Big Pharma’s Swine Flu Scam

Scott's Soapbox

Headline: WHO Raises Swine Flu Alert to ‘Pandemic Level 5’
The World Health Organization has raised its pandemic alert for swine flu to the second highest level, meaning that it believes a global outbreak of the disease is imminent. [more]

pandemic-influenza-phases

Why is the media hyping swine flu?

Why does CNN act like there’s only ONE news story for the past few days, hammering us with the same 15-second loop of stale video?

Didn’t we already have a Swine Flu pandemic in 1976? [YouTube]

Could it be the Shadow Powers are prepping us for forced mass vaccinations? Vaccinations that typically kill and maim more people than the disease itself, while making millions for the pharmceutical industry?

swine-flu-2009-04-29_440x229

First, a few facts:
Worldwide confirmed cases of Swine Flu: <200
Worldwide deaths from Swine Flu: <200
Worldwide deaths from malaria: 3,000 PER DAY*
US deaths due to “normal” flu: 30,000-50,000 per year

Last Swine Flu panic in US: 1976.
US deaths caused by Swine Flu in 1976: 1.
US deaths caused by the Swine Flu Vaccine in 1976: 30.

Number of US Bird Flu deaths predicted by President Bush: 2,000,000+.
Actual number of Bird Flu deaths since 2003: 0,000,257.

*Why no international outrage over malaria? There’s no vaccine for it; since Big Pharma can’t make money off it no point in hyping it. [link]

Death By Vaccine
Yep, in 1976 when the gov’t directed mass vaccination of the entire country after the death of one soldier more people died from the Swine Flu vaccine than Swine Flu! [more]

Within a few months, claims totaling $1.3 billion had been filed by victims who had suffered paralysis from the vaccine. The vaccine was also blamed for 25 deaths.

However, several hundred people developed crippling Guillain-Barré Syndrome after they were injected with the swine flu vaccine. Even healthy 20-year-olds ended up as paraplegics. And the swine flu pandemic itself? It never materialized.

And, remember, Tamiflu is ineffective against Swine Flu: this strain has never been seen before in human or animal. Tamiflu has killed 14 already, and Japan banned it for use in children in 2007.

Doomed Without a Vaccine?
Nope. Way better than injecting yourself with an ineffective vaccine poisoned with mercury try these steps recommended by Dr. Joseph Mercola, owner of the world’s most popular natural health web site.

1) Get Vitamin D.
“If you are coming down with flu like symptoms and have not been on vitamin D you can take doses of 50,000 units a day for three days to treat the acute infection. Some researchers like Dr. Cannell, believe the dose could even be as high as 1000 units per pound of body weight for three days.”

2) Avoid Sugar.
“Sugar decreases the function of your immune system almost immediately, and as you likely know, a strong immune system is key to fighting off viruses and other illness. Be aware that sugar is present in foods you may not suspect, like ketchup and fruit juice.

3) Get Enough Rest.
“Just like it becomes harder for you to get your daily tasks done if you’re tired, if your body is overly fatigued it will be harder for it to fight the flu.”

4) Manage Stress Levels, Get Excercise.
“When you exercise, you increase your circulation and your blood flow throughout your body. The components of your immune system are also better circulated, which means your immune system has a better chance of finding an illness before it spreads.”

 5) Take Omega 3 Fats.
“Increase your intake of healthy and essential fats like the omega-3 found in krill oil, which is crucial for maintaining health. It is also vitally important to avoid damaged omega-6 oils that are trans fats and in processed foods as it will seriously damage your immune response.”

6) Wash Your Hands.
“Washing your hands will decrease your likelihood of spreading a virus to your nose, mouth or other people. Be sure you don’t use antibacterial soap for this — antibacterial soaps are completely unnecessary, and they cause far more harm than good. Instead, identify a simple chemical-free soap that you can switch your family to.”

7) Eat Garlic.
Garlic works like a broad-spectrum antibiotic against bacteria, virus, and protozoa in the body. And unlike with antibiotics, no resistance can be built up so it is an absolutely safe product to use.”

8) Avoid Hospitals and Vaccines.
“In this particular case, I’d also recommend you stay away from hospitals unless you’re having an emergency, as hospitals are prime breeding grounds for infections of all kinds, and could be one of the likeliest places you could be exposed to this new bug.”

What I do:
– I get a daily dose of vitamin D and lots of other good stuff from Synergy 3000. Cheapest place I’ve found it is here. I used to get stuff from Walmart but I’m suspicious about the actual source of the constituent vitamins (industrially-derived rather than natural).
– My favorite source of Omega 3 is here. 2-month supply for $12.
– Deodorized garlic, 3-month supply is $15 here.

Protect yourself (from Big Pharma, that is).

Scott

A Sell Signal You Won’t Hear About Anywhere Else

A poignant story from investment guru Jeff Clark…

taco-bell-mascot-closeup_140x147I ran into the taco yesterday during my afternoon jog. Actually, the taco high-fived me as I ran by.

Taco Bell just reopened a restaurant in the little shopping center of my small Northern California town. To draw attention to the Grand Reopening, the franchise owners hired someone to dress up as a taco, stand by the side of the road, and wave to the cars passing by.

Amused by the high-five, and needing a chance to catch my wind anyway, I doubled back and struck up a conversation with what I assumed was a teenager inside the taco costume.

“Dude,” I started off, “It looks like you’re having a pretty good time out here. I hope they’re paying you well.”

“It’s not bad,” the taco responded. “My son-in-law knows the manager here and he offered me $100 cash to stand out here for two days and wave at the cars.”

He didn’t sound like a teenager. Indeed, the man inside the costume wasn’t a high-school student looking to make a few bucks. He was a 72-year-old retiree named “Fran.” And the conversation we had will likely keep me up at night for a long, long time.

Fran spent 30 years as an airline mechanic for United Airlines. He retired 10 years ago when the airline offered him an early “buyout” package. Since then, however, the company went bankrupt. Fran lost his benefit package, which was mostly health care and dental. “But,” he says, “at least I was smart enough to take control of my own pension funds.”

If he hadn’t, then he would have lost most of his retirement fund when United declared bankruptcy a few years ago.

taco-bell-mascot_140x210“I did okay for a few years trading stocks during the dot com phase,” Fran continued. “But I lost a bunch of money in 2000 when the market fell.

“So I moved most of what I had left into real estate. My friends were all making money and it was easier than picking stocks. I bought an apartment building and two rental homes. I had positive cash flow from rents, and I kept refinancing and pulling out the appreciation.

“Fortunately, I sold the apartments a couple years ago for a good profit. The homes, though, are empty. I’m not collecting any rent, and they’re worth less than the mortgages I have on them.”

So Fran is walking away. He’s giving up on the houses and letting them go into foreclosure.

“I don’t want to do it,” he said. “I believe in paying my debts and I hope I can make good on that promise later. For now, though, I have to take care of my wife.

“And that,” he continued, “is why I’m dressed like a taco for $100. My wife turns 70 years old this Saturday and I’m taking her to dinner to celebrate. She doesn’t know about our finances and she doesn’t know I’m doing this job. No one can see me in this costume and my son-in-law can keep a secret.

“Besides,” he said, “the stock market is doing better now. I sold most of what I had in November. That was bad timing as the market moved up afterwards. But I didn’t have to suffer through the decline earlier this year. I just put all of my retirement funds back into the market last week because it looks like we’re back on track and stocks should move higher the rest of this year. That’s a good idea don’t you think?”

Here was this man who had worked and saved his entire life. He bought stocks at the high in 2000 and suffered a big loss. He then bought real estate during the bubble of the past few years and is now facing foreclosure. He sold stocks near the bottom last November and is buying them now, after they’ve run up 25% in just over one month.

And he just asked for investment advice from an unknown jogger.

I was reluctant to comment because I didn’t want to deflate his optimism. At the same time, if my own grandfather were 100% invested in the stock market right now I would scream at him to get out.

“All I know, Fran,” I said to him, “is if I get into a taxicab and the driver tells me it’s time to buy stocks then I know it’s time to sell. If my mother calls me on a Saturday afternoon and asks if she should start buying into the market, then I’m selling first thing on Monday morning.”
 
Yesterday, a 72-year-old retiree with a dubious investment history put on a taco costume and stood by the side of the road in an effort to earn enough money to take his wife to a birthday dinner. He just put his entire retirement fund into the stock market, and then asked for advice from a stranger passing by.

“Fran,” I said, “I think I have to sell into that too.”

Week of Apr 27, 2009

pandemic-influenza-phases_70x60Swine Flu Hoax: Time to Vaccinate?
We went through this before in 1976. The gov’t created a Swine Flu scare to vaccinate the populace. The vaccination maimed and killed more people than the flu. Oops! Hey, the Shadow Powers say, let’s do it again. Big Pharma’s Swine Flu Scam.

taco-bell-mascot_70x67If the Taco Sez “Time to Buy…”
Oh, here’s a good story. Yeah, it’s a sad story too. Makes you think what if “but for the grace of God…” Investment guru Jeff Clark is out for his nightly jog and gets A Sell Signal You Won’t Hear About Anywhere Else.

swine-flu-in-mexico_70x52Swine Flu: High Strangeness
Are we watching a “test run” of the coming true viral pandemic to soften us up? Two months ago Panasonic recalled employee’s families home due to flu pandemic fears. The man who entertained Obama on his recent Mexico trip dies a day later.  Man Meets Prez, Then Dies of Flu.

wake-up-and-smell-the-fascism-70x85FEMA’s Martial Law Preparations
County officials south of Chicago reveal FEMA’s attempts to coordinate emergency vaccination of populations, structural hardening of police and fire stations, planning for mass grave locations, and anticipation of ammunition shortages. Indiana officials are worried FEMA’s
Planning for Martial Law.

relax_70x54“11:11” Time For Lunch Or Something Deeper?
Is there a special significance to the occurrences of 11:11 found in just getting through the day? What about “Lightworkers”? More than just installing fiberoptic cables for faster Internet? Here’s my take on the 11:11 Phenomenon & Lightworkers.

richard-russell_70x7284-Year-Old Legend Says You Ain’t Seen Nothin’ Yet
Richard
Russel launched the financial newsletter format in 1958 and famously called the bottom for stocks in December 1974. At a dinner in California honoring his achievements he spoke out about today’s economy vs. 1974 and the Great Depression. Richard Russell: Market To Get Tougher

Richard MayburyThe “Great Deflation” Is Over, The “Great Inflation” Starts Soon
Back in December, Richard Maybury said he’d warn us when he thought deflation was done and inflation would begin in earnest. He just issued a special alert. He suggests ways to profit from it and the incipient US dollar plunge. Maybury Issues Inflation Alert.

AntiChrist #3, “Welcome Aboard”
3rd-antichrist_70x7216th century prognosticator Nostradamus predicted three AntiChrists, their names encoded within anagrams. #1 lived in the 1800s, #2 in the 1900s. He called the third one “Mabus.” Prez Obama has just tapped Mr. Mabus to command all US Navy forces worldwide. AntiChrist #3 to Head US Navy.

nibiru-orbit-nasa_70x72Planet X. 2012.
OK, you asked me what I know about 2012 and “Planet X.” I spill the beans AND hit you up with how a dead star 45,000 light years away may have killed 240,000 people here on little ol’ Earth a few years back. Planet X and 2012.

Edgar SteeleRace Riot Warning
OK, I admit his writings make me squirm. But what if Idaho attorney Edgar J. Steele is right about the disenfranchised minorities in the US rising up against the Average Joe? How ugly could things get? Have you heard about Mexican drug gangs terrorizing residents of Tuscon? Straight Talk About Coming Riots.

Masters Do Not Collect Money From Their Slaves
G. Edward Griffin, author and hero, responds to a reader who wonders if the “Shadow Powers” are about to “shoot themselves in the foot”? She asks, So What Happens When We All Are Broke?

dollar-drowns70x112Summer from Hell: US Dollar Collapse 4cast
George Ure (of Urban Survival fame) is talking about “competitive collapse of currencies world-wide” beginning “no later than late May.”

I’ve also watched the LEAP/E2020 European think tank’s economic forecasts with great interest. Now they’re not only predicting the demise of the world’s reserve currency, the dollar, this summer but events equally ominous. Sometimes you gotta go outside the mainstream US media to get the straight scoop. Consider the Think Tank’s 2009 Predictions.

Read about the only indicator I’ve found that has correctly predicted the timing and magnitude of the 1929 crash in Market Predictions for 2009-2010.

Scott

Checking Off My “To Do” List
WSJ Talks Amero
Stats Say Yes, It’s a *Depression* 
Warnings & Advice from a Saint, Part 1 KEY INFO
– 2009: Worst Still Ahead 
Best Way 2 Control the Masses
– Uncle Sam’s Gold Grab   
Something of Historic Proportions Is Happening 
Deflation Xforming to Inflation Soon

Shadow Powers Plan for 2011 
Sober Prediction for Nov. 2009 
– Market Prediction for 2009-2010 KEY INFO
 
>> How to Rate Your Bank’s Safety <<
History of the Meltdown… (on-going)

Remember what’s in store for us: What’s Coming R Way

Man Meets Prez, Then Dies of Flu

swine-flu-in-mexicoNo doubt you’ve heard about the US declaring a state of emergency over the swine flu outbreak. But do you remember this headline two months ago?

Panasonic orders overseas families home over flu fears

What did/does Panasonic know? And that’s not the only strange coincidence surrounding this “swine flu outbreak.” Seems that when President Obama was in Mexico a week and a half ago he met a man who DIED THE NEXT DAY of the flu.

From Bloomberg News:
The first case was seen in Mexico on April 13. The outbreak coincided with the President Barack Obama’s 
trip to Mexico City on April 16. Obama was received at Mexico’s anthropology museum in Mexico City by Felipe Solis, a distinguished archaeologist who died the following day from symptoms similar to flu, Reforma newspaper reported. The newspaper didn’t confirm if Solis had swine flu or not.

The Mexican government is distributing breathing masks to curtail the disease’s spread. There is no vaccine against the new strain of swine flu, health authorities said. [more]

Makes me wonder if they (the Shadow Powers) weren’t “sending Obama a message” to keep him in line. Kinda like the BIG message they sent Bush on 9/11 when they stripped Air Force One of its fighter escort when he left Florida AND told him AFO was a target. Now you know the real reason why he looked so shell-shocked when he addressed the nation later that evening.

And, no, I don’t think this swine flu is the real deal. I believe it’s just a test run prior to the real (and engineered) pandemic that’s due later this year or in 2010. The Shadow Powers need to “soften up” the sheeple to accept emergency mandatory vaccinations. Don’t be fooled into getting them.

mexico-flu-cp-6611697-wide

Planning for Martial Law

This from the folks at BrasscheckTV.com (and, yes, emergency vaccinations are a deadly ploy; google Gardasil Texas for an example):

Mass vaccination of the population in just 48 hours?

That’s what FEMA wants to be ready to do – and they’re training local officials for it.

An Indiana county municipal official in the vicinity of Chicago reveals the contents of his meetings with FEMA and the Department of Homeland Security. The initial requests seem reasonable enough when FEMA asks the county officials to prepare a Hazard Mitigation Plan to deal with flooding, fires, high winds and tornadoes.

But as the required meetings and calls with FEMA and DHS continue over a two year period their request become more unusual, raising suspicions of county officials

From the audio:

We want to know every important thing in this county. We want to know where police departments are. Where weapons are stored. Hazardous material. Where can we land a helicopter. Where are the airports. How big a plane can you land at the airport. Where are all the bridges. Where are all the power stations. Where are all the generating stations.Where are all the substations. They literally wanted to know where everything was. Im sitting there thinking man if there was ever martial law. This kind of information is exactly the kind of stuff they are going to want. Were just laying it all out for them right there.

During the legally mandated meetings held with FEMA and DHS different disaster scenarios were reveled to county officials:

• In late December 2008 municipal officials were invited to Indianapolis for a briefing on the state of Indiana. There were told if industry were to collapse for example GM going bankrupt resulting in mass unemployment a depression would soon follow and municipalities could expect to loose 40% of their funds.

• Every county in the nation would be required to prepare a Hazard Mitigation Plan.

• The county should prepare a plan to vaccinate the entire population within 48 hours and practice the plan several times.

• FEMA inquired to where mass graves could be placed in the county and would they accept bodies from elsewhere.

• The sheriffs department via the state sheriff association was told that no .223 ammunition rounds would be available as the military would be purchasing all stocks.

• The county was asked to make plans for hardening of police and fire stations, putting in hardened bunker type buildings around town.
• The county was asked to make plans for the possibility of up to 400,000 refugees from Chicago.

+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-+-

Worth Mentioning:
How To Legally Say “NO” To All Vaccines!

Week of Apr 20, 2009

wake-up-and-smell-the-fascism-70x85FEMA’s Martial Law Preparations
County officials south of Chicago reveal FEMA’s attempts to coordinate emergency vaccination of populations, structural hardening of police and fire stations, planning for mass grave locations, and anticipation of ammunition shortages. Indiana officials are worried FEMA’s
Planning for Martial Law.

boom-snail_closeupWon’t Get Fooled Again…
As you watch the stock market enjoy some time above the “new normal” 8,000 mark (gee, was it only 18 months ago when it hit 14,000?), please don’t be lulled into a sense that, finally, all is well. This rally is real, but it’s also temporary (remember, I warned you last month). Take advantage of it if you need to bail out of any leftover investments, but please Beware the Dow’s Head-Fake.

financial-tsunami_70x60California “Foreclosure Dam” Ready To Bust
Hmm… seems that a tidal wave of foreclosures in Califonia has been held back for the last 6 months through trickery and obfuscation.
But Tyler Durden says this tsunami’s ready to break through. California Foreclosures About To Double

relax_70x54“11:11” Time For Lunch Or Something Deeper?
Is there a special significance to the occurrences of 11:11 found in just getting through the day? What about “Lightworkers”? More than just installing fiberoptic cables for faster Internet? Here’s my take on the 11:11 Phenomenon & Lightworkers.

richard-russell_70x7284-Year-Old Legend Says You Ain’t Seen Nothin’ Yet
Richard
Russel launched the financial newsletter format in 1958 and famously called the bottom for stocks in December 1974. At a dinner in California honoring his achievements he spoke out about today’s economy vs. 1974 and the Great Depression. Richard Russell: Market To Get Tougher

metlife_70x53Your 401k Is Toast. Is Your Life Insurance Next?
Now it looks like life insurance companies are at risk of failure. Some companies, like MetLife, Hartford and  Lincoln National have gambled in the derivatives and commercial real estate arenas. This is jeopardizing their traditionally safe insurance and annuity business. Can You Count On Your Life Insurance?

art-bars-1-oz_75x45Did You Get Your Silver?
If you were one of the people I gave silver to (If You Have No Silver I’ll Give You Some of Mine) please let me know ASAP if you DID NOT receive it. Everyone should have gotten it by now except for Mr. Payne, who should have it by the end of the week. 

Richard MayburyThe “Great Deflation” Is Over, The “Great Inflation” Starts Soon
Back in December, Richard Maybury said he’d warn us when he thought deflation was done and inflation would begin in earnest. He just issued a special alert. He suggests ways to profit from it and the incipient US dollar plunge. Maybury Issues Inflation Alert.

AntiChrist #3, “Welcome Aboard”
3rd-antichrist_70x7216th century prognosticator Nostradamus predicted three AntiChrists, their names encoded within anagrams. #1 lived in the 1800s, #2 in the 1900s. He called the third one “Mabus.” Prez Obama has just tapped Mr. Mabus to command all US Navy forces worldwide. AntiChrist #3 to Head US Navy.

Jim SinclairGold Ain’t an Investment, It’s a Lifeline
I’m paraphrasing Jim Sinclair, one of the world’s most respected gold bugs. He also proclaimed “Financial rescue plans are starting to appear as if they are acts of futility thrown against the wall like cooked pasta to see if one might stick.” Check out more of Sinclair’s Pithy Proclamations.

coin-platinum-eagle-wht-back_70x70Just Can’t Get Enough
A year ago the US Mint offered gold, silver and platinum coins in a variety of finishes, purities (22K or 24K), and denominations. Now, shortages have forced them to stop production of 27 of the 29 coins they had minted. US Precious Metal Coin Shortage Continues.

nibiru-orbit-nasa_70x72Planet X. 2012.
OK, you asked me what I know about 2012 and “Planet X.” I spill the beans AND hit you up with how a dead star 45,000 light years away may have killed 240,000 people here on little ol’ Earth a few years back. Planet X and 2012.

Edgar SteeleRace Riot Warning
OK, I admit his writings make me squirm. But what if Idaho attorney Edgar J. Steele is right about the disenfranchised minorities in the US rising up against the Average Joe? How ugly could things get? Have you heard about Mexican drug gangs terrorizing residents of Tuscon? Straight Talk About Coming Riots.

 

Masters Do Not Collect Money From Their Slaves
G. Edward Griffin, author and hero, responds to a reader who wonders if the “Shadow Powers” are about to “shoot themselves in the foot”? She asks, So What Happens When We All Are Broke?

dollar-drowns70x112Summer from Hell: US Dollar Collapse 4cast
George Ure (of Urban Survival fame) is talking about “competitive collapse of currencies world-wide” beginning “no later than late May.”

I’ve also watched the LEAP/E2020 European think tank’s economic forecasts with great interest. Now they’re not only predicting the demise of the world’s reserve currency, the dollar, this summer but events equally ominous. Sometimes you gotta go outside the mainstream US media to get the straight scoop. Consider the Think Tank’s 2009 Predictions.

Read about the only indicator I’ve found that has correctly predicted the timing and magnitude of the 1929 crash in Market Predictions for 2009-2010.

Scott

Checking Off My “To Do” List
WSJ Talks Amero
Stats Say Yes, It’s a *Depression* 
Warnings & Advice from a Saint, Part 1 KEY INFO
– 2009: Worst Still Ahead 
Best Way 2 Control the Masses
– Uncle Sam’s Gold Grab   
Something of Historic Proportions Is Happening 
Deflation Xforming to Inflation Soon

Shadow Powers Plan for 2011 
Sober Prediction for Nov. 2009 
– Market Prediction for 2009-2010 KEY INFO
 
>> How to Rate Your Bank’s Safety <<
History of the Meltdown… (on-going)

Remember what’s in store for us: What’s Coming R Way

Beware the Dow’s Head-Fake

boom-snail_closeupEric Roseman shares his wisdom on the recent stock market rally. As I said a few weeks back [Bottom? NO Rally? YES] this is a head-fake rally: a chance to bail out of destroyed 401(k)s at an interim top. The markets haven’t really calmed down until the Fear Index (VIX) settles back to the 10 to 20 range.

There is so much you’re not being told about the economy. With the bailout at $7,224,000,000,000+ and GE technically bankrupt (YES, that GE) with their huge earnings bomb THINGS ARE NOT NORMAL. This is just a quiescent period before the “Summer From Hell” and a “Fall From Grace.”

Please consider this man’s words carefully.

Scott

Stock Market Rally for Suckers as Credit Destruction Lingers
Eric RosemanSince March 9 stocks have been enjoying a period of strong gains, low relative downside volatility and rising inflows into stock mutual funds. From their lows four weeks ago, stocks are now up a cumulative 24.5%.

Indeed, the Volatility Index (VIX) continues to decline since hitting an all-time high last November.

vix-1yr-thru-08apr2009

The VIX, which measures options trading sentiment on the S&P 500 Index has crashed from a high of 80.86 to 38.85 ahead of today’s trading, a 52% decline. If the VIX closes today below 38.50 – highly probable — then I’d view that as a bullish signal for the short-term direction of the markets.

Stocks Still Propelling Higher?
The stock market is now crossing important territory this month as first quarter corporate earnings begin in earnest. With the FASB engineering a hocus-pocus act on bank earnings last week the market is expected to get a boost from the new trend in phony financial services accounting. This will give the market an additional boost this month.

Combined with better earnings guidance from companies, which I view as almost impossible in this environment, might be enough to propel stocks even higher.

A key index level to watch for a new break-out is Dow 9,015.10 and the Dow Transports at 3,717.26; if these indices break through these important resistance levels then my intermediate and long-term bearish view on stocks will be violated. Until we crack these thresholds, this is still a bear market rally.

This Is Not a “Normal” Cyclical Economic Recovery
The stock market is largely manipulated by sleuths whereas the bond market is largely dominated by the “smart” money. And the credit indicators tell me that we’re a long way from bottoming in this credit cycle – especially in several markets that are not currently assisted by the Fed and Treasury. Basically, high quality credit spreads have not narrowed since the commencement of this stock rally. This is bearish price action.

First Time In a Lifetime
I’ve never experienced a debt deflation. Nor have most people currently alive. It is unwise and foolish to treat this bear market like any other in the post-WW II period because it is totally unique; the scope and depth of the ongoing destruction of consumer and business credit, bank balance sheet compression and insolvency, consumer retrenchment and soaring unemployment should not be underestimated. The rare nature of this recession precludes a cyclically normal U.S. recovery.

This is a time for investors to largely preserve capital and wait for the market environment to improve as it pertains to government regulation and the future of our banking system. Many questions are still unanswered or unresolved. 

Gold To Regain Footing
But the bulk of your assets should be targeting high quality short-term investment grade debt, convertible bonds, TIPS, mortgage agency debt, senior Canadian bank debt and, once the dollar finally pops, foreign currency bonds. Also, I have no doubt that gold will eventually regain its footing and head through the roof once deflation is quashed. We’re all going to pay dearly for this monster-sized spending – clearly out of control at this point.

Drug Addict Needs Another Fix Soon
In the 1930s the Dow posted several major bear market rallies before finally bottoming in June 1932. The current rally – now the third such period of gains since early 2008 – has room to advance because of the massive amount of concerted global fiscal spending now hitting the financial system and eventually, the real economy. But like a drug addict that needs his fix this recovery will require another dose of spending in 2010 as government stimulus fails to supplant consumer spending indefinitely. The consumer will not save the day as he remains focused on balance sheet repair and cash savings.

In the absence of a global consumer now that the United States is raising its savings rate, there isn’t one nation that can supplement U.S. imports. This implies major hurdles for the global economy and therefore corporate earnings as we look beyond a blip in economic activity the second half of 2009.

This bear should not be underestimated. The destruction of credit and wealth has not passed its peak but rather is taking a time-out before feasting again on the financial system perhaps later this year or in 2010. [more]

More of interest:
Bottom? NO Rally? YES