World Financial Predictions 2009-2012

World Financial Predictions for 2009 to 2012

Tax protests, food riots, student revolts, homeless uprisings, tent cities, ghost malls, general strikes, huge increase in crime, governments being toppled, global depression – these are the events that I see in the coming years.

In the US, outraged citizens are being forced to foot the bill for trillions in government rescue packages while property taxes, sales taxes, licence taxes and newly-invented taxes. This is happening in many other countries in the rest of the world.

Generally people will fail to protect their assets, to explore alternative employment possibilities, to find new income streams and to prepare for radical lifestyle changes. There will be periodic mini-surges on the stock markets and in the economy, but this is all delusion.

Contrary to popular belief, in my view, this Great Depression will NOT spare the other economies. Emerging markets can only emerge with strong export demand from the developed markets which will not happen. Even China, without export demand, no amount of external stimulus, such as the $585bn China has injected into their economy since the beginning of 2009 will produce sustained growth.

There is already considerable unrest in Iran. If they are attacked by Israel and/or the US, this could ignite WWIII. In May 2009, General Ayatollah Salehi, Commander of the Iranian army said: “If we are subjected to any attack by Israel, I do not think that we will need more than 11 days to wipe Israel out of existence.” It is only a matter of time before more hostilities begin to break out.

The so-called Green Shoots of recovery of the economy only mean that it is dying a little more slowly than before. Between the Federal Reserve, the US Treasury and the FDIC, over $13 trillion is being pumped into the financial sector. Nothing on this scale has ever been done before. Financiers are now in control of the country. The dollar is in decline and Gold will go to at least $1600 an ounce.

Most people are unaware of the FASB (Financial Accounting Standards Board) ruling allowing banks to set prices for their own toxic assets, regardless of real market value. This allows banks to invent balance sheets as they please. This seduced many investors back into the stock markets and caused the recent spikes. There are numerous accounting scams allowing companies to bury their losses and boost their bottom lines.

We keep being told that the worst is over, despite so many nations having economic crises: riots in Greece, the Iceland government overthrown, Latvia, France, Thailand, the UK, Iran – protests, marches, demonstrations.

China and Russia are testing world reactions to a new reserve currency.
China and Brazil already have agreed to pay for each others goods in their own currencies (the real and the renminbi.)

There will be a new political party emerging from the internet. There will be no ballot cheating, no financial threats placed on the candidates, it will be a much fairer system. Through the Internet, independent parties will be able organise support and raise money. An internet force of people who are really thinking for themselves will unite to free people from the two-party domination. It will have inclusive appeal as it will be anti big-government and anti Big Brother. As wars drag on, the economy will worsen and more and more people will become furious and disgusted with broken promises and empty talk.

2012 may well be a significant date on which a new age will rise and a new order will replace the old. However, given the constant global volatility it is very hard to pinpoint a precise date – so it could happen in 2012, 2013 but sometime around that date.

In the UK the recession is deepening – the biggest banks are nationalised, the pound is plummeting, Parliament is embroiled in scandal. By 2012, the UK will still be in deep economic crisis and the stock exchange will not have recovered.

In France there have been business closures, layoffs, wage and benefit reductions – this will continue and so will the unrest. France is a real wild card and it could be the catalyst for sparking off a revolution in the whole of Europe.

As anger and desperation grows, companies who specialise in security will thrive. For example, personal bodyguards, surveillance systems. Most of all the cyber security market will be very financially rewarding.

With all the unrest in the Pakistan/ Afghanistan region, there is a distinct possibility of another terror attack on the US or somewhere in Europe. Should terror strike it would drive the US and much of the world into an even greater Depression. Unlike 2001, when Bush urgently pleaded with the public to continue shopping, this time it will not work. There is no room for a reduction in interest rates as we are already at 0%. Americans are working 30 hours or less, the median household income is less than it was a decade ago and there is the worst unemployment since the Great Depression.

Washington would close down Wall Street to forestall stampedes on equity markets. Not only would stakeholders be prevented from redeeming equities, CDs and other financial instruments would also be frozen. The President would call a “bank” holiday following a panicked public’s run on the banks.

You need to be prepared and have strategies in place to survive the financial havoc. Not a lot of options are available but here are a couple for you to think about:
Invest in gold and silver and store it in a safe place other than a bank safety deposit
Invest in a basket of currencies so that when some go down, others will go up, thus hedging your losses.
Make sure you have at least six month’s living expenses outside of any financial institution.
Have food and water supplies and alternative power for at least three to six months.

We are living in three different worlds: the world of media, the world of politics and the real world. But the general public has been brainwashed and conditioned into accepting as the real world, the picture presented by the media and political worlds. But it is not. Wars are sanitised, geopolitics is reduced to the good guys versus the bad buys, socioeconomic news is biased and focuses only on the positive. The political and media worlds use their show business methods to promote the issues they want highlighted in their way. They distort, sensationalise and sugarcoat what is going on to misrepresent exactly what they pretend to reveal – the real world. Look how this is happening right now with the so-called Swine Flu pandemic.

The world is in deep denial. Two sets of emotions are being played upon simultaneously: Fear and Hope. There will be long-term decline and a permanently altered consumer climate. The worst of the economic storm has not yet hit.

SURVIVAL will be key.

Read my "Handbook for Surviving the Global Financial Crisis." It is available on Amazon, Lulu and from my website: www.financemoneybusiness.com.

This will help you to prepare and survive the challenging years ahead.