Economy

If you thought the global financial crisis of 2008 was difficult, wait till the sequel comes to your doorstep...An unprecedented financial storm of unknown scope and dimension is upon us...there is a civilization-scale catastrophe taking place and there will be little or no recovery from it for as far as the eye can see into the future. Words: 1450

SocGen has published a fantastic, must read, big picture report which compares the world in the 1980/1985-2000/2005 time period and juxtaposes it to what the author, Veronique Riches-Flores, predicts will happen over... the period from 2005/2010 to 2025/2030. She sees dramatic changes but, unfortunately, they will not be pretty. Let's take a look at what the report has to say about the future. Words: 3025

Many people missed the market’s enormous appreciation during the latest equity bull market because they were late to the game or chose to sit on the sidelines. If you’re one of those people on the sidelines who has been debating whether to get your feet wet in today’s market—now could be your chance. Citigroup says there’s roughly a 90% chance markets could move higher over the next six months—and a 97% chance over the next year—according to historical data. On average, the market bounces 8.9% the following six months and 17.3% the following year. Words: 1292

The next crisis will be a Crisis of Faith pertaining to the US Federal Reserve... when the market begins to realize that the Fed CANNOT backstop the entire financial system (it never could but most people hoped regardless) - and...when this happens, THEN the REAL crisis will hit and it will make 2008 look like a picnic. Bernanke has [already] admitted publicly that he’s clueless [as to] what’s going on [and this] is a MAJOR step towards the world realizing that he’s lost control. [As such,] if you’re not taking steps now to prepare for what’s coming, you need to start moving. [The REAL crisis is coming - soon! Let me explain.] Words: 1018

The inability [of Congress] to reduce spending and tax its citizenry represents a competitive disadvantage for the U.S.. It is the mark of a country that cannot keep its fiscal house in order, does not care about repaying its debts and, [as such, it] may well be heading for collapse. Words: 978

Many investors believe the market will rise if the economy is growing and sink if it's shrinking but that is the wrong way to think about it. Instead, the real focus should be on whether the economy is growing at a slow pace or a moderate pace. Indeed, with 2% growth, the stock market could steadily fall. Yet with 3% Gross Domestic Product (GDP) growth, the market could surge. The difference between 2% and 3% may not seem like much, but it is. [Let me explain.] Words: 730

The recent outperformance of precious metals, combined with budget problems in the United States and parts of Europe, has prompted some to speculate that gold or silver will become the next international reserve currency [but in my opinion that is highly unlikely. As such, investors would be highly encouraged to give pause [before] allocating a portion of their portfolios to precious metals. Let me explain further.] Words: 1094

A hurricane of debt, deficit, and demographics is heading to the shores of all developed economies. With it will come high inflation rates, high costs for credit, low growth rates, and weakening developed country currency value. Ben Bernanke in a helicopter will not stop the hurricane’s devastating path. More stimulus packages will not stop it. Blaming the Chinese for lending us too much money will not stop it. Pretending that the storm isn’t coming will most assuredly not stop it. It threatens to derail the lukewarm economic recovery and to alter forever the heretofore path of robust growth for the developed world. In a sense, debt, deficit, and demographics will reset the world to a “New Normal”. Words: 3341

While most Western countries have serious debt problems none of them has a fiscal crisis as bad as that of the United States. In spite of that, however, the U.S. corporate-controlled media has been obsessively shining the spotlight on the so-called “PIIGS” of Europe rather than on the staggering financial crises facing America. If that weren't bad enough, it has become impossible to trust the few economic statistics that are "fed" us. Frankly, there is a conspiracy of silence about the truth but there are ways to become better informed. Words: 868

Get ready to be financially conscripted into a citizen army assembled for the greater cause of saving America from being swamped by a tsunami of debt as a new policy initiative known as "financial repression" takes hold. ‘Repression’ rhymes with ‘depression’ and that is what we may have to look forward to as rampant price inflation and permanently lower living standards take hold as a result. Let me explain. Words: 1797