Better be prepared for a tough summer

The predictive linguistics doesn’t look good folks.  I am not an alarmist or a doomsdayer, but things are not stacking up well out in the bot world.  Mostly the summer seems to be focusing on the economy, weather, and rumors of war.  Not surprising really, as historically these events seem to parallel.

The “second shoe” is about to drop in the financial arena.  MSM has placed the blame on the current situation to bad mortgage debt,  mostly generated in the US.  But the facts are that “bad debt” was spread worldwide.  The derivatives created the problem.  For those who don’t understand that term, it simply means little banks and mortgage companies make loans and then sell those loans to bigger guys for a discount and take the money.  The problem was this cycle repeated and repeated until the big guys had all the paper, but it was worthless.  Granted, that is a simplistic explanation but it gives you the general idea.  Those actions created about $7.6 trillion of bad debt world wide. Not chump change.

What hasn’t been spoken about in MSM is the derivatives that are associated with commercial and construction loans. These are going to come home to roost in the July-September time frame and I have heard rumors this steaming pile could be as large as $23 trillion!  Here’s the problem though.  With all the bailout money already spent, the banks are not well covered in cash to handle this hit (US banks about 34% covered and EU banks only about 14% covered), the proverbial you know what is going to hit the fan.

There is now serious talk of a long bank holiday in October or November.  What does that mean to me you ask?  It means that banks will close their doors and no you can’t have YOUR money.  No way No how.  Can they really do that?  Yes they can and probably will.  That means your ATM and credit card too.  My recommendation to everyone is to have at least 1 month’s cold hard cash in hand now.  Then if I’m right about this, you still can buy food, gas, etc. to weather the storm.  If I’m wrong, what’s the harm in having your money in your possession?  Watch closely and pay attention.  MSM will help the banksters keep this on the down and low till the last minute.

With the events in Iran, the economy, and politics in the ME converging, it is almost certain now that the “containment” efforts (read bomb Iran) is certain for October, probably in the last few weeks.  The problem with this is that those planning the effort have really not thought this thing through very thoroughly and haven’t considered a number of the repercussions.  You know simple things like what is going to happen to all of that vaporized plutonium?

Finally, things are already starting to heat up on the weird weather front.  The main issues here is going to be the impact to the growing season world wide.  That is going to translate to real food shortages and specificially to you, everything is going to cost about 30% more in September at the grocery store.  My advice is to stock up a little now, and it is not to late to start your own “Victory Garden”, if you can.

I would love to say Recovery is just around the corner, I see “green shoots”, and Obama can talk to Iran, but the facts and events just aren’t supporting those feel good sentiments.  It is just the opposite.  So simply, as I have said so many times in the past, pay attention, and be prepared as much as possible.  We are in the end going to survive these times.  It just some will do better at that than others.  Those that plan ahead will get ahead.  I would like to see everyone be in that category.


Author: redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

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