Dedicated to unapologetically exposing and eradicating the disease of American Progressivism and advocating a return to original Constitutional principles.



25 August 2010

...and Atlas shrugged

Among the happy, upbeat economic outlook being peddled by the federal government to a somewhat still lethargic and puerile public, news has begun to break that the American economy may potentially be at the threshold of not only a "W-shaped" recession, but, when combined with other poor conditions of our currency, GDP, record low treasury yields, and national debt, a severe economic collapse.

The Hidenburg Omen, an economic harbinger used to predict substantial market corrections by tracking various indicators around the NYSE, has been triggered on four separate occasions within the last two weeks, indicating a high probability of serious market volatility within the next approximately six weeks.

In general, a single cluster of triggering of the Hindenburg Omen has historically resulted in the following:

1. A 77% chance of a market correction of more than 5% within the next 40 days
2. A 41% chance of investors pulling money out of the market in panic
3. A 24% chance of a major market crash

The Hidenburg Omen has correctly predicted every NYSE crash for the last 25 years.

I might remind you that the market crash of 1929 and the resulting depression of the following 10 years were filled with short periods of rapid "recovery," which were hidden within the overall decline of the economy as a whole. America has been here before, and unfortunately for us, we have applied the exact same "solutions" as before - massive federal government debt spending on new social entitlements and public-works projects, reduction of interest rates, abuse of the so-called "discount window," and the general stringing along of the public under the guise that "government is the answer." The result of these policies in the 1930's was drastically prolonged economic depression and a legacy of unsustainable social programs (social security, for example) to burden future, unborn generations for short-term gain.

Hold on to your seats - it's going to be a long, bumpy ride down.

In love of liberty,
The Bulletproof Patriot

[1] http://www.zerohedge.com/article/hindenburg-omen-confirmation-1
[2] http://en.wikipedia.org/wiki/Hindenburg_Omen
[3] http://www.zerohedge.com/article/third-hindenburg-omen-confirmation

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