Experts Say Financial Crash On the Horizon By Patrick A. Heller,
Market Update
May 20, 2008
Will the big financial crash hit between June
1 and July 31?
At least two savvy market observers (James
Turk and Jim Willie) now expect a major financial crash by
the end of July 2008. Both Turk and Willie have generally
been on target in their commentaries for the past few years,
so they can't be dismissed as raving lunatics.
Elements of this crash include:
" A huge drop in the value of the U.S.
dollar
" A major decline in U.S. stock indices
" A sharp increase in debt defaults
" Record levels of corporate and personal bankruptcies
" Soaring gold and silver prices
With so much negative financial news hitting
the market literally almost every day, it would not take that
much for their predictions to come true. What events could
cause this?
There are lots of possibilities. Here's one
example: The Bureau of Labor Statistics reported for April
that the retail price of gasoline ("seasonally adjusted")
actually declined while the wholesale price rose by 10 percent.
Almost unanimously, the news media laughed at the absurdly
low retail inflation numbers reported by the BLS for April.
If the media and public wise up to the horrendous distortions
and fabrications in federal government statistics, that alone
could be enough to cause a crash.
Should the economy survive the next 10 weeks,
it would still be a good idea to augment your insurance holdings
of gold. The downside risk looks minimal.