Daily Archives: 1 January 2011

New Year’s Predictions for 2011

My predictions:

1. We will see the beginning of the collapse of the bond market. The truth about flawed fiat currencies will begin to emerge. No one will want government debt. The specter of the choice between government default and hyper inflation will haunt us all.

2. In response to a great, violent threat, President Obama will appear on television and make a heroic speech about security, the American way of life, and preserving our liberty. Despite its design, the speech will not salvage his popularity.

3. Ron Paul will be accused of racism, nazi-ism, and/or homophobia. As Ron Paul popularity grows, and as his long record of accurate predictions becomes increasingly verified by the economic crisis, his message of liberty becomes increasingly threatening to the status quo. Look for slander, followed by more extreme tactics.

4. Governments hate a free press. Look for internet regulation in the U.S. and western Europe. Secret blogging and anonymity services will become increasingly valuable. More scandals will emerge, some directly threatening, incriminating the White House. The Democratic party will attempt to salvage itself by abandoning Obama.

5. Socialist explanations for the economic crisis, which blame greed and private enterprise, will get great exposure on television and in print as government looks for reasons to increase power and taxation to cover its many irresponsible programs. The socialist explanations will gain some support, but the liberty message and the culpability of government will not go away.

6. Faced with plummeting popularity, even in Donetsk, Ukraine’s ruling party, the Party of Regions, will have to chose between failure and tyranny. They will attempt to chose tyranny.

***

Peter Schiff:

* Higher commodity prices will begin to hit consumer.
* Mortgage rates will continue to rise.

***

Gerald Celente:

1. economic crisis wake up call
2. economic unions will splinter
3. government will intensify efforts to take wealth from the people
4. crime waves
5. crackdown on liberty (in the name of fighting crime)

***

See also, my predictions for:
2010
2009
2008

Peter Schiff — Year-end review

* Dow’s 10% year gain is BS. Foreign currencies did better.
* US dollar gains is also BS. Gold was up 27%! Silver was up 75%! Does that sound like a strong dollar?
* Mining stocks are beginning to lead.
* Commodities (CRB) up 18%. Oil up 17%. Cattle up 20%. Copper up 34%. Corn 40%. Wheat 43%. Soy beans way up. Sugar up 52%. Coffee 63%. Cotton up 90%.
* China may switch investments from dollars to euros in 2011.
* Kudlow show calls for more government welfare in China & less individual responsibility.

Banks Open Loan Spigot

This is not good necessarily good news. This is the newly printed money, which has been sitting dormant in the form of excess bank reserves finding its way into the economy — a harbinger for further price inflation.

open quoteSome big U.S. banks are starting to increase their lending to businesses as demand for loans rises and healthier banks seek to grab customers from weaker rivals.

After declining steadily for most of the past two years, the amount of commercial and industrial loans held by commercial banks inched upward during the past two months, according to the Federal Reserve.

Moody’s Analytics estimates that commercial and industrial lending in the fourth quarter has grown 0.2% from the third quarter, to $1.22 trillion, the first quarterly increase in two years. Moody’s predicts such lending will rise 3% next year.

An uptick in business lending is an optimistic sign for the economy and can help to make the recovery self-sustaining. close quote (Read more from wsj.com)