Badger Blog Alliance

Sic Semper Tyrannis

Sunday, November 23, 2008

Prepare for the coming economic calamity.

Do you really think that the actions of the new administration will cure our nations economic woes? Has socialism worked before? Don't believe it was the free market that failed. It was Government that failed. Last year on November 7th, Mark Pribonic who writes at OnTheBorderline said:
Today the Dow Jones Industrial Averages sold off more than 350 points and the S&P 500 closed below 1490. Besides being rattled by earlier credit revelations, there is growing worry of a coming dollar crisis, especially after China announced it may unload its dollar holdings ($1 trillion) for more stable currencies. This didn’t stop one Federal Reserve Governor from talking about the need for further rate cuts. Needless to say the dollar got pummeled setting lows against some currencies not seen since 1950.

The S&Ps closing below 1490 is disconcerting to me. This is not to be construed as advice, but the breaking of 1490 may be the beginning of a long market slide. For quite some time, I have concluded that a market sell-off of 40% would not be out of the realm of possibilities. In terms of the Dow Jones Industrial Average it would mean a pullback of over 5,000 points. My worst fears are of a financial calamity far greater than the Great Depression, and for that we can blame our ignorant belief in government.
He was right on.

See Pulling Back the Curtain dated November 7th, 2007

To see Marks latest read
A Virtuous Government Bailout

While your at it, digest this
The Myth that Laissez Faire Is Responsible for Our Financial Crisis

Folks, we can tip toe around the fact the country is in the midst of an economic problem. OnTheBorderline has been warning that this was coming for a long time. We've been in cash for well over a year. We've been buying gold as well. When we talk about a coming revolution, this is not to be taken lightly. Will you be prepared? The commodities in the coming years will be food, gold, guns, and ammo.

While, I have a heavy investment toward those commodities, I have also made astute decisions in my 401k and had a 59% third quarter. Yes the last 10 weeks have cut into that, but only 11%.

See Trend Research Institute where they have predicted successfully the 1997 Asian Currency Crisis, the subprime mortgage collapse that what is occurring right now that will be known as “The Panic of 2008,” adding that “giants (would) tumble to their deaths,” which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.

They have a bleak future ahead for us. Take this how you want but I'm having a good look.

Chris -