We
understand that Doomsday predictions are aplenty these days, but given
what's going on around the world right now it may be time to revisit the
eerily prescient forecast of an elite insider.
Grady Means is a
former advisor to Vice President Nelson Rockefeller, a former economist
at the U.S. Department of Health, Education and Welfare, and has managed
multi-billion dollar firms over his career. Back in October of 2012
Means penned a commentary and analysis for the Washington Times in which
he noted that "America's fall will take global economies with it."
But
he didn't stop there. Means gave us a target date. There is a very
large probability that the real end of the world will occur around March
4, 2014. The doomsday clock will ring then because the U.S. economy
may fully crash around that date, which will, in turn, bring down all
world economies and all hope of any recovery for the foreseeable future —
certainly over the course of most of our lifetimes. Interest rates will
skyrocket, businesses will fail, unemployment will go to record levels,
material and food shortages will be rampant, and there could be major
social unrest. Any wishful thinking that America is in a "recovery"
and that "things are getting better" is an illusion. The central
issue is confidence in America, and the world is losing confidence
quickly. At a certain point, soon, the United States will reach a level
of deficit spending and debt at which the countries of the world will
lose faith in America and begin to withdraw their investments. Many
leading economists and bankers think another trillion dollars or so may
do it. A run on the bank will start suddenly, build quickly and
snowball. At that point, we will need to finance our own deficit,
and we will not be able to do so. We will raise bond rates to re-attract
foreign investment, interest rates will go up, and businesses will
fail. Unemployment will skyrocket.
The rest of the world will fully crash along with us.
But that's not all. Even the largest retailer in
the world is having problems and seeing negative growth. Walmart
announced that last November's cuts to food stamp recipients hurt their
fourth quarter sales, adding further credence to the notion that without
direct government bailouts the stability of America's companies comes
into question.
Those investing in financial markets have
certainly taken note. On top of the 326 point decline in the Dow Jones
today, the market is down a combined 1,000 points from its peak just a
month ago. And, with three well known bankers committing suicide in the
last week, people are starting to pay attention.
We could well be facing the beginnings of an all-out financial Armageddon that will make 2008 look like a brief warm up.
This
collapse, as noted by the US Treasury Department and Grady Means, is
going to have generational effects -- a depressive economic environment
for our entire lifetimes.
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The
gold and silver stocks have rebounded nicely but have consolidated in
recent weeks. Where is this going and how do we know? Well, a few weeks
ago we publicly said that a major bottom is in. Thus, we believe the
trend will go higher. Beyond belief, we need real confirmation that the
sector will continue higher. Enter moving average analysis. By using a
few simple moving averages we can better understand the current context
and get confirmation that the sector will continue to move higher. GDX,
GDXJ and SIL could soon test moving averages which have been resistance
for the past 13 months.
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