Saturday, January 2, 2010

Predictions for 2010

Reality Check!

Expect a short recovery to begin sometime in early to mid 2010, and live briefly before the US will slip into a broader deeper and longer “depression”.

So far this “depression” has followed the trend established from 1929 to 1932. America will emerge briefly from this depression as it did then, and fall into a deeper and longer lasting one.

Real Estate values will fall further, more homes will be foreclosed, and more banks will fail! The FED will pump more money into the banks to save them, which will acerbate an already unfathomable problem.

With increased job losses, a bleaker stock and real estate market, and surging inflation, the dollar will be replaced as a reserve currency, and inflation will drive up the markets of Brazil, China and India at 3 to 5 times that of America.

The price of goods and services here will rise with the inflation the FED has and will further create. Additional increases in utility costs will break many consumer households and create more real estate defaults, oil prices, will be between 70 and 110 dollars a barrel and may go much higher.

Reduced taxes will cause states to increase the valuations of property even as it sinks to new lows in value. Consumers tired of fighting to save their homes will simply walk away. American consumers are likely to revolt and challenge government over its fallings and never ending support for the banks.

Angry over their plight and the enlargement of tent cities, and the legions of new homeless, consumers will see through the fa├žade of Washington, its control from Wall Street, and revolution will be common talk in private circles.

The printing presses controlled by the FED have already set the dollars collapse in motion. It will continue to expand the money supply in an increased effort to save the banking system. The EURO and YEN and every foreign currency has already moved up in value against the Dollar causing its devaluation while the costs of all foreign goods are rising.

Expect to see panic selling in dollars and dollar assets as investors move away from buying anything that has anything to do with America. Sovereign Wealth Funds, now considering US assets risky, and which currently comprise approximately 3 trillion dollars have already begun to move away from the Dollar and dollar assets Mergers are set to rise, and outsourcing of American jobs will continue.

Central Banks have been purchasing and will continue to purchase Gold for reserves against inflation.