Modern News

Amid what seems to be a continuous stream of “What, me worry?” chatter from the White House and other Administration officials (and picked up by most of the main stream media) about how “the worst is behind us” and “we’ve avoided a second depression’, etc., there is this growing buzz in the background. It’s not yet the tornado siren, tsunami warning or even the train whistle, but maybe more like the truck back-up beep or even just the buzz of an annoying mosquito. But, it’s there and it’s getting louder.

In recent weeks, as the government goes about telling us everything is fine, a growing number of financial experts have begun making noise.

Robert Prechter, President of Elliott Wave Int’l. and Executive Director of the Socionomics Institute known recently for his accurate predictions of the stock market meltdown in the Fall of 2008 and its’ subsequent interim bottom in March, 2009 is looking for an all-out economic meltdown…a virtual financial Armageddon. Indeed, his most recent newsletter, The Elliot Wave Theorist has this headline: “STARTING IN 2010: THE BIGGEST DOWN WAVE EVER FOR FINANCIAL ASSETS IN AN ENVIRONMENT OF RUNAWAY DEFLATION”. In it, he says that “This is a very rare event…” and that “its upcoming occurrence will be stunning enough to set records for financial panic.” He advises his subscribers to “convert bank balances to greenback cash and keep it in safe places.” Those are strong words…

Harry S. Dent who writes the HS Dent Forecast advises his subscribers to “Get ready for the most extreme two years of your lifetime…” predicting that the “ticking time bomb will very likely start to blow between July and August 2010…”

Richard Russell, who has been writing the Dow Theory Letter daily for over 50 years says to subscribers: “What does it all add up to? I think it adds up to hard times ahead.” He considers the stock market to be in a primary bear market advising investors to remember his long-held thesis: “In a primary bear market everyone loses and the winner is the one who loses the least.”

Much of the basis for these dire predictions stems from the unprecedented level of debt and spending by the US government and the creeping dread about the level of promises made to future generations that simply can’t be fulfilled without plunging the United States into an economic malaise that may last for generations.

Couple that with the disarray, lack of courage, special interest influence and partisan bickering that is our political system and you begin to see why these predictions are being made.

Bill Gross, the legendary bond investor and head of PIMCO, the largest bond investment company on the planet, recently penned a piece called Let’s Get Fisical. In it, he asks “What has become of the American nation?” and states that “Our government doesn’t work anymore, or perhaps more accurately, when it does, it works for special interests and not the American people.” Wow! Strong words from a normally rational and unemotional money manager. He goes on to discuss how actions of the Fed and the absence of ongoing government “stimulus” will likely lead to conditions where “market returns may not be so “fine” in 2010.”

Several studies seem to support what these guys are saying. Most recently, a study from the Peterson-Pew Commission on Budget Reform titled Red Ink Rising- A Call to Action to Stem the Mounting Federal Debt said that its Commission members “share a common concern: the fiscal future we leave to succeeding generations will lower their standards of Living.” It is a call to action to prevent government debt from burying the nation. But it says: “It is our strong belief that we must begin to take action now…”

Fox News’ Glenn Beck said this week that we “must prepare for great change” comparing the US to the ill-fated Titanic saying that we are now at the point where the iceberg has been struck, but only a few realize that the ship has been dealt a fatal blow. (VIDEO)

So, is this to be? Well, there are signs of hope in the middle of this mess. The previously “silent” majority in our country is no longer silent expressing its growing concern in the form of the Tea Party movement demonstrating that we don’t need to resort to violence to correct what we see as wrong. We can use an equally effective and more powerful weapon…the vote. Witness the results so far in Mass., NJ and Virginia where ‘We, the People” are taking back their government. Even Fox’s Beck says that the Titanic can sink…if we get together now to rescue the passengers. We will then just build another one or even a “fleet of them”. But, as the Peterson-Pew report says: “we must begin to take action now…”

That noise…

Shhh….there it is again, do you hear it?

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