and something will happen; the event that does occur depends very much on how many band-aids have been applied and how much "creative accounting" has been used to prop things up. We just printed a trillion dollars to prop up our economy, apparently to no avail (borrowing or inflating your way into economic growth is just not possible, despite what so-called "experts" think). We've been told that dumping in this cash prevented a general collapse, but honestly the only real collapse would have been in the financial industries; the markets themselves would have continued to function as newcomers replaced the disastrously managed old guard. It would have been tumultuous and everyone would have experienced some pain, but we've really walked a long way out on the plank now, and we've just set the stage for staggering inflation and high interest rates, not to mention the federal government defaulting on its debts.

    The only solutions now are painful, and what is really angering people is that those responsible now want the taxpayers to bail them out, after years of mistreating those same taxpayers. But the taxpayers are tapped out, too: They are looking down the road a bit to see that if we keep giving people entitlements of the size they currently receive, we keep spending money we don't have, and we keep making it more and more difficult for small business growth to occur at all, there won't be enough taxpayers around to fund the commitments. Even at 100% tax rates we won't have the money. Taxpayers are feeling trapped, and because of that there may be more than just grumbling in the offing. The most extreme result might be what a Russian economist has predicted: The breakup of the U.S.A. into smaller groups of states with common subcultures and economic goals. War might occur but at this point only North Korea and Iran are seen as real threats by most people, and they don't require the size of conflict necessary to fuel a wartime economic recovery. A breakup of the U.S.A. used to seem far-fetched to me, but I see it as a plausible outcome now, though certainly one that is far down the list of probability.

    To top it all off, we have a chief executive who is utterly unprepared to meet the challenge, and who seems to want to enjoy the perqs of his office without the responsibilities. He is prepared to use and abuse people to get what he wants, but he has no real leadership abilities and he won't make decisions -- just accusations and excuses. Even a president as ineffective as Jimmy Carter very much understood his responsibilities and did the best he could; Obama doesn't even try, and this is adding fuel to the fire. Had we elected a competent president, much could have been done to slow the progression of events or even improve the situation, but Obama's ideology and indecision (and his incredibly poor choice of legislative focus) is taking us ever faster towards catastrophe.

    Stansberry is essentially hyping what a lot of sober thinkers have been saying for a long time (and as a result, many of them have been called lunatics or extremists), though the amount of hyperbole in the presentation is a bit much. Fundamentally, the presentation is correct: We have one hell of a problem, and no leaders present who are willing to do what is necessary to solve the problem. The results are predictable, and it is only a question of when.

  4. Note to Anonymous:

    Are you sure that Obama IS the President? Have you ever looked behind the curtains when he is performing?

    Think about it.

  5. Interesting.. Smaller groups of States. I can envision it. I came about the article through a finance link.. I read it and saw the flash file. I too have sent it out for feedback..

    Like it tremendously. Connects good sources and from what I can tell, acurate intel.

    If the reserve currency status is lost, I think our ship is sunk unless we actually do cirulate the Amer-o.. Our laws and processes have slowed the colapse-effect and he might be well right.. Head to higher ground..

    The Balloon Note is coming due. THe amount of retirees, social committments, aid and no-ceiling bailouts truly are staggering..

    God pleas help us all.

  6. Hi,
    I too have reservations about Stansberry, mainly because he seems to be "the invisible man" on the web. All the links go back to his newsletters.

    Here's my question: is there any way to substantiate any of his "calls" or claims that he touts?

    If you've done your follow-up, I missed it, please send me the link.

  7. There sure seems to be alot of people making money by taking people on a virtual roller coaster ride of impending doom. In this case, it's selling research reports. I'm not sure what else he sells after he gets people hooked in. They all do lots of advertising on youtube, alex jones show, etc. etc. However.... there is some truth in it too. Maybe more truth than most people want to admit. Sigh.

  8. Hopefully I'll have my follow-up article published by tonight. It might (or might not) answer some of your questions.

  9. Funny you brought up Stansberry as I just received an email from them the other day and watched the video. Also did my research. Here's a great little website that helps with researching and includes comments by users and etc. hope it helps!

  10. I just read this report as well. Heard an advertisement on Bloomberg radio.His radio ad really plays up his credentials and touts accolades of some pretty influential investment rags out there.
    Truthfully I'm no investment guru nor economist,however, I have wondered for a very long time about many of the things he speaks of.
    In brevity, just the fact hat the American economic recovery is so heavily dependent on our spending. What about our SELLING!!!!!! Come on people wake up out there!! (not you) I here the same mantra from nearly every talking head out there. "The economy will not fully recover until the American people get out there and start spending more." There are a lot of insane people out there in way to influential of positions I fear!!!

  11. I am not an economist nor a professional investor however, I did read listen ti Stansberry's speal twice.
    I have to admit that he has certainly touched on some points that I've wondered about the last couple of years. Common sense tells me that printing more money has got to be like crapping in your own nest. It not only smells funny but is nothing short of messy business.
    The talking heads have a mantra that just drives me to turn the radio off every time. "A full recovery will be seen when Americans reach into there pocketbooks and spend more money."

    What the heck kinda talk is that??? Those guys are to influential to be spouting off like that.
    Instead of spending we need to be making & selling stuff. Even a bonehead like me with no education can figure that one out! What is up with these people.

    I'm interested to hear more takes on Stansberry's advertisement anyway.
    I'll stop ranting already. :)

  12. Just because this is a long advertisement doesn't mean his arguments aren't true. At the core, he's right. The scary thing is that the only person to get the message out is someone who is advising people on how to survive - or even profit from - it, not someone (really, multiple someones) who is counseling our leaders on how to avoid it.

    Not that they would avoid it if they could! After all, they don't answer to us, the voters. They answer to their corporate masters, the ones control voters like puppeteers by financing the propaganda we repeatedly fall for.

    Bottom line: when this country was founded, it was adamantly AGAINST the accumulation of capital ("wealth" as it was then known). The idea was for every individual to make his own way based on his natural-born talents, supplemented by his own efforts. Now, every rule, every law, every policy - from top to bottom - PROMOTES the accumulation of capital. This is the death knell for the "classless society" and the beginning of neo-feudalism. K3

  13. This man was sued for fraud by the SEC. Perhaps more importantly, this is full of half truths, lies by omissions, and what seems to be a fundamental lack of how foreign exchange and the global economy functions. There are so many things wrong with this, it's too much of a pain in the butt to begin. The guy is an inflammatory wind bag. In all likelihood? He's probably hoping you'll buy stock in companies focused in gold and/or futures in gold so he can get the hell out his own positions in it. Gold will tank...and it will do so LONG before the US economy goes belly up or our currency is less of a factor in international business. The entire idea that the dollar will be ditched as A reserve currency before gold drops....let's say....20%+ is completely idiotic.

  14. If you have any questions about Stansberry and Associates, please call customer service. That number is 1-888-261-2693. We are open Monday - Friday, 9-5 EST.
    For more information on the SEC case, please visit:

    *The link above does not direct you to our website*

  15. Anonymous - If you read my article, you will note that I don't advocate for Stansberry.

  16. Who would have thought that Silver Certificates would be confiscated? Who would have thought that silver coins would be replaced with copper glad coins? Who would have thought that unemployment would again approach Great Depression levels?

    Open your eyes. Buy dried rice and beans, nonfat milk, 2 good laying hens, run up your limit on non-secured loans (charge cards). Save all your nickles, copper pennes and drinkable water. Hunker down and be happy how smart you are.

    Why shoot the messenger?


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