by John Galt
January 1, 2013 17:00 ET
Washington, D.C. is a mess ruled by a maniacal narcissistic Marxist and opposed by a globalist political party which would sell your mother into slavery to get a new bridge for swamp rats in their district. The civil war in Syria continues unabated. North Korea can lob objects into the atmosphere with the trajectory of “God only knows” and hopefully one day they do not get lucky with something over the U.S.
Oh, and did I mention we’re back into the Cold War with Russia and China again?
Thankfully last year’s dire predictions did not come true; whoops, I did predict Romney losing and Obamacare being upheld by the Supreme Court, maybe I will be lucky enough for all of use to only hit on a few this year also in what I call, “The Year of Living Dangerously.”
I. Geopolitical Predictions
- The United States military directly assists the royal family in Kuwait by staving off an attack by Iranian sponsored Shiite radicals.
- Iran successfully launches a surveillance satellite and takes pictures of U.S. landmarks and publishes the pictures online shocking the American public.
- Spain’s economic woes lead to a rise in nationalist sentiment and a party sympathetic to the masses emerges with recollections of the stronger periods in that nation’s history under Franco.
- Scotland, frustrated with the flat to declining United Kingdom economy and banking system issues, moves to proceed with the referendum for independence from Britain.
- Ireland, the Republic of and Northern Ireland continues to endure an economic nightmare causing the new Irish Republican Army to expand in power and reach beyond anti-Loyalist sentiment and into economic rebellion absorbing some radical members or regional communist terrorist groups. Terrorist acts increase ten fold including a major bombing in Belfast and in Dublin, probably on the same day, before the year is out.
- China declares the South China Sea and the disputed islands with Japan a militarized zone and lands troops on several islands to ostensibly set up weather stations. Japan retaliates by passing a repeal of the section within the Japanese Constitution which prevented the establishment of a permanent military. Taiwan sends feelers out to Japan about a regional defense agreement involving the Philippines and South Korea also.
- Iran retaliates against Saudi activities against Shiites in the region by announcing that they are willing to sell oil to all nations willing to pay in Yen, Yuan, or gold at a 20% discount below the OPEC rate.
- Before the year is out, Saudi Arabia will declare a state of martial law due to increase domestic discontent, Shiite riots, and terrorist acts within its borders.s
- Kurdistan declares independence from Iraq.
- To counter a decline in economic growth, Germany announces a shocking expansion of its domestic military expenditures.
- Great Britain mothballs 25% of its naval fleet and declares that it’s forces will no longer be used after 2018 in NATO foreign “adventures.”
- China announces it will expand its aircraft carrier fleet to a total of seven by 2025 to 2030, including the Liaoning.
- Russia declares it will explore militarizing space in response to the expansion of NATO ABM bases.
- Putin strikes a mutual defense and economic treaty with the new leadership in the Republic of Georgia.
- Russia revisits its old alliance with Cuba and elects to permanently base attack submarines and destroyers there in return for free petroleum products to help the struggling regime.
- A Russian submarine deliberately bumps a Canadian ice breaker in the Arctic Ocean. The hole causes the ship to slowly sink but only after a rescue of the crew by a joint U.S. -Canadian task force. The Russians in the arrogance demand payment for damages to the sub and blame Canada. Russia also establishes twelve permanent bases just outside of the North Pole declaring larger portions of the region as sovereign territory. Obama promises a special task force to study the situation over the rabid objections of an upset Canadian Prime Minister.
- Egypt agrees to “lease” control of the Suez Canal to the Chinese government in exchange for favorable loans, military equipment, and promises to improve domestic infrastructure.
II. Economic Predictions
- The DJIA declines below 10,000 in the first half of the year, rises above 14,500 with the announcement of QE∞ by Bernanke as he prepares to exit for the upcoming confirmation of Timothy Geithner as Fed Chairman.
- Gold declines to the $1280-$1350 range in the first half of 2013 but rallies to over $2,500 on the Fed actions in Q3 and worse, a currency crisis in Europe created by several sovereign defaults.
- The second wave of the foreclosure crisis begins causing Obama to issue an Executive Order freezing all foreclosure actions on residential and agricultural (family farms) properties for a period of 24 months.
- General Motors is put back into bankruptcy by the Federal Courts. The U.S. Supreme Court agrees to review the case and puts it on an expedited docket due to the gravity of the crisis.
- A major racketeering civil case against JP Morgan Chase/Washington Mutual originated in Sarasota, Florida results in a guilty verdict and causes a new shock to the major money center banks and 10-15% declines in their stock prices.
- The US Dollar index fails to pierce the 87 level and closes below 65 at some point during 2013.
- The Australian Dollar becomes the new Swiss Franc as a haven currency skyrocketing to $1.20 vs. the USD.
- The Euro breaks the $1.35 level towards the end of 2013 but not before retesting the $1.14 level against the dollar.
- California defaults on payment of some bonds.
- Municipal exit taxes and income taxes on non-resident self-employed individuals who work in a town for less than two weeks are declared unconstitutional by a Federal Appeals Court.
- General Motors announces in late December of 2013 that the Chevy Volt will cease production.
- AAPL trades below $350 briefly before the great bull market of 2013-2014 begins skyrocketing the stock to new highs.
- The popular .VIX trades above 40 again before declining to single digits in the fourth quarter of 2013.
- The Federal Reserve announces a true Quantitative Easing program in August of 2013 to counter a sharp contraction in economic activity. This program is unique because deposits at the Fed will only be held with a negative interest rate in the range of -0.25% to -0.50% penalizing savers further. Banks are provided liquidity for loans with provisions that include the ability of member banks and the Fed itself purchasing select state, municipal, and corporate issues rated A+ or higher. The Fed also agrees to purchase a minimum of 40% of all Treasury auctions with durations above 5 years as long as the Federal government agrees to continue pursuing reforms to the budgetary process.
- Housing declines in the first two quarters of 2013 but accelerates to sales and starts highs in Q4 as the government announces a new incentive making down payments up to $15,000 a tax deduction for first time home buyers and special tax benefits to banks that loan to subprime candidates.
III. Domestic Political Predictions
- The conservative movement openly considers a public declaration to form a new party under the leadership of the Tea Party and prominent conservative talk show hosts.
- Senator John McCain has a melt down on national television causing Democrats and Republicans to question his sanity and ability to continue in office.
- President Obama signs an Executive Order enacting the Feinstein Firearms Control Act after it is defeated in the House of Representatives. Gun shows across the nation sell out of arms and ammunition days before the order takes effect.
- The Department of Homeland Security deploys active policing units along several border towns near Canada and inside the U.S. to test its new “interception” and pre-crime technology.
- A Federal investigation is launched after someone shoots down a municipal police force drone caught hovering over a citizen’s property. Felony charges are pressed against the individual along with the seizure of his property.
- The first American citizen detained under the new provisions of the NDAA are revealed by a U.S. Senator after the individual is detained inside the continental United States. A massive controversy erupts when this popular Senator is thrown off of the Intelligence Committee and protests begin outside of the U.S military base in Leavenworth, Kansas where the person is being held.
- The United States Congress agrees to enact a Value Added Tax (VAT) to help balance the budget. In return, citizens with income under $40,000 get a special tax credit provided they are registered with the IRS and have their tax records current.
- A Federal 1% internet sales tax is also passed. ebay endures a 40% drop in revenue as a result as individuals or comnpanies who sell more than $600 per year online and not eBay are required to file and pay the tax.
- Chicago leads the way with over 670 homicides in 2013.
- Brownouts in the summer of 2013 are blamed on evil power companies resulting in requests to the Obama administration to nationalize some regional power conglomerates.
- West Virginia sees its first riots in decades as unemployment tops 24%.
- Obama issues an Executive Order declaring “officially” that up to 10 million illegals can seek amnesty provided that they can prove they have been in the United States for more than 4 years.
- Texas endures the first Pancho Villa type raid in modern U.S. history as a Mexican drug cartel blood feud spills over its southern border.
- Applications to join the United States military decline 20% due to benefits and pay cuts after the sequester takes effect in March 2013.
- U.S. soldiers are deployed in California to help local authorities quell a riot after a sheriff’s deputy kills an illegal alien.
IV. Weather and Earth Change Predictions
- 14 named Tropical systems, 6 hurricanes, of which 3 are major storms with one impact on the East Coast of the U.S.
- A major earthquake impacts a G8 economy this year.
- The Solar Flux tops 240 at some point in 2013. Also, a solar storm which destroys 6 satellites and blacks out 5% of the U.S. for three days occurs causing chaos in the world for over a week. The Northern Lights are seen in Florida for the first time in over 150 years.
- Memphis, TN experiences its first 4.8 or higher earthquake in years.
- The massive drought continues causing a wave of farming bankruptcies in the MidWest.
- A tornado hits near or inside of Paris, France.
- A new plant disease as a result of GMO engineering wipes out 35% of an African nation’s crops.
V. What the Hell Crystal Ball Gazings
- The Tampa Bay Rays return to the World Series. Why not?
- The Tampa Bay Buccaneers go 10-6 and win a wild card spot in 2013.
- The Powerball mysteriously rises to $690 million just as Obama’s approval rating dips below 46%.
- America witnesses the largest increase in car accidents in history as the newest smart phone includes technology hints of 3D which causes an explosion in portable porn.
- The first Federal arrest for illegally selling an assault weapon occurs at a gun show in Florida.
- The Academy of Motion Picture Arts and Sciences announces a new category for the Academy Awards in 2014 for “Best Alternative Lifestyle Film.” Massive vomiting occurs in flyover country as a result.
- A city in California declares that preaching against homosexuality and political leaders from the pulpit is hate speech.
- Someone leaks Michelle Obama’s college transcripts and themes. Nobody cares despite the Marxist overtones.
- One U.S. state officially recognize Islamic holidays by shuttering state offices creating a major controversy.
- The United States Board of Broadcasting Governors (BBG) agrees to purchase interest in three struggling minority owned urban talk radio stations and begins broadcasting twelve hours of Voice of America domestic programming.
That’s it for this year gang, enjoy the show. I fear the reaper that we have sown this year…..