Dear Friends and Relatives,
While, from my best due diligence, these predictions may not all occur in 2011, I fully agree that these are the clear economic themes that will, more than likely, unfold in the next few years. Humanity is in an in-depth process of making a profound transition to new Global Economic relationships, systems and structures. The old Economic Order is simply unsustainable. Massive global debt, for instance, can not be solved by more massive global debt, even if you shift the growing debt from the private sector to the public sector, as is happening to tax payers in many nations today.
From my perspective, our full focus needs be on co-creating new, alternative, environmentally sustainable ,economic models, that balance the growing extremes of wealth and poverty, that continues to be created by the Old Economic Order ,without giving away our energy fighting the negative. The Old World Order is in its final death throes and is in the process of being replaced The reality is that, "You cannot put new wine,in old wine skin! "
With Warm Love and Greetings,
From Automatic Earth www.automaticearth.blohspot.com with comments by Ilragi one of the moderators of the site. The predictions come from a comment on the site from VK making predictions about events in 2011. Here’s VK's predictions, with Ilargi’s comments:
So 2011 is upon us! The 11 themes of 2011 are as follows:
1) Markets begin their downturn with a vengeance. As has been stated,bullishness is at extreme levels.
2) Massive declines in real estate prices globally. The Australian and Canadian bubbles are ripe for the picking.
Check. Throw in a handful European countries for good measure.Caveat: housing markets have tons of inertia. Real bottoms may take years to reach.
3) QE2 or QE3 precipitates further deflation due to collapsing margins.
4) Commodities will plummet as demand is eviscerated. Oil below $10.
This one also could take longer than VK thinks. A lot of fake capital can flow into oil yet. Nothing to do with peak oil, however, as many will claim. Just finance, dough, credit. In the end, it's all down all the way.
5) One or more countries will leave the EuroZone,precipitating a huge confidence crisis in the single currency. Euro will collapse against the dollar.
Euro will lose vs USD, no doubt there. Countries leaving may take a few years.
6) Long term US treasuries will sell off as people realize what a basket case the revenue expense differential is. 10 Year at 4.75%.
Again, the fake money present throughout may delay this one.Interest rates sure to rise, though. As is the move towards shorter-term bonds.
7) Sharp rise in the value of the dollar. The 2008 highs on the dollar index will be easily breached.
8) Expect more banker bailouts as the system will reach the abyss once again. Expect a few major global banks to go under.
Check on part 1. Part 2 may be harder with the bankers' check onthe political system.
9) Sharp rise in global unemployment post the recent lull.
10) Social unrest due to the above, and as austerity measures will have to deepen to allow for plunging revenues.
BIG ONE. Will make Greece this summer look like a tea party. Punintended.
11) Shortages of goods & services to emerge asinternational trade declines and lots of companies go bankrupt due to insufficient cash flow [and available credit] to service their debts.