The way the economy is at the moment, you might feel like you have a noose around your neck. Not the big boys, these economic bailouts have given them the chance to keep their big houses, expensive cars, fat bank accounts, mistresses…. Need I go on?

This Economic bailout rally has not really done much for you and me but?. The Economic Bailout rally, is my terminology for what has been going on lately. Bailout this, bailout that. That money tree in the backyard of the government seems sprouting furiously. How convenient! It’s like having your favourite fruit tree in the backyard, only when you pick off one piece of fruit miraculously and almost instantaneously two pieces of fruit grow in its place!

In all my 15 years as a trader I have never seen the crazy actions and reactions I have seen in this current market environment.  If you understand a little bit about how this crazy world operates, you would understand this saying “Always Expect The Unexpected!” These economic bailout plans and actions went down quite well at first, but people are slowly waking up to what is going on now. Especially those that read my blogs or posts.

ANYWAY…

I was going through my charts earlier this morning and a few things literally jumped out of the page at me.  Got me a little bright eyed, but that might have something to do with the 8 or so coffee’s that I had put away before lunch.

Below I explain this Economic Bailout Rally (with a chart) a bit more in detail, and 3 critical things that have gone on during this hyped up, don’t-worry-this-recession-is-nearly-over  ” Economic Bailout ” rally…

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When you think of Germany these days you think of precision cars, Fine fresh food and a tantalizing range of exotic beer… but it seems like these little critters are getting a taste for gold too now in this current financial crisis! So much so they have decided to install gold vending machines that contain real gold inside! (see pic above)

WHAT DID YOU SAY!!??

Yes!….GOLD! Not only that, but instead of having to go to a dealer, or find your way around an expensive mint, you can just walk up to a vending machine, throw in your money and HEY PRESTO, out comes your gold!

According to experts, once these vending machines are installed it will be as easy ‘as buying a chocolate bar’ after plans were announced on Tuesday to install gold vending machines in airports and railway stations across the country.

Alot of my friends where amused by this story today and I just had to pass it on. If you are thinking this is just a joke, then here is the actual NEWS STORY LINK from ft.com.

Instead of little Johnny loitering around mums knees pulling at her dress and hounding her for a chocolate bar, he will be soon asking mum for a real gold bar,  more funds for college and demand dad hand over the business section of the newspaper to read before school.

I can see lots of crazy ideas coming for TV ads in regards to ‘plugging’ these Gold Vending machines!

GOT GOLD?

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Over the last few months we have witnessed some very extreme moments in the markets. But the price of gold today dropped significantly. Recently the positive moves we saw in gold made it look like it was on a major case of ‘high grade’ steroids. These moves took the prices of silver to incredible highs and gold back to around the 1000 dollar level. (seems like a very significant psychological level for investors now)

The reason for the move ? Well, it seemed that every man and his dog was beating the “buy gold today” drum, and it sure did work! It caused a mass buying frenzy…I liken it to panicing kids chasing down the icecream van on a saturday, waving their hands about ferociously, and showing their crisp money notes screaming “WAIT….WAIT!!!”

As an avid investor, I am heavily invested in gold. I have been buying on the dips. You must realise this is one important aspect of making money on the market. The recipe for disaster is buying something that keeps hitting new highs. Remember that saying, what goes up must come down! YES! Nothing ever goes up in a straight line!

Anyway…

Have a good look at the chart below, and you will see what I mean. You see that the gold stock today has broken a major line of support! This means there is a significant chance that both gold, silver and some of the precious metals could be in a bit of trouble now…

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This whole swine flu pandemic saga is very interesting I must say. Even here in Australia we are getting our fair share of swine flu cases especially down south in the state of Victoria, which is normally termed the FLU CAPITOL of Australia in our normally annual flu season.

Since the WHO upgraded this situation to PHASE 6 – We have been flooded with emails from people around the world stunned about our swine flu pandemic forecasts and it’s accuracy. In no way do we enjoy releasing such pessimistic news, but we feel our role is to educate people and keep them informed as to possible events that could play out. Especially an event such as this swine flu pandemic.

If you remember, we released one of our swine flu pandemic forecasts back in April . (see below)

Click Here To Download Our ‘swine flu pandemic‘ PDF Report!

The First part of our swine flu pandemic forecast (at the end of our report) seems to be playing out….SCARY!

Now the swine flu pandemic, is actually officially a pandemic, it is scary situation. But we still feel that although this pandemic is spreading quickly, there is a high possibility that a more violent wave of swine flu is coming down the track. There is a possibility this will occur more towards the end of 2009 in  Nov / Dec (as our investigations suggest) or around the Christmas holidays.

There are several reasons for this, but going from a more historical perspective a similar situation occurred back in 1918 commonly referred to as the ‘Spanish flu‘, it shares many similarities with what is happening at the moment with this swine flu pandemic.

I know some people might have laughed at us, as we released our swine flu pandemic report, but it seems the other trends we forecast could play out now also. Many people continue to email us, very concerned about their family and loved ones.

Although there is much concern about this, and those in the community with OCD about washing their hands are now, not so embarrassed.  There is no reason for you to panic. I agree while we must treat this swine flu pandemic seriously, the important thing is to ensure you are taking the proper precautions and measures to decrease the chances of contracting this awful flu.

Our members have received the Following helpful hints :-

# Tip #1: Stay home if you’re sick.
# Tip #2: Avoid close contact with people who are sick.
# Tip #3: Wash your hands often and avoid touching your eyes, nose and mouth.
# Tip #4: Cover your mouth or nose with a tissue when coughing or sneezing.
# Tip #5: Keep up with health information in your own community
# Tip #6: Maintain at least one meter distance from people who have flu-like symptoms such as coughing.
# Tip #7: Consult your doctor if you have a cough and fever.
# Tip #8: Clean surfaces that are touched often.

This is plain common sense really, and its about all that you can do at this stage.

We promise to keep you updated throughout the next few months with any information we think is relevant to this swine flu pandemic situation.

That’s if for now. Enjoy your weekend!

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Many years ago When Franklin D. Roosevelt was president of the USA he made a very famous quote.
“But while they prate of economic laws, men and women are starving. We must lay hold of the fact that economic laws are not made by nature. They are made by human beings.”

It basically means that Government (human beings) are the ones making laws regarding the economy. Because the economy cannot simply run by itself. It’s the laws, rules, constraints, that fine tunes the engine in order to make it work properly. If something goes wrong then it is not these laws you must blame but the people that are these ‘law makers’.

Recently this engine (the economy) has broken down, and if we do have a situation where men and women have no money or no food who do you think they are going to blame first. I think the government is starting to see this and are panicking and have ‘plan B’ ready and will change many laws and restrictions regarding their privileges and authority in order to have more control over many situations regarding the economy.

There is one thing for certain, “Change is coming“…VERY SOON and in a big way. I would be lying to you if I gave you the normal pitch that I keep seeing on the 6 o’clock news. They keep sugar coating this credit crisis like they have miraculously found a lamp, rubbed it got 3 wishes from the genie that popped out.

The problem is, there is no LAMP, and there is no GENIE!

The video below explains this more in detail…

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The next great depression?  Is the next great depression coming? How bad will the next great depression be?

These are the questions people are now asking me quite regularly now. It is very interesting as these same people use to come into my office, endorphin levels sky-high, starry eyed, and bragging about how much money they are making on their latest property sale, and how much money their fund managers or pension fund was making.

Those bright bubbly people all starry eyed have now become, confused, vage, tired looking and left scratching their head. Wondering if after the market crash of 2008, there is a possibility of a next great depression coming.

ANYWAY…

We have come along way since the days of DOW 14,000 and selling ones house and making a tremendous profit. But the “D” word is on the lips of the smarter analysts out there and they are right. Its like the Governments at the moment are somehow strongly allergic to the “R” word (recession). But you have to remember these are the same guys that sent us down the toilet in the first place.

That leads me on to the next question that a lot of my friends and family ask when we sit around the table. Is next great depression coming going to be GOOD or BAD? It’s a very complex question, but a very important one!

Without sounding too much like confuscious I admit I am a strong believer in reality. And in cause-ality. Which basically means the action of one thing causes an equal and opposite reaction somewhere else. You drop a tennis ball from a 10 story building, and gravity causes it to fall and it will bounce. Basic commonsense right?

So in this case you inflate the economy intentionally more than it was suppose to inflate you create a dangerous situation. THE EFFECT : The market has crashed and the economy is now following suit. Which is what happened back in 1929 and we are seeing a very similar situation play out again. Yes, Yes! I know people are saying history is repeating and its bad. But let me become ‘Sargent Optimism’ for just a moment.

You are going to see some big changes soon both socially and economically speaking. Bigger than anything we have ever seen. Much bigger than the early 1900’s. The writing is on the wall for any person to see. The ones who have their eyes open anyway.

The thing is… the Next Great Depression is not only going to affect the day to day lives of many but is going ’shake up and wake up’ alot of people. The good thing is that a wake up is needed. To see how greedy the governments and these rich bankers on wall st have become.

This year, we will see people who might be classified as more aware, or more “advanced”, withdrawing from the temporal world.  To others karma is coming, it maybe too painful to watch people suffer the consequences of their actions and their isolation but this is what I am talking about. CAUSE AND EFFECT. You reap what you sow and you sow what you reap.

People were happy with the Govt when they had jobs. But what happens when more people start to lose their jobs, anger will set in. Then without jobs these same people could lose their pensions as well. Anger and hatred of governments will rise to a new level!!! If this happens its only going to speed up the process of people finally waking up, and start asking questions about how all this started in the first place.

YES PEOPLE WILL FINALLY WANT THE TRUTH!!!

People will want the truth this time and not dainty BS excuses. According to our studies there is the first onsets of this in mid 2009, but we have not seen anything yet. The next great depression is going to be an eye opener for many, as we enter a new age of Aquarius. An event marked by many as an important revolutionary change. We see this revolutionary change as a strong waking up amongst men and women across the globe. Man and women seeking change, and looking to the future instead of what has happened in the past.

The Next Great Depression looks likely to be just the event needed to speed up this process. Time will tell.

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