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THE WORLD IS COMING TO AN END!!

The doom sayers have been saying that now since 1914. No doubt that is true. It will end some year. No one on this Earth knows when, so just enjoy what little time that you have left.

My shtick is "DEPRESSION IS COMING!!". I think I am closer to the truth.

Depression News

The best definition of a financial depression is a period when supply overwhelms demand, resulting in falling prices, unemployment problems, and economic contraction.

Investopedia explains 'Great Depression'

The NYSE crashed on October 24, 1929, a day known as Black Thursday. Thousands of people lost nearly the entire value of their investments, leaving them with next to nothing. The trend continued and the following Tuesday, Black Tuesday, the DJIA dropped 12%, marking the start of the great depression. International trade declined, along with personal income, tax revenues and product prices.

Many economists believed the Great Depression was evidence that capitalism, when left unchecked, is a dangerous ideology.

This caused some nations to change their political structures, such as Germany, who adopted fascism.

Read more:

http://www.investopedia.com/terms/g/great_depression.asp#ixzz1lo6dD63E


Indications of a depression will be a 12% drop in the stock market combined with a high rate of inflation. People will be purchasing gold as a hedge against the inflation, so watch the price of gold closely.

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"Depression is coming". Half of Europe is mired in a recession with 20+% unemployment and 30+% poverty but keeps limping along from one financial crisis to the next.

The United States is so far in debt that it could not handle a recession, not alone a depression, but again keeps limping along from one financial crisis to the next.


Monday, October 11, 2010

8 October Gold Price Assessment

The price of gold hit $1361 this past week.  An increase of $40.00.  One gold analyst suggested that gold would hit $1400 by the end of October.  At the present rate, gold will hit that by the end of this coming week.

Other Events:

Home Foreclosures:

Bank of America suspended all home foreclosures.  Bank of America now has so many homes in foreclosure its processors can not determine who is making their mortgage payments and who is not.

Unemployment:

Unemployment surprisingly continues at only 9.6%.  This despite state and city governments continue to shed personnel to balance budgets.  Cities continue to jettison teachers, police, firemen, and maintenance personnel, but cut no administrative personnel which is where most cuts need to be made.

On the political front:

No one is making any suggestions about resolving our present economic problems.

President Obama's answer to our economic problems is blame the Republicans.

The Democrat answer to our economic problems is blame the Republicans.

What is worse, the Republican answer to our economic problems is blame the Democrats.

No wonder everyone is jumping on the Tea Party bandwagon!

Another big rat jumped from the Obama ship this past week.  At this rate, by the time President Obama comes up for reelection, the only one left of the original Obama administration will be Michelle Obama!

Dollar Strength:

The dollar did strengthen against some currencies, but overall continued its slide against most.  This caused an increase in the price of oil, which eventually will trigger inflation.


Factor in all of the above and it is pretty obvious the price of gold will continue rising.

Factor in the rate of ascent of the price of gold, and it is pretty obvious that gold speculators are creating a bubble that will be pricked by someone.

Look for a market correction around $1550 an ounce.  Remember that the primary cause of the rise in the price of gold has to do with dollar speculation by the overseas central banks.  When those banks stop supporting the price of gold, it will drop one to two hundred dollars an ounce.  This will drive out the gold speculators and the price of gold will continue to ascend more in line with other commodities and natural resources.

As a long term investment, gold will outperform the stock market and other investment vehicles.  Expect the price of gold to hit $3,000 within two years.

Wednesday, October 6, 2010

1 October gold price assessment

The price of gold continued its rise this past week.  Adding another $20.00.  Even the gold bear short sellers are selling out and growing bull horns.  One gold analyst predicted that the price of gold will hit $1400 by the end of October.  It is pretty obvious that the price of gold will be dropping no time soon.

The US economy continues to struggle.  Two more banks failed.

Harrisburg, capital of Pennsylvania, is approaching bankruptcy and is looking to the state itself for help with its budgetary woes.

Most major cities and large states are facing severe budget shortfalls.  One in seven homes is now in foreclosure.  Faced with declining real estate taxes, and declining sales tax revenues, these cities and states are now beginning to look to the federal government for help.

On the federal government side, the US House of Representatives adjourned for the reelection campaign.  With the upcoming holidays and winter, it will be spring before anybody can agree that there is an economic problem that needs to be addressed.

On the executive side of government, senators and congressmen are distancing themselves from the President as his popularity fades.  Aides and advisors to the President are jumping to other jobs while the popularity of the President still has some strength.

Overseas, the currencies of the European Economic Community did strengthen this past week.  This will probably be short lived as the citizens of Ireland, Great Britain, Spain, and Greece, among others, protest the taxes and restrictions placed on them by their budgetary problems.

The dollar continued its slide against most of the major currencies.

Central banks continued buying up gold as it hit the market.

Gold price analysts have now come to accept that $1300 an ounce for gold is not some sort of fragile bubble which might burst momentarily.  They are accepting that $2,000, $3,000, $5,000, even $7,000 an ounce is a possibility.

If the US continues its present rate of spending the dollar will become relatively worthless against other currencies.  This will result in either a formal devaluation of the dollar by the US government, or an informal currency adjustment by other nations.

This devaluation will set off a round of inflation in the United States which will be completely unpredictable in its extent.

Gold price at $2,000, $3,000, $5,000, or $7,000 an ounce becomes a distinctive possibility.  One blogger even suggested $25,000 an ounce.

Buy gold while the price is still cheap!

McDonald's Restaurant fast food VS diet food

When I go to a McDonald's restaurant, I do not order a salad.  If I go to any fast food restaurant such as McDonald's, I do not order a salad.  I order what made that fast food chain famous.  In the case of McDonald's, I order a Big Mac, with all the trimmings, and an order of fries.  Why else would I go to McDonald's?

I do not go to a full service place such as an Applebee's restaurant to order a salad.  I might have a salad with my meal.  I look at the entrees on the menu to see what looks good, and I look at the prices to see what I can afford, but I do not look at the calorie count to see what my diet will allow.  If I am going out to eat then I am going to eat well and enjoy myself, or there is no reason to go.


There are some restaurants that offer "Salad Bar only" dining and have enough items in their salad bar to make a full meal.  The problem with this "Salad Bar only" dining is that it normally costs as much as a good entree which comes with a salad.  Who wants to pay steak price for lettuce?


There is no doubt that certain foods should not be attempted.  Triple cheeseburger with bacon.  Deep fried twinkies.  Batter fried butter.  Double chocolate cake with fudge frosting, ice cream, and whipped cream.  Food items such as these are hard on your arteries, sugar levels, teeth, and many other parts of the body.  You will pay for these items not  just when you purchase them, but many times more in later life.

Fast food restaurants have been trying to raise their incomes by adding non-traditional items to their menu.  Latte, milk shakes, and even ice cream.

Even the fast food pizza places such as Pizza Hut have gotten into this.  Offering such as bread sticks, pasta, chocolate dip, and even ?cookies?.

If these pizza places want to raise their bottom lines, how about offering something more traditional that goes with pizza?  How about a six pack of beer?

In short, if you go eat at a place like a McDonald's restaurant, or an Applebee's restaurant, eat, drink, be merry, and enjoy yourself.

For tomorrow you will pay the credit card and pay with a diet!