The 'Great Depression' and It's Consequences

Below is a lengthy but worthwhile article on the troubled economic times we live in and the myriad negative effects we can expect it to have on society.

One troubling thing is that men are affected more than women. This is a bad sign for me because revolutions are always started by men - especially young men. Unemployment (and its accompanying anger and disillusionment) is perfect fodder for uprisings. Not that I'm saying America couldn't use a little 'change we can believe in', it's just that such change is unlikely to be frictionless.

From an investment perspective, such conditions would favor precious metals (among other things), while anything CNBC pushes should be regarded with extreme suspicion!

How a New Jobless Era Will Transform America

Interview on Banks, Gold, Inflation and More

Christopher K. Potter (of Northern Border Capital Management Inc.) gives his thoughts on the gold world and where he thinks the price might go.

21st Century Alchemy

Jim Rogers Calls It

It's freaky how he can be so dead on. I have no idea why anyone listens to CNBC anymore - all they tell you is 'BOO-YEA'!

Global Equities are Vulnerable to Correction

Inflation

Here is a great article outlining the basics of inflation, how it works, who benefits, and who is responsible for it.

Another effect of inflation that the article didn't mention is that many people feel they have little choice but to invest in the stock market because they cannot depend on their savings to retain value over the years. This would benefit the Wall Street gang.

One thing I get from this article is that one cannot hope to invest intelligently unless one has a good understanding of how out society works, and that it is always in the interests of the powerful to lie to you. The standard condition of a society is to be run not for the general good but for the benefit of some elite group.

They want your money, they want your dependence and they want your continued ignorance. Let us all strive to leave them disappointed.

http://www.financialsense.com/editorials/saxena/2010/0115.html

Pig Slaughter

Dr. Faber lowers the boom, gloom and doom!

Here Swiss investor Marc Faber expresses concern that the PIIGS (Portugal, Ireland, Italy, Greece, Spain) might default and that the Euro could be hit hard by such an occurrence. He points out that before a country defaults they often print a lot of money and this results in hyperinflation.

He also mentions how one way for a government to distract attention from the destruction of the country's economy is to go to war. I guess there comes a time when even the Super Bowl halftime show cannot keep them all in awe. Unfortunately the United States has a penchant for invading certain countries these days. If I lived in the Middle East, I'd get ready to duck. If I lived in the PIIGS, I'd buy a little gold and silver.

The Winds of Change ...

... they are a blowin'.

Bill Bonner summarizes many of the problems facing the world economic system today in this foreboding article. These 'we don't know what's around the corner but it might have big pointy teeth' articles are getting to be routine. Not that folks don't need to hear them.

"A rising power acquires gold. A fading gives it up." Here he is referring to other countries (primarily the BRIC boys) buying gold and western countries selling. I think it's true of people as well. Someone who owns some gold or silver (or other things like land) has more power than someone with a bank account. If you own some tangible assets than you are not 100% dependent on the monetary system and you are somewhat protected from its convulsions.

A Warning

More on Food ...

Here is a lengthy article detailing the case for food shortages in the near future. This guy seems convinced that it will come in 2010. I don't want to get into the business of making concrete, time-specific predictions but I think the main thing to remember is that whether it comes this year, next year or 5 years from now, it is a real problem that would have a huge impact on our lives.

2010 Food Crisis for Dummies