September 23, 2009

Re: Prediction Debt Repudiation

This is not a recession. The talk on television of a V shaped recovery, W shape, U shape is ridiculous. Why is nobody is talking about a head and shoulders top?

Nothing has changed, I still expect a complete worldwide economic collapse and depression larger than 1929.

The stock market index should continue up until 2011 to early 2012, then crumble. It should take at least 15 years to show signs of recovery. There will be few places to hide. Did you know during the depression, real estate sold at auction for less than $1 - they called them penny auctions.

Watch for the upcoming cycle of debt repudiation. Perhaps it will come in the form of an interesting court case of First National Bank of Montgomery vs. Jerome Daly, the jury decided the bank loan was money created out of thin air, and was not "consideration" and the mortgage was void. Just as interesting, the court rejected the banks appeal because the court fee was paid in paper money, which is a debt instrument, not real money. The coming debt repudiation cycle can also mean repudiation by goverments. Investing in debt instruments is not going to be a safe place to hide.

As I stated earlier, there are many long term cycles - all converging in the next 4 years. This is not going to be good.

Expect unemployment of over 25% - larger than the 1930's, hyperinflation, war, food and water shortages... famine.

The good news is I am warning you, and you still have time to prepare.

Here's a decent gold dealer with a small premium over spot prices. http://www.kitco.com

I still expect a rebirth or destruction of the Declaration of Independence in 2011. This means the health care and cap and trade legislation will have to pass despite majority opposition to piss off the majorty. The USA is transforming to Communism and a one goverment ruling many nations.

I went shopping for ammunition and the gun dealer was completely sold out of what I needed. He said when he gets it in, his supply is sold out in a week. I'm not the only person expect anarchy.