2009-2010 depression is not off the table yet.

We are going into a global Greater Depression. There is nothing - nothing - that can be done to stop it now. This has been caused by the greatest credit/debt collapse the world has ever seen and it has been in the making now for decades.

You have two choices:

1. You can continue to believe the headlines and the spinmeisters that all is well and that we can inflate the debt bubble again with more debt

2. You can start to accept that the rules to the game have changed and focusing on the preservation of capital is the most important thing you can do right now.

We’re in for a very long, very bitter economic decline around the world. If you thought things looked grim and seemed to be happening at warp speed last September you haven’t seen anything yet.

Here are three excellent links. I hope you read them. I have been consistent in my posts since mid 2007 that we’re going into a depression. Here’s what David Tice of the Prudent Bear said on Bloomberg over the weekend:

Here’s a great article from Lamont Advisors in the Market Oracle UK:

http://www.marketoracle.co.uk/Article11817.html

And finally, why California is currently defaulting on short term obligations, why bonds will be next and how that will impact the bond market at large by Martin Weiss:

http://www.marketoracle.co.uk/Article11818.html

Here’s some simple advice. Stop trying to point fingers and lay blame here - many were involved around the world and we all benefitted from the ride up. Now, the piper has to be paid.

Three things you can do: 1. Stay employed. Cash coming in is critical. 2. Protect your capital. Now is not the time to get rich but hedge wisely and stay liquid. 3. Stop trying to apply old ways of thinking to a new reality. It’s hard, but you have to wrap your mind around the fact that things are not the same and may never be the same again prior to July of 2008. Accepting this and then doing the things you need to do to be prepared for what might happen are critical for you. Stop worrying about the rest.

Good luck all.

Eich

Related Posts:

• We’re beginning the next leg down: Take advantage of any opportunity to sell.
• Good Read:The Real Cause of Hyperinflation
• Can the U.S. have hyper-inflation?
• Hot money flow? This is wealth destruction pure and simple, not investment money searching for yield like the old days.
• Economic Solutions Poll

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