This is from the Bob Chapman website under an article entitled “Learn to see through the economic data for what is really going on”.
By Daniel at 27 September, 2009, 9:58 pm
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I pulled two interesting paragraphs out of the article.
Today some 16 million homeowners have negative equity, which for them is a nightmare. Most of those who speculated in real estate have been wiped out and commercial speculators are next. By the end of 2012, 70% of Americans with home loans will have negative equity and those who own homes outright will suffer losses in equity of 40% to 70% of the value of those homes. The largest source of American’s net worth will be wiped out. You might call it the pauperization of Americans. Couple this with no jobs or poor paying jobs, due to free trade and globalization, low wages, higher inflation, and deflationary depression, and you have the stuff revolutions are made of.
Until the next election the economy should go sideways to slightly better. Next summer through November should be best, but that will be the end of somewhat better times. The parallel movement you are seeing is the result is the massive injection of money and credit over the past year. Next year you will see results of 80% of the stimulus program. This period should have been spent redesigning the international monetary system but instead it was used to pick a right spot to finally destroy the world economy as we know it. In finality it will be every country for itself. Some will survive and some won’t. The world is going to be full of revolution. This coming year will be full of rising unemployment though not at the rates seen this year. More foreclosures and bankruptcies, a fall in the dollar, and other social and monetary shocks. More countries will move away from the dollar as it relentlessly weakens versus other major currencies and gold and silver.
October will bring a winter of discontent, a new period of adjustment as hundreds of thousands of Americans lose their unemployment checks.
The entire article is available at The International Forecaster.com. Folks, I believe what he is saying we may have a brief respite before the unthinkable happens. Kind of like the Titanic bobbing up and down in the water after the front half broke away. They had a few minutes to contemplate their next move before the ship went entirely under. I know in my family, we are preparing and everyone should be. This thing is going to get ugly. If possible, get your financial affairs in order. In my humble opinion, there is no recovery possible without family sustaining jobs and I personally don’t see any of those being created in the future. This much touted recovery has been nothing but a carefully and skillfully crafted piece of trickery and I believe you would do well to proceed in your daily, personal, and financial life with great caution and concern.
Honest Observer
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