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Some Trends and Predictions for 2012 and Beyond!

July 15, 2012

Let’s Review some of my prior predictions and philosophy for new readers!

1.  Deflation vs Inflation:  What seems to be emerging is a threshold level of debt that can not be repaid given our current economic situation. This is likely to lead to more bankruptcies, defaults, de-leveraging, and eventually serious Deflation. Deflation is:  when I/You have less purchasing power to affect an increase in ‘prices’. Spending by consumers is slowing and this trend is likely to continue for years. The deflationary trend is likely to be with us for another 5 plus years at the minimum. Deflation occurs as consumers, investors, and traders recognize that current debts are unsustainable and that government policies can not change the expectations of the greater populace that austerity must occur to deal with these issues. See below the fallacy of those who advocate ‘hyper-inflation’ as our future.

2.  Fed Policies:  We could witness some Fed Stimulus (until Bernanke leaves in 2013) which will temporarily prevent a major stock market collapse. The stress level on the markets, however, suggests (to me) that stock volumes will continue to decrease and we could witness another ‘flash crash’ before the end of 2012. Basically the Fed is ‘pushing on a string’. Personally, I am selling the market on the short side for the next few months. The MARKETS are much more powerful than the FED when ‘push comes to shove’!

3.  Gold and Silver:  For the short-term (say the next month or so) we may not see much upward movement in the prices of gold or silver. I am, however, expecting a major upward spike in GLD and SLV later in 2012. We could witness $2000 gold and $50 silver by years end. The markets are manipulated so anything can happen with ‘prices’ of gold and silver. As more investors and traders become AWARE of the virtual nature of all currencies, however, I expect that more will desire to seek their ‘safe haven’ in the precious metals. Later in 2013 or 2014,  I expect that gold and silver will become the most desired ‘safe havens’  of all currencies (as many banks and large financial institutions become insolvent…and governments become aware of their unsustainable debt situation). The history of ‘money’ demonstrates that a THING (a material object) will win over the ‘imaginary’ units within the CONSCIOUSNESS of Bernanke and similar elites…who create these ‘units’ via the digital computer.

4.  Romney vs Obama:  I expect a Romney win in November (if he is chosen over Ron Paul at the Republican Convention). The issue will be mostly economics and a directional change. Romney is likely to win on the issues of change and trust. Neither candidate, however, will be a favorite for those who desire meaningful change as outlined in my blog. The coming Greater Economic Depression can not be avoided as the economic problems transcend the ability of either party to solve. Expect many years of serious economic decline for America, Europe, and much of the Middle East, Asia, and Latin America. The issue is DEBT and our FUNNY MONEY markets. See this website for confirmation:

5.  Will Europe Implode?:  The situation with the Eurozone (the 17 countries) is unsustainable and impossible to resolve ‘as is’. If this group of Nations desires to remain viable as a Community, they will need to unite fiscally and politically. This will be a major challenge as there is NO LEADER who has the ‘vision’ and charisma to create this unity (as of now). Will a ‘leader’ emerge after some type of major collapse? Probably! The desire of the ‘system’ and of those in ‘control’ is to MAKE a unified Community emerge. Expect this to happen in the next year of so! In the meantime, expect the Eurozone situation to create some chaos with all the financial markets.

6. Printing Money vs Creating Money:  The vast majority of financial pundits and economists still use the words ‘printing’ to refer to money creation by the Central Banks. Is this valid today? Not really! What is now happening is much different from ‘printing’. Printing implies that ‘paper’ units are being created to represent our money units. This is not happening! Is this distinction important? I would suggest, YES. Those who predict and think that future money ‘printing’ will lead to hyper-inflation seem unaware that ‘printing’ is not being done today by our Central Banks. What is now happening is money creation via the computer…and this new money creation is NOT getting spent by consumers to the degree necessary to create hyper-inflation. How can hyper-inflation emerge without huge increases in consumer SPENDING (now 70% of the GNP)?

In the United States we have the Bureau of Engraving and Printing (BEP) that ‘prints’ our Federal Reserve Notes. With the emergence of the Computer, however, all Central Banks now ‘create’ new money units digitally. Currently, only 4% of all money in circulation is represented by ‘printed’ notes and ‘metal’ coins. Some 96% of all money flows and financial transactions are now ‘cashless’, ‘virtual’, ‘digital’, and within our computer screens.

What we really have today are ‘virtual’ money units in Cyberspace. Cyberspace can be visualized as a ‘extension’ of the human MIND (think of the internet ‘cloud’). This new technology allows the international ‘network’ of computers…which now creates our virtual marketplace (for saving, investing, lending, trading, and money flows) to operate globally. All this ‘appears’ good and viable for communication…but will it work for finance and Capitalism? I don’t think so! Read my prior blogs for the reasons.

7.  Consciousness vs the Brain:  I would think that we all agree that within our skull is our Brain (and all the ‘firing’ neurons and synapses). But does my/your Brain create our ‘Consciousness’? I don’t think so! What is ‘Consciousness’? The best presentation and logic on this issue that I have witnessed is that given by Peter Russell, scientist/philosopher from Great Britain. Take the time to view this video for a comprehensive understanding of Consciousness: Few seem to understand the reality of ‘consciousness’!
Peter shows quite clearly why we need to think anew today if we want to understand ourselves and the new trends which are rapidly emerging in science/religion/spirituality. Consciousness is the LAST frontier that ‘science’ and ‘religion’ need to understand and explore. Money units are now ‘created’ via one’s ‘Consciousness’. Central Bank policymakers are now creating digital money units (derived initially from their ‘consciousness’). Witness all the QE schemes and Stimulus policies which our Central Bank officials create to manipulate the markets! Consumers spend, borrow, and invest by thinking up schemes within their ‘consciousness’. Cyberspace is really an ‘extension’ of our collective ‘consciousness. Virtual reality is also an ‘extension’ of our ‘consciousness’. Spirituality can not be separated from our ‘consciousness’…nor can Science.  We now need a new language to encompass this new reality (or should I say new awareness of this reality)! Money units are now mostly ‘units of consciousness’ (no thing units)!
I will conclude this missive with some suggestions. To understand our economic problems (nationally and globally) we need to think ‘out of the traditional box’. Those who think that the ‘past’ paradigms are going to continue into the future will likely not adapt easily as economic conditions continue to deteriorate…going forward.  All the traditional models and thinking about ‘money’ and ‘economics’ were based on a materialistic philosophy of reality. Materialism was the basis (the philosophy) of Classical Capitalism and Monetary Theory.
We now need to recognize that we live within TWO realms of reality (materialism and consciousness).
Economics and finance have evolved from mostly material wealth creation via the tools of ‘money’ and ‘value’ into a SUBJECTIVE system where the ‘individual’ is now supreme (the international internet is the prime reason for this evolution). Politicians and Power Brokers (our monetary rulers), however, may not appreciate this new ‘freedom’ that we are all enjoying! Let’s stay aware of what these leaders within the Power Structure allow…going forward! Will they ‘allow’ only viewpoints and perspectives which support and agree with their own philosophy?
We can now communicate and transact business globally in realtime. All this is a result of the internet and its networking operations. Traders are connected via the internet (globally). Bankers are connected via the internet (globally). Consumers (worldwide) are connected via the Social networks created by the internet. Policymakers  and politicians are connected via the internet. Most of our military operations are a result of Cyberspace operations and computer inter-connections. We all can now do personal blogs via the internet and expand our ideas globally via this medium. What a change for this planet! Let’s hope that our leaders do not restrict our access and liberties to communicate and grow by limiting our freedoms to use this meaningful technology! Enjoy…and let’s keep sharing information!  
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