Wednesday, January 5, 2011

NIA's Top 10 Predictions for 2011‏

1) The Dow/Gold and Gold/Silver ratios will continue to decline.
In NIA's top 10 predictions for 2010, we predicted major declines in the Dow/Gold and Gold/Silver ratios. The Dow/Gold ratio was 9.3 at the time and finished 2010 down 15% to 8.1. The Gold/Silver ratio was 64 at the time and finished 2010 down 28% to 46. We expect to see the Dow/Gold ratio decline to 6.5 and the Gold/Silver ratio decline to 38 in 2011. Later this decade, we expect to see the Dow/Gold ratio bottom at 1 and the Gold/Silver ratio decline to below 16 and possibly as low as 10.
2) Colleges will begin to go bankrupt and close their doors.
We have a college education bubble in America that was made possible by the U.S. government's willingness to give out cheap and easy student loans. With all of the technological advances that have been taking place worldwide, the cost for a college education in America should be getting cheaper. Instead, private four-year colleges have averaged 5.6% tuition inflation over the past six years.
College tuitions are the one thing in America that never declined in price during the panic of 2008. Despite collapsing stock market and Real Estate prices, college tuition costs surged to new highs as Americans instinctively sought to become better educated in order to better ride out and survive the economic crisis. Unfortunately, American students who overpaid for college educations are graduating and finding out that their degrees are worthless and no jobs are available for them. They would have been better off going straight into the work force and investing their money into gold and silver. That way, they would have real wealth today instead of debt and would already have valuable work place experience, which is much more important than any piece of paper.
Colleges and universities took on ambitious construction projects and built new libraries, gyms, and sporting venues, that added no value to the education of students. These projects were intended for the sole purpose of impressing students and their families. The administrators of these colleges knew that no matter how high tuitions rose, students would be able to simply borrow more from the government in order to pay them.
Americans today can purchase just about any type of good on, cheaper than they can find it in retail stores. This is because is a lot more efficient and doesn't have the overhead costs of brick and mortar retailers. NIA expects to see a new trend of Americans seeking to become educated cheaply over the Internet. There will be a huge drop off in demand for traditional college degrees. NIA expects to see many colleges default on their debts in 2011. These colleges will be forced to either downsize and educate students more cost effectively or close their doors for good.
3) U.S. retailers will report declines in profit margins and their stocks will decline.
4) The mainstream public will begin to buy gold.
5) We will see a huge surge in municipal debt defaults.
6) We will see a large decline in the crude oil/natural gas ratio.
7) The median U.S. home will decline sharply priced in silver.   
8) Food inflation will become America's top crisis.
9) QE2 will disappoint and the Federal Reserve will prepare QE3.  


  1. "We have a college education bubble in America that was made possible by the U.S. government's willingness to give out cheap and easy student loans. "

    'gave out cheap and easy student loans??

    But the not so "easy" to escape from student loans are for life!
    And cannot be escaped by Bankruptcy.

    The government and its bondholder partners owns the students with life sentences.
    Ponzi education run on debt creation.

    The governments has used the need for eduction for the creation of a system of dept peons for americas youth.

    Now perhaps burdened for life with unpayable debts that cannot be canceled ,even as the economic system can no longer provide the jobs with incomes sufficient to both live in the lifestyle expected and pay off the debts .

    In the Great Ponzi services based economy when america was running on often foreign credit supply even for education, this all worked out O.K ..

    Untill the American Ponzi crashed in a sea of debts overload.

    This debt creation system of financing education with the tax payers money ,was a education business and work creation scheme for teachers and academics ,with the interest to be paid to the bondholders holding future claims to the incomes from the students debts .

    The debts had been on sold to bondholders.As
    AAA government government backed, guaranteed bonds.

    The losses on the bonds ,like on government guaranteed fannie And freddy bonds ,will be paid by future taxpayers as the bondholders losses are socialised as the bondholders ,but not the students are bailed out.

    Like House prices "always going up" the assumption was that the jobs mostly in services would always be there.Like in advertising , banking and marketing real estate and mortgages loans,or as MBA psychologists for commodity markeing , consumer research etc, etc.

    Dead dollar ,insolvant dead Ponzi economy comlete with a now insolvant education system.As The student loan debt creation schemes implode.

    As a University education is no longer seen by the young to provide a sure future.
    Let alone a right.
    America now has an overpopulation of highly qualified, but now incresingly unemployed Dept Peon X- students, mostly educated to be brain dead services workers.Not many practical Engineers or even mechanics in the current crop.

    Education was it seems wasted ,but the x students are now good for minimum wage burger flipping in a 'recovering" society ,still producing a billion or more big macs and a side order of cardboard "freedom fries."
    As the american dream.

    Oh well ,to keep the education system functioning as an ongoing busineses , perhaps america can import more fee paying rich Chinese and Indian students, student with cash moneythat have real job future prospects!
    Goodnight america!

  2. America hasn't been borrowing to fund Socialism--we've been borrowing to fund two wars, among other things. So Armstrong's argument is wrong.

    As for college debt, Americans are forced to pay ridiculous sums for higher educations, which nobody except the rich can afford. So everyone else goes into debt for the rest of their lives just to make the bankers richer.

    It's the same thing with credit cards. I had to buy a new stove; add in the range hood, the delivery, the installation, the taxes, the insurance, it's so expensive I have to put it on the store credit card. By the time I'm done paying it off, I'll have paid twice the cost.

    As for buying gold, I can't afford it now. So I'm buying silver jewelry. And stocking up on food. Too bad I can't stock up on gasoline or that I'm too handicapped to ride a bike. And I hope you younger folks can still walk....

  3. Oh yes Sharonsj, of course America hasn't been borrowing to fund socialism. You say this because you are a SOCIALIST and a PROGRESSIVE--your posts on this blog are clear evidence of that indictment. If you don't like the war in Afghanistan then tell your Marxist man-child President Obozo to get us out of there! Guess what? IT'S NOT GOING TO HAPPEN!

    And who are you to argue with Martin Armstrong, perhaps the greatest global financial forecaster of the late 20th and early 21st century? Yes, I know you are a MENSA member, but you are no where near as intelligent as Armstrong - not even for second.

  4. Sharon the reason why Armstrong is in jail is because he knows way too much. He's figured out the governments criminal mind and how it works, down to the decimal. If and when he gets out, I bet he has 3-6 months.

  5. What do they mean when stated " we will see large decline in crude oil / natural gas ratios ?

  6. I'm surprised by how many bloggers are trying NIA seriously.

  7. Demcad I understand that george4title is behind the site, but I thought I would put it up for the readers to decide. I understand completely where he is coming from..

  8. sharonsj said...
    America hasn't been borrowing to fund Socialism--we've been borrowing to fund two wars, among other things. So Armstrong's argument is wrong.

    Oh yes Sharonsj,10.01 says,
    in agreement with armstrong ,"socialism" is the root of all evil he launches an abusive ad homen personal attack on sharonj in order to deny the facts.

    "of course America hasn't been borrowing to fund socialism. You say this because you are a SOCIALIST and a PROGRESSIVE--your posts on this blog are clear evidence of that indictment."

    Is being a socialist or progressive a crime in america?
    or just a crime to believe anything different from 10.01
    What a brainwashed american you are 10.01
    Happy it seems for the government to spend half of its tax revenues not just on the two main current wars ,but for decade on long wars for empire.
    Especialy if you can play party politics against the Obozo for continuing with the bush stated war for empire in afghanistan.

    As if that costly war were a socialist/progressive war !

    The real "socialism" in amerika is expensive wastefull Corporate State socialism .Money printing to bailout and support insolvant american business and all its wars .Supported by both of the same-same major parties.

    This cost of "war socialism" for the benifit of the rich and well off ,has become so expensive that it has bankrupted america, so that it is becoming difficult for government supporting bankrupt Empire capitalism in this way to even afford basic social security for unemployment benifits , education funding and paying food stamps .
    This 'handout stuff is all said to be unecessary "socialism" that the military keynesian system now bankruot can no longer afford to support while continuing with bailouts socialisng the losses of the finance sector .
    Let us just blame the socialists not the warmongers for the economic crises in the american way.

    Hard nosed ,redneck,realistic "Anti- socialist austerity" economics to save the system and to afford its wars is all the go right 10.01?

    Anybody saying different is "indicted" as a goddamn anti-militarist ,liberal progressive ,and/or a dumb un-amerkan socialist !

  9. don't think they'll enact a QE3, and without artificial stimulus we'll have..reality, finally

  10. You know, I get so tire of hearing about these poor little kids and grownups complaining about paying for the high cost of their student loans. Give me a flippin break, they certainly were not so concerned about it when the lazy asses were getting it. I know for a fact, several of the "kids" that are now complaing, that during their hard time at college, every spring break were in Mexico, Bahamas or Florida.

    Sorry, I don't want to hear this crap. As far as the credit cards, come on guys, the vast majority of these people knew exactly what they were doing when they on their shopping sprees. Blame the banks, blame the credit cards, blame the folks who dangle a carrot in front of them, sorry, folks, stand up and hold "YOURSELF" accountable. YOU made the decision, YOu and YOU ALONE. As far as jobs are concerned, I own my own construction business, me, my wife and the employees built this from the ground up, yes, times are tough, we have all made many sacrafices to keep it going. Just the other day, I required additional help. I advertised and starting having folks show up with resumess in hand. Most if not all were College degreed, every single one of them stated they could not work for anything less that $22.00 per hour and I had to guarantee them 40 hrs a week, but the most astounding request came in the form of a contract. Yes, they wanted me to sign an agreement for employment for one year. Obviously I could nt, would not and will not do that. I told them they will never get someone to agree to that. They in tuen said that they will not interrupt their unemployment benefits.

    Another example of this on woe is me crap, you are to blame, these men and women who joined the National Guard(s) or Reserves. For years many of them went on their weekend warrior bit and enjoyed pay and received a free education or reduced cost for education. Then when they were called up to ante up on their obligation, they started crying like "kids".

    We as American are whiners and crybabies.

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