Critical Warning Six

Critical Warning Six

In the current situation, US have less amount of money and it is not in condition to withstand one more recession. The US Federal Reserve is continuously printing money so as to cope up with the present situation nut it is not going to help out as it is just creating an illusion and in reality; it is pushing the country back into a situation of recession. If money printing was not done, the US was called a true bankrupt country. The interest rates have reached zero figures and thus leaving no option for any further decrease. The continuous printing of money has led to a condition of inflation. As the long term interest rate increases, it will bring even more serious effects to the economy. At present, unemployment is hitting hard to the country the percentage of people being unemployed in America is increasing at a high rate. The graph below shows the labor force in America in last three years.

Critical Warning Six

critical warning six

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Critical Warning Number Six

If the economy follows the same trend as during 1934-1937, the stock prices are expected to fall below the value of March 2009 lows in the succeeding months as the bear market continues. However, the bear market condition is expected to reach a condition that is even worse than that during the Great Depression. The US national debt has increased by $5 trillion since last four years. The Federal Reserve has increased the size of the US balance sheet by $2 trillion. The value of US dollars is lowering with every passing month and this may further lead to even worsening of the US economy. About 70% of the world central banks use dollars as the official currency even at this stage they feel like continuing with it. Dollars are the preferred choice of the investors as they are still hesitant about using euro for the same. The national debt amount is growing day by day and it would probably reach to a level when it cannot be controlled. This primary reason for this condition is that the Federal Reserve has been printing more than enough amount of currency just to cope up with the unstable condition of the US economy. This has worked in the opposite way for the government now. The day may come when foreigners who invested in business will start looking for some safer option other than dollars so that they can make profit and stay risk free.

The increase in the price of gold has made gold investors step back from investing in gold. The investors who considered gold as their favorite to make an investment now fears to get into it. The characteristics gold since few years is following a rule in which the price of gold rises during the initial years and goes through some ups and downs. At the end of the years it reaches at a price which is always higher than what it was the previous year. This is the trend that is being followed by gold since last eleven years and so it is expected to follow the same trend in future years too. The reasons that catalyze the rate of increase in gold price include the continuous printing of currency by the Fed, continuous government spending and the falling value of US dollars.

The European crisis has led the investors to make a turn from Euro and stay with dollars. Euro has been weakened to a significant level and it is therefore that US dollars are considered as a better option by the investors. No strict measures were taken by Europe and as a result, cities of Greece and Italy went through serious debt. Italy is loaded with even larger debt amount than Greece. Millions of euros have been stuffed into the Spanish bank, but still the sub continent needs a help to get rescued out.

The short term interest rate is falling since three years and it may reach the river bed. The amount that the US treasury is yielding now is the lowest amount since last sixty years and it is just 1.5%. The interest rates may be increased so as to drive away the inflation. The stocks in the bear market rally would now sink to the bottom to reach its March 2009 lows. Dow Jones is expected to fall by about 53% from its current status. In the initial stage that is the stage I, the bear market experiences a downfall and in the second Phase, it traps the investors to make more investment in the stocks just by creating an illusion that the market condition is getting better. In the third stage it again experiences a sharp downfall.

Similar to the depiction made, the Dow Jones fall to 644o from 14164 with a fall of 54%. This was the condition from October 207 to 9 March 2009. The present situation is that of the Phase II discussed above and the bear market has already done its task. The third phase is expected to come soon. During this phase, the stock market will reach its March 2009 lows. The condition will lead to desperation in investors with uncertainties ahead in future.

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Critical Warning Alert

Critical Warning Alert is an eye-opener for all the U.S. residents. At such a crucial time in their lives, when paper money is being created out of nothing and this method of creation of finance in order to provide stimulus to the staggering and lack luster economy being labeled as ‘Quantitative Easing’, it is every one’s right to know the true situation prevalent in the nation today. Having correctly predicted five major economic events within the past ten years, Michael Lombardi, author of Profit Confidential, as a matter of duty, has presented to his readers all the facts that they ought to understand and know, through a video presentation as well as an informative article entitled “Critical Warning Number Six”. It is a compelling video/article that rings warning bells about the dark looming future of the economy and about how utterly robotic the entire system works. Whenever the government needs money to repay its loans given by the Federal Reserve, the latter is there to provide the same. Thus, past loans are repaid by fresh loans and the system is no different than a Ponzi scheme. Consequently, the debt accumulates and the inflation rises. The cost of living becomes too high to sustain and consumer spending gets considerably affected. Resultantly, there are job cuts and rise in unemployment rate. With the bleak-looking economy, corporate profits get affected and the government has no option to save itself from bankruptcy other than by initiating a fresh round of quantitative easing, for which the Fed provides the stimulus. The whole vicious cycle repeats itself and it is an alert for the common man who suffers the most, because not only has he to face monetary difficulties, but also has to pay taxes. This is a must-see-read for all!

Critical Warning USA

Critical Warning USA: Michael Lombardi, the author of Profit Confidential has five major and successful economic predictions to his credit. In 2002, he advised his readers to begin investing in gold. In 2006, he asked them to stay away from the housing market. He also foretold the recession that would befall the U.S. in late 2007. The fall of the year 2008 was when he directed his readers to steer clear of the stock market and in March 2009 he recommended them to again get back into stocks. These predictions were very beneficial to all who took heed of his guidance. With a sixth warning about the strategic situation that USA has gotten itself into, Michael has opened the eyes and ears of the innumerable countrymen through his gripping video presentation and a detailed article covering the same. It is a shocking revelation of the imminent recession that threatens to be more ruthless in effect than what was in 2007-08! It is a horrifying disclosure of the dark consequences of the artificially low-interest rates and the monetary stimulus that is being provided to the economy of USA to create a false sense of security and optimism!

Still, it is a breather for those who plan to survive healthily despite all odds prevailing in USA, through appropriate risk management methods! It is “Critical Warning Number Six”; a precious word of caution about the chaos called USA today!