It doesn't hurt to prepare in case things go bad --and they might the way things are going.
Source: http://www.stuartwildeblog.com/sws-jottings/
Stock Exchange Collapse (sw)
DateFriday, October 8, 2010 at 5:58PM
Many famous pundits are predicting a plunge in the stock market for later this month, October 2010. All the previous famous crashes, 1929, 1987, etc, have been in October.
The markets are not so much priced by real value, but by quantitative easing. The central banks and the Federal Reserve act as gods creating money out of thin air, and financial institutions borrow that money at 0%-1/4%. They act like as a privileged aristocracy—the son’s of God. Ordinary people have to pay 4.5% or more for borrowing money, or they have no collateral at all, so they can’t borrow. These groups form the financial proletariat.
The media likes to paint the banks as evil. They are not evil; they are just welfare recipients accepting the free money offered, just like hundreds of millions of the citizens of Europe and the US accept welfare.
Nobody cares what unemployment really is, or how many homes have been repossessed, or how many small businesses go belly up. All that matters is the aristocrats have lots of free chips in the casino to feed the illusion that all’s well in the country.
For the market to come down, there has to be a perceptional shift, but the current mind-set is held up in part, by phony trade figures supplied by the government, so that shift wont happen easily.
A terrorist bomb in NY would do it, and so would the California earthquake, or an even more rapid drop in the dollar might do it. Being out of the market is safe for now.
But when the illusion collapses, the casino suffers a power cut. It will be straight down 30% or more, but I don’t know if October 2010 is it or not. (sw)
Oct082010
Gold, Gold, Gold (sw)
DateFriday, October 8, 2010 at 5:56PM
Gold has started to rocket once more. It hit $1340 yesterday.
So my prediction has come good. I’m happy for those readers that sold their assets and houses and bought gold, the property market is unlikely to ever recover.
The gold market is driven higher by the prospect of QE (quantitative easing). For the uninitiated, QE is the act of governments that are broke, like Japan’s, printing or creating massive amounts of new money out of thin air.
When the Federal Reserve in the US creates a few trillion new dollars to bail out the banks say, the old dollars previously in existence become less valuable. That’s why the US dollar is under pressure. It has fallen 10% recently.
Money is power to politicians, so cutting spending is unattractive to the political ego-soul, and they’ve milked the citizens for every cent they can. So, there’s not much blood left in that stone. Printing/creating new money is a cheap and easy alternative.
A global currency war has developed, as each country tries to debase its currency to make its exports cheaper; while paying off the national debt and lubricating their various stock markets. That’s why Wall Street is rocketing up. It’s awash with cheap money. The Feds lend to banks at a rate between 0% and ¼%.
(see Wall Street article HERE)
Don’t buy gold to make money short term, as it can go down from time-to-time, when profit taking kicks in. Hold it long term for the next threshold, which is $1650, expected by Jan 2011, or hold for $5000, expected in a couple of years time, when the QE system has farted itself into outer space and oblivion looms, as trillions upon trillions are gorged out of nowhere and the Euro has collapsed due to lies and its members’ sovereign debt.
Fifteen years ago, I wrote in my books of the coming collapse of the global-ego, it’s the fall of importance and control, and that is what we are watching now, as systems unravel bit-by-bit. (SW)
