End of America - what is it?
What's the truth behind The End of America video that's being advertised online and on the radio?
I watched the whooooooooooooooooole thing.
Here are my thoughts: Author Porter Stansberry's presentation is a replay of pitches for similar investment schemes that were popular during the 1980s.
I remember hearing, for example, on two different occasions during the 1980s, William Kennedy (Western Monetary Consultants) speak, following roughly the same outline as The End of America. The current events, of course, have been updated, but the general flow of ideas is the same. Kennedy published these ideas in a book, Hyperinflation and the Collapse of the Dollar.
I first heard Kennedy speak (in 1985?) at a conference in French Lick, Indiana. Kennedy was among the first speakers on the morning of the second day. During his rambling talk, Kennedy sipped from a cup of coffee that never left his hand. A bad sign.
Kennedy was convicted in 1993 of "racketeering, mail fraud and money laundering in a scheme that bilked investors out of an estimated $37 million."
Someone who worked for Kennedy at the time said in an online discussion: [Annonymous commenter]
I worked at Western Monetary Consultants in the early 80's. We were driven by Kennedy to sell sell sell, regardless of whether metals were going up or down . . . Then we had to constantly make excuses to our clients why they were waiting weeks or months for their metals or coins to be delivered . . . Coming from one who knew him and his business practices first hand, Kennedy is right where he belongs. -- February 17, 2008 8:59 PM
People who haven't had some exposure to an insurance or financial boiler room may not recognize the signs until it's too late. See the Securities and Exchange Commission's (SEC) website for tips on recognizing the signs that you may be dealing with a boiler room operation.
A well trained, experienced financial advisor will help you diversify your assets to protect them, and will explain the risks involved in each choice.
Anyway, what is Stansberry really selling in The End of America?
I don't exactly know, but I have an idea. He mentions buying silver without taking possession of the metal. If his scheme is anything like William Kennedy's "unique silver accumulation program", you'll be offered ways to "leverage" your investment by buying silver with borrowed money. The concept was that the rise in the price of silver was a sure thing, due to the political and economic situation. Kennedy helped investors to take out loans to buy silver, which was held in a vault somewhere. At some point in the future, the investor would sell the silver, pay off the loans, and realize a profit.
There were the other aspects to the silver opportunity of the 1980s -- the Hunt brothers, for instance, who attempted to control the world silver market by investing in silver futures -- that are better understood in hindsight. Nelson Bunker Hunt and his brother are credited with causing the dramatic rise in the price of silver, a rise that at the time seemed to validate the claims of people like William Kennedy. In 1988-89, the Hunt brothers were convicted by the Feds of conspiring to manipulate the silver market
Back to Stansberry and The End of America: There may be other investments, besides a silver accumulation program, that Stansberry offers. One discussion forum I saw described a program for buying farmland in other countries. The commenter named "Ultra" wrote:
Farmland . . . Stansberry has a fund that you can invest in that purhases farmland overseas like in Argentina. Two were gold and silver and selling put options. Thats as far as I got so far.
What's the bottom line on The End of America?
I strongly agree that the US monetary system is in big trouble -- and has been for decades.
BUT -- I strongly disagree with the notion that putting your money into any of Stansberry's schemes, or with any of his "recommended brokers", will protect your assets.
Would you ask the fox to guard the hen house?
PS
It isn't my intention to single out William Kennedy. He is one of the many financial advisers that I can recall from the 1980s who rode the coattails of the disasterous political and economic policies of the US Government. These advisers built compelling marketing campaigns for their products and tapped into some very real and legitimate fears of that time. In that sense, Stansberry's The End of America is retro.
I still have a copy of Kennedy's newsletter, "Western Monetary Report" (Winter 1985-86). To be fair, I'll quote what Kennedy writes on page 17:
Too many individuals who understand the problems with our paper currency, and who know silver will protect their wealth, get into the wrong silver medium and end up losing their shirts.
People who believed that Kennedy could lead them into the right silver medium . . . DID end up losing their shirts.
But it was not the End of America.