Thursday, April 23, 2009

Planned Economy Or Planned Destruction?

Look way down at the bottom left hand corner of this image from the Chicago Tribune in 1934. Does it sound familiar? Pay very close attention to what is happening in Washington.

The Economist, April 25 - May 1st 2009

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Martial Law and the Coming Revolution

This aired yesterday on the Steve Quayle program.

Special guest was Dr. Steve Pieczenik for 2 hours.

hour #1

hour #2

'There will be blood'

Harvard economic historian Niall Ferguson predicts prolonged financial hardship, even civil war, before the ‘Great Recession' ends


Globe and Mail Update

February 23, 2009 at 6:45 PM EDT

Harvard author and financial crisis guru Niall Ferguson has landed with a thud in Ottawa, spreading messages that could make even the most confident policy makers squirm.

The global crisis is far from over, has only just begun, and Canada is no exception, Mr. Ferguson said in an interview before delivering a presentation to public-policy think tank, Canada 2020.

Policy makers and forecasters who see a recovery next year are probably lying to boost public confidence, he said. And the crisis will eventually provoke political conflict, albeit not on the scale of a world war, but violent all the same.

The Buy America penchant pushed by the U.S. Congress in passing the recent stimulus bill was only the tip of the iceberg.

Abu Dhabi buying Nova Chemicals at bargain-basement prices on Monday is a sign of things to come, with financial power quickly being transferred over to the world's creditors – namely sovereign wealth funds – and away from the world's debtors.

And much of today's mess is the fault of central bankers who targeted consumer-price inflation but purposefully turned a blind eye to asset inflation. (more)

10 Charts Showing a Prolonged Global Recession: Credit Markets, Housing, and Equity Markets point to Lengthy Economic Contraction.

The IMF came out with a global report on the economy in October of 2008. Since that time, the global economy has deteriorated even further and the IMF has issued another report. I went ahead and looked at both documents and from what is presented, there is very little reason to believe we will see any stabilization in 2009. All the talk of a second half recovery would mean that things would need to start picking up on July 1st which doesn’t seem likely with news showing more hits to employment. Currently, we have 24 million Americans that are unemployed or underemployed and with news that GM won’t be able to make its June 1st payment and plant closures, we have to wonder what is going to happen to their 230,000+ worker force? (more)

How low could stock markets go?

By Dominic Frisby Apr 22, 2009
Dominic Frisby

Markets will be a sea of red for a while to come yet

After Monday's capitulation in the stock markets, which, if you read last week's missive, came right on cue, followed by yesterday's formidable rally, it's time to ask, 'Where next for the stock market?' I'll warn you right now – judging by past experience, the outlook is not pretty.

Meanwhile, precious metal investors should be aware that 'The Gordon Brown Gold Rally Indicator' has just flashed a buy signal – more on this below...
More similarities between the bust of 1929 and now

As you might know, I am fond of drawing parallels between 1929 and now. The cause of today's boom and bust – too much credit – was the same as the cause of the bust of 1929, so it is not unreasonable to expect the post-bubble contraction, the environment we are in now, to unfold in a similar manner. (more)