Be prepared Collapse of Economy imminent

The Peace of God to all that belong to the light,
Dear Readers

This thread is the continuation of other predictions that I has been disclosed since the summer of 2007 about what was going to be the performance of the National and international Economy under the pressure of the So High prizes of Oil.

In my thread of Important and so negative Internal Political crisis in USA: 2007-2009, I have done in several posts a series of predictions about the palatine but continuous advance of negative indicators in the Stock & commodity markets, as well as the forex one, during all the first semester of 2008.

I can be continue working on that thread but since that one talks about the political impact of the crisis I consider that is important to separate the strict economical performance of other variables and do that here.

During the following weeks I will be giving here my forecasts about what could be the best inverse strategy to follow in this moment in which we are approaching to 3 very important events:

1) The point in which the automotive Industry of the USA is going to have a terrible collapse as the consequence of the so huge decreasing on the demand of their products in the market. General Motors, Chrysler and Ford will pass for one of the most difficult moments of their History trying to find a path to go away of worst economical crisis in at least 30 years. We are going to affront a very similar situation to the one existing during the Nixon administration under the Petroleum Arab embargo of the 1970’s.

Since the American automotive industry is primarly incorporated this will impact other related productive sectors like plastics, glass, batteries, automotive parts, certain type textiles, neumatics, rubber, electronic- digital etc.

2) The possibility that Petroleum reaches a peak in its advance and probably produce a drastic change in its current increasing trend, I can say a sensational deflection but after a last increasing that probably will be around the $200 per barrel. This will be so important information for the ones that are working that commodity in long and needs to take in mind that the new strategy will be to switch to play in short when the fall will start.

Petroleum is going to change its present trend since there will be a dramatic reduction of the demand produced precisely by the so high prizes in all the sectors not only in the automotive.

Although the countries that have huge oil resources are doing the best that they can to create incidents to maintain the arise of the prizes, like the constant confrontations of Hugo Chavez with Columbia, or the military exercises of Iran in the Persian gulf, it is a fact that is impossible to maintain the current pace for ever.

3) When the slow advance of the oil prizes indicates the clear imminent declive of it we are going to see something that I has been predicting since a year ago: Iran, supported by other OPEC countries like Venezuela and Lybia will release a so powerful and unexpected attack in the middle East toward two possible targets: Israel and Iraq.

This demential military action will be part of a disparate attempt to avoid the so spectacular fall of the oil prizes and create through speculation an artificial athmosphere of possible reduction in the levels of offering of this resource in the market.

Of course USA will respond in the militar aspect but this reaction will be not enough to stop the agression and also during the so difficult epoch of the weeks near or during the Presidential Election.

4) Other important event will be the reaction of Dollar with respect to the pressure of the internal economical crisis, specially the effort of the government to stimulate the demand by spreading millions of dollars in the market through refund of taxes or subsides to the public is going to boost the debt of the public sector and that will weak Dollar.

Probably many people will try to move through the forex market to euro or other relative stronger currency but my perception is that the only secure substitute for dollar will be probably gold, silver, for the ones needs to maintain their solvency and Real State for the ones that are thinking in how to save and protect capital in the middle of the crisis.

5) The banks of USA will recent the bad indicators in the economy and this is sad to predict but many corporations will be forced even to close operations if the government and the Federal reserve can not act on time to save them of the bankruptcy. The problem with the banks will come from the side of the drastic reduction of the savings and for the phenomenal increasing of the bad credit, the incapacity of the public in general to pay the debts acquired with the banks.

6) China, the principal country with which USA has external debt is going to enter in recession, this is perhaps unbelievable for many of you but it is the truth. The Chinese economy will react so negative as a domino effect or chain reaction of the grave deterioration of the credit in USA, the reduction of the real capacity of acquisition of products and services by the American People, and moreover the lack of prevention to prepare them for that event, this will be the common denominator among the Companies that are producing in China for our Market. The world will tremble when the Chinese crisis explodes. Why? since this will be the end of the peaceful external policy of Beijing, the pressure of its internal social and economical problems will be translater in a more agressive political action in the international scenario.

Well there are many others important events to predict but that will be part of my nest updates in this thread.

Please be in touch, come here periodically and remember that the Angel of Lightness has been during 2007 and all the first semester of 2008 one of the most accurate psychics to predict correctly events in BTS. Also remember that I would try to guide the investors to survive in the middle of this so difficult situation the best that I can.

Thanks for your attention,

Your friend,

The Angel of lightness




[edit on 7/17/2008 by The angel of light]

The Peace of God to all that belong to the light,

Dear Readers,

Although during the last weeks the prize of petroleum has fallen with respect to the ones reached on May and June, I can say that different events that are out of control of the government will again push them upward before the Presidential Election:

- The war in the Caucasus since the oleduct of Georgia, the only one that comes from the Caspian sea and does not cross Russian territories, is going to be under permanent risk.

- The impact of the last tropical storms and hurricanes in the gulf of Mexico like IKE that will cause important damages on the oil platforms.

- The increasing tension between Columbia, Equator and Venezuela due to the confrontation between their goverments as part of the political strategy of Hugo Chavez and Rafael Correa to manipulate the Oil prizes.

- The increasing tension between United States and Iran in the Persian Gulf that in any moment will exploide in so serious incidents and possible agressions.

- The interest of Vladimir Putin to show that Russia can defy succesfully NATO and get the things it wants as for instance the intimidation of strategic neighbors like Georgia & Ukraine.

- The interest of Richard Cheney to press over Russia, through Georgia, enough to maintain military activity in the zone and in that way assure the comsumption of American technolgy and weapons in that conflict.

- The decission of he OPEC to reduce the production in order to maintain the high level of the prizes.

Thanks for your attention,

your friend,

The Angel of Lightness

The Peace of God to all that belong to the light,

Dear Readers,

How is today morning the economy performing? Well following my forecasts, everything shows in Wallstreet that there are winds blowing of a huge storm in the stock market, a possible Crash, so we aware of the enormous risk is present in that investing arena.

image source: http://shs.starkville.k12.ms.us/~ml1/images/Black%20Tuesday.jpg


image source: http://img.timeinc.net/time/photoessays/2007/stock_crash/stock_crash_01.jpg


Here is a news that reflect the uncertaintity that is following the fall of two giants of Wallstreet, many Stocks are tumbling in the wake of Lehman's bankruptcy filing and the sale of Merrill Lynch:

WASHINGTON - Wreckage from a massive crisis on Wall Street could prompt the Federal Reserve to do an about face and once again cut a key interest rate this week or possibly later this year, economists said Monday.

you can read the whole article at: news.yahoo.com...

I suggest to my readers to give at least a good glance to my Investing Portfolio guidelines for an incomming recession scenario that will emerge in any moment.

We are affronting the imminence of the arrival of a Black Monday, Black Tuesday, or Black Thursday, and it is better to be prepared for it and for the new economical horizon that we will have when the country will be formaly declared in recession.

Thanks for your attention,

Your friend,

The Angel of Lightness



[edit on 9/15/2008 by The angel of light]

The Peace of God to all that belong to the light,
Dear Readers,


image source: http://www.huffingtonpost.com/huff-wires/20080324/iraq-4/images/997539bc-d510-4a31-897e-d70b61341d6f.jpg


The words of President George W. Bush today to the nation urging the congress to process faster the measures that are part of a massive rescue financial plan, his call to work effectively to prevent a so high risk that the entire Economy collapse is the most evident sign of the accomplishment of my predictions about a year ago concerning the imminence of this situation.

Pls check Bush speech at:
news.yahoo.com...

If in sometime in the History it is required that all the different powers of the State work conciously and consistently to save the great national interests is now, if that don't occur there will not be another opportunity to prevent a huge cathastrophe for the American Economy.

This is time to act and do that quickly and with patriotism otherwise the Economy will break under the tremendous pressure of the impact of the high cost of life caused by the boom of the Petroleum boosted by the wars in the middle east.

However is not only through great goverment loans that the Economy will go ahead of this so critical moment, to think in that could be not only naif but the worst mistake ever done by any administration.

Great Loans must be supported in a good a solid financial balance that is no longer existing when the govemment has already acquired the greatest external debt of the History, when the deficit of the State has grown in a way that looks as a great medusa that menace to kill and eat every business, enterprise or bank.

The only way to surpass this crisis and be able to turn away of this recession and avoid a factible depression is to be aware that under the so high cost of transportation that is impacting all the goods there is no way to continue being a merchantil economy and it is time to return to a reindustrialization of America, to repatriate the giant capitals that are inversed in India, China and oversees.

If this decission is no taken now and we continue importing thousands of millions of dollars from abroad, specially from the far east we can only expect to go deeply toward an abysm that look to don't have bottom.

This is of course also the time to recognize that the end of the Globalization is infront of us, there is no way to continue in global economy when it would be impossible to continue buying goods that must ttravel the entire planet, at scandolous gasoline costs, to arrive to our markets.

In other words this is the moment in which Mr Bush is watching the end of his era and the one that was started by his father, all the economical model that was created since 1992 is completly wasted, as I also predicted since the middle of 2007, and could drive the USA and the entire world to the worst economical depression of the History if it is not cancelled on time.


It is good that in this hour Mr Bush calls the Congress to colaborate and the Presidential candidates to urgent meetings but it would be also good that he recognize the tremendous responsibility that he and his administration has in this so bad situation and do not try to transfer it to other political instances.

America is not today the same that was on November of 2000 when he as elected and unfortunately in the relatively short period of time of only 8 years we are experienced the change from the best economical moment of the modern History of America to be affronting probably the worst recession of its History.

Of course this result is not only consequence of Bush terrible mistakes, his very well known arrogance among them, but also of the powerful enemies that wants to destroy the free world economy, like the President of Iran that is this week again congratulating his fellow neototalitarians in his speech at UN for the great damage they could do to the American economy, of course his best friend and ally Hugo Chavez must be celebrating in Caracas with his so well known bad taste jockes these terrible moments.

To do the urgent change is required to save America and the free world it is necessary a new administration that understand that new times require new perspectives and entirely new solutions, and that it is not intelligent to continue holding on models that possible were good 15 years ago but not now, that are not usable in the so complex world created by globalization.

Also it is more needed than ever before a new administration that be able to join around us other countries that work together with us to save the market economy and not to continue increasing the number of our enemies as this last showed to be so effective to find or provoke.

Yes probably for many that are reading these lines it does look so pleasant to support George Bush in this so dark hour but any way he is still the President and we must work with all our heart, with all our effort and energies to save this grave situation since it is America the one that is in risk and the entire free world too.

We must now think in the way in which one great American Leader said:




Thanks for your attention,

your friend,

The Angel of lightness



[edit on 9/25/2008 by The angel of light]

The Peace of God to all that belong to light,
Dear Readers,

The limbo in which the national economy entered the previous week and that reached a meaningful so low point this monday, a trully Black Monday for Walstreet, as I predicted to occur, is so far to finish. In fact if the appropiate measures are not taken on time I can see the total collapse so soon, a terrible crash.

With a record of the major fall of the dow jones of 777 pts in only one date, an absolute minimum in the whole History. This incredible fall has been worst than any other similar situation happend since the time of Watergate and even more grave than the comparable ones occured exactly previously to the great Depression.

This is clear indicator that my forecasts about the incoming of a black Monday was so accurate and gives a good idea if my predition of the Collapse of the Economy could be not only correct but very precise.

I encourage the public to press over the members of the House of representatives and the Congress in General to find quickly an agreeement that allow to pass the bailout plan or some other equivalent that prevent that the American economy reach the point of not return, that is imperative.

As I was claiming we are literally walking at the edge of the Abyss and if there is no a rapid and effective reaction from all the sectors of the American Society and the group interests continue prevailing in the Congress over the common one, we can be sure that there is ahead a so long fall that could be fatal not only for the stability of the nation but for the entire free world.


image source: http://farm3.static.flickr.com/2143/1525469162_eb9f273bab.jpg?v=0


If the worst happen of course this would be the consequence not only of a visible inefficient public administration that fall in the trap of the terrorism wars, but also of the macchiavelian economical game of declared enemies of the Market economy as Hugo Chavez, Mahmoud Ahmadinejad, Rafael Correa, and Moamar Khadafi that finally could get the goal never reached by Hitler, Mussolini, Stalin, Hirohito , that is , to demolish the basement of the democracy, the free enterprise and the civil rights.

I am wondering what are thinking in theses moments my contradictors that several times during almost two years were telling that my predictions that this new Neototalitarin evil axis was going to be so harmful for the world was exagerate and even hilarious.

Of course all that understimation of the enemies drive us to another interesting conclusion, As I also predicted more than a year ago, than Petroleum has been proven as the most effective weapon against the Liberty, one that have produced more devastation and damage than any other one could do.

Thanks for your attention,

your friend,

The Angel of Lightness

The Peace of God to all that belong to the light,
Dear Readers,

When it is closing one of the worst weeks even experienced in Wall street there are many emails arriving to my inbox asking how grave is the recession that now no body doubt we are affronting. Of course now all the skepticals that only a year ago told that my forecasts were crazy and impossible to occur are now astonished of how crude the facts are now following the path drawn by my predictions.

I think in good measure the answer depends on the way in which the government, the federal reserve and the international organisms of Credit and Finances act to solve the American Financial crisis.

If the authorities react on time and can restructure quickly the mercantile economy that we have now transforming it gradually to an industrial one, we can say that this recession is going to cede in no longer than 2 years.

However, if to the contrary the people that have in their hands the decisions to do the needed change on the economical model insist to defend this one, insist to continue in globalization without creating barriers to the free trade of certain products this could drive so easy to a grave general depression around the world.

As I stated in my previous updates it is not possible that an economy that is seriously weaken by the so high cost of transportation applied on all the goods can continue being strictly mercantile, it is needed to produce more in house of those goods and to try to do that at the lower possible cost while the doors remain still open for the free trade.

It is clear that in some moment in the near future those doors must be closed for many products, that the free trade agreements must be all renegotiated or even cancelled to protect the interest of the local economies. Also it will be necessary that the government must press over the great capital to bring again millions of dollars that are currently inversed oversees to the American territory to promote new industries and create millions of new really productive jobs.

I know that this sounds to do a step back to the protectionist model but the truth is that this is the moment to realize that Globalization is now History, that is no longer running well and if we don't change it on time it could be a disaster of proportions that the experts in economy cannot actually imagine now. The Global economy must be gradually transformed in regional economies within the economical blocks, that is the only way to go a head in through this crisis to a new era of prosperity.

There are many products that with the existing technology and with the presence of the cheap manpower that the immigrants represent can be produced at very competitive costs and even lower than the one we are paying thanks to the increasing in the transportation costs from Far East.

I am sure that for the investors that have thousands of millions of dollars inversed in industries in China, India or other far east countries this sounds almost impossible to do, but the point is that even those inversions are having tremendous risk if they remain over there.

As I also told in my previous comments the worst point of this global crisis will arrive when the Chinese economy break, and that is perfectly possible, when that occur, as a consequence of the American recession and the incapacity of our economy to fulfill the international compromises with the external sources of credit, I can say that the way in which the Communist government of China is going to try to fix their issues will be through expropiation of private foreign capital in their territory.

This can sounds crazy but that is the future that I can see, and remember that many attacked my threads a year ago also saying that they were complety mad, so be aware on time about what you can do to protect your interests. When that moment arrives a huge confrontation between China and the USA will happen, something that will drive the world to one of the worst international conflicts of the History.

Thanks for your attention,

The Angel of Lightness.



[edit on 10/10/2008 by The angel of light]