8 Bold Forecasts and How to Profit From Them

Martin Weiss’ team of international experts – Mike Larson in North America, Claus Vogt in Europe, Tony Sagami on Asia, Rudy Martin on South America – and Ron Rowland, one of the nation’s foremost experts on international exchange-traded funds (ETFs), met recently to discuss and determine what they think is coming next. They came up with eight new forecasts for 2010 — some very negative, some very positive – and put forth specific, actionable recommendations based on their conclusions. Words: 1950

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com, presents below reformatted and edited [..] excerpts from an article* by Martin Weiss (www.uncommonwisdomdaily.com) for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) The article goes on to say:

1. The Obama administration and Congress will be paralyzed and unable to pass another big stimulus package and unable to prevent a double-dip recession!
Just in the past few weeks, we’ve seen an outpouring of bad data and news on the economy — GDP slowing sharply, a key manufacturing index hitting a seven month low, home sales running at the lowest level in nearly a half-century, bank lending falling – and horrendous jobs reports.

Voices are clamoring for another stimulus package but… Congress is paralyzed… and the President does not have the political – or financial – capital to make it happen. The Congressional Budget Office has estimated that the U.S. budget will produce a deficit of $1.5 trillion this year and $1.3 trillion in 2011, already far worse than they thought just a year ago… and now they’re going to get far lower income tax revenues… and far bigger bills for unemployment checks than they’ve been expecting. Even if the economy just slows down moderately, the deficit could explode well past $2 trillion in 2011 and it’s the exploding deficit that’s bringing massive political resistance to more stimulus on both sides of the aisle.

2. The entire burden of fighting recession and financing deficits will fall on central banks and, as such, Bernanke and his counterparts in Europe will launch a second, even bigger round of money printing!
These [new] paper dollars will not create real prosperity in the United States or Europe… and, [unfortunately,] a substantial portion of that money [will] wind up flowing to other countries where there is true, fundamental growth.

3. The sovereign debt crisis will soon return with a vengeance — first in Eastern Europe, then in the U.S. and the U.K.!
The sovereign debt crisis is not over by a long shot… even though the IMF and the EU [primarily Germany] bailed out Greece, Portugal, Spain and all the other PIIGS countries. Everyone seems to forget that the PIIGS countries are not the only ones in trouble. According to one of the world’s most respected institutions, the Bank of International Settlements (BIS), the sovereign debts of the United States (90% of GDP) are worse than the sovereign debts of PIIGS countries like….. (Continue reading the article here.) 

*http://www.uncommonwisdomdaily.com/8-bold-new-forecasts-for-2010-9964?FIELD9=3

Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
– Permission to reprint in whole or in part is permitted provided full credit is given.