Nine 2011 Predictions
By David Chu
12-23-10
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 to
Ireland.
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 in 2011.
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 david@no2foreclosur es.info
Posts
