- 1. The U.S. will implement QE3/4 when the $600 billion
of QE2 is not enough (already it is not enough as admitted by the Fed's
chairman Benjamin Shalom Bernanke recently on CBS' 60 Minutes). Except
it won't be called as such in the lamestream media. QE3/4 will be
in the trillions of U.S. dollars (USD) of quantitative easing, i.e., fake
digital money printing from the Fed to sop up unwanted U.S. Treasuries.
The unstated and ONLY purpose of QE2 and QE3/4 is to buy up all of
the U.S. Treasury debts that the foreign nations are beginning to refuse
to buy while they are quietly dumping what they possess on the U.S. and
world markets in exchange for real and tangible assets and resources.
- 2. The major export nations like China, Russia, Brazil,
India, Argentina, and others will engage in and increase their non USD-denominated
trading among themselves, as exemplified by the recent China-Russia trade
agreements whereby they would start trading in Rubles and Yuans, and not
use USD as is typically transacted in international trades for commodities
and oil. This will put increasing devaluation pressures on the USD.
So, look forward to the US Dollar Index to drop further from the
low 80s now to the low 70s or even lower in 2011.
- 3. Retail food prices in the U.S. will increase in the
low to medium DOUBLE digit ranges (10% to 40%) for everything from the
junk/GMO "foods" served by corporations like McDonald's to healthy/organic
foods supplied by companies like Whole Foods Market. This will take
place noticeably in the first half of 2011.
- 4. The real estate market in Canada will finally begin
its collapse suddenly after the new year celebrations are over, mimicking
the real estate crash of the U.S. that began in late 2008. Over heated
markets like Vancouver will suffer the most as the average house price
there is around $1 million Canadian (the Canadian dollar is almost on par
with the USD). The average homeowner in Vancouver is spending about
70% of its BEFORE-tax income on paying mortgages. This financial
situation is totally unsustainable. To illustrate a parallel, past
example why it is going to be the case: In 2005, the "median"
California family spent almost 73% of their AFTER-tax income on their "median"
California house ($477,700), and look what happened to the real estate
market in California. A 50+% devaluation of the Vancouver real estate
market is very likely over the next 1-3 years. But the crash will
begin in early half of 2011.
- 5. The Chinese real estate market, the last investment
vehicle in China for those Chinese with money, will also begin its collapse
suddenly, hitting hard cities like Shanghai, Beijing, Fuzhou, etc. According
to a very recent article by UK's Daily Mail Online, there are as many as
64 MILLION empty homes in China with no one occupying these brand new homes!
This China real estate crash will have serious implications for the
real estate market in Vancouver. There won't be m/any Chinese millionaires
plunking down $1+ million CASH for buying real estate in Vancouver, as
has been the case over the recent years.
- 6. Inflation will run rampant in China as it is already
doing so with retail food prices. See my recent article (www.rense.com/Currency%20Wars%20For%20Dummies.pdf)
as to the real causes of huge inflation in China. Unless China allows
its Yuan to appreciate (increase in value) against the ever falling USD,
rampant inflation in China will continue its course unabated. If
China allows its Yuan to appreciate by any significant amount (7% or more),
such an action will DECIMATE its export industries and manufacturers, because
of the extremely thin profit margins that their exporters have to work
with. China will raise its interest rates to try to stop inflation
but that will not do the job. In fact, raising interest rates will
only cause more foreign currencies to go into China in search of higher
yields, unless China imposes strict restrictions on the importation of
foreign currencies and investments.
- 7. The EU will continue its financial collapse, as nations
like Spain, Portugal, and Italy will join Greece and Ireland in facing
the stark choice between (Option 1) bailing out THEIR banksters or (Option
2) having THEIR nation go bankrupt. The IMF/World Bank model of "rescuing"
these EU nations were perfected on the so-called Third World nations such
as Argentina (viz., John Perkins' book, "Confessions of an Economic
Hitman"). In 2001, Argentina defaulted on its IMF loans, i.e.,
it was forced to take Option 2, and its people suffered tremendously as
the majority of its middle class was literally wiped out overnight. The
Banksters in Argentina (with such strange and exotic names like JPMorgan
Chase, Citibank, etc.) were able to fly out their billions of USD on private
jets before the forced conversion and devaluation of the Argentina pesos/savings
were implemented on the masses. Millions of Argentineans keep their
savings as USD in their banks before the collapse. When the forced
conversion and devaluation of those USD savings were imposed on its citizens,
the banks were closed and ATMs withdrawals were limited to a few hundred
pesos (less than $50 USD) per person per day. Overnight, Argentineans
saw their savings lose over 75% in value (the peso went from 1:1 to 4:1,
requiring 4 pesos to buy 1 USD overnight). And then the multi-national
corporations came in like financial vultures and bought up the natural
resources and public utilities for pennies on the USD. THAT is IMF's
Option 2 for Spain, Portugal, and Italy. Option 1 is long term financial
servitude and slavery for the citizens of the bankrupt country as is happening
- 8. Silver and gold will continue to climb in 2011. Silver
will increase much more than gold in 2011, as the "Crash JP Morgan,
Buy Silver" viral campaign started by Max Kaiser in early November
will take off exponentially in 2011. Silver will breach $50 per ounce
- 9. A major war will break out somewhere in the world
in 2011 (if not in 2011 then definitely in 2012) involving the U.S. and/or
one of its proxy allies, i.e., Israel, South Korea, etc. The very
recent massive war exercises conducted by South Korea and the U.S. were
meant to provoke a military response from North Korea. Fortunately,
the North Koreans didn't take the bait. This will be the final American
Bubble to inflate as the U.S. will try to use "shock and awe"
on either North Korea or Iran or even maybe a country in Africa in a futile
attempt to bypass and cover up the greatest economic and financial collapse
in world's history.
- David Chu is a professional engineer who has worked throughout
the United States for over 19 years. In 2008, he wrote the book, NO FORECLOSURES!,
to help Americans fight the Banksters by delaying and stopping foreclosures.
For more information on his book, please go to www.no2foreclosures.info
or you may email him at firstname.lastname@example.org.