Americas Second Great Depression 2010 Year-End Update PART 1

8/8/2019 Americas Second Great Depression 2010 Year-End Update PART 1

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December 16, 2010

Mike StathisChief Investment Strategist

AVA Investment Analytics

www.avaresearch.com


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Americas Second Great Depression

2010 Year-end Update (Part 1)

Regarding the Great Depression. Youre right, we did it. Were very sorry. But thanks to

you, we wont do it again.[1]

That quote was taken from a speech made by then Board of Governors member Ben

Bernanke in 2002 to the Federal Reserve. Unfortunately, Bernankes pledge has been

broken.

As clueless as Bernanke has been, if you follow what he says closely, on occasion you

will see his own admission that the U.S. is either in a depression or is certainly headed

for one.

For instance, on Tuesday November 30, 2010, as Bernanke attempted to defend his

recent decision to buy $600 billion of U.S. Treasuries, he made ridiculous claims that this

quantitative easing would lead to more jobs. He then used the often used scare tactic to

justify this move by saying that a long period of high unemployment could exact a steep

social cost.

"There are obviously very severe economic and social consequences from this

level of unemployment," so getting new jobs, getting unemployment down is of an

incredible importance."


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The unemployment rate is still going to be high for a while, and that means that a

lot of people are going to be under financial stress.

Recently, Bernanke predicted unemployment will remain high for "four or five years." [2]

So what is Bernanke trying to say? Read between the lines for yourself. First, he has

said that there will be very severe social and economic consequences from this high

level of unemployment. What does Very severe social and economic consequences

mean? Quite simply, it means a depression.

Then, on December 5, 2010, Bernanke stated that unemployment will remain high for

four or five years. By now Im sure you realize any estimate that sides with optimism by

the Fed is a severe understatement. What that means is that high unemployment will

last much longer.

But this by no means provides any useful guidance by Bernanke. It should be obvious to

any rational adult that we are in a depression. I detailed the causes and effects of this

depression in Americas Financial Apocalypse four years ago.


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I was already looking ahead. I warned readers we would see an earnings meltdown. I

advised investors to sell, and aggressive investors to short the market.

"Standard & Poors earnings estimates for Q2, Q3, and Q4 of 2008 are -11%, 40%,

and 60% respectively. Remember, this the same S&P that rated the mortgage junk

AAA. It will also be the same S&P that will end up issuing drastic revisions inearnings once the bottom falls out. But that wont help investors after the fact."

"Sure, its possible that we will see the market rally over the next couple of months.

If so, you would be wise to sell. More aggressive traders might consider shorting it

entirely once it tops out based on the 1-year resistance trend line."

Source: http://www.avaresearch.com/article_details-84.html

During the first week of September, Fannie and Freddie were placed into government

conservatorship to prevent each from failing. Eight days later, Lehman Brothers filed for

bankruptcy protection. [6] [7]

On the same day, Bank of America announced it would purchase Merrill Lynch at a huge

premium. Immediately after the deal was announced I discussed that this was one of

many bailouts disguised as a buyout arranged by the Federal Reserve and the Treasury

Department. [8]

The following day, AIG received a government bailout to the tune of $85 billion. This

would be the first of more installments to come. Of course, the only reason AIG wasbailed out was because Goldman Sachs stood to lose $20 to $30 billion. [9]

Understand that Bernanke was directly responsible for these deals, and each one was

littered with fraud.

Less than two weeks later, Washington Mutual was suddenly seized despite having

received a clean bill of health through at least the rest of the year by the Office of Thrift

Supervision.


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Over the next two weeks I would submit a draft to the SEC discussing that the seize ofWashington Mutual was unnecessary and involved back room dealings between the

Federal Reserve, JP Morgan and the FDIC. I also showed evidence of insider trading.

The SEC denied my request for data on short positions for Washington Mutual. Soon

after, I was interrogated by federal agents, courtesy of the FDIC. [10] [11]


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As you will recall, Fed Chairman Bernanke collapsed short-term interest rates from

5.25% in late 2007, all the way down to about 0.25% over the next 12 months. Thisprovided another bailout to the banks because it enables them to borrow at close to

nothing and buy U.S. Treasuries.

The end result is that banks have been able to collect about 300 basis points in risk-free

profits using money they wouldnt otherwise have. But these near-zero interest rates are

taking a large toll on pension funds. So what we have is an interest rate bailout at the

expense of pension plans. This is absolutely criminal. Furthermore, the interest rates

banks are charging consumers for auto loans and credit cards implies that the current


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short-term interest rate is 300 to 400 basis points higher; another count of fraud by the

banks. And Americans stand by doing nothing.

Over a span of a few months, the house of cards collapsed, taking down with it virtually

every U.S. financial firm, as well as many others throughout the globe.

One week after Washington Mutual was seized, TARP was shoved down the throat of

tax payers, using scare tactics by U.S. Secretary of Treasury Paulson. This bailout

represented yet another unconstitutional action taken by Washington.


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By November, I reminded investors of my warnings first made in 2006 with the release of

Americas Financial Apocalypse, stating the Dow could reach the low 6000s as earnings

collapsed. I also expected 15-20% upside through January prior to the market collapse.

"I have cautioned investors many times about a collapse down to the 9000 then

8000 and finally 7800 levels. Now I am telling you to watch out below. As you will

see shortly, I expect considerable short-term upside before reaching new lows."

"With the Dow hovering around 8000, the problem is that there have been

absolutely no signs of capitulation whatsoever. What that means is that the Dow

could fall much lower from current levels. Even worse, we are still at the early

stages of the economic fallout. Consumers have not fallen yet and hedge funds

have only begun to fail. Hundreds of corporations will file for bankruptcy and

thousands of banks will fail. The results of the holiday season should begin anotherdownward turn.

"So is this 5500-6200 level possible? Certainly.

"On the bright side of things, I am becoming increasingly optimistic of short-term

upside of around 15-20% through the end of January. If this rally does materialize,

you should expect it to be erased shortly thereafter once Christmas earnings are

reported."


Despite continued destruction of the U.S. Constitution, Americans remain contempt, so

long as they have their trash TV, sports, Brittney Spears, Paris Hilton, gangster rap, Dr.

Phil, Oprah, credit cards, Twitter, Facebook, MySpace and iPods. Americans are

obsessed with the lives of others because they realize their own lives suck. They spend

countless time on social networking sites because they have no utility. Once you've lost

your fight, you've lost all hope.


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Meanwhile, Europeans continue to riot in response to the devastation caused by the

global banking cartel.


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In total, trillions of dollars of bank and investment assets had to be guaranteed by the

Federal Reserve, the FDIC and the U.S. Treasury. But still the Fed had not extinguished

the fire it created. So Bernanke initiated quantitative easing to soak up toxic assets from

the banks. This move has indirectly increased inflation. However, due to the significant

deflationary environment present in late 2008 and early 2009, the inflationary effects of

this program were largely muted.

As I predicted, when Q4 2008 earnings data was reported, the stock market continued to

plunge. In response, Obama passed the American Recovery and Reinvestment Act of

2009 (ARRA) in February, dedicating nearly $800 billion into the economy. Most of these

funds went to emergency relief rather than to retool America. Throughout that time the

Fed continued to purchase toxic assets from members of the banking cartel.

But nothing could stop the stock market from collapsing. By the first few days of March,

the Dow hit a 12-year low of 6447. I told investors to start buying at Dow 6500 on March

6, 2009...

"What should you do? If you are a long-term investor, you should gradually start

buying into the market in small increments. Only the best names, companies with

little or no debt and market leadership; companies that pay cash dividends;

dividends that are relatively safe (check free cash flows, debt levels for starters."


Soon after, Treasury Secretary Geithner initiated stress testing for several of the largebanks in order to determine the remaining risk of failure. This was nothing more than a

publicity stunt orchestrated to calm investor panic. [12] [13]

By spring of 2009, upon the advice of the Federal Reserve Bank, the Federal Reserve

insider heading the Treasury Department (Geithner), and Obamas Wall Street insiders

heading his economic advisory team (Larry Summers and Robert Rubin) the FASB

made significant revisions to mark-to-market accounting regulations. This allowed banks

to inflate earnings and hide liabilities, ensuring the bankers received huge Christmas

(Hanukah) bonuses.

Each of the responses to the financial crisis and economic depression has been

ineffective and highly wasteful. Other than emergency assistance to states, Washington

has done nothing to help consumers, homeowners or investors. In contrast, the

unconstitutional use of tax payer funds for the TARP program has enriched the same

culprits who were responsible for the global economic collapse.


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Providing unemployment benefits for two years will only increase the severity of

Americas debt woes. Americans need good jobs, not temporary paychecks. They need

real change so they can see hope over the horizon rather than a dark cloud.

The U.S. continues to shed jobs, foreclosures are building by the millions and

bankruptcies are soaring. Finally, more banks risk being shut down by the criminal FDIC

headed by former Treasury insider Shelia Bair, despite the fact that the FDIC refuses to

provide shareholders with proof of insolvency.

In total, since the official beginning of the first recession of Americas Second Great

Depression, 316 U.S. banks have been seized.


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Rather than the real perpetrators of the global collapse being held accountable, they

have been rewarded for their crimes through tax payer bailouts, accounting trickery and

a collapse in interest rates, all of which has allowed Wall Street to pay out higher

bonuses than even prior to the collapse.

Instead of going after the real criminals, the FDIC has recently begun what is likely to

become a wave of lawsuits against small regional banks in order to place the blame on

them.

On Nov. 1, 2010 the FDIC sued 11 executives and directors of Heritage Community

Bank. Charges include gross negligence. The FDIC seeks to recover losses of at least

$20 million that Heritage suffered because insiders "failed to properly manage"

commercial real estate lending.

Meanwhile, the FDIC is avoiding any scrutiny of the banking cartel. As always,

scapegoats are being round up while the real criminals escape wealthier than ever.

The SEC is clearly no where to be found in this mess. This incredibly incompetent

government agency continues to serve as an ally of Wall Street, permitting massive


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fraud. As an effort to lighten criticism of Goldman Sachs generous campaign

contribution to Obama, Goldman was sued by the SEC for a mere $500 million. This was

a huge victory for Goldman, as several key executives should have received prison time

in addition to a several year claw-back of all bonuses and a multi-billion dollar fine.

And the Department of Justice continues to sit on its ass because Obamas cabinet of

Wall Street insiders has told him to look the other way. Its business as usual in the

fascist regime of the United States.

Wall Street powerhouses such as Bear Stearns, Lehman Brothers, and Merrill Lynch

were global icons of banking power and prestige. They survived everythingeven the

last Great Depression. But they were unable to survive this one. [14] [15] [16]

The other Wall Street firms, Goldman Sachs and Morgan Stanley have only been able tosurvive thus far due to conversion into commercial banks, enabling them complete

access to the Feds endless printing presses along with the rest of the banking cartel.

Have you ever asked yourself why TARP funds are insufficient to fund smaller banks but

they are sufficient to fund the largely insolvent banking cartel? As more banks fail or are


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seized (which does not necessarily indicate they have failed in my opinion) the number

of problem banks continues to increase.

By now, you should understand whats going on. Unfortunately, the vast majority of

Americans have no idea whats happening because the media continues to pump out

lies, while distracting Americans using an onslaught of trash TV.

We are witnessing by far the most colossal level of fraud and theft in world

history. The devastating effects from this heist will be felt for many decades. [17]

Here is an excerpt from my July 13, 2008 commentary of the IndyMac failure:

In the coming months, I expect to see several bank failures. Not Citigroup or Bank

of America. The Big 5 won't fail because the Fed would never permit it. You know

the Fed the entity that's owned and operated by the Big 5. It will be the smalllocal and medium regional banks that fail. By the time the washout is finished

we could see several hundred take a fall. If we include those destined for the

auction block, I can almost guarantee you there will be hundreds of failures.

When the smaller banks fail, the Big 5 will snatch them up at pennies on the

dollar compliments of Bernanke's printing presses. Maybe now you can see why

every nation wants to get as far away from the dollar as possible. They

understand the worst is yet to come.

Bernanke's Big 5 banking bailout is only ensuring the dollar crisis will continue.

However, no nation will be able to completely escape the effects of the fallingdollar since it remains the universal currency. It is deeply embedded within global

commerce and has extensive reach throughout the global financial system.

I continue with Part 2, on July 14, 2008

After so much denial and deceit by Washington and the media, at some point you

need wonder why this isnt the kind of news that dominates the airwaves. You

know, news you can actually use to your benefit. Let me solve this mystery. The

job of the media establishment is not to warn consumers of anything that

has not yet happened, especially during a crisis. They feel that it will only

create a self-fulfilling prophecy. And you better believe Washington communicates

with the heads of each television network to ensure they dont let the cat out of the

bag. Instead, their theme is denial. That is why its rare for investors to be warned

in advance from anyone in the media.

When the smaller banks fail, the Big 5 will snatch them up at pennies on the

dollar compliments of Bernankes printing presses. Maybe now you can see why


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every nation wants to get as far away from the dollar as possible. They

understand the worst is yet to come. Bernankes Big 5 banking bailout is only

ensuring the dollar crisis will continue. However, no nation will be able to

completely escape the effects of the falling dollar since it remains the universal

currency. It is deeply embedded within global commerce and has extensive reach

throughout the global financial system.


As we know, the media has been completely useless in reporting the realities of the

financial crisis which has now progressed into Americas Second Great Depression. As a

result, not a single Pulitzer Prize was awarded for coverage of the biggest financial crisis

since at least the 1930s. And they wonder why their industry is going bankrupt. [18]

Washington continues to deny the full severity of Americas financial apocalypse, allwhile making sure to prevent the Justice Department from seeking criminal indictments

for the Wall Street criminals that collapsed the global economy. And the corporate media

has gone along with it, never bothering to ask why the criminals who committed

securities fraud received billions of dollars in bonuses are still walking the streets.

Meanwhile, Wall Street insiders working at CNBC continue to engage in front running

activities, all while leading their sheep into the slaughterhouse. [19] [20] [21] [22]

Then you have the fear-mongers who have exaggerated the economic picture as a wayto please gold and silver coin dealers. You also have the deflationists and

hyperinflationists pumping out al kinds of propaganda so as to fit their agendas. All of

them are completely wrong. But that doesnt matter to them. All they care about is

creating fear and panic so that you will send them your money or pump up the price of

gold and silver. [23] [24] [25] [26] [27] [28]

As it stands today, the U.S. media is just as useless and destructive to the U.S. as is the

banking industry headed by the Federal Reserve. Thousands from both the media and

financial industry belong in prison. Some would say they deserve a worse fate.

By now it should be clear to even the most nave individuals that the banking cartel

caused this global collapse. Meanwhile, its partner in crime, the corporate media kept

consumers in the dark, while covering up the criminal activities of Wall Street. Yet some

journalists still remain clueless. For instance, in a recent conversation I had with Shahien

Nasiripour, the business reporter for the Huffington Post, he stated that he was not


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aware that Wall Street banks committed securities fraud. This was a few weeks after I

sent him chapter 10 of Americas Financial Apocalypse and chapter 12 of Cashing in on

the Real Estate Bubble. Brief excerpts from these chapters can be found here.

Even Greenspan recently admitted the financial collapse was due to Wall Street fraud. If

Greenspan is willing to admit fraud caused the collapse, it implies that virtually everyone

with a pulse is aware of it. If only he could take responsibility for his own actions which

facilitated the fraud.

http://www.youtube.com/watch?v=731G71Sahok

Meanwhile, like all other media, Huffington Post continues to feature articles and blogs

from Washington and Wall Street hacks, as well as extremists who claim to be chief

economists, but are merely marketers. For the record, the Huffington Post has alsobanned me, as they are just as useless as all other forms of media in the U.S., so dont

be fooled by their Were on your side BS.

Regardless who you turn to in the Huffington Post, New York Times, or any of the other

members of Americas propaganda machine, you will find one of two things. Their so-

called experts either have no idea what they are talking about, or they are lying in order

to line their own pockets. Have you ever wondered why you see the same bozos

throughout the media? Its called the flooding approach. People will believe anything if it

is repeated over and over.

I have a suggestion for all of you journalists out there. I would advise that you start a

blog now, so your next job wont be such a difficult transition.

Throughout this historical catastrophe, pundits and economists continue to make

simpleton arguments, such as the current conditions are no way like the Great


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Depression. They claim that the government made many changes that would prevent

the same thing from happening again. As usual, they are wrong. Understand that these

are the same clowns that denied everything until it was obvious to children.

Lets not forget how they denied that a real estate bubble was present or later after it

began to implode how it would be contained and not affect the economy. And of course,

we cannot forget how it took economists more than one year since the start of the

recession to acknowledge it.

You need to document the track record of economists, pundits and those who claim to

be experts. You need to keep a log book so that you can see who to trust. If you do this,

you will realize that no on in the media has a clue whats going on, whether they are the

perma-bulls or the perma-bears.

As wrong as the Washington hacks have been, they have been right about one thing.

The U.S. government did make many changes since the Great Depression. The only

problem is that many of these changes were instrumental in causing Americas second

Great Depression. [29]

Most economists claim that depressions are caused by deflation. They continue to make

this statement as if it were a scientific fact. This presumption points to the ignorance of

most U.S. economists who really dont have a good understanding of the problems faced

by the nation, so they certainly dont have adequate solutions. Economics is not a real

science of physical laws. It is a social science based largely on human behavior andinteraction. [30] [31]


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The primary reason for their incompetence is that they have been trained as robots to

accept the conventional wisdom of the establishment rather than to be inquisitive and

think creatively. But this serves them well since most of Americas so-called leading

economists are politicians.

Economists have been trained by professors, many of which are naive partners of

Americas fascist regime. They are in a boys club. If you dissent from the ranks of

Americas Ponzi scheme economics, you are cast aside as a nut case. This means you

wont get research grants and you wont get tenure. You wont get published and you

wont be heard. You will effectively be censored and your livelihood will be cut off if you

dare deviate from the School of American Ponzi Scheme economics. [32] [33] [34] [35]

If things are so different now, why is the U.S. experiencing endless volumes of

horrendous economic data not witnessed since the previous depression?

For instance, the data from the housing, employment and productivity has not been this

miserable since the last depression.

If things are so different now, why did the Federal Reserve resort to measures not seen

since the previous depression?

If things are so different now, why did the New Deal solution to the depression era real

estate crisis (Fannie Mae) collapse?


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The main differences between Americas First Great Depression and the current one are

that vital parts of the depression-era Glass-Steagall Act were repealed by the Glass-

Leach-Bliley Act in 1999, the gold standard no longer exists, and we now have a market

for exotic derivatives which has no regulation or transparency. Add two common traits

found throughout 20th century America, greed and lack of accountability, and these three

fundamental differences are specifically why this depression began and why it will be

heightened by inflation. [36] [37] [38]

Unfortunately, after failing on Wall Street reform, Obama has ensured another

catastrophic crisis down the road. Similar to many other issues Obama has attempted to

address, Wall Street reform has been a joke. Instead of Wall Street reform, Obama

established a weak reform for consumer finance. As you will recall, he did the same with

healthcare reform, which was whittled down to address only health insurance. However,

he even failed to even fix this industry. [39] [40] [41] [42] [43] [44] [45] [46] [47] [48]

On the other side of the spectrum, we have seen media hacks with political agendas,

bought off politicians and other members of the media club state their highly misguided

insights on the U.S. healthcare system despite the fact that they have no expertise in

healthcare whatsoever. [49] [50] [51] [52]

Meanwhile, Americas inefficient, costly healthcare system remains as the nations

number one long-term problem. [53]

I detailed the problems found within Americas complex healthcare system in a recentbook, Americas Healthcare Solution. I also provide viable solutions that would for the

first time in decades, create a system of affordable healthcare, accessible to all.

http://www.americashealthcaresolution.com


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When we compare the causes of the depression of the 1930s to the current one, we also

see additional similarities. For instance, in addition to greed and lack of accountability,

reckless leadership, continuous denial, and misguided solutions.

Each depression shares four common features as well: massive chronic unemployment,

a stock market collapse, a housing mess, and an acceleration of the wealth disparity.

The previous depression was characterized by several stock market collapses. Thus far,

we have only witnessed one major stock market collapse. So it is likely (although not

certain) that we will another.

We are not likely to see 25% unemployment like in the depression. Why?

Well for starters, Washington fudges all of the data. I have discussed this in detail in the

past. [54]

As well, the bar for what are considered jobs has been lowered since the depression.

Today, you can say youre employed if you work part-time. Washington also considers

you to be employed if work at McDonalds, as a valet, massage therapist or pet groomer,

regardless whether or not you can survive in these wages or whether you just couldnt

find a suitable job with your engineering degree. Not to disrespect to anyone who might

be employed in these occupations, but lets face it; they dont give you a pension plan or


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healthcare benefits. That means youre getting the shaft, in addition to the low wages

theyve stuck you with.

Instead of the severity of unemployment seen during the first depression, this depression

will be characterized by chronically high unemployment combined with massive

underemployment. Thus, full devastation of the real unemployment picture will be

masked.

We wont see bread lines as we did during the previous depression because Washington

issues food stamps. But unless Washington decides to provide housing to the homeless,

we will see tent cities similar to the Hoovervilles from the previous depression. We are

already seeing this today.


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As well, we wont see banks close their doors because we have the FDIC which was

created in response to the previous depression. But what good is money is its being

printed continuously?

The inflationary forces building up will certainly create severe problems for the U.S. and

the rest of the world since the dollar is the universal currency. All of this will put further

downward pressure on U.S. living standards for many years to come.

The most harmful effects of Americas current depression wont be due to a crisis. It will

be only heightened by a crisis. The real devastation will be due to an accelerated

transfer of wealth and jobs overseas. It will be a silent depression.

In a few years, the real estate and banking crisis will have cooled off and Washington

will start reporting much improved numbers; numbers that will continue to be

manipulated and boosted by deficit spending.

In reality, things will only get worse. Real wages wont budge, inflation for basic

necessities will continue to rise, and job quality will continue to decline. We are already

seeing this now. It will be a silent depression because there will be no crisis. But the

effects of this depression are likely to be more severe because they will persist for

decades.


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You wont feel the full effects on any given day. If youre in the lucky majority, you will go

to work and carry out your life as usual. But you just wont be able to make ends meet

like in the past. Each year things will get worse so youll spend more on credit.

It will be more difficult for your children to move up in socioeconomic status because

higher education is becoming an unaffordable luxury for the wealthy. Many younger

Americans who are willing to take on the enormous debt burden required for higher

education wont be able to find jobs in their field. This will be true even for the most

secure of majors like engineering, math and science.

Some Americans with math and science degrees will seek employment as high school

teachers, due to lack of options. This will be an ironic fate, as Americas educational

system has been designed to keep the people stupid, all while brainwashing them to

accept Americas fascist philosophy. Some wont have the skills of their counterparts in

Asia.

Others will be pushed out of a career they prepared for due to the effects of unfair trade.

Some will opt for a 1 or 2-year program in healthcare by one of the hundreds of for-profit

colleges that understand Americas healthcare system is a gravy train. Others will work

for Wall Street criminals and banking vultures; some naively, others not caring that they

will be selling their souls to the Devil.


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Millions will be stuck in slave labor, working for low wages and no benefits. But they

wont be working in factories churning out goods for the global economy. They will be

working in service jobs, tailoring to the needs of Americas wealthy.

In fact, I predict in coming years we will see an ironic trend in the U.S. Instead of U.S.

consumers speaking with Indians in Bombay for customer support from U.S.

corporations, Indians will be speaking with U.S. citizens who will provide them with

phone support.

Many Americans will never realize they lived through Americas Second Great

Depression, because the effects will be spread gradually for many, many years. Most

Americans will never be able to fully retire. They simply wont have enough money to live

on. Many will end up selling their home to pay for medical bills, even though they have

health insurance. Others will have a much worse fate.

What the experts dont get is that this depression will be much more difficult to reverse

because it will be gradual. There will be no urgency. But the effects will be cumulative.

Many will wake up one day and realize that they just cant make ends meet; theyll have

very little if any retirement assets. It will be a continuation of declining living standards to

a point that could lead to some major permanent societal problems.

Economists have claimed that the depression in the 1930s was caused by the failure ofthe Federal Reserve to open up the currency printing presses. This is not at all true. You

cannot print your way out of a recession and you cannot print your way out of a

depression.


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Although there were certainly numerous causes, Americas Second Great Depression

was caused by use of a fiat currency, unfair trade policy, cronyism and years of

mismanagement by Washington.

Today, the criminal Federal Reserve Bank continues to kick the can forward by printing

trillions of dollars. This is having significant adverse effects, not only in the U.S. but

throughout the globe. Instead of deleveraging, the global bubble has been reflated as

discussed several months ago. We are now seeing global inflation begin to take off. [55]

Washington, Wall Street and their many hacks have even made preposterous claims

that the recession ended in June 2009. Of course this is a complete fabrication.

I want to remind you that a recession is caused by an oscillation of the business cycle

from peak to the trough. In contrast, a depression is a long period of social, economic

and financial decline. Within a depression you are likely to see two or more recessions.

But this merely accounts for the economic consequences of a depression.

The social consequences found within a depressive period are a reflection of the

devastating effects of chronic economic catastrophe. But the useless media has used

the term Great Recession in order to downplay the true severity of this period.

Havent you had enough lies, deception and hype from the media?


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Despite what some of you may think, there is NO ONE in the media, not a single person

that truly understands what is going on AND is committed to helping you. That includes

all of the perma-bears and gold bugs who have been preaching doom for decades. If

you think otherwise, then you havent been documenting their tack records.

The contrarian crowd is trying to scare people so they will buy gold so as to pump up the

price. At the end of the day when these delusions of gold $10,000/ounce and

hyperinflation have NOT materialized as salesmen and hacks like Peter Schiff, Marc

Faber and others have insisted, the media knows that its audience will run back into the

arms of Wall Street.

You will never win if you embrace extremes. Neither the perma-bear or perma-bull

market extremists offer you anything other than a chance to lose more money. Never

forget that. So if you are unable to navigate an up and down market, you might be best

to remain on the sidelines because even many of the big boys have gotten thrashed

over the past two years.

If you pay attention to the media, you are sending them money because they sell ads

based on the size of their audience. And because Wall Street buys the ads, the media

serves their interests by flooding you will extremists and other hacks. Thus, by paying

attention to the media, you are serving as an accomplice in your own exploitation.

I leave you with my best piece of investment advice. Its one of the rare exceptions of

investment advice that never changes.

BAN THE MEDIA.

DONT READ THEIR NEWSPAPERS AND MAGAZINES, AND DONT TUNE INTO

THEIR TV AND RADIO SHOWS.

If you dont follow this advice you will be just as responsible for your demise as the

media and Wall Street.


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- 28 -

In Parts 2 and 3, I will present some key economic data from the first recession inAmericas Second Great Depression.

Until then, I invite you to join other subscribers who wish to become great investors, as

they learn how to navigate the financial landmines that promise to be commonplace for

years to come. The best way to achieve this difficult task is to subscribe to the AVA

Investment Analytics newsletter. There is simply no other investment newsletter like it in

the world. www.avaresearch.com

References:

[1]http://www.bloomberg.com/news/2010-06-08/bernanke-says-jobless-rate-unlikely-to-fall-

quickly.html

[2]http://www.examiner.com/unemployment-benefits-in-new-york/high-unemployment-to-last-

years-bernanke-says-tier-5-extension-still-possible

[3] http://www.avaresearch.com/article_details-106.html












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[19] http://www.avaresearch.com/article_details-205.html[20] http://www.avaresearch.com/article_details-213.html









[29] http://www.avaresearch.com/article_details-431.html[30] http://www.avaresearch.com/article_details-628.html


























Americas Second Great Depression 2010 Year-End Update PART 1

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Transcript of Americas Second Great Depression 2010 Year-End Update PART 1