(George Krum) The depression and panic will come before the current administration goes out of office. Nothing can prevent it. Our government debt is almost as great as the debts of all the balance of the world put together. With this burden of debt and the government expenses, how can a panic and depression be prevented?
The United States has been the greatest spender and the greatest waster, and the taxpayers will be the greatest losers. I believe the Bible when it says that you shall reap just what you sow. The current administration has given away hundreds of billions of dollars, and the result will be a panic and depression which will shake the foundation of this country and cause the voters to vote out the Democrats. It will be too late to do anything after the crash comes. Taxpayers have it in their power to stop this expense if they will organize and do something about it before it is too late. If spending and giving away continues, as it is at the present time, it will just be a matter of a short time before the government will begin to confiscate property and everything else.
There will be many causes of the next great depression. Greece is broke, and most all of the other countries in Europe are in the same fix.
Japan, China and India are in a bad financial condition and are likely to get worse if Communism continues to dominate China.
The United States debt is a great burden which cannot be overcome. The wasteful spending of our government has already cause irreparable damage and even if it should stop now panic would come anyway.
Foreign investors are already selling stocks in our market and have been for some time.
The investors in the United States nearly always sell in the last stages of a bear market. When business men and investors in the United States lose confidence in the government’s ability to prevent a depression then matters will get worse because business and the stock market held up as long as people have confidence.
When the day comes, and it is not impossible, when the government can no longer support bond prices, this will be the last straw that will destroy the public confidence and bring on the worst panic this country has ever seen. Effects always follow causes. The causes already exist and the government has sown the seed for another panic and depression and the cycles of business and the stock market prove that a panic is inevitable.
Sound familiar? It may be for some, since it was written by W.D.Gann in 1949. I omitted on purpose references to WWII and the New Deal, and substituted Greece for England, but otherwise stayed true to his book. (See 45 Years in Wall Street, pp. 69-70.)
Despite many other brilliant forecasts throughout his career, as it turns out, Gann’s analysis of the economy and stock market forecast for 1950-1953 proved to be wrong. In fact, the DJIA went on a tear from 1949 until 1966. What Gann said 63 years ago, however, sounds very similar to the criticism aimed at the current administration and the Fed for their economic, monetary and fiscal policies. And there are many who, based on similar analysis, predict the next market crash to start any time now.
Will the analysis hold true this time around?
Maybe it’s best to follow Gann’s own advice gained after 45+ years in Wall Street: determine and follow the trend, never stop to learn, always be prepared and expect the unexpected, because it always happens.