Economist who Predicted Recession Warns of Worse Crash Ahead

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Robert Wiedemer is an economist and bestselling author who prophetically predicted both the real estate and stock market collapse in his book, America’s Bubble Economy (2006).
He’s written a follow-up book, Aftershock, which immediately topped Amazon’s bestseller list. Dow Jones said Wiedemer’s work “is your bible, read it, get into action, and be a winner.” Standard and Poor’s says his “track record demands our attention.”
In this video, Wiedemer sounds the warning that we’re heading toward even worse times, but the pols in Washington DC are ignoring and not telling us about the true scope of the problem(s). The federal government is doing and will continue to try everything it can to stave off the collapse of the dollar, by buying back U.S. debt. (Don’t ask me to explain that because I sure don’t understand how our government can buy back its own debt.)
Here’s my summary of his main points:

Predictions

  1. Government will raise taxes,  no matter who’s in the White House in 2013, beginning with the rich — which Obama just announced — then the middle class. But this won’t solve the debt crisis.
  2. By end of 2012, we’ll see 10% inflation, which means a 10-year treasury bond would lose half its value. We could see 100% annual inflation for three consecutive years after.
  3. This means many people’s savings will become drastically lower. Some life insurance plans will have big losses. Pensions will become unstable.
  4. Two more bubbles will burst probably by 2013– of the dollar and of government debt.
  5. By 2016, there’ll be a mass exit of foreign investments from America because of the dollar collapse.
  6. The housing market will continue to be depressed. Homeowners may lose 8% of home value in 2012. Home prices can fall more than 20% in the next 5 years, once the inevitable interest rate hike comes in.
  7. Retirement age will increase to 73. Many will have no choice but to keep working until dead.
  8. The worst case scenario is a 90% drop in the stock market and 50% rate of unemployment. But this won’t last forever. America will recover.

What to do to protect yourselves:

  1. Stay away from real estate because it hasn’t hit bottom. Sell your home and rent instead. If you stay in your home, refinance at a fixed rate mortgage, then just pay the monthly minimum, i.e.,  don’t pay at faster rate.
  2. Save as much as you can for a rainy day.
  3. Pay off your car loan.
  4. Credit cards are really adjustable rate loans, so pay off your credit card loans as fast as possible.
  5. Once inflation hits 10%, life insurance will be hit with big losses. Take a lump sum payoff now.
  6. Safest careers will be in healthcare, education, utilities, basic food, government.
  7. Stay away from long-term investments like 10-year bonds. When inflation really hits, put your money in short-term vehicles like CDs.
  8. Gold will continue to be a favorite safe haven. Right now, only 10% of the world’s gold has been bought by U.S. The gold run will last at least another decade before the gold bubble bursts. Gold investments can be purchasing physical gold, gold depository, or gold mining stocks.
  9. Other precious metals are also good over the long run.
    ~Eowyn
     
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0 responses to “Economist who Predicted Recession Warns of Worse Crash Ahead

  1. Yep this guy knows his stuff. Scary times ahead for sure.
    If O is re-elected I predict the collapse & coming disasters will happen sooner. All part of the puppet master’s grand plan for this great country.

     
  2. We may not need to wait until 2012, as Skippy is announcing his increased tax revenue of 1.5 trillion taxing the “rich” read small business owner, ie, the ones who create jobs. He is out to destroy America, as fast as possible.

     
  3. *sigh*….. just entirely TOOOO depressing…..

     
  4. IMO this was a lot more optimistic than I was anticipating … but then I have been known to be a bit cynical .
    Speaking of Skippy, I have just discovered that because he doesn’t have the requisite documentation to qualify for a US Passport he purchased and travels under a World Citizen Passport …it might make an interesting article.

     
  5. I really hate to say it, but I think we are very close to the point where America isn’t going to be retrievable through the ballot box – and maybe not through any other means, either.
    Honestly, I think the hole we have dug for ourselves has just gotten too deep.
    I was really hoping last January this congress was going to do all it could to derail Obamunism.
    For whatever reason, it hasn’t happened.
    And the really scary thing is, Obama still has at least fourteen months to carry out his plan for America to its mad end.
    -Dave

     
  6. ‘Eurozone ministers under pressure as debt crisis dominates IMF summit’ – what absolute nonsense. All they’re doing is extending and pretending and praying that something will come up in the meantime. They haven’t got a clue!

     
  7. Michael Danielson

    Welp, 2012 has come and gone without 10% inflation or any of the other dire predictions here coming true. Maybe it was just a marketing gimmick after all?

     

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