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A lot of people realize
that the world financial and commodity markets have rocketed around 60 pct
since March 2009. Around the summer/fall people realized that the markets got
ahead of the world economy, which is still terrible. Unemployment is still
rising and one day this month there were US job losses of 50,000 announced.
Hey if jobs are again going to tank (they are) then this gig of so called
recovery is over.
I had told subscribers
that we expected December retail sales to be dismal, and that US economic
stats in early 2010 would highly disappoint.
Other measures of stock
liquidity are also tanking, basically, the market is flat and is up but
it’s peaking. Insider selling is high.
Significantly,
China has started a money tightening regime, first with higher bank reserves
and then soon higher interest rates which they are discussing to cool their
property and other bubbles. The last several times China did this over the
last several years all world markets tanked within several months. This info
is commented on in our latest newsletters.
Then, the US
Quantitative easing (buying everything in sight from stocks to mortgage
securities for which there is almost no market now but is a huge part of the
home loan business) is ending in March.
March-May
Again
the correlation – and there are others – but the correlation is
for a huge market decline starting around March of 09 or so. Much of the QE
worldwide, not only from the US Fed and Treasury, but also a staple financial
tool in Japan, and of course the UK now, and others are all adopting this
tactic., China too.
But, the only question
is how long QE will last. My expectation is that after the US let’s go
of QE, the rest soon follow, the logic being why be the only man in a parade?
A parade needs more than a few. So, no parade. The parade is cancelled.
And so, we are
counseling people to prepare for what is coming around March – at least
what we think is coming for commodity and the financial markets. .. But March
or a month or two around that period is going to be fateful. There are other
pressures of a great magnitude as well.
US
Debt bomb roll over
Half
of US Ts are now around 2 yrs or less. The US needs to roll over or issue an
astounding $ 5 trillion of US Treasuries in the next year and a half. How
will that happen??? Again, the fateful 2010 period of massive debt
issuance/rollover for the US looms menacingly. 2010 is a fateful year for the
US debt market. Not to mention that places like Greece and others are already
just about to go belly up. Even though the USD rallies (we predicted this
months ago) the USD is in serious trouble soon.
It will be a dark time
worldwide. There is a lot more to say here. Needless to say that will be in
our future newsletters for paid subscribers. If you noticed, we have not been
publishing as many public articles, and one reason is that our paid people
get a great deal more of this analysis than the public articles offer.
Obviously. And we have quite a batch of recent newsletters out, that will
most definitely intrigue you. They are my best stuff to date.
We are also raising our
prices substantially. Basically, I realized that we are often way ahead of
the curve, and are followed by other writers. The present PrudentSquirrel is
worth every penny. We are not cheap and just another newsletter out there,
anymore anyway. Our present prices are $144 a year for 44 newsletters and mid
week email alerts. That will go to $360 a year. However, if you want to
subscribe now, since we have not yet raised prices, you may still do it for
$144. We offered existing subscribers re-subscription specials before this
coming price increase and had a huge response. So, evidently our subscribers
agree that the newsletter is worth it.
Lastly, I would like to
point out that we have made some astounding predictions over the last two
years about the USD and gold and other currencies. If you stop by our site,
we’ll have a page showing you them. We do not make many predictions
like that, maybe 2 or 3 a year. But our last batch was quite on the
money… you’ll see when you take a look.
We invite you to stop
by and have a look at www.PrudentSquirrel.com
Chris Laird
Prudent
Squirrel
Chris Laird has
been an Oracle systems engineer, database administrator, and math teacher. He
has a BS in mathematics from UCLA and is a certified Oracle database
administrator. He has been an avid follower of financial news since
childhood. His father is Jere Laird, former business editor of KNX news AM
1070, Los Angeles (ret). He has grown up immersed in financial news. His
Grandmother was Alice Widener, publisher of USA magazine in the 60?s to 80?s,
a newsletter that covered many of the topics you find today at the preeminent
gold sites. Chris is the publisher of the Prudent Squirrel
newsletter,
an economic and gold commentary.
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