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Understanding What Happens Next
Wednesday, September 28, 2011
Executive Summary
- The sentiment on commodities is shifting in an important way.
- What happens when a global credit bubble meets a secular rise in energy costs? (Answer: nothing good.)
- The only chart you need to understand the future
- Why the next steps of the Fed and other central banks is imminently predictable at this point
- Given the high probabilities and their huge impact, you need to take steps now to position and protect yourself.
- The three critical questions you need to be asking
Part I - What Just Happened
If you have not yet read Part I, available free to all readers, please click here to read it first.
Part II - Understanding What Happens Next
Global Carnage
During these turbulent periods, it's best to back up, widen the view, and ask where we are. Since the beginning of 2011, we observe that global equities have been hammered for losses, while global oil (Brent) and gold remain positive for the year.

Interestingly, we see that commodities in general (CRB) are down less YTD than even the best performing stock market (New York), which is not quite what I would have expected. Commodities typically lose first and most in a global downturn, or rout, and the fact that they haven't suggests that commodities are now being viewed as a safer place to be than equities. This is a stunning turn of events if it holds out going forward.

Your faithful information scout,
Chris Martenson
Copyright 2011, Chris Martenson. All rights reserved.




Comments
That leaves us the additional responsibility of preparing ourselves as best we can, and perhaps overdoing it so that we'll be in a position to assist those around us who will be relatively unprepared and possibly shell-shocked by the pace and magnitude of the change made more pronounced by their own willful denial of the facts on the ground...
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Times are serious......... We are making great progress in our preps but what worry’s me is ultimately being able to reap those rewards. We live in a deprived area in the UK and we are really unable to move. We purchased a house back in 2005 at the height of the bubble before we gave ourselves a financial education...
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Great article, thanks!
Chris,
Thanks for the reports and the timely updates. I have concerns over our local political system and local care of public resources. What should elected officials be doing to prepare? Our current local election cycle has begun and I am in a position to influence the conversation...
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Jager06 wrote:
I am sure I am not asking all the questions that will need to be addressed. If you could take a moment to respond privately or here, that would be much appreciated.
Best Wishes,
Jager06
Jager, you may find information related to energy decent helpful ...
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Chris wrote:
The future has arrived. We are no longer waiting for the changes to happen, they are here now. Read the papers; the changes and disruptions are already upon us. They are exceeding the abilities of our most earnest authorities to comprehend let alone manage, and they are increasing in number and severity...
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The pattern I see playing out in the markets is this: First there's a financial crisis (2008), which then becomes a fiscal crisis (seen across the globe), which will then turn into a currency or monetary crisis.
Can someone please clarify this statement for me? I do not follow the distinctions...
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diamarie wrote:
Chris Martenson wrote:
The pattern I see playing out in the markets is this: First there's a financial crisis (2008), which then becomes a fiscal crisis (seen across the globe), which will then turn into a currency or monetary crisis...
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i think if it makes sense to go solar for personal use...it makes sense to go solar for community use, or set the poor up as renewable and go solar for them..... sense that makes sense traverses all levels.
knowledge gained now is knowledge taken into the future...
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I'm sure many of you have had the experience in front of the computer when a comment, compelling chart, Martenson Insight, or other little fact has dawned on you in a PROFOUND way and you kind of chuckle, and say to yourself - we're so f*$&%ng screwed...
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