Expert Predictions for Economic Calamity in 2010
I am not a financial expert or advisor. However, I can relate what others
are saying who supposedly are such.
We have just gone through what many call the bursting of four economic bubbles. That is, housing, stock market, private debt, and discretionary spending.
(Discretionary spending is that which people spend that is not absolutely necessary to their survival. Food, water, heating, housing, car & gas, etc. are all things we cannot live without. When these take up all of our income, we then do a whole lot less shopping for extra items, and that greatly affects every business that produces items to be sold to the public.)
Each of those bubbles were tied to each other, so when one broke, that caused the pressure for the other's to break. I do not have to belabor on what that caused. You all already know that. What you may not know is that there are two more that will soon break, and when they do, it will be worse than what the first four were, for even those will be further aggravated.
What are those two??? The U. S. Dollar, and the U. S. Government debt. I would have to write a book to explain why. Just know that it is coming. The U. S. Government cannot continue borrowing at astronomical rates to try and keep things afloat, and not have serious consequences, any more than we as individuals can. The day is fast upon us when there will be nothing left to back the borrowing, and it will come to an end. Woe unto us all at that time, for even the Dollar will significantly lose value at a rapid pace. Then it will be that the world's economy will be reeling with the pain of a global mega-depression.
When this happens, interest rates will more than likely sky-rocket, inflation will be very high, unemployment will soar, the U. S. Stock Market will crash, the Real Estate Market will also crash even further, the discretionary spending will dry up, and the number of banks will be greatly reduced as they go bankrupt. We are in for some very troubling times.
Without giving proof, I say that all of this has been planned, and planned for the bringing forth of a new world economic order, with an international currency that eliminates national currencies. This then will prepare the world for the total economic computer system which will eliminate all cash. That will make cash under the mattress as useless as an old typewriter. That will still take time to implement, but it is coming, and will arise from out of the planned world wide economic chaos.
The below comments by respected people, could be wrong. I hope they are, but the evidence is certainly very strong to back up what they are saying. In any event, it is better to prepare for the worst and it not take place, than to not prepare, and IT DOES!!!
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This doesn't look good from any angle & for those that have money in shares please remember this; no computer in the world can spit out an answer that some person has not put in there----, sooooo, all these rises are just to suck more people into throwing more money into shares so that when it all collapses there is much less money/freedom to do anything - like survive!
Subject: FW: FYI: Predictions for the rest of 2010 LEAP
20/20 Joseph
Meyer WALL
STREET JOURNAL- (2/2010) Bob
Chapman ==== The Gold Bull
Market… [Excerpted
from the Casey Research newsletter] Q. At what
price do the gold stocks catch fire? A.
Some years ago, we had someone spend the better part of a week in a
musty storeroom full of old Canadian newspapers, paging through past
issues and recording the price and volumes of the gold stocks during the
last big run-up, in the 1970s. We then compared that data to the gold
price in inflation-adjusted dollars in order to determine the price that
the broader investment public began piling into the gold. The number
worked out to about $1,250 per ounce in today’s dollars. In other
words, when gold decisively takes out $1,250 an ounce and holds above
that level, if history is a guide, we may start seeing the average guy
on the street – and the institutions – start to pile into the
stocks. Of course, while
interesting from an historical perspective, that analysis has no
scientific basis. The key point, therefore, is that during the last big
gold bull market the public wasn’t involved in the gold stocks when
they should have been – in the run-up phase – but rather only piled
in after the price of gold bullion soared, relatively late in the bull
market. So far, the average Joe and Jill are just not in this market.
But, they will be. Q. How high
do you think gold will rise? A.
We were recently asked how high we thought the dollar price of gold
would reach in this bull market. My response was that
there really is no way of actually forecasting that number, for the
simple reason that, in a fiat currency regime, the underlying unit of
valuation is so intangible. Let’s say you lived in Zimbabwe some years
ago, and owned an ounce of gold. One day your ounce might be worth 1,000
of the local currency units. A year later, it might be 1,000,000. Or,
even 10,000,000,000. While the U.S. is no
Zimbabwe – at least not yet – its currency is just as intangible,
for the simple reason that the government can print the stuff pretty
much at will. To say that gold will go to $5,000 in the current crisis
is really just another way of saying that the dollar currency unit will
fall by some significant degree. But, given the uncertainty in the
economy, and unknown of what actions the government and the Fed might
take next, we really can’t know how much purchasing power the currency
unit will lose in the months and years just ahead. To date, the
government has been extraordinarily – breathtakingly – willing to
abuse the dollar. They have largely gotten away with it so far, but that
certainly doesn’t mean they have gotten away with it. When the time
comes for the piper to be paid, we suspect he’ll be paid pennies on
the dollar… which could easily result in gold trading for $3,000,
$5,000, $10,000 per ounce – but, who knows, maybe even
$10,000,000,000. The point is, given
the choice between dollars and gold, you are far more likely to preserve
your wealth over the duration of this crisis better with gold. Q. Is the
gold bull market getting old? How much longer can it last? A.
Having been around and actively involved in hard assets – as the
editor of “Gold Newsletter” and the conference director of the New
Orleans Conference – during the last big gold bull, I hope I can
provide some useful perspective. For instance, I can
well recall in late 1979 when all of the many gurus of the day were
predicting gold would keep going higher and higher still. Well, as we
all know, it didn’t. What’s interesting
about this time around is that there is almost no scenario we can
envisage that is going to kick the legs out from under the gold market
– at least any time soon. In contrast, in the late 1970s, the gold
bulls coulda/shoulda seen that the Fed had a lot of room to act – i.e.
by pushing up interest rates – in order to tackle the price inflation
that was the key driving force in the soaring gold prices of the time. Today, the situation
is profoundly different. Starting with the fact that this is, at the
core, a debt crisis. And the one thing you can’t do in a debt crisis
is to encourage interest rates to rise. Look no further than Greece for
that lesson. So, we have an
unprecedented monetary inflation, truly out-of-control sovereign
spending and debt, unprecedented levels of private debt, unprecedented
trade deficits, a massively overbuilt and overpriced post-bubble real
estate market and, importantly, near historically low interest rates. So, we have to ask
ourselves – other than continuing to exercise its powers of fiat money
creation – what ammunition does the government have at its disposal to
address the structural problems of today’s economy? And, of course,
actually creating more money and more debt isn’t addressing the
structural problems, it is compounding them. Of course, the
government can default on their sovereign obligations – an option I
think we’ll see Greece and others of the PIIGS take, and probably
fairly soon. They can also
continue to inflate, which we expect them all to do. And they can… no,
actually, I think that about sums it up: default or inflate. In either
scenario, gold is going to be seen as the ultimate safe harbor. Q. Won’t
the government see gold as a threat to its fiat currency and try to do
something about it? A.
Of course, governments might try any number of stunts that could affect
gold. For example, raising margin requirements to curb playing the
markets with leverage, or even attempting outright confiscation. All we can do is to
monitor the situation closely and try to anticipate their next moves in
order to get out of the way. A number of people I know have opened
safety-deposit accounts in other countries as one way to hedge their
bets against confiscation. Others have bought numismatics – but be
careful on that front, because that can increase illiquidity. It is not out of the
question, in my view, that before this is over we could see a
revaluation of gold in order to relink the U.S. dollar to it – because
sooner or later, as the crisis reaches its climax, something is going to
replace the fiat currencies – but at this stage it’s impossible to
guess what that will look like. If we did see a return to a gold
standard, then the government could actually be responsible for sending
gold up by many multiples.
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