YEARS OF PAIN

Economics is a backward looking science.  Therefore it becomes advantageous to pay attention to those that work with the market to help us look into the crystal ball of the future...economic futurists.  Many of these economic futurists are telling us that the times ahead are not going to be better.  This does not mean that everything is lost and that all is bad so why not go out spending.  No! This means that you can help to stave off some of the trouble by paying attention and preparing while you can.  So let's take a calm approach and see what this means.

Terms:
Recession: Is a period of declining incomes and rising unemployment.  When firms find they can't sell all their goods and services, they cut back on production.  At which time, the firms lay off employees and unemployment rise.  When the economy produces fewer goods and services GDP falls.  When GDP falls the cycle of declining income and rising unemployment grow stronger.
Depression: Simply stated, it is a severe recession. 
Sovereign debt: Is Central Banks throwing more money at debt through unsavory means (printing money is monetizing our own debt). 
Economic growth: Means a higher standard of living for all of us. (Not likely)

The markets are fluctuating so severely due to the current fear of a more severe recession (double-dip).
 
Because:
1. Consumer confidence is plummeting.
2. Housing prices are declining again (more).
3. GDP in the past few years has been in consumer spending, healthcare and government spending.  It has not been in production or areas for more growth.
4. Too much debt that can't be cured by more debt.
5. Government's continue to solve these problems with Central Banks printing more money which is causing further sovereign debt problems.
6. This plan is a bankrupt economic plan.

Result:
1. Unemployment will go up.
2. Inflation will rise.
3. Dollar will become worth less.
4. Fed will implement QE3...which will exasperate the whole cycle by dumping MORE dollars into the system.

Suggestion:
1. Buy Gold.
2. Buy Silver.
3. Have a stash of cash.
4. Stay informed.
5. Don't panic but be wise!
6. Do something to help prepare yourself for a declining future.  Educate yourself. 
7. We are in for some years of decline and pain.

Conclusion:
The system is in trouble.  Prepare now.