Previously by Gerald Celente: Collapse: It’s Coming! Are You Ready?
Continued from part one.
According to a June 8th CNN/Opinion Research Corporation poll, 48 percent of Americans believe that another Great Depression is likely to occur in the next year the highest that figure has ever reached. The survey also indicates that just under half of the respondents live in a household where someone has lost a job or is worried that unemployment may hit them in the near future.
Suddenly, after years of obvious economic hardship experienced by tens of millions of Americans only when the suffering and pain can no longer be cloaked in abstractions and cooked statistics does an emboldened media dare utter the forbidden D word.
For Trends Journal readers, alerted to this emerging trend some three years ago, the prospect of Depression should come as no surprise. Neither should the idea that, when it hits and can no longer be denied, a long suffering public will take to the streets.
When I made this forecast back then it was written off by most of the major broadcast and print media. Now, however, when one of their own, belatedly and hesitantly, raises that possibility he is elevated to sage status and it becomes big news. In early June, Democratic strategist James Its the Economy, Stupid Carville, having finally mastered the higher math of adding two plus two, warned that decaying economic conditions heightened the risk of civil unrest.
As I described it all those years ago: When people lose everything, and have nothing left to lose, they lose it.
Trend Forecast: The wars will proliferate and civil unrest will intensify. As we forecast, the youth-inspired revolts that first erupted in North Africa and the Middle East are now breaking out in Europe. Given the trends in play and the people in power, economic collapse at some level is inevitable. Governments and central banks will be unrelenting in their determination to wring every last dollar, pound or euro from the people through taxes while confiscating public assets (a.k.a. privatization) in order to cover bad bets made by banks and financiers.
When the people have been bled dry financially and have nothing left to give, blood will flow on the streets.
Trend Lesson: Learn from history. Do you remember when it first became apparent that the US economy was in deep trouble and heading toward the Panic of 08? Not many will. Most people were in a summer state of mind and in holiday mode. It was late July 2007 when the stock market suddenly plunged from its euphoric 14,000 high.
Though we had warned in our Summer 2007 Trends Journal (released that June) that trends indicators point to a major crisis hitting the financial markets between July and November, the diving Dow was downplayed as a mere hiccup a time to pause between more mouthfuls of expansion.
Biggest mistake in a falling stock market
The huge swings in the Dow are giving investors pause. But taking your money out of the market now could be the gravest mistake of all.
NEW YORK This past Thursday was the second worst day of the year for the Dow Jones Industrial Average. But remember, it was just a week ago today that the Dow closed above 14,000 for the first (and only) time.
Fluctuations in the market shouldnt get to the 401(k) investor. Keep in mind your time horizon most of us are going to be invested in the market until we retire, often decades from now. ~ CNN 27 July 2007
Four years and trillions of dollars in stock and 401(k) losses later, that typical take a deep breath, stay the course advice looks tragically misguided. The Dow would eventually lose more than half its value and now, in June 2011, its fallen below 12,000.
The moral of this story is to not let your mind take a summer vacation. Conditions are rapidly deteriorating and it is imperative to remain on high alert. Another violent financial episode is looming. It may be triggered by economics (e.g., debt defaults and debt crisis contagion in Europe, a crashing US dollar, or commodity price spikes); it could be terror (false flag or real), a man-made disaster (another Fukushima) or one made by Mother Nature or any combination of the above.
Publishers Note: To excel in any field from gourmet chef to concert pianist to close-combat warrior you have to practice endlessly, over and over, until finally the training sinks in and becomes a part of you.
In that spirit, I again repeat: preparing for financial survival is a practice. And it has to be treated as if you are preparing for battle; expect the unexpected and prepare for the worst, which in these perilous times could be a declaration of economic martial law. Banks may close, currencies may be devalued and deposit withdrawals may be imposed. Remember Gerald Celentes basic survival strategy, GCs Three Gs: Guns, Gold and a Getaway plan.
Reprinted with permission from the Daily Reckoning.
Gerald Celente is founder and director of The Trends Research Institute, author of Trends 2000 and Trend Tracking (Warner Books), and publisher of The Trends Journal. He has been forecasting trends since 1980, and recently called The Collapse of '09.