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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.
Posted by at 10:07 AM
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