Deflation is now striking with unprecedented power and speed: Last week, OPEC announced its biggest production cut in history … and STILL oil prices collapsed, extending their largest decline of all time.

The Treasury, the Fed, the outgoing Bush administration, the incoming Obama administration, and nearly every government in the world threw — or vowed to throw — the kitchen sink at the economic crisis … and STILL they were unable to turn the tide.

Everywhere, it's a pattern that repeats itself month after month, day after day. Just step back from the trees and contemplate the unfortunate, sometimes pathetic, events unfolding before your very eyes, and you will see what I mean …

September: Secretary Paulson literally drops to his knees begging Congress for a $700 billion rescue package … and just six weeks later his entire plan is washed away by events.

This past week: Chairman Bernanke drops interest rates to virtually zero, Wall Street rejoices with a grand rally … and just 48 hours later, the entire rally is gone.

This past Friday: President Bush bequeaths $17.4 billion to Detroit, the Dow surges … and just seven hours later the entire rally is gone AGAIN, every point wiped out.

Meanwhile, auto sales, retail sales and technology sales are collapsing globally. Factories are being shut down. Entire nations are sinking into an abyss.

Why? What is the invisible-but-invincible force that's making mincemeat of every man-made master plan, sabotaging every new government rescue? Price deflation and debt collapses!

Brace yourself. It's not over yet. Not by a long shot!

Good luck and God bless!

Martin Weiss

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.