This is a GLOBAL MELTDOWN!!! All over the world, governments are doing the same thing - that is printing more and more money and planning to spend their way out of the crisis. Massive stimulus programmes are being instigated, the toxic debts of the financial institutions are being swept up by the governments - they are acting as though there are no consequences to this type of behaviour. They are using 1930's methodologies to tackle 21st century problems. It's ridiculous. The burden will ultimately fall on the taxpayers.
Just today, Gordon Brown announced that this crisis is unprecedented and we could not look back at history for any answers. Great. So what are they doing? Just repeating history without any thought about the effect they are having on peoples' lives for the future.
Here's the way I see it. We started out with the sub-prime mortgage crisis in 2008 and the subsequent collapse of many banks and financial institutions. Since then, some huge retailers have gone bust: Sharper Image, Linens and More, Circuit City to name but a few. This is just the start. Yesterday over 75,000 job losses were announced. In one day! What you will be seeing will be an enormous collapse of the commercial real estate sector. This will be much bigger than the sub-prime crisis. Imagine all the empty buildings from the companies who are no longer in business. This is going to be huge.
The US Treasury Secretary, Timothy Geithner, is pretending that they are saving the banks in the name of national interest. They cannot save the banks - they are pouring all the toxic assets onto the taxpayers. The ship is sinking but lifeboats are only there for the wealthy. Every person is going to be much poorer in order to keep on enriching the elite few at the top. How can they justify taking over $18bn in bonuses during 2008 when leading so many financial institutions into bankruptcy??? It's shocking. And this is only the surface. We are not even seeing 10% of the extent of the greed, dishonesty and unethical behaviour. This is merely the beginning. Do you think that Bernard Madoff is the only one??? No way, he is one of many that have been found out so far.
Already we are seeing the signs of unrest around the world: a million people striking in France this week, riots and demonstrations in Greece, Latvia, Russia, Iceland...Already in the US, they are training the military for riot control. The Arizona police force is training the police for riots and economic calamity.
Be assured that draconian measures will be taken by governments around the world. It could be a bank holiday, it could be confiscating gold, it could be anything - probably something totally unexpected - but it will definitely be something dramatic that will hurt the everyday person and again the rich will benefit.
There will be bigger government, more intrusion, more spying. Crime will increase rapidly and there will be a growing underclass.
It is important to prepare for the worst: at least have a couple of weeks of water and food stored away, some gold, some weapons if you think it necessary as well.
Remember the banks might just close for a while - so make sure you have some cash on hand.
It doesn't cost anything to take protective measures.
Again, I tell you, I am not into doom and gloom, but I felt I had to write this blog urgently right now so that as many of you as possible can make preparations to protect yourselves.
For the future, it is going to take creative innovation: possibly in the field of alternative energy, medical breakthroughs, or climate change solutions.
First protect yourself and your family, and in future blogs I will discuss how the future can really be brighter for us all.
Take care.
Saturday, January 31, 2009
Saturday, January 24, 2009
More Turmoil Ahead in the Financial Markets
2009 has started with a bang and even on inauguration day, the stock markets plummeted.
In my view, we are at the very beginning of the crisis. Once there is another wave of corporate defaults, there will be another phase of the banking crisis. Governments are trying to maintain the status quo with very little success. Throwing "helicopters of money" at the problem (Bernanke) is not solving the issues. Central banks are not ruled by the same laws as ordinary citizens and they do not have to report their figures or information to anyone. Shocking isn't it?
Well, here's what you can expect:
more waves of bank failures
more retail stores going bankrupt
more redundancies and job losses
further house price falls
increases in property taxes even with falling house prices
However, here's the flip side:
there is the opportunity for new money systems to emerge from this mess
a surge in complementary currencies and new ways for barter and exchange of goods and services
more internet types of exchanges
less of a stranglehold with few huge banks, but a plethora of different financial bodies being formed
new innovative ways of exchange
money becoming our master, rather than the vast majority being slaves to it
more transparency and honesty in the system as a whole
a NEW WORLD CURRENCY - you read it here remember!
I am not sure how this will come together, but there will be a new currency - it could maybe incorporate the USD, some EURO currency and an ASIAN mix of currencies. It is not clear yet, but there will be a whole new world as far as money is concerned.
Look closely at the Transition Towns movement - started in the UK - and spreading rapidly around the globe. This is in response to the situation of Peak Oil and Climate Change. It brings together the local community and can also involve the issuing of a local currency.
We have exciting times ahead.
I'll be back with more soon!
In my view, we are at the very beginning of the crisis. Once there is another wave of corporate defaults, there will be another phase of the banking crisis. Governments are trying to maintain the status quo with very little success. Throwing "helicopters of money" at the problem (Bernanke) is not solving the issues. Central banks are not ruled by the same laws as ordinary citizens and they do not have to report their figures or information to anyone. Shocking isn't it?
Well, here's what you can expect:
more waves of bank failures
more retail stores going bankrupt
more redundancies and job losses
further house price falls
increases in property taxes even with falling house prices
However, here's the flip side:
there is the opportunity for new money systems to emerge from this mess
a surge in complementary currencies and new ways for barter and exchange of goods and services
more internet types of exchanges
less of a stranglehold with few huge banks, but a plethora of different financial bodies being formed
new innovative ways of exchange
money becoming our master, rather than the vast majority being slaves to it
more transparency and honesty in the system as a whole
a NEW WORLD CURRENCY - you read it here remember!
I am not sure how this will come together, but there will be a new currency - it could maybe incorporate the USD, some EURO currency and an ASIAN mix of currencies. It is not clear yet, but there will be a whole new world as far as money is concerned.
Look closely at the Transition Towns movement - started in the UK - and spreading rapidly around the globe. This is in response to the situation of Peak Oil and Climate Change. It brings together the local community and can also involve the issuing of a local currency.
We have exciting times ahead.
I'll be back with more soon!
Sunday, January 4, 2009
Financial Markets for 2009
It's like the calm before the storm. Nothing terrible has happened on the financial markets over the Holiday Season. The Dow Jones has continued to rally and is now over 9000 points. There have been no other major catastrophes in the banking system since the Bernard Madoff fraud that have hit the news. All eyes are on the inauguration of Barack Obama on January 20th.
So what are the possible outcomes?
Firstly, I think that more disruptions, panics, insolvencies and revelations of huge fraudulent schemes will occur from about March 2009 onwards. Now is not the time to sit on your laurels, but to really think about what your options are. Have you protected your cash best you can? If you have savings, have you spread it around different banks? Have you set aside at least six months cash to live on should the banking establishments take a "holiday" for a while? It's much better to be prepared and not need it, than to be caught out.
If you have some money and want to be sure of its safety then you have two possible options:
- invest in US Treasury Bills
- invest in gold and silver coins and make sure you take delivery of them. Do not leave them in a bank or other financial institution.
There are not many other options for keeping your money safe.
Do not take out any debt if you can possibly help it.
Start thinking locally. What can you do to sustain yourself as far as food, energy and supplies are concerned? Can you get together with like-minded people in your community? Take a look at the Transition Towns movement which is taking hold in many countries around the world. This is about creating a local currency where goods and services are exchanged in your own currency. For example, a local Farmers Market, or creating a community vegetable garden are ways of becoming self-sufficient in your own backyard. This can be an exciting time as well as a frightening one.
It is finding the balance between the two: preparing yourself for the worst outcomes - no different than taking out insurance - no one expects their house to be flooded or to have a fire, but if you have insurance at least you are covered in the unlikely eventuality. This situation is no different. Protect yourself as best you can. Make sure you have a survival kit and have stored some food and water at the very minimum.
Then start to explore ways of getting involved in your local community. This will be one of the keys to survival when the crisis really hits home.
Wishing you all the best of luck!
So what are the possible outcomes?
Firstly, I think that more disruptions, panics, insolvencies and revelations of huge fraudulent schemes will occur from about March 2009 onwards. Now is not the time to sit on your laurels, but to really think about what your options are. Have you protected your cash best you can? If you have savings, have you spread it around different banks? Have you set aside at least six months cash to live on should the banking establishments take a "holiday" for a while? It's much better to be prepared and not need it, than to be caught out.
If you have some money and want to be sure of its safety then you have two possible options:
- invest in US Treasury Bills
- invest in gold and silver coins and make sure you take delivery of them. Do not leave them in a bank or other financial institution.
There are not many other options for keeping your money safe.
Do not take out any debt if you can possibly help it.
Start thinking locally. What can you do to sustain yourself as far as food, energy and supplies are concerned? Can you get together with like-minded people in your community? Take a look at the Transition Towns movement which is taking hold in many countries around the world. This is about creating a local currency where goods and services are exchanged in your own currency. For example, a local Farmers Market, or creating a community vegetable garden are ways of becoming self-sufficient in your own backyard. This can be an exciting time as well as a frightening one.
It is finding the balance between the two: preparing yourself for the worst outcomes - no different than taking out insurance - no one expects their house to be flooded or to have a fire, but if you have insurance at least you are covered in the unlikely eventuality. This situation is no different. Protect yourself as best you can. Make sure you have a survival kit and have stored some food and water at the very minimum.
Then start to explore ways of getting involved in your local community. This will be one of the keys to survival when the crisis really hits home.
Wishing you all the best of luck!
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