Mar 6, 2012

2012: The Year Economic Depression Begins in West? Why Gold is Suddenly Falling, Stock Market Next?

 UPDATE (Mar. 23rd):  Note this latest 30-Day Gold Chart (from same source) since we posted the article


The UK podcast interview referred to below by this summary article will shock most hearers who thought that things were just about to get better economically.  Before you buy gold (edit: for a short term investment) because of its historic performance you should stop and consider this first, since prudence is wise. 

A prudent man seeth the evil, and hideth himself; 
But the simple pass on, and suffer for it.
Solomon - Prov. 27:12

The consequences of not looking ahead can be disastrous, as Solomon's proverb proves, calling it stupid to ignore an approaching evil.  Even the ants are busy preparing in their harvest for winter, says the preacher of wisdom in Proverbs, and bids us to learn from their example.  An Economic Winter is coming that may be a very long and severe one, even decades in the West.  This is an economic alert based upon some economists expertise that should be heard, especially to those who think they are safe for buying and investing in gold for the short term, which has been promoted much for good reason as governments print money, as a hedge to inflation.  You won't hear this from the "feel good" editors of Network News.  Government Debts and threat of Iran conflict (thanks to Israel and AIPAC's aggressive influence on Congress contrary to American interests) continues to push up oil prices, which will cause massive inflation in all consumer goods (including gas to over $5 per gallon by summer), are among the things that paint a very bad picture for this year as Western economies begin to tumble, right when the U.S. in particular thought things were getting better.  Also looked at is the real reason that Gold fell almost $100 per oz last week from 1790 to 1703, which is what provoked this interview.  As of this morning, and after a slight recovery Friday, Gold is now down to 1680.  Read on.  

Experts say, "It's no longer corporations that are economically crashing, it's governments."  Government debts are being summoned for reckoning.  Greece was only an example of more to come.  Portugal, Spain, and others are on deck.  The UK could be next after them.  The U.S. is actually, despite bailouts and tricks, "in a recession" and has massive debt that it must deal with (as Senator Rubio has foretold "must be" dealt with this year).

Outlook for West:  "Era of De-leveraging" government debt, "depression for 20 to 30 years" to clear massive government debts, Gold to fall to maybe as low as 1200 to 1400 this year, Stockmarket to "fall 30 to 40 %" this year (markets must aborb Greek default, with more coming, and European bailout).  Temporary stronger dollar this year is bad for gold and metals, due to Euro decline because of European debt bailouts (Greece).

These are just a few things mentioned on this reputable UK Gold Investment group interview.  THIS IS A MUST-HEAR PODCAST BELOW.  (You have to respect a Gold investment group that permits such a bearish outlook on gold investing to be aired with their sponsorship!)

The wealth manager in this interview says he is heavy on cash instead of gold this year (until later years) and explains the gloomy state of US and Western European governments and their economies. 
Jonathan Davis and Michael Hampton talk to Dominic Frisby about gold
In this podcast Dominic Frisby, of the GoldMoney Foundation, interviews both Jonathan Davis, economist and wealth manager, as well as Michael Hamp

Podcast Interview and article here