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As with every New Year there’s no shortage of
forecasts for what’s to come. This year we, too, will attempt to
interpret the crystal ball and share some items for consideration and a road
map of events to keep an eye out for. We don’t like to make time-sensitive
forecasts, because if there’s one thing we should have learned from the
last three years, it’s that the expedient and self
serving actions of governments, corporate conglomerates, and
politicians are anything but predictable and often supersede any timetable we
can come up with. In an environment based on incomplete information it is
difficult to conclude, with any degree of certainty, which events will play
out, when, how and what their consequences will be.
Who could have accurately predicted that governments
would undertake the largest tax-payer funded bailout in history after the
collapse of the financial system in 2008, further expanding the
multi-trillion dollar global debt bubble, instead of letting it correct
itself naturally? How many actually believed, amid protests from millions of
Americans, that Congress would follow through with the passage of socialized
health care in what it supposed to be the world’s bastion of free
market capitalism? Who truly believed that American citizens would be, in one
sweeping broad stroke, marked as persons-of-interest and domestic extremists
for seemingly innocent behavior that can now land them in a detention
facility for life without charge or trial? Did anyone foresee a complete
collapse of the middle class, the wipe-out of trillions of dollars in
retirement and pension savings through stock losses and inflation, the
decimation of the domestic job market and wages, or the record levels of
poverty stricken Americans requesting food assistance and unemployment
insurance?
Actually, there were plenty of awake and aware
Americans out there that saw it coming – many wrote about it on their
blogs, spoke to us in videos, shared on their social media pages, or started
discussions in community forums across the internet. Some of the forecasts
may not have happened within a specified time frame or exactly how we may
have expected, but many happened as predicted, and in some cases were much
more extreme than we could have ever imagined.
As you read the following items for consideration
going into 2012, keep in mind that nothing is set in stone, and events may
play out very rapidly once they have been catalyzed, as we saw with the
Occupy protests and European riots in 2011, or at a slow but progressively
worsening pace, as we’re seeing with the globalization
of war in the middle east and elsewhere.
The following forecasts are based on trends that are
and have been developing for months and years. Some are more likely than
others. Some may never come to pass. Others are events that have a high
probability of coming to pass, perhaps in 2012 or in the next few years.
Whatever the case, they are scenarios that are, in many cases, interrelated . So, if you see one come to fruition, the
chance that another will take place grows exponentially.
1. Europe Is Going Down
We don’t need to explain the seriousness of the
situation in Europe other than to point out that Greece’s economic
problems are nothing compared to Spain, Portugal, Italy and the combined
eastern European nations. The entire European Union is under threat and
we’ve heard talk of a potential break up of
the currency, and even the possibility of countries exiting the EU
altogether. Even Germany has discussed this possibility. The situation is
dire and the only thing holding it up at this point is the same thing holding
up the U.S. economy: monetary machinations. But, as Horace said (65 – 8
BC), “you can drive nature out with a pitchfork, she will
nevertheless come back.“
The collapse of Europe is inevitable. It will not be stopped by more
centralization. The Euro will be destroyed, and it may very well happen in
2012. In anticipation of the coming currency meltdown, the world’s
largest lenders and investment firms are already pulling
their money out of the European financial system and transferring those assets to perceived safety
in US Treasuries and other instruments. We’re so close to a serious
collapse in Europe that Britain has taken the unprecedented
step of preparing evacuation plans for their citizens living in EU countries in case
they are rendered penniless and without means to return to the UK when the
Euro crashes. Other European governments
are making contingency plans to deal with riots, violence and uprisings when the
system goes critical.
2. Stocks Crash and Dollar Strengthens
You’ll know the European Union is in the midst
of a waterfall collapse by watching stock markets, which will react violently
and likely with unprecedented speed in their meltdown. While the big lenders
and insiders may be exiting European investments, the general population, like Americans here at home, have no idea how
bad the situation really is. It’ll happen when smaller investment
houses and large individual investors start pulling out. This will cause a sell off of European debt, and subsequently European
markets. As the money flows back into US dollars and the safety of
treasuries, it will strengthen, possibly to multi-year highs. For a time we
may see a repeat of 2008, where stocks and commodities collapse. The panic
will build on itself, and investors who lost 40% or more of their money in
2008 will rush to exit in an attempt to avoid similar losses this time
around. The negative feedback loop could send stock markets back to 2008 lows
or lower. If it happens, it will be a panic unlike anything we’ve seen
since 1929. Remember when stocks crashed 1000 points in a single day back in
the 2010? Imagine that, but for real and for several days without reprieve.
3. Precious Metals Sell Off
They may be the safe haven asset of last resort, but
if Europe crashes then precious metals priced in dollars may see a
significant fall. This effect will be more of an issue with a strengthening
dollar and companies selling anything they can to raise capital, than a
bursting of the gold and silver bubble, though many mainstream financial
pundits may make these claims as they did in 2008. The bubble will not be
bursting anytime soon and such an event is probably many years of at this
point. What we have seen over the last few years is that central banks,
whether they’re in Asia, the middle east, or South America, are
increasing their precious metals holdings significantly. While we will not
rule out a price collapse of 30% here, we maintain that a price drop in
metals will hit resistance around $1200 which is around the point central
banks like China and India will move in with large quantity purchases. If and
when this happens it will be the start of the great
precious metals decoupling we’ve discussed previously, which is when
gold/silver will no longer move in tandem with equities and other
commodities. Keep an eye out for this opportunity. It may be the last time
precious metals prices take a significant dive for a while, so stock up if
you can.
4. The Economic Depression of the 21st Century Goes
Mainstream
The economy has been battered for years. Only those
who are ignorant or refuse to pay attention don’t see that we are already in
the midst of collapse. It’s happening right here and now. Most would still write-off
a European collapse as “just a problem over there,” but since
U.S. stock markets will collapse along with it, and this is how most people
gauge economic health, it won’t be until Americans see their personal
retirement savings destroyed that they start realizing there is no easy way
out of this mess. Until the stock markets crashed in 2008 no one was talking
about the recession that had already taken hold for three quarters prior to
the Presidential election. This time, unlike 2008 where Americans figured it
was just a typical eighteen month recession, millions who have lost their
homes and livelihoods, and even those who still have shelter and gainful
employment, will finally realize this is the real deal. The people will lose
confidence in our government’s ability to mitigate the crisis and the
depression will be apparent to everyone – even corporate media.
5. Real Estate Continues Slide
No, it’s not over yet. There has been no pause
in the downward momentum of home prices, despite the government’s many
efforts to instill confidence through tax breaks and rhetoric. Before
it’s all said and done we will see a collapse of at least 50% in home
prices (we already have in some regions of the U.S.), and we may even go the
way of Japan, which saw a total decline from bubble to bust of some 75% after
their real estate bubble burst in the 1990′s. During the Great
Depression of the 1930′s, land was selling at pennies on the dollar,
reportedly at 80% off the highs, so don’t dismiss this as a possibility
in this Depression. It won’t all happen in 2012, but if stock markets
crash and people lose money, they will be less likely to want to invest in a
home, putting further pressure on the housing market. The only thing that
real estate has going for it right now is low interest rates on loans, and
those rates may remain low, especially if more money flows to the U.S. as a
result of a debt collapse in Europe. For those wanting to buy with a
mortgage, the next year or two may provide the final opportunity for low
interest rate loans this decade. If the US dollar goes into crisis (see
below) it means that interest rates will be rising. In the 1980′s we
saw mortgage rates reach 15%. We don’t need to tell you what something
like that would do to potential buyers and home prices. So, if you’re
planning on paying in cash, you may want to hold off and let the market slide
more. If you are going to take out a loan on a house, this may be a good time
to find a deal, especially if the home/land you are buying will allow you to
get out of major cities, produce your own food, and become more self reliant.
6. US Consumers Will Be Hit Hard - Food Assistance
Participation Exceeds 50 Million
There are no jobs. Wages are stagnant. Inflation is destroying
our standard of living. And things will only continue to worsen. In Broke and
Hungry we
predicted that over 50 million Americans will be on nutritional food
assistance from the government by the summer of 2012. We will likely breach
this threshold on schedule. Couple that with an economy that is showing
negative growth and consumers who have spent their savings and taken on debt
just to maintain some semblance of their former lives, and you have a recipe for disaster. We won’t even mention
what rising oil prices will do if the situation in Iran goes hot-war (see
forecast below). People are broke, and they aren’t seeing any trend
changes in the way things are going. This and a complete distrust in the
merger of government and business is what led to the Occupy protests of 2011.
And it will be what leads to the next wave of civil unrest that is sure to
grip major metropolitan areas in 2012 and beyond. #Occupy was nothing
compared to what will happen on the streets of America when people
can’t feed themselves and their families.
7. The Much Anticipated Dollar Collapse Is Coming
It won’t be long now, but a few things need to
happen first. As we’ve discussed for a couple of years, there will be
one more boom for the dollar, and it ill result from a panic run to safety when Europe goes
under. This is happening now, and in due time we should see the US dollar
regain its power. But this strengthening will be short-lived. As our economy
delves further into depression and our gross domestic product goes officially
negative (unofficially
our economy is already shrinking) our government will run into a serious funding
problem. President Obama is already looking for a $2 Trillion-plus debt
ceiling increase (after Congress raised it over a trillion dollars in the
summer of 2011). What kind of confidence do you think this instills in our
lenders? The result will be higher interest rates as lenders will look to
minimize their risk. On top of that, remember that we will probably have had
a major stock market crash as a result of Europe, which means people will
panic. Remember what happened in 2008? We printed trillions – trillions
– of dollars to bailout failing institutions and the American public
under the pretext that the system would be saved. It wasn’t. It’s
going to be bigger this time, much bigger. The Fed and the Treasury will, of
course, print even more. And, at some point our lenders will simply stop
investing in the debt, no matter the interest rate. The dollar collapse will
build up for a while, with interest rates rising to satiate the appetites of
lenders, but eventually no one will be willing to put up any more money to
fund a government that has no intention of ever paying it back. When the
meltdown finally occurs it will be very fast, probably occurring over a
period of days and weeks. We can only speculate about the consequences, but
it’s quite likely we’re looking at a total paradigm shift in life
as we know it today that will include violence and
political uprising, as well
as disruptions to
food supplies and the normal flow of commerce.
8. Riots in the Streets
They laughed when we and others forecast widespread
protest movements across America. Police were able to control the masses in
2011. This may not be the case in 2012. Any number of events can set off
demonstrations, and there is a strong likelihood we will see them again this
year, and for years to come. They will get progressively more violent. At
some point we predict that it won’t just be the police engaging in
beatings. The people will turn. They’ll turn on local businesses.
They’ll turn on each other. They’ll turn on the police. The
Molotov cocktails will start flying, and when they do we can expect the same
response from our government that we saw in Egypt and what we’re now
seeing in Syria where thousands of protesters have reportedly been killed by
the Syrian military.
*Warning Graphic
Video*
9. Deployment of U.S. Military On The Streets of
America
It won’t take much for the President to
declare an emergency or designate a certain area a battle zone at which point
the United States military can and will be immediately deployed to quell
civil unrest. If the economy gets as bad as we think it will, we can fully
expect a significant response from the populace. Whether by chance or design,
protests will eventually erupt into violence, and when that happens the
President will be “left with no other choice” because our
militarized police forces simply won’t be able to contain the
situation. It’s been reported that over 20,000 U.S. troops
have been trained in riot control and detention procedures, and that the Pentagon is
actively preparing for large scale economic collapse and the civil unrest
that would follow. They are
ready. They need only a catalyst. It may happen in 2012, but it would require
widespread, extreme circumstances to be justified, but be assured that there
are those in our government who are more than willing and ready to pull the
trigger.
Game Changer: FEMA Detainment Centers Open For
Business
They didn’t build the scores of
Federal Emergency Management Agency camps around the country for nothing. Purported to be for
the protection of refugees in the event of mass evacuations, the camps are
believed by some to be used for various contingencies, one of which is the
mass detainment of American citizens. While it may have sounded like a
conspiracy just a year ago, with the passage of the National Defense
Authorization Act, which allows for the detainment of US citizens without a
trial, it is becoming increasingly clear that the tin foil hatters were on to
something. According to a recent report, FEMA is
activating the camps and the US military has posted job
opportunities for Internment and Resettlement Specialists. Hard to imagine, yes. Impossible? We’ll let
you decide. But consider this: If the US military is ever deployed on the
streets of America they will be detaining thousands of individuals. Do you
think the local or county jail will have room for them?
Game Changer: Mid East Goes Hot
Somebody wants a war in the middle east. For
observers, it seems like both sides do. Iran’s President, although
limited to rhetoric thus far, has indirectly called for the destruction of
Israel, continues to inflame the situation surrounding its nuclear ambitions,
and regularly
threatens to attack
or counter-attack US military assets. Whether Iran is producing
weapon’s grade nuclear fuel or not is irrelevant to those in charge of
the US and NATO military machine. Saddam Hussein didn’t have weapons of
mass destruction, but we sent over a hundred thousand US troops into Iraq
anyway. The troops have since pulled out of Iraq to Kuwait (though,
independent contractors are still active in the country) after nearly ten
years of war and are now awaiting a return home or redeployment. One
thing’s for sure, though, if things continue the way they are going in
the middle east, those troops will be fighting in a new theater of war soon.
There’s too much to be gained to give up on the middle east now:
resource control, regional influence, and mega dollars for the military
industrial complex, all of which suggest we won’t be leaving for quite
a while. Israel is itching to pull the trigger on suspected nuke sites and
they may very well do so this year, as according to the Israelis, Iran is
either capable of deploying nuclear weapons now or is months away. The US government,
for its part, is doing what it can to turn sentiment against Iran, with one
of the latest examples being a so-called assassination
plot against a Saudi diplomat visiting the U.S. Whether the crisis is real or
manufactured won’t matter when the bombs start flying, and if Israel
gets involved you can bet the U.S. and its allies will be ready to deploy.
According to a NATO envoy the plans are
already in place. All it
will take is another Archduke
Franz Ferdinand and World
War III can be underway in a matter of weeks or months.
Game Changer: December 21, 2012
Ancient historical and religious texts all talk
about it – the end of the world. Could this year be it? We’re not
100% convinced, but of course, anything is possible. Petroglyphs dating back
thousands of years show people running to the safety of
mountains as floodwaters rolled in. Many even depict strange celestial objects in the
sky. The Bible speaks of floods that wiped out almost all of humanity. Sumarian texts suggest that there is a 10th planet that
passed by Earth every 3500 or so years, causing gravitational anomalies that
may be responsible for shifts in our northern and southern poles. Some
scientists claim that we may be passing through the galactic rift, a field of gravitational disturbance that lies in
the central plane of our galaxy, and that this rift (referred to in Mayan
texts as well) may likewise cause a pole shift or rapid earth crust
displacement (as
depicted in the movie 2012 – yes it’s a real theory). Former
military remote
viewers have suggested that they were able to remote view mass-refugee events occurring by
mid-2013, though they can’t say exactly what they saw. Geological
evidence suggests that all sorts of doomsday-like events have occurred throughout
the history of man, and all of them are capable of wiping out all or most of
the human race: pole shifts, mega-quakes, massive global flooding, the
sinking of cities and continents, solar radiation, super volcanoes and cosmic
collisions. There are many theories for what may (or may not) happen on
December 21, 2012, but the only prediction we can make is that in 2012 they
will be a regular topic at office water coolers around the country.
Will there be a cataclysmic event in 2012? And even
if there were, how would one prepare for an event that threatens to wipe out
billions of people? What we do know is that events such as this have happened
in the past, at one point shrinking the human race down to somewhere between
2,000 and 10,000 people. So, it does happen. The Mayan calendar is certainly
an end of one cycle and the beginning of another, just as our calendar starts
anew each year. Did the Mayans know something we don’t? If they did,
we’ll know about it in less than a year. In the meantime, if an Armageddon-like
event is in our future, enjoy your life and the time you spend with your
family, do all of those things you’ve always wanted to do, and leave
the rest to God.
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