First...
China's Credit Bubble on Borrowed Time as Inflation Bites
The Royal Bank of Scotland has advised clients to take out protection against the risk of a sovereign default by China. Officially, inflation in China was 4.4 percent in October and may reach 5 percent in November; however, vegetables have risen 20 percent in a month. This may be one reason for China's monetary tightening. Believe it or not, China's economy appears to be entering stagnation. If this keeps up, things in China are going to get ugly and that may not be where you want your money.
Next...
Food Stamp Rolls Continue to Rise
Some 42.9 million people collected food stamps last month, up 1.2% from the prior month and 16.2% higher than the same time last year. The state with the greatest month-to-month increase is Illinois at 8.5%. The state with the greatest year-over-year increase is Idaho at 39.1%. The state with the greatest percentage of people on food stamps is the District of Columbia at 21.5% followed by Mississippi at 20.4%.
Next...
Plunging Home Prices Fuel Property Tax Appeals
The backlog of cases from taxpayers seeking to lower property-tax bills of more than $100,000 shot up to 14,236 this year. Of course, with falling property tax revenue because of the adjustment in housing value, cities and towns are going to be even more cash strapped to provide the day-to-day essential services.
Next...
Dead Cat Bounce
Mike Maloney presents an excellent video detailing how the current world-wide fiat currency system is developing cracks and that people are beginning to rush to real money. Every 30-40 years the world has a new currency system and we are in the process of going into another one that coincides with market overvaluation. Please watch this eleven minute video and get out of stocks and get into precious metals..
Next...
8 Alarming Forecasts for 2011
The experts from Money and Markets have issued eight 2011 predictions.
- Nearly every debt-ridden government in Europe will be forced to implement harsh austerity measures.
- Washington will also be forced to pass very harsh austerity measures as well.
- China, because of inflation, will revalue its currency higher - causing defacto U.S. dollar devaluation.
- The Fed will shock the world with its policies to save the dollar.
- Expect an initial correction in emerging markets in early 2011 because of austerity in the US and China... this will be a buying opportunity.
- Precious metals will have a sudden pull-back in early 2011. The corrections will not alter the long term bull market though
- Other commodities will suffer a correction; however the Fed's money printing will drive them back up again.
- Oil will soar well over $100 a barrel, and alternative energy will emerge as an investment sector.
Next...
US Treasuries Hit by Biggest Sell-off in Two Years
US Treasuries suffered their biggest two-day sell-off since the collapse of Lehman Brothers. The market moves came after the $120 billion tax holiday agreement. The market is saying something.
Finally, please prepare now for the forthcoming economic, and subsequent social, unrest that will hit the US.
Good Day
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