The Economy-World, Tomorrow-The USA

The Economy–World: The International Herald Tribune (iht.com) for 3/08/09 posted this headline “World Bank offers dire forecast for world economy” by Edmund L. Andrews.

The article, referenced by the headline above, leads with, “In a bleaker assessment than those of most private forecasters, the World bank predicted Sunday that the global economy would shrink in 2009 for the first time since WW ll.” The World Bank continued it’s stark evaluation by noting that “…global trade would contract for the first time since 1982, and that the decline would be the biggest since the 1930’s.“

The World bank’s report also referenced the global economic crisis by noting that it would even more dramatically effect the world’s poorer nations by restricting their growth and their access to credit. The report added that the crisis would almost certainly surpass the abilities of international lending institutions, such as itself and the IMF, to provide the necessary funds to backstop the it’s effects.

Tomorrow–The USA: lifeaftertheoilcrash.net recently (3/08/09) provided access to an interview with Gerald Celente, the head of Trends Research Institute, entitled “I’m Expecting Food Riots to Break Out Across the U.S.”

The interview’s title alone might be cause to skip the interview, putting it down as just another sensational statement in a time given to a lot sensational statements. That might be a mistake.

Trends Research Institute has a very strong record when it comes to predicting economic and social changes. The Wall Street Journal notes that “Those who take their predictions seriously consider the Trends Research Institute.” and the prestigious financial publication “The Economist” notes that the ‘Institute’ has “A network of 25 experts whose range of specialties would rival many university faculties.”

With these things in mind, we present some highlights of the interview beyond the headline:

• We are currently in the midst of a global financial meltdown.
• Washington can’t come up with a solution and keeps throwing good money after bad.
• The game is over and any other view is a delusion.
• The market declines every time someone (including the President) gives a statement/interview.
• We are going into the Greatest Depression the world has ever seen.
• Levels of crime and violence will exceed those we’ve ever seen.
• Baby Boomers are unprepared for this situation: leading household incomes in the U.S. below 1999 levels and they‘re broke..
• Violence in this depression will be our greatest fear.

Mr. Celente’s views are stark and dark. Our view at Prudent Home is that no one can precisely predict the future and the effects of any future are very much determined by the responses of individuals and families. It’s with this in mind that we’re going to be shifting our emphasis a little here to provide a very positive “What-you-can-do and how-to-do-it” day in the middle of the week (and in the middle of all this doom-and-gloom). We’ll begin with our next post.

Until the middle of the week then, keep your eyes on the horizon as the weather’s changing fast.