Today, as I write this, it is December.26.2001. I really must congratulate the money manipulators. Everyone from the Federal Reserve, Alan Greenspan, the Wall Street brokers to the talking heads in the media who kept the money shell game going way past when I originally predicted the 'official' collapse of the economy. Well done people. You wouldn't or couldn't say the word SELL even while you were quietly moving your money into safe havens, like government bonds, while the sheep who listened to your bull kept on keeping on, waiting and hoping for that recovery you promised.

A few months after I wrote the 'Near Future' page in the Economy topic, the Stock Market started it's steady decline. Oh it's had it's rallies but if you click on a two year graph at any financial site, you'll see that it has been going toward the bottom.

Now we 'officially' are in a recession and\or depression depending on where you're located in the world and what industry you work in. Has the economy bottomed out? Not yet. It's just really getting started in a dwindling spiral. A race to the true bottom. It's not going to be pretty.

Argentina's troubles will act as a catalyst across borders in South America. Japan will be next to become the first true basket case in Asia. Although Japan has vast holdings on other shores, mainly in the United States, their return on investment or sales will not sustain their local economies. The value of the yen will crash, engineered by their own government to prop exports, the countries life-blood.

Deflation is on the way and will last around three years in the West along with devaluation of ALL world-wide currencies, although the American dollar will remain the strongest. A very long inflation period will follow. The Euro won't gain a head of steam for at least five years. Until then, Europe will be royally pissed at the United States for suppressing it's potential success.

"Freedoms just another word for nothing left to lose" ( from the song 'Me And Bobby Magee'). After a great number of people have lost everything, governments will have to confront the fact that their tax policies are hendering their recovery in the world's economy. Lowering taxes are presently the norm but during the Great Depression of 2002-2005, a reasonable flat tax system will be recognized as the only way to move people out of the thriving underground economy and bring foreign investment.

P\E Ratios will become one of the only true barometers for future investment in the Stock Markets. If you don't know what they are, don't gamble in the Markets.

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