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

 AN ECONOMIC ALERT: GOLD AND STOCKS TO FALL SEVERELY THIS YEAR SAY INVESTMENT EXPERTS

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. 

02-Mar-2012
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

Taking Modern Christianity to Task, The Consequences of Corruption

This surprisingly forthright sermon and message takes on the corruptions of modern Christianity, or Churchianity, and takes to task both popular televangelists (including T.D. Jakes, still praised much in West Virginia) and typical pastors and churches, which has contributed much to resentment and fueled the vehement opposition and outright hatred by those who oppose Christianity and write against its Bible, standards and beliefs in the press, society, and government.   It is also evidence that there are vehement critics within Christianity which desire a major reformation since these corruptions have damaged the credibility and once stronger influence of genuine Christian teachings in society.

The speaker in this Sermonaudio podcast entitled "Modern Church Nonsense" does not hold back and shows just how relevant an Old Testament prophet's book, Amos--which secularists and liberal churches typically mock at as ancient and not applicable to modern society-- is for today in the 21st Century.  After it was preached in 2007, it was followed interestingly by the banking, real estate and financial and economic crisis, that has dominated the last few years now, making the message and its warnings even more relevant.

[Note: Must enable Sermonaudio Scripts to view and listen to this podcast]

House Passes Bill to Audit the Fed

There is a very silver lining in the rather dark cloud of financial reform legislation the U.S. House just passed. This would be a historical first and could bring real change. This is a first step toward Congress finally exercising its Constitutional authority over the PRIVATE Federal Reserve Bank System, which has never before been held accountable for anything. Now if only the Senate does the same.

This is Ron Paul's legislation to Audit the Fed, remember. Yes, the one the neo-republicans tried to excommunicate during the presidential primaries for RINOs like Romney, Huckabee, and McCain instead. Capito signed onto this legislation as a sponsor on April 1st, the same day Thomas Woods was interviewed on WCHS 58Live Talk Radio, which we blogged with a recorded podcast here.

There is enough bipartisan support in the Congress very likely to overcome an Obama Veto (since thus far he has shilled for the Banksters, with the help of former New York Federal Reserve Bank Chairman, Timothy Geithner.)

clipped from georgewashington2.blogspot.com Friday, December 11, 2009 House Passes Bill to Audit the Fed I have just received confirmation from a very credible Congressional source that the bill to audit the Federal Reserve is included in the House financial reform legislation which passed today. My source says: The Fed audit provision which passed the Financial Services Committee a few weeks ago is part of the bill. This is a real milestone, as it means that the full House of Representatives has passed a bill that mandates a complete audit of the Fed. The effort to audit the Fed - supported by 79% of the American people - is gaining traction. My source says that it will take a couple of days for the GAO to assemble all of the amendments into a single text. In the meantime, you can view the version of the bill provided by Congress' Thomas website here or here.

Blame the Fed and Government, not Free Markets: Author of 'Meltdown' Interviewed on 58 Live

Tom Woods does not mince words and puts the blame squarely on the Fed (Bernanke, Greenspan, et al) and the U.S. government (Congress) for the financial meltdown and the economic and banking crisis.

What is ironic is that Congressman Ron Paul's warnings and economic platform, ignored by the heavy-handed republican establishment during the primaries (and which no other republican candidate stood for), is now becoming popular and receiving the attention it deserves. Ron Paul in fact wrote the forward for Dr. Wood's book.

Listen to most of his interview here on this podcast, which took place on 58 Live (WCHS radio Charleston, WV) on April 1st. (Click on the box to begin the player).
[Recording made under FAIR USE rules, intended for educational purposes only].

About Tom Woods

Thomas E. Woods, Jr., is the New York Times bestselling author of nine books. A senior fellow at the Ludwig von Mises Institute, Woods holds a bachelor's degree in history from Harvard and his master's, M.Phil., and Ph.D. from Columbia University. Read more »

Meltdown

A New York Times bestseller!

Click here for a free chapter of Meltdown.

Click here to order from Amazon.
Click here to order from Barnes & Noble.

Click here to order the audiobook.

“A must-read. Writing with remarkable clarity and occasional mordant humor, Thomas Woods makes a compelling argument for a radical turn to the free market as the only way to prevent meltdowns from recurring.”
-Barron’s

From the foreword by Ron Paul:

“We can probably expect an avalanche of books in the coming months that purport to tell us what happened to the economy and what we should do about it. They’ll be dead wrong, and most of the advice they provide will be dreadful. You can count on that.

“That’s why Meltdown is different. This book actually gets things right. It correctly identifies our problems, their causes, and what we should do about them. It treats the architects of this debacle not with the undeserved reverence they receive in Washington and on television, but with the critical eye that is so conspicuously missing from our supposedly independent thinkers in academia and the media.

________TAKE ACTION: Call Rep. Capito or your Representative______

Ron Paul’s bill to audit the Federal Reserve (HR 1207) now has 50 co-sponsors, and the numbers keep growing!

If you haven’t done so already, tell everyone you know to call and write their representative and ask that they support the “Federal Reserve Transparency Act H.R. 1207″.

If you called before and if your representative is not listed below, follow up and ask them to take a position either way so we know where they stand on the issue of bringing transparency to the Federal Reserve.

Capitol Switchboard: (202) 224-3121

Here’s a sample letter you can use.

BAILOUT: How the Fed Creates or "Injects" Money From Thin Air

This is a must see short video that shows how money is created in America by the Fed and why the purchasing power of the dollar has decreased. The Fed today is "injecting" billions of dollars into the Bank System for the Bailout Plan, and this is how it is done--i.e. by creating more debt! The U.S. dollar is not "money", but legal tender and debt notes, based upon NOTHING.

150 Top Economists Say "Hold Off" on Bailout

`The situation may get urgent, but it's not urgent right now. Right now it's a financial sector problem....`It's just nothing like the calamity the administration is making it out to be.''

Everyone should stop the ignorant panic and read this article from the best economists, who like doctors are best apt to understand both the problem and its cure.

Another great interview and source to better information was provided by CATO Institute's daily podcast, a Sept. 25th interview with an expert on mortgage-backed securities.

Hoppy Kerchevel had an excellent interview with a professor of Economics at West Virginia State University which was very similar in perspective to this article here. SO WHY IS NO ONE LISTENING TO THE EXPERTS, INSTEAD OF THE FED'S FRONT MAN TREASURY SECRETARY PAULSON AND A IGNORANTLY-COMPLYING PRESIDENT? Who do you trust more about the economy, ignorant lawmakers or economists?

The media also (including local talk radio) continues to parrot the "crisis", after Bush's Financial WMD Speech Wednesday, where a virtual "mushroom cloud" was imagined over the economy if "Congress does not act now".

It is a gross exaggeration and even outright lie and the bailout would make things worse, according to experts!

clipped from www.bloomberg.com Hundreds of Economists Urge Congress Not to Rush on Rescue Plan Sept. 25 (Bloomberg) -- More than 150 prominent U.S. economists, including three Nobel Prize winners, urged Congress to hold off on passing a $700 billion financial market rescue plan until it can be studied more closely. In a letter yesterday to congressional leaders, 166 academic economists said they oppose Treasury Secretary Henry Paulson's plan because it's a ``subsidy'' for business, it's ambiguous and it may have adverse market consequences in the long term. They also expressed alarm at the haste of lawmakers and the Bush administration to pass legislation. ``It doesn't seem to me that a lot decisions that we're going to have to live with for a long time have to be made by Friday,'' said Robert Lucas, a University of Chicago economist and 1995 Nobel Prize winner who signed the letter. ``The situation may get urgent, but it's not urgent right now. Right now it's a financial sector problem.''

Financial Crisis and the Fed: How the Fed Obtained Its Power

historical value of dollar (click to enlarge)

In light of the present financial crisis the public needs to know how the Federal Reserve and our present money supply they control came into being. The public should also notice the interesting similarity of circumstances now playing out in which the Fed is seeking even more power under the plea of "necessity". This 8-minute video sheds alot of light on present circumstances.