Forecast: Here’s Some Of What The Weather Will Look Like In 2010

1. Higher Consumer Prices: Especially for commodities such as food, but also for services, taxes fees, etc., at every level in both the public and private sectors.

Photo credit: KaCey97007

2. Static to Lower Wages/Incomes: Regardless of “overall” economic models that may show increases in incomes, employment, etc., the average American will have less money to deal with the expenses of family; both necessary and elective. A quick look at Social Security payments will provide an example here.

3. A Generally Weaker & Weakening Dollar: This will be due primarily to increasing levels of federal debt and the fact that this debt is being met with borrowed and newly printed money. These responses will push up prices, especially imports, and thereby contribute heavily to #1. Pay particular attention for a continuing erosion of the U.S. dollar (for our debt policy stated above) as the world’s reserve currency. More countries will begin doing business between themselves through the exchange of their respective currencies and/or barter. More countries will ask for payments in currencies other than the U. S. dollar (such as the Euro) and/or call for a “market basket” of currencies or an internationally recognized unit of value. Also watch for countries reducing the U.S. dollar as a portion of their reserves.

4. A Lower Standard of Living for The Average American Family: This will be a result if #’s 1-3 and a
continuing weak economy with weak employment (U6) stretching far into the future. Look to the real employment numbers (and other important statistics) from sources like John Williams’ shadowstats.com NOT the federal government.

5. Increased Civil Unrest Over That Of 2009: It might be due to higher food prices, higher taxes/fees,  jobless benefit cuts (the states are running out unemployment money) or some government policy or another but the increasing level of citizen dissatisfaction with current conditions almost assures an increase in  civil unrest (and a government response) to further significant disruption in American’s day-to-day lives.

6. Increased Terrorist Activity In The U.S. & The World: Terrorism appears to be expanding all around the world. It’s message is resonating and captivating not just among the poor but with the affluent young also. Whether in Yemen or London, more are being influenced to support and/or  join this movement. The result of terrorists recruiting successes will nearly guarantee more terrorist activity and attacks in the U.S. and around the world. The individual that called this “The Long War” was spot on!

7. A “Black Swan” Event: (“the existence & occurence of high-impact, hard to predict and rare events that are beyond the realm of normal expectation”) Here are three possibilities with any of the three providing major repercussions (especially #1):

• War between Israel and Iran resulting in a closing of the Strait of Hormuz (at least)
• and a dramatic reduction in oil availability for the industrialized world (at least).
• The failure/disintegration of a major nation such as Mexico or Pakistan.
• Bankruptcy of a major nation such as Greece, the Baltic’s, or one from Eastern Europe.

Until next time; keep your eyes on the horizon as the weathers changing fast.