Now is the time to dust off the crystal ball and test any scrying skills to decipher what will be ahead in 2011. I present some predictions for 2011, and a review of my successes and failures from my January 9, 2010 musings.
I predicted a military strike against Iran in late 2010 to prevent Iran from acquiring nuclear weapons. That clearly did not happen.
However, in 2010 something else occurred. Espionage and sabotage against Iran. Someone created the sophisticated Stuxnet computer worm to damage the Iranian nuclear effort. Iranian nuclear scientists were assassinated or wounded with car bombs. Who knows what else happened we don’t know about?
Someone is using the craft of spies instead of the military to slow down the Iranian nuclear effort. How long will that delay the inevitable? I continue with my prediction of a military strike against Iran, but in 2011. Among the Wikileaks revelations was Saudi King Abdullah exhorting the U.S. to attack Iran and end its nuclear program. He said, “Cut off the head of the snake.” In 2011? Very likely.
2. The Economy.
At the beginning of 2010 I predicted the Dow Jones Industrial Average would reach near 12,000 by the end of the year. And so it has! At the end of 2010 the DOW is over 11,600. A year ago the world economy was very shaky and many were pessimistic about a double dip recession and feared the stock market would again implode. However, so far so good.
What about 2011? I will go out on a limb and predict the DOW will reach near 14,000. Ok, more likely 13,500. This is may seem wildly optimistic. The U.S. economy will continue to seriously struggle. Americans are in for a continued decline in our standard of living.
Yet the U.S. stock market does not necessarily follow what the American economy is doing. Companies are making good earnings even with high unemployment. Fewer employees mean more money in corporate pockets. We are in a global economy. Good for investors, bad for regular folk.
3. A possible wildcard…the collapse of the dollar. Buy Silver!
I don’t see this actually happening in 2011, unless our politicians are really stupid. It could still clearly happen. At some point the world will realize all this printed money is just that…paper money with little intrinsic value. As a hedge I’d buy silver coins. In 2009 silver averaged $14.50 an ounce.
As I write this blog silver is over $30 an ounce, an increase of over 100% from a year ago! Few can afford gold, but we can all invest in some silver, it is still affordable. An ounce here and there. Don‘t buy collector coins, stick with the low-grade bullion quality.
It seems a trivial thing, but it might be wise to buy a few ounces of silver coins every month. It won’t cost much, and even if silver prices collapse, so what? However, if the hammer drops and the dollar collapses, those silver coins could be worth…the sky is the limit. Save those copper pennies too! If you want to know the metal value of coins, check out http://www.coinflation.com/
4. Moon Earthqukes
The full and new moon will continue to coincide with powerful earthquakes. It happened regularly in 2010, I foresee the same ahead for 2011. If you live in an earthquake prone location, watch the skies and pay attention to the sun and the moon. Be aware, and beware! We are in store for more earth changes.