OK. I'm guessing this post will anger A LOT of people and emotionally, considering how the United States has engaged in foreign policy over, well,
the last 7 or 8 decades, many many people have died at the other end of US foreign policy. However, the US is STILL, BY FAR, the world's biggest
superpower, both economically, militarily, and financially. The US has 11 aircraft carries. Russia has one. China just built their first one.
China, and Asia's rise came on the back of the US consumer. It's just the objective reality. Much of Europe as well. The markets worldwide are
spelling a DOOMSDAY collapse in the coming years. The long term chart of the United States Standard and Poor's 500 is arguably the best gauge of
equity markets worldwide. It is, right now, AT THIS MOMENT, topping the right shoulder of a likely muli-decade's long head and shoulders pattern For
those that don't know, a head and shoulder's pattern is a bearish pattern in markets, meaning after the right shoulder has topped, the market sinks to
the levels below which the left shoulder started it's initial rise.
That chart I created shows the S&P 500 since 1970 to today, May 18, 2012. You can see the head and shoulders, and the ascent on the right shoulder is
marked by what are called rising wedge patterns. Rising wedges, 80% of the time, are chart patterns that predict a bear market, meaning when the
market squeezes to the tip of the triangle, it can no longer rise, and it falls. Well folks, that's what is happening and the entire accent of the
right shoulder IS A RISING WEDGE. The stock markets are in dire straights.
In addition, commodity prices are falling through the floor, to include gold and silver. The dollar is marked by a decades long downtrend that is
reversing. Treasury yields are, amazing as it is, are trending downward to where 10 year yields could go below 1%, and the price of 10 year treasury
bonds could gain 30%. Folks, that means in the coming years, the world's wealth will NOT flow into metals and commodities like all the nay sayers
claim, but it will flow into the safety of the US dollar. I know, I know, you're saying to yourself this guy Drew is an idiot, but the market is the
market. Europe is going, or is in recession, which will likely lead to a US recession because Europe is the US's largest export market. Asia is
heavily dependent on BOTH the United States and Europe for exports. If the West declines, so does Asia, and the world economy collapses. At that
point, geo-politics and world wars need to be considered as a factor from world instability. Given the fact that the US still has such hegemonic
power, world wealth goes right back into the safety of government debt, US dollars, and stock markets collapse along with the price of equity
securities worldwide. And if you think about it, for the last 70 years, mankind has essentially created modern society, with all it's advances in the
standard of living. Even for people who live off of the equivalent of a penny a day in the developing world. In essence, man kind has reached a
pinnacle of advancement in technology and living standards, and without any further giant leap, man kind stays at this technological level for the
next 50 years. I'm saying, in terms of the big picture. The world's wealth, as evidenced by the astronomical increase in the S&P 500, bears that out
(no pun intended). If we stay at this level of macro technology, huge gains in wealth will not be created, world GDP will fall off a cliff, along
with stock markets. And because the United States is still the world's largest superpower by far, and because we have such a lax immigration policy,
unlike China, to handle dramatic changes in demographics, the US will remain at the helm through the coming restructuring of human kind in the next 50
years. Just critically thinking here, we've gone from the agriculture revolution, to the industrial revolution, to the digital revolution. The next
giant leap that will create another step up in prosperity will be the space revolution, and it will likely happen as a result of necessity for the
survival of the human race. What event prompts that, I have no clue.
Thanks for taking the time to read this. Be safe out there in the coming years, and remember: take care of one another. your friends and family.
And remember what's important in life, because the decline is just now starting.
edit on 18-5-2012 by Drew99GT because: (no reason
edit on 18-5-2012 by Drew99GT because: (no reason given)