We are making a couple of observations about our IDW that we think suggest the re-flation play is “rolling over.”

• The rate of increase is clearly in decline.
• The inflation play has been in decline since the start of 2010 and if history is prologue to the future, the equity markets and thus most likely the IDW will be down for the year.

If you think a dictatorship for America is not a foregone conclusion, check out this video and see how stupid Americans are. 

A massive number of voters are apparently ready to sign away their First Amendment rights. 

It seems to me we are on the precipice of the C Wave down and we had better waste no time in preparing for it! With the kind of decline folks like Robert Prechter, Ian Gordon, Dr. McHugh and many other free thinkers are suggesting is likely, the likelihood of disruptions in food supplies and other life sustaining essentials is certainly not out of the question.

My good friend Ian Gordon will be on my radio show February 9 to talk about his continued view that the Dow is heading for 1,000. You can read his recent paper titled “Dow 1,000 Is Not a Silly Number”. We don’t want to be purveyors of bad news, but we do think that sly old market observer, Richard Russell, who is as objective as anyone I know, should be listened to. (And it’s interesting to note that Richard agrees with Ian Gordon.) 

Last April, John Perkins told Turning Hard Times Into Good Times listeners of a New World Order that emerged in the post WWII nuclear age. He explained how the ruling elite has since used its power to enslave foreign countries. In his latest book, “Hoodwinked,” John presents his views on how corporate elitist abuse of the masses led to the implosion of our financial markets. 

For the third week in a row, our Inflation/Deflation Watch has declined. It has fallen from its “B Wave” peak of 136.70 to 129.12 at the end of this past week.

Could this be another false downturn like I thought we had back in July? I suppose so, but keep in mind that despite the most draconian stimulus measures ever undertaken in this country, the housing market remains in the crapper and the country’s unemployment rate is still rising to levels ahead of this stage of the Great Depression—even if you use the current government numbers, which are manipulated to make the numbers look better than they did back in the 1930s. Yes, we have had a quarter of positive GDP, if you believe our government’s numbers. But we had some exceptionally strong GDP quarters during the 1930s, as well.