The other day, Freedom-4-All received an email from John Williams of Shadowstats.com. Nothing personal, just his standard update to his subscribers on his latest findings. By the time I finished reading and going through the attached carts, I was singing Tom Petty's song 'Free Falling' in my head. In case you don't know about Shadowstats.com, John figures out important reported government stats the right way, not using the 'new math' they currently use to bring government stats to the public. For instance, he figures inflation using the 1980 formula, using the same basket of goods, and removing things like 'hedonics' and other new math tricks.
Anyway, this email had about 18 charts showing many areas of the economy. Housing starts and sales. Employment figures, etc. Every chart that represented a strong healthy economy, first showed an incline, with the most recent figures currently showing a decline, which probably doesn't surprise anyone. Most of us are feeling and/or seeing those declines. All charts that should be warning signs were on the rise (debt amounts and ratios, etc). Things are not what we are led to believe. Basically, everything money in America is an illusion and the curtain is being pulled back on the wizard.
But here is my takeaway from the charts. if the healthy economic declines were measured in inches, they represented 1/8 to 1/4 inch in drop. When those same healthy numbers were inclines that we experienced before those declines, they were represented by 1 to 1 1/2 inches in growth. Now my big question is this, if people are feeling, grousing, and panicking over a quarter-inch decline, what will it be when the decline equals the incline?
I know what goes up must come down. I expect what goes up to come down. But unfortunately, like gravity, I don't think we can stop this free fall. And this time, I fear the landing. Not offering advice, but MY thoughts. Buy Gold. And when that's done, relax and listen to some Tom Petty.