Greetings,

As we close out 2009 we have much to be thankful and joyous for.  The economy is an area that needs to be brought into biblical alignment, but we should not let it dictate our attitude.  Serving our God, who is the alpha and omega, is more than enough reason to be tremendously excited about that which lays before us.  That’s not to say that there won’t be battles and wars that need fighting, but we can rest assured that we have true victory through Jesus Christ for all who follow Him.

Our nation has spent the year taking a picnic on the edge of an economic cliff.  The last three months have seen our economy crawl to the edge of the cliff in order to peek over the side and see what’s there.  The Hamill Economic Indicator chart shown below will give you a visual representation of this.

The international bankers are still using credit destruction to step on the throats of our governmental structure and our citizenry.  It’s not just us – they’re doing the same exact thing throughout the industrialized world.  What’s their goal?  One is obviously to steal assets that others have done the work for.  There may be more than that, but none that I can yet figure out.

The Federal government is running around terrified.  They don’t even make very good liars.  Our President recently told us that the Federal government would go bankrupt if the Health Care legislation wasn’t signed into law.  He was incorrect in his terms.  Our nation is already bankrupt: economically, spiritually, morally, and ethically.  Economic bankruptcy can be proven by the fact that our nation’s balance sheet has significantly more in liabilities than it does in assets – hence the need to incur more debt every single year.  What President Obama should have said is that our nation will fall into a severe depression if the Health Care legislation isn’t passed.  The only thing that is fooling our nation into thinking we’re not currently in a depression is the massive government spending that has been occurring.

Watch the value of the US dollar.  We’ve been seeing it rise lately, and the media has attributed this to a recovering economy (they’re attributing EVERYTHING to a “recovering economy”).  Don’t be fooled.  A rising US dollar means that our economy is falling deeper into deflation, due to new government spending not keeping pace with the international banker caused credit destruction.  If we see the US dollar fall significantly (which we won’t) then that will signal that the government is being successful in spending their way out of the recession.  Expect to see the US Dollar Index get into the mid-90’s at some point, and very likely break 100.

A rising US dollar is the absolute LAST thing that our Federal government wants.  This makes their existing debt more expensive to pay off.  It also causes our nation’s exports to be more expensive to the rest of the world.  Our government wants the public to buy their propaganda that our economy is improving – and they do this by manipulating our Gross Domestic Product (GDP) number.  One of the components of GDP is “Exports – Imports”.  If exports go down due to a higher US dollar than the GDP number will shrink.  The only way that the government can manipulate the GDP number with a rising US dollar is to put trade tariffs on various imports in order to make that number smaller as well.  We saw an example of this today: U.S. to slap duties on China steel.

All of my writings are simply my opinion – especially the lines that I’m about to write, since they’re very different from what you will typically read in Christian economic circles.  Watch for gold and silver to drop in price as the deflationary pressure intensifies.  My projections have been for gold to go below $800/oz. and silver to go below $10/oz.  I also believe that we will see oil work its way down to $30/barrel.  This is all assuming tensions in Iran don’t spill over into a full-fledged war.

Folks, I’ve written a LOT of articles this year – but everything comes down to this one point: The international bankers are purposefully squeezing credit throughout the industrialized world to force a worldwide depression.  It’s not just our government that is trying to figure out how to maintain its power base – it’s also every other country.  Governments in debt-based economies thrive on inflation.  They get more unsteady in deflationary times, and will often impose tyrannical measures in an effort to maintain the power they’ve built throughout the years.

As I’ve stated for a long, long time: Follow the credit market – not the equities markets.  Look at the absolutely massive amounts of credit that the international bankers are intentionally destroying around the world.  It is bringing every government to their knees:

World Credit Market Shrinks First Time in 15 Years, Mizuho Says (actually, the data only goes back 15 years – they don’t know when the ACTUAL date of the last global credit shrinkage was…Hint: 1929).

Eurozone credit contraction accelerates

Japan jobs, price data grim but expected

It is my opinion that folks should have at least a one-month supply of food (rotated to maintain freshness) and a one-month supply of cash-on-hand.  We are in for some very bumpy roads in the months and years to come.  Look for all of this to last a minimum of eight more years.

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Watch for these indexes to drop:

Chinese Shanghai Composite Index: 3,262.60 (change of 0.13% from July 20, 2009 base value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE): 13,644.47 (change of 1.97% from July 20, 2009 base value of 13,381.22)
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Here are today’s numbers for the economic indicator:

1) Gold = $1,092.10
2) Dollar Index = 77.90
3) Oil = $79.47
4) S&P 500 Index = 1,126.42
5) 3-month Treasury Bill yield = 0.04
6) 3-month OIS = 0.16

HEI = 29.74

(A value of under 100 indicates deflation, while over 100 indicates inflation – as referenced to Sept. 12, 2008…the day before Lehman Brothers collapsed)



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Here are the numbers for the day:

Dollar Index adjusted indexes:
Dow = (10,548.51) x (0.7790) = 8,217.29
S&P 500 = (1,126.42) x (0. 7790) = 877.48
Nasdaq = (2,291.28) x (07790) = 1,784.91

3-month Treasury: 0.04

2-year Treasury: 1.08

10-year Treasury: 3.79

30-year Treasury: 4.61

2-yr vs. 10-yr Spread (Target > 273): 271 basis points

2-yr vs. 30-yr Spread (Target > 369): 353 basis points

3-month LIBOR: 0.25

3-month EURIBOR: 0.70

3-month OIS: 0.16

TED Spread: 21 basis points

LIBOR/OIS Spread: 9 basis points

Dollar Index: 77.90

Volatility Index: 19.96

JPY-EUR Exchange Rate (Target < 115): 132.7416

JPY-GBP Exchange Rate (Target < 145): 148.7474

JPY-USD Exchange Rate (Target < 90): 92.519

USD-EUR Exchange Rate (Target < 1.25): 1.4348

USD-CNY Exchange Rate (Target > 7.0): 6.8255

Warmly,

Brad

Comments or questions?  brhamill@hamill.com

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