A few hours ago I posted the following:

"
That's it. I'm calling a bottom.

It's here. It's now. The bottom of this bear market has arrived. (In *nominal* terms)

Dow 6000 will NEVER be broken on the downside. Don't look for it, it's not going to happen.
"

I was wrong. It WILL get worse. It will be worse than the Great Depression. In fact, comparing the Great Depression to what's coming would be like comparing a helicopter to a Boeing 747. Sure both are flying machines, but that's where the similarities end.

In fact, the present situation we are in ("we" = North America) has NO PRECEDENT in the history of the industrial Western world. The closest thing is the situation that led to the American Revolution, which was when Britain basically forced the US into a depression by forcing them to use the British Pound as currency.

Here's the sad (and revolting) truth: You are slaves, folks. You've handed over all your assets and those of your ancestors to the international bankers. You have nothing. Welcome to the third world.

I have come to realize that what is to come will be nothing short of the most revolting economic conditions ever seen in the Western world since the early 20th century. The first world will resemble the third world. In fact, the "first world" will MERGE with the third world, because the entire world will be plunged into an economic depression. It will be so bad THERE WILL BE NO ECONOMY. There will be no Dow Jones anymore. This will be such a spectacular and catastrophic collapse that it will be talked about for GENERATIONS. It will be written about in the HISTORY BOOKS.

Let's look at the Great Depression. Many people *truly* owned their homes (no mortgage). People were property owners. Many people had farms or had relatives who had farms. An income was considered a bonus, nice to have but not necessary in order to live. People had savings. People were WEALTHY in the 1920s and 30s. People went to the city to take advantage of the economic boom there, fully knowing that it could end at any time.

In the Great Depression, people used to rent their garages to underground whiskey producers. This means the middle class OWNED homes! So people were wealthy, but they were just frugal. They chose not to spend their money. They chose to save it because they had recently seen hard times and knew that jobs were not guaranteed. Furthermore, during the Great Depression, tax rates were low. States were solvent. The Federal Government was in its infancy. There was no war spending. There was no US military global empire. There was no global bond market flooded with worthless paper.

Anyway, the point is, comparing the current situation to the Great Depression is like saying Germany and Russia are the same country. It's a totally false comparison. Now is worse.

Now let's compare the downturn in Romania (and Eastern Europe) of the 1980s to what's happening now. First, there was a tyrannical government. This means there was little freedom and no economy. However, people were property owners. Seems ironic that in a communist regime, people owned property. But they did. People had guaranteed housing, and a guaranteed job. Sure, they couldn't buy much of anything with the money, but at least they had jobs and housing. EVERYONE was employed. There was no such thing as unemployment. EVERYONE had housing. So, comparing the current downturn to the downturn of the 1980s in Eastern Europe, again, is a false comparison. Now is worse.

So we've established that now is worse than both the 1980s in Eastern Europe *and* the Great Depression. What about Japan from 1990 to now?

Well, let's see... The downturn in Japan was caused by excessive SAVINGS (not debt). Actually - the bubble was caused by excessive savings. The downturn was simply a correction of the bubble. Also - Japan has no military and runs trade SURPLUSES - not deficits.

Our present situation in North America is unprecedented. And it may lead to unprecedented consequences, such as REVOLUTION. The bottom line is, we are in a situation that is worse than the Great Depression. We cannot apply Great Depression techniques to get us out of this. The closest thing is the American Revolution, so we should apply American Revolution techniques: restricting government, restoring freedom, establishing a stable independent currency (gold/silver), and abolishing international central banks.

Of course, we could just continue as usual. But if we do, there will be no economy, there will be no freedom, there will be no property, there will be no progress, there will be no innovation, and we'll just end up under a new form of high-tech feudalism world-wide, ruled by a few secret individuals who own the world.