If CONgress tries austerity(as in real cuts to bring spending in line), the Fed will be shut out of creating US Debt at will, TBTF banks WILL fail, markets fail, GDP drops, more REAL unemployed, Credit Cards-mortgages & car loans will not be paid and many other intended or unintended consequences will make the 1930's will look like the good ole days.

If they continue to kick the can down the road, it is filling with cement and just gets heavier and doesnt move as far. eventually the kicker just hurts his foot and the can doesnt move at all - How long before the 'Wiemar' experience comes to the US.

There doesnt seem to be a middle ground to all of this so The government will 'use' the resulting crisis to clamp down on Americans - 'For Your Own Good'

Best prepare for the worst.

IF the 'Rule of Law' is upheld, this will be a good thing, in the long run, for future generations(my children and grand children).

And then there is always WW3

Karl,

A very bold and detailed list of predictions for 2011.

I agree with many of them.

The one possible glaring error that I see is the possibility that commodities are going to fall off of a cliff in 2011 and the dollar may stage a WTF rally that will shock everyone.

My opinion is that silver in the low to mid $30's is the equivalent of crude oil in the $140's, ie., a bubble ready to burst.

If the dollar can make it to new lows below 72, this may cancel out my prediction for a dollar rally and commodities collapse.

Good luck with your predictions!

Well, Karl is no Hari Seldon, but I give him an A for effort because even though his timing is off, I think the overall outcomes will be the same. I'm just wondering who the wildcard Mule will be.

I have also wondered, if the US federal government does eventually totally fail, will the States retain enough strength and trust for people to reorganize under them or will everything fall apart to the point that is it pockets of local communities as the means of reorganization?

Wow, Clay! Those are some remarkable predictions.

Karl's seem mild next to those.

As always Karl thanks for the huge effort to put this out. Your time and energy is very appreciated. Happy New Year's.

Got one of my own.

Planet Debt will continue to manufacture false hope within its' man-made cluster****. Hit! Direct Hit! Bullseye!...oh wait, I gotta wait a year to score myself.

I seldom post and wish I could say something more intelligent but that's the feeling from entry-level on the street and as I type this copper is now at 4.45/lb in AH/electronic trading which directly affects my job and it sure as hell isn't because of demand...is it really a private investors' flight to safety driving the commodities market or am I right when make-me-feel-good spun year-end news items announce best year ever at record levels feeding the false hope machine?

I'm just really concerned as I get laid off every January.

Whoops...market still open.

Thought it was an abbreviated day on Wall Street and my copper quote was after-hours.

Quote:

is it really a private investors' flight to safety driving the commodities market

Enough of it to matter a lot, IMO.

Which is not going to end in "safety."

Look at Copper for an example that's even more extreme than oil. Yeah, there have been nice gains there. If you try to HIDE there you're going to get ****ing assraped - that much I'm sure of.

Big Up!

Thanks Karl and all the best for the year of the full metal cat to everyone.

genesis wrote..

... the market will bounce, and then Hell will rain on earth ...

Did you really mean "rain" or "reign"?

Unfortunately, in the context, either one works.

Always interesting reading, Karl. Happy New Year to you and yours.

Thanks for the forum, your thoughts, and best to you in the New Year.

If someone will tell me how to post a video here, I'll be glad to do that. In the meantime, here is a link to someone who pretty much agrees with Karl. I've been watching these Global Perspectives videos for > a year and cannot remember this man ever missing. He lives in Florida too.

http://www.youtube.com/watch?v=hrVOn4VMk....

Y'all be safe tonight.

Azusgm: Read on the "Limited HTML" link at the bottom of every page.

For youtube just do [you tube hrVOn4VMk94] without a space in youtube.

Karl, I just want to say thank you for all that you do.

Some interesting highlights today:

Venezuela has devalued their currency...again.

Abbas lays cornerstone for a Palestinian embassy in Brazil.

The current Ivory Coast leader refuses to relinquish power and there are calls for him to be forcibly removed by international troops.


Now for an outlier:

China likes money...a lot. I can see China taking out North Korea and working with the US to fuse the two Koreas. I think they are beginning to realize that North Korea harms their regional security.

I always look forward to these, thank you!

I like these tickers too. Thanks.

So no bailout of munis by Ben eh? Not even indirectly by an extension of BABs?? That will be very bad.

Great job.
Disagree only on two predictions.
Britain might have their .gov budget under control but their banks have a higher exposure than all US banks together. This will finaly take the pound down to its knees since they can not backstop it with taxpayers dept.

On gold the banksters run a gold fractional reserve system. Fractional reserve worked out very successful for them on paper currency but it is not what the owners expect on a metal market. On the ETFs and CB gold holdings the market will finaly call the bluff. May take one or two years but they won't be able to keep the lid closed forever.
For this reason the percious metal market may have contractions but will not collapse as you predict.

Welcome to the new world of the coming dark ages. Of debt peonage,austerity and privatization for the many. Bonuses, Bailouts and Quantitative easing for the few. Private Banks and Benny creating trillions that you are going to pay. To Invest and buy up overseas assets and resources of a new host to strip. For they see their old host(the U.S. of A.) is about to die. So the parasite must fly - to latch on to the emerging markets. To make them pay rent and tribute. The BRIC economic surplus to plunder and loot. The Financial Oligarchy elite jumping the sinking ship like rats, seeing America is about to collapse. When energy costs rises and the Dollar goes into a crisis. Deficits unable to sustain and Debts unable to repay. Due to Benny printing money for his Wall street cronies - And Obama will say we need to go the Iceland and Irish way. Because someone has to pay. So say hi to Austerity , the Police state and Standard of living Decline. The vested interest ( the financial sector - Wall street) making the profits, you the common man taking all the losses.

I have one prediction - more extend and pretend by TPTB in all nations, until the black swan takes a dump somewhere. My best guess, looking at the extent of the games and knowing how slowly the judicial system grinds on, is that 2011 will be a year of teetering ever closer to the edge and that 2012 will be the year TPTB just can't hold it all up any more.

We'll see. A happy New Year to all.

Sadly, it seems like the whole ponzi comes down to one man and his merry clown brigrade (The Fed).

1. Ben continues to do what he has the last couple of years, markets continue to move up, nobody wants to hold FRN's with that ****head at the helm. Europe and Japan's sad shape allow him to get away with it. He will somehow mandate his bankers bud's to stop speculating on commods and keep buying his ****ty T's.

or

2. Ben shuts down his printing press or is forced to shut it down via uncontrollable commods ramp or bond market sell off.

I personally think he gets away with it for a couple more years. This is a change in thinking as I've been impressed with their ability to keep all the plates spinning. Volatility though to be sure...

Quote:

nobody wants to hold FRN's with that ****head at the helm.

I think it's the opposite Gen. M1 mult:



As people saw their purchasing power weaken, they hoarded more and more dollars to make up for this fact. I know I sure as hell am.

So as I see it - the only way Ben unlocks all of this savings and wealth is by RAISING rates - by making money worth something. Then those WITH money will part with SOME of it.

Instead - credit undermines money so this simply encourages many (people with IQ's over 90) to save more, cut more and acquire more. Thanks to Ben (and Jota), I'm going to be cutting my cell phone bill from $67/month to $27/month). I might pay $500 more for gas this year but I will make it back by saving more money. Damned if I'm going to get ****ed by Ben. I'll pass the ****ing on to AT&T thank you kindly - and if they ask - I'll tell 'em (not that the woman on the phone will even get it but whatever).