Talkgold.com’s Online Money Making Blog

A recession is upon us. Some economists already claim we are in one, however we are still waiting data to confirm it. Here are 11 predictions we feel are very likely over the coming year:

1. Gasoline at $5.00 per gallon
At the current rate of increase and the problems with the dollar, we expect the average gasoline price in the US to be in the $4.70-$5.10 range by late 2008. It wouldn’t surprise us either if oil begins trading in Euros instead of dollars to allow the oil rich nations to be unaffected by the dollars near collapse.

2. Dow Jones at 9,000
That would be a 28% market decline approximately. It could get worse depending on how severe the recession is and how much panic sets in due to other economic events. It will not collapse within weeks, but instead slowly trickle down.

3. World Markets will Switch to Euros from US Dollars
Oil, Gold and even every day commodities will begin trading around the globe in Euros instead of US dollars. This will be even worse news for Americans as the dollar will buy a lot less over seas. This will make the US markets lose even more value becoming a vicious cycle.

4. Inflation will Hit 7% annually
The Federal reserve has irresponsibly been lowering interest rates trying to help the stock market, while also trying to ease the housing mess which is going to continue on a downward spiral for some time regardless. In doing so, the supply of money is increasing. This along with the rising price of oil, basically making all costs in every industry go up, will cause inflation to skyrocket.

5. Iran will Get the Last Laugh
While the US sits here and threatens Iran over their nuclear program, they have been winning the war against us in a very simple way. The fear of Iran, and the mess they are causing in the Middle East, was only the first sparks of an increase in oil prices here in the US. Now Iran is only selling oil in Euros which is a dagger in the hearts of the US oil industry. Irans goal is to destroy the US economy by creating fear and oil troubles.

6. Large Layoffs at Top Companies - Unemployment rate to 9%
Just wait, by the end of this year we will see an unemployment rate that some experts guess will approach 9%. Large companies, will begin laying off huge numbers of employees, then the smaller companies will take the hits. When the economy does bad, companies need to cut costs, and the first way they do this is by laying off employees.

7. The Foreclosure “mess” will Become a “Nightmare”
If you think its bad right now, wait another 6 months. The foreclosure mess is a nightmarish cycle. People foreclose, this causes banks to lose money, which causes them to charge higher rates, and causes more people to foreclose. With the job market, US Dollar, and Economy plummeting, the situation will only be compounded.

8. Bank Closures with Possible Lost accounts
US banks have already lost close to $200 billion. Thats $200,000,000,000.00. The government can only bail them out for so long. We will see numerous banks closing shop, and a real panic when account holders are left in the dark. Hopefully the FDIC will be able to insure the hundreds of billions of dollars that may be lost.

9. Gold will Reach $1800 an Ounce
Thats right, Gold will become the only safe investment for Americans. With the dollar falling, and both the political and economic future of our nation in jeopardy, most Americans with money will store it in Gold. $1800 by March of 2009 is A fair prediction.

10. President Bush’s Approval Rating which is already the lowest in history will fall to single digits
An approval rating of 9% or even lower is likely. Just read the other 10 predictions to figure out why.

11. Crime will hit an all time high in the US
For every 1% increase in the Foreclosure rate, the crime rate rises 2.3%. When people are desperate they will do nearly anything to survive and make sure their family will survive. Theft, scam tactics, and even Murder rates will rise dramatically.

Please Stumble this Article if you found it interesting

Bookmark to: