Predicting the future is hard

alleged to have been said by Yogi Berra. One of the predictors of the economy and of the Stock Market is the copper to gold ratio (first graph). Copper is an indicator for industrial well-being and gold is an indicator for the health of the financial system. We see a mixed messege in 2008: a period of slow slinking of copper as speculators drove oil prices to $149/barrel, then a recovery, as gold prices fell for a while and the disasterous fall in September onward as the FED stopped the money flow. That is what elected Obama.

We see the recovery in 2009 as anemic and we see the copper to gold ratio beginning to diverge as gold prices rise in response to the flooding of the market with dollars.

THIS FORETELLS OF ANOTHER DROP in the Stock Market.

On the horizon is the burst of the biggest financial bubble in history: the US Treasury note bubble. The coming financial bubble will destroy the dollar, stock prices, the economy and housing prices. It is like a volcano about to blow. You feel the vibrations, you see more steam, small quakes, a little more smoke, but underneath are enormous forces gathering that can not be contained.

America is being betrayed by a bunch of radicals who are now in power. They hijacked the Democrat Party, the FED, the Treasury and are directing the banks. Their goal is to destroy America so they can rebuild it as a Socialist Utopia. Destroying things is much easier than to build things. And some people are ahead in their thinking in wanting the Democrats dethroned and Obama and his fellow radicals impeached. Understanding why this is necessary is key to the effort succeeding.

The coming American Revolution must remove not merely Obama, but all his enablers in the Media and purge education of the radicals who control it. The rebuilding will take long and will be painful.