Thursday, January 08, 2009

Predictions 2009

I have decided to give you my predictions for 2009. I have put the most likely events at the top and the least likely at the bottom.

1) World War III will not start this year though some might date its actual beginning from 9-11-2001.

2) There will be no 911 terror attack on US soil in 2009. As I have said before, these attacks were organized by a Hebrew speaking Mideast nation that thinks it owns the government of the United States. The 911 Truth Movement is so widespread that nobody would believe the proposed car bomb attacks against Americans at popular tourist attractions would be anything other than a Mossad ploy to start another war.

3) There will be no Last Hurrah for Wall Street. Matthias Chang did an in depth study of the Bailout money available and determined there is enough money to run one final pump and dump. I have no doubt that Wall Street would like to fleece us just one more time but market forces would overwhelm them. Instead they have been intervening to keep the dollar and the stock market from crashing.

4) The first two months of 2009 will be the best time for the markets. After that we will see stagflation and then inflation as the dollar crashes. Market forces will begin to overwhelm our Bailout team within 90 days of Inauguration Day.

5) The current United States debt ceiling is 11.3 trillion dollars. It will reach 15 trillion before the end of 2009. This will make our debt equal to our GDP at 15 trillion dollars. The CIA Factbook lists the debt to GDP (Gross Domestic Product) ratio for all the nations of the world using 2007 figures. If we used 2009 year end figures, the US would move from 27th to at least 8th. If we raised the debt ceiling to 17 trillion which is a distinct possibility for 2009, then we would surpass Egypt and Sudan for 5th place. At the current rate of growth in debt we would surpass Zimbabwe and be the number one country in debt to GDP ratio by 12-31- 2011.

6) We are likely to see another war against Lebanon. This will be Israel's sign to the world that they have rejected the Mideast peace process.

7) Gold will reach at least $1,300 an ounce in 2009. Gold Backwardation will change the gold market. Catherine Austin Fitts has said several times in interviews that part of the Bailout money has been used to cover Wall Street's losses from shorting gold, Wall Street stole gold from Fort Know to sell it to drive down the price of gold and to make themselves rich. Then they began shorting gold in the futures market to drive down the price of gold. Gold Backwardation means that the futures price of gold is less than the price of the physical metal itself.

8) Gasoline will reach $4.00 a gallon in California or $3.39 in other parts of the United Sates out of the reach of our state legislature. The world's GDP is contracting and the demand for imported oil which drives the price up is also decreasing. Oil will not be cut off by a war in the Persian Gulf. It will be the drop in the value of the dollar that will drive up the price of all imported commodities.

9) Prices will double by the end of the end of 2009. Inflation will rip through the United States when foreigners dump the dollar. In the Wiemar Republic in 1923 the Velocity of the money unleashed hyperinflation. If the money supply is one billion dollars in country X and the GDP is two billion dollars, then the money turns over twice in a year. This turn over in the money supply is called Velocity. Currently, the American Velocity has dipped below 1.00 which is a sign that the economy is contracting. When foreigners dump dollars and refuse to buy our debts, the price of imported commodities, such as, oil will increase. As prices increase, people holding cash will be losing money. This will force them to get rid of their dollars. This will increase the turn over (Velocity) of the money supply. There is an old formula M x V = P x T where M is Money, V is Velocity , P is Prices and T is transactions. If V goes from 1.00 to 2.00 in the above formula, then prices will double if the number of transactions remains constant. If V or Velocity goes to 3 and then 4, then prices will triple and quadruple. With today;s instantaneous communications it would take only 90 days or less for inflation to destroy our pensions, savings and the purchasing power of our paychecks.

10) Wages in after tax real dollars on 12-31-2009 will be half what they were just five years ago. I made this prediction years ago. I named the actual time frame of 2004 to 2009 prior to 2005. I am 100% certain that the dollar will crash and our wages will be permanently cut in half. The only question is whether or not the dollar will crash before the end of 2009 or early in 2010. If I am wrong, it will only be on the timing of the dollar's demise. A professional economist once said, “never give a number and a date.”

All of the above predictions involving price increases should be based on the honest statistics from John Williams at Shadow Stats ( .) Mr Williams has proven that the official Consumer Price Index (CPI) is a lie told from one administration to the next.

In my last essay I wrote about some of the realities of 2009. The following can be projected from current events and do not meet my qualifications for predictions. These are the realities of 2009 we must deal with.

I must repeat my warning that I am not an investment advisor and am not giving investment advice.

The Realities of 2009

1) Unemployment will increase in 2009 even requiring federal assistance for state
unemployment compensation funds. I have seen predictions of 25 to 40% unemployment.I doubt that the unemployment rate will more than double in 2009 due to the high number of government workers as compared to 1929.

2) Commercial real estate will tank. Retail sales are dropping. Gerald Celente cites the 35% drop in luxury sales. A local store closed its doors despite a a $3,000 a month cut in rent. As major stores close in shopping malls, the remaining stores will see their foot traffic and sales plummet.

3) In March corporations and non-profits will have to make an accounting of their pension funds. A Reuters study said they are 409 billion dollars short. That is almost 100 billion dollars more than the projected 2009 corporate income tax payments. Also in March quarterly income taxes are due with individual taxes due on April 15th. I do not see the stock market doing well after this time period.

4)Home prices will continue to decline in 2009. Sub-prime mortgages will not be the only ones to default. As I said in my last essay, banks are not allowed to lend to homeowners until the assessed value of their homes is greater than the amount they owe. As I said, Wall Street's solution is to inflate general prices and allow home prices to catch up with mortgages.

5) Foreign countries will cut back on the purchase of Treasuries. China has a 600 billion dollar stimulus package of its own which it can finance from exports and from the sale of Treasuries and other assets. India, Japan and several other nations have similar reasons to stop buying our debts. This will increase pressure on interest rates. Higher interest rates will doom the US economy.

6) Small banks will close by the hundreds. They will be swallowed up by the big banks. There will be no closure of all banks. The plan all along was to centralize control in as few banks as possible.

7) Convertible Default Swaps (CDS) will become a major scandal requiring Congressional investigation. AIG has been bailed out three times for a total of 150 billion dollars of taxpayer money and the Congress has failed to require the federal government to regulate CDS like any other derivatives (i.e. Bets on the future value of bonds, curencies and commodities.) The Congress will fail to act before the taxpayers have been fleeced.

8) State governments and most of the 3,000 county governments will be short tens of billions of dollars in revenues. The state of California is already short tens of billions of dollars. Several Democratic state governors have asked us taxpayers to give the states a two year one trillion dollar Bailout.

9) Food prices will continue to rise even before the dollar crash raises all prices. Small farmers are not getting the credit they need to produce our food. And besides we have been in Global Cooling for the past two years due to a decline in solar activity as evidenced by the reduction in sun spots and should expect shorter growing seasons. Gerald Celente has predicted food riots in America. Soldiers will be used to put down riots but I doubt we will have nationwide martial law in 2009 even though the Powers That Be would love to do away with democracy. There are more of us than them so they are limited in what they can do to us.

10) The Congress will retain its status as Israeli occupied territory.


To read Matthias Chang's article on Wall Street's possible Final Pump and Dump please go here:

To read why foreigners have every reason to resent the dollar and hence why they WILL DUMP THE DOLLAR please Matthias Chang's article on American Toilet Paper here:

To hear Gerald Celente tell you that the next depression will be worse than 1929 please go here:

This is the article entitled Ten Major Threats Facing the Dollar in 2009. It is detailed as it is alarming To read the most disturbing analysis of the dollar please go here:

To read F William Engdahl on why he thinks the Federal Reserve is setting us up for a Wiemar style hyperinflation please go here:

To read about Karl Denninger's take on the ominous development that Velocity has dropped below 1.00 please go here:

To read about Gold Backwardation, the most significant development in the gold market, please go here:

To read about that demand by the governors for a trillion dollar Bailout please go here:


Anonymous Anonymous said...

Tin foil hat doomsday predictions mixed in with antisemitism... You need a job pal.

9:29 AM  
Blogger Daniel F said...

Nobody can accuse Gerald Celents, Catherine Austin Fitts, Matthias Chang and David Smick of not being knowledgable. Waht do you think will happen to the world when, not if, the 200 trillion dollar bubble Smick described bursts?

I have always clearly distinguished between the Zionists who appointed themselves as Jewish leaders and the everyday men and women of Jewish descent.

My regular readers are well aware that the Rothschilds financed Hitler's purchase of weapons in 1935 with a loan which was the monetary equivalent of 50,000,000 ounces of gold. I read this in Howard Katz's The Warmongers.

We are headed towards WW III. Is this in the interest of Israelis or of aby non-Israeli Jewish people outside the London and New York banks?

Jewish people have been living in democracies in the US and Europe for several generations. It is time that the majority learn that democracy is a good idea and will make them safer than their present leadership which is self-appointed.

If Jewish people want to feel safe they will have to learn to make others safe.

12:12 PM  

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