Saturday, June 5, 2010

The Coming 2010 Economic Crash

“A picture is worth a thousand words” But to be brief lets sum it up; 2010: Dollar death and economic crash. I believe that it is highly possible that the death of the dollar and an economic crash will occur in the summer or fall of 2010. There are many reasons why I see this as a distinct possibility.

First we have the recent article listing 24 economists saying that the economy will collapse in 2010.

Bob Chapman - First 6 months of 2010, Americans will continue to live in the 'unreality'…the period between July and October is when the financial fireworks will begin.

Gerald Celente - Terrorist attacks and the "Crash of 2010". 40% devaluation at first = the greatest depression, worse than the Great Depression.

Igor Panarin - In the summer of 1998, based on classified data about the state of the U.S. economy and society supplied to him by fellow FAPSI analysts, Panarin forecast the probable disintegration of the USA into six parts in 2010 (at the end of June – start of July 2010, as he specified on 10 December 2000...

Then we have the latest Shape of Things to Come report which says; "The data suggests that the final [convulsions] of the [dollar death] is here (summer and fall 2010)."

We have the info from cycle watcher Steve Puetz. "Several years back, a cycle watcher named Steve Puetz attempted to see if eclipses and market crashes were somehow related. He studied eight of the greatest crashes in financial history, from the Holland Tulip Mania of 1637 to the Nikkei of 1990. He found that market crashes tend to occur near full moons, and that the greatest number of crashes start after the first full moon after a solar eclipse, when that full moon is also a lunar eclipse. Puetz found that all eight crashes occurred six days before to three days after a full moon that occurred within six weeks of a solar eclipse. The odds of that being a coincidence, Puetz calculated, are less than 1 in 127,000." BTW there is a total solar eclipse on July 11/12 2010. The next full moon is July 26, 2010.

We also have the 2009 George Ure interview with Ach Crawford.

With the Bad Part of 2010
Had a most interesting conversation with Arch Crawford last night about what's ahead, not only for the ugly part of this year's market (wait a week or two and you won't be saying "huh?") but also about the really ugly part of 2010; which is you want to mark it down should show up sometime between late July and Early August of next year by his work.

Crawford ( about $250/yr ) has been writing a financial newsletter for about 32 years and was "ranked #1 market timer for the 2008 calendar year" by Hulbert's Financial Digest. What's interesting about Crawford's work is that it's an astrologically based report - although other cycles are considered, too - which makes it interesting when a person (like me) is trying to line up periods where multiple predictive systems are all pretty much saying the same thing...

But more worrisome is his take on the mid-2010 period. "It's about the worst we've ever seen," he told me.

How bad is bad?
"Well, when something is worse than the Revolutionary War, World War I, the Great Depression, and World War II, that's bad - it's the worst I've seen the charts in over 200-years...

Interestingly, this also corresponds to the predictive linguistics work what has the big showdown basically between good guys and bad guys there; a time when the global mass of humans will be seeking revenge/change/retribution from the PTB
. UrbanSurvival 5/28/2010

We also know that the powers to be have planned for America to fall in order for the New World Order to take it's unrightful place. Super powers and world dictators don't get along too well. So with the New World Order approaching fast I believe that the dollar is headed down the drain and soon. I originally thought that we might have seen the dollar die on 2/22/2010, the date encoded on the dollar bill, but it turned out that date was associated with the destruction of the constitution, as I also speculated was a possibility. So though we cannot be certain from what I have gathered it looks like the crash will be July-Sep 2010.

What might a dollar death look like? Below is an excerpt of a fictional account of what might happen when the dollar dies

The Day the Dollar Died
02:35 by Administrator. Filed under: The Day The Dollar Died Series
by John Galt

November 18, 2009
The following story in italics is a potential fictional time line for the day the dollar died. I hope not to instill fear or loathing but to give everyone some perspective on a POSSIBLE outcome which does not really take much of a reach to come to any conclusion. Despite popular belief and promises from those who wish to rob you of your savings and investments, the collapse of the dollar might just be an event measured in hours, not days as their control is not what it seems…..

Mike was less than an hour from home in Minnesota after dropping his load off in Fargo but knew he needed to top his tank off this Sunday evening to insure his rig would make it home. He pulled into the Petro Truck Stop just outside of Fargo and hopped out of the cab into the bitter twenty below temperatures which he could not believe had already hit at ten o’clock at night. He slid his fuel card into the pump waiting for the next prompt when the “SEE ATTENDANT” message flashed in the screen. He blustered, figured it was another card problem and whipped out his Master Card and slid it in after the pump reset and again the “SEE ATTENDANT” message flashed up. “What the hell is going on?” he thought to himself as he wandered into the long line of drivers boisterously yelling at managers and clerks alike.

Tom finished up his shift on the docks at the Nestle warehouse in Hampton, Georgia at exactly 11 o’clock at night and decided that because of the scuttlebutt he had been reading on the message boards, it may not be a bad idea to pick up a few cans of food and some toilet paper at the local WalMart Super center. Even though it was a Sunday night, they were always stocked and it was just five minutes out of the way to his home. As he walked inside the store, his mouth dropped. It looked like the day after Thanksgiving sale with every register open and ten plus people deep at 11:30 p.m. “Oh my!” he gasped as he walked in grabbing the last shopping cart with the wheel that was half locked up. As he walked as fast as he could to the aisle with the paper goods, he looked at all the shelves then noticed the clerk who looked stunned himself. “How in the SAM does WalMart sell out of Toilet Paper son?” he screamed at the eighteen year old kid. “Sir, I don’t know what is going on. Is the world ending? I’m a little freaked out!” the clerk stammered. Tom realized that he was not to blame and as he calmed down said to the kid “Son, I don’t know what is going on either. It must be an ice storm on the way. Are you folks getting another truck soon?” The clerk said in a very low voice “Sir, I think there are two coming at 2 a.m. I would wait here if I were you.” With that information Tom slinked outside to his car and called his wife at home just before midnight to tell her he would be staying to wait on the WalMart trucks.
1730 ET…

February 21, 2010
It was a typical Sunday night in my household, a tremendous dinner, nice weather in Florida and of course a chance to chat with my friends online about the events of the world. The big news was that on Friday, February 19, 2010 the US Dollar Index closed at 69.07 far below any level in history and of course shattering all known technical support. As I grabbed a glass of Port and settled in front of my computer at 5 p.m. Eastern to watch the Asian fireworks and watch Bloomberg and CNBC-Asia on my computer, I noticed the Middle Eastern markets closed in horrid shape. The Israeli market closed three hours after the open and down 22% for the session. The Saudi markets closed after one hour and down 41%. Other regional markets did not open or were shut down due to national emergency declarations. As I tuned in expecting the usual repeat on Bloomberg, it was live with a somewhat excited news babe reading information from a blog reporting “rumors” that the CEO’s of Citigroup and Bank of America were in meetings since 11 a.m. with the New York Fed. At that point, it was time to put the port up and break out the hard stuff…
1000 ET

(February 22, 2010)
The Canadian markets opened up 10% in ten minutes then rolled over down 31% by 10:30. The scary part was that the Canadian dollar kept on rising even though commodity trading was suspended and everyone was wondering just what gold would be priced at if the markets were allowed to trade.

As the day wore on, it was a blur of shocking story after shocking story. The President and his entourage arrived in Switzerland along with other world leaders but little was discussed or disclosed. The reports of banks being fire bombed by nuts throughout parts of the U.S. made the international news and caused all of us to feel somewhat uncomfortable as to what was next. The 8 p.m. interruption of normal prime time programming with a FEMA NEWS ALERT which lasted ten minutes and was repeated at the top of every hour with little if any information caused even more panic in the masses. Today I watched our dollar die in a matter of hours even though I knew how it was killed months if not years ago. I just wondered how bad the announcement out of Geneva was going to be as our bankers and politicians sold our souls out to save their rear ends.

I also wondered if I would ever sleep again.

Whether this is the way things play out or not, I do not know. But it gives insights as to the possibilities of what might occur. Look, I am not trying to scare you, I am trying to tell you that a financial tsunami may be coming so that you can prepare as best as possible; so you can ride the wave and not be wiped out by it. I offer my insights on "riding the wave" below which is not to be taken as financial advice but I will share with you my financial strategy of what I am doing to survive the eventual death of the dollar and its possible ramifications. Again, this is not financial advice.

GOLD, GOLD, and more GOLD! (Note: I am not a part of the gold industry) I am trying to accumulate as much gold as possible in my physical possession. Why? Gold keeps its value vs. inflation and gold will most likely increase in value during a currency collapse because of increased demand. In fact the Global European Anticipation Bulletin predicts a demand increase in gold due to collapsing currencies in 2010.

At the same time, the general context of the bankruptcy of an increasing number of states and other authorities (regions, provinces, federal states) will entail a double paradoxical event of increasing interest rates and the flight out of currencies towards gold. In the absence of an organised alternative to a weakening US Dollar and in order to find an alternative to the loss in value of treasury bonds (in particular US ones) all central banks will have, in part, to « reconvert to gold », the old enemy of the US Federal Reserve, without being able to state the fact officially[2]

I have seen estimates that put gold during a currency collapse at $6000 an ounce and more. Another factor to consider regarding gold is that the gold price has been artificially suppressed and the lid is getting ready to be blown off the whole gold suppression scandal and when that happens, look out, gold will sky rocket. So these factors will be positive for the gold price. Therefore I want to own gold for the mere fact that it preserves my wealth and possibly may increase my wealth.

Now what kind of gold do I want to own? Non confiscatable gold. Of course you know gold was confiscated in the past and I believe that in a crisis they will do it again! From what I have read here is how I see it playing out if confiscation occurs; they will first probably make it illegal to own gold bullion and require all citizens to turn in their gold bullion under penalty of fine or imprisonment, just like they did in 1933. Then they will probably send the military to retrieve all the gold out of the large private holding facilities (IRAs), and will order the banks, which were previously shut down, to go through all the safety deposit boxes and turn in all the gold found there.

Some have told me that they would not turn in their gold because the government would be performing an illegal action against them. But if ownership of gold were made illegal and you kept it, what good would it be? Stores could not legally accept it. It could only be used for barter with individuals and you would be risking fine or imprisonment. Personally I would rather avoid that conflict and own non-confiscateable gold, if there is such a thing.

I believe that there MAY be 2 forms of non-confiscateable gold; "Numismatic" gold coins and Chinese gold coins. The first time they confiscated gold they made an exception for numismatic coins and if they confiscate it again they MAY make the same exception. What does the treasury define as a numismatic coin? The most recent treasury document regarding the definition of numismatic has defined numismatic gold as coins that are at least worth two times their bullion value. In other words if a one ounce gold coin was worth $1500 when gold was at $1000 per ounce then it would be considered as bullion. The coin would have to be worth $2000 or more to be defined as numismatic. Thus if they confiscate gold and make an exception for numismatic coins, as they did the first time around, and use this definition then a coin having a numismatic value worth twice its melt value is the type I want to own. BTW some think the same goes for silver too.

The other loophole may be Chinese gold coins. They MAY not be subject to confiscation because they are an actual foreign currency. Read what this author has to say about this.

This is being caused by a tiny quirk in the law, wherein the U.S. Treasury cannot call in for redemption, forced or otherwise, gold bullion coins held by U.S. citizens which are denominated, marginally or otherwise, in a foreign currency which is not “Free to Trade” and as such constitutes a “non-convertible currency” by the Bank of International Settlement (BIS). This, in turn, makes the Chinese Gold Bullion Panda Coins, which are issued by the Bank of China, the only officially authorized issued gold bullion coin of a major foreign government, exempt from U.S. Treasury redemption. Why? Because, Chinese Panda coins are denominated in the Yuan, China’s official currency, which is a non-convertible currency, in accordance with BIS’s definition.[3]

So to preserve my wealth and possibly create some I am seeking to acquire as much Chinese gold coins and numismatic gold coins (and silver) as possible.

Another strategy I am using to preserve wealth and possibly increase it is by purchasing precious metal stocks. I believe that in a currency crash gold mining companies would rise in value. There are many gold mining stocks and funds out there. I like GDX it is a conglomeration of some of the best gold mines in the world.

Again none of this is to be considered as financial advice I am just sharing my financial strategy to survive the dollar death.

Other factors to consider in surviving the death of the dollar, which I will not elaborate on in this article are;

1. Water—get a water filter
2. Food—freeze dried foods
3. Shelter—alternative heat source
4. Protection—shotgun and ammo/ a safe to store valuables
5. Cash—have some on hand

You can read Pastor Chuck Baldwin’s newsletter entitled “A Suggested Survival List” for a further discussion on that topic.

In closing; Prov 22:3 says “A prudent [man] foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” I know that the dollar will one day collapse and I believe this will most likely occur or begin to occur in the summer and fall of 2010. I could be wrong but that is my thinking at this time. In light of the possible scenarios and ramifications of the coming death of the dollar, whenever it happens, I have come up with the above strategy to financially survive that time, if that is possible. I am sharing my strategy with you in case it might help you. Again none of this is to be considered as financial advice.

Regardless of what happens God our heavenly Father will take care of His children but that does not negate doing your best to prepare for the future. Will the financial collapse happen this summer? I do not know for sure, but I do know that one day before the rapture it will eventually occur. Therefore I am preparing as best I can through the leading of the Holy Spirit trusting God through it all.

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1 comment:

  1. Truly, the economy is really crashing nowadays. Even the biggest and richest countries experience economic recession. We cannot really avoid it, but somehow we can find ways to make our economy survive to this crisis. Estate lawyers in Ottawa once held an open forum for us businessmen and tackled everything about handling money. And we can even asked them for some advice on some finance issues and how to boost our businesses and finances.