Reader Willa. J. e-mailed me to ask if we have “…now seen the bottom of the stock market?” She went on to ask if it was safe to starting “buying back into the market” as some of the cheering section “analysts” on MSNBC have suggested. Don’t get suckered in! As I mentioned a while back, price to earnings ratios have a lot farther to fall, to match typical recession lows. And since the current slump in not just a typical market cycle manifestation–rather, it was triggered by the worst credit collapse in history–the markets could get hit even worse than they were in the 1930s. Most ominously, the huge drop in The Baltic Dry Index (BDI) [1] illustrates the deep level of distrust that now exists for letters of credit in transoceanic trade. Global commerce is essentially shutting down. Any corporation that depends on international trade is likely to suffer very badly in the months to come. Dear readers, if you haven’t done so already, get out of your dollar-denominated investments (including stocks), and buy tangibles. Inflation will return with a vengeance. This is inevitable because of the monumental public spending on Mother of All Bailouts (MOAB [2]). When inflation does kick in, you will be glad that you own productive farm land, tools, a family food reserve, and precious metals to preserve your wealth.
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Neil G. mentioned this this bit of confirmation for something that SurvivalBlog readers already know: Yes, We Have No Silver [3]
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More news and commentary from our Economic Editor: Stocks Fluctuate As Investors Weigh The Economy [4] — Oil Prices Tumble To Lowest In More Than A Year [4] — Treasury Set To Dish Out Financial Rescue Funds [5] — Asian Stocks, US Futures Slump [6] — US Stocks Start Day With Further Decline [7] — Credit Squeeze May Cut Crops, Spur Food Crisis [8] — Nikkei Dives 6% [9] — Argentina And The US Dollar’s Fate [10] — US Dollar Currency Collapse Within 30 Days [11] — Getting Ready For “The Turn” In The Dollar [12] — Europe On Brink Of Currency Crisis [13]
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Sean M. found a link to a home biodiesel maker [14]. For a lower-cost solution that is designed for even higher production volume, Ready Made Resources sells another biodiesel making system that is also factory made [15].