The Beginning of Global Economic Chaos

With the mainstream media focused today on the rioting and civil unrest in Greece, the Dow Jones plunged this afternoon from a decline of 400 points to a decline of nearly 1,000 points within minutes, before rebounding to finish the day down 347.

Meanwhile, the price of gold surged $34.40 to a five-month high of
$1,209 per ounce.

NIA believes U.S. stocks are extremely overvalued in terms of real money, gold and silver. One of our top ten predictions for 2010 that we announced on December 21st, was that we would see a sharp decline in the Dow/Gold ratio from 9.3 to below 7.

After today's decline in the Dow and rise in the price of gold, the
Dow/Gold ratio finished the day at 8.7. We expect this downward trend in
the Dow/Gold ratio to accelerate in the weeks and months ahead.

On March 5th, 2009 with the Dow Jones at its low of 6,594.44, almost all analysts on Wall Street were proclaiming that the U.S. would experience deflation for many years to come. However, NIA released an article that day entitled, "The World is Awashed with Dollars". In this article, NIA said, "It's a real shame that those who lost most of their money in the stock market and Real Estate bubbles, and are now finally selling out after these markets have
already collapsed, are positioning themselves to get wiped out all over again through massive inflation."

NIA went on to say, "As the inflation being created today starts to work its way through the system, U.S. stocks and Real Estate will eventually start rising in value again." NIA then said, "Most of the money that is presently being created by the Federal Reserve is being hoarded during this temporary deflationary phase. As the government continues to bail out every bank in existence and pass larger stimulus plans, all of the Dollars being squirreled away around the world will soon come out all at once."

The Dow Jones went on to rise as much as 70% after our March 5th, 2009 article and while analysts today are proclaiming the U.S. economy is in the midst of recovery, NIA recognizes the entire rise in the Dow Jones has been due to nothing but inflation. This week's dip in the Dow Jones is only going to persuade the Federal Reserve to keep interest rates at 0% and create further monetary inflation. This will add more fuel to our economic "Meltup" and could lead to hyperinflation a lot sooner than we previously expected.

Standard & Poor's recently downgraded Greece bonds to junk, yet still rates U.S. bonds as AAA. The only thing separating U.S. debt from Greece debt is the Federal Reserve's printing press. NIA believes monetization is even worse than default, and U.S. debt already deserves to be rated junk right now.

The mainstream media puts too much stock in credit ratings agencies; they have already forgotten how Standard & Poor's and Moody's rated CDOs as AAA that were backed by BBB or lower subprime mortgage bonds and didn't downgrade them until it was too late. The media only sees what is happening now, they don't have the foresight to see what crisis will occur next. The debt crisis in Greece is being used to distract Americans from the real debt crisis in the U.S. The rioting and civil unrest in Greece today is nothing compared to what could happen in the U.S. when the U.S. government is inevitably forced to default on its social security obligations.

NIA will be conducting an interview this evening with Gerald Celente, who we consider to be the most accurate trends forecaster of all time. We will be using footage from our interview with Mr. Celente in our new documentary 'Meltup', which will be out later this month. We highly recommend that you visit Mr. Celente's Trends Research Institute web site at http://www.trendsresearch.com and subscribe to his
Trends Journal.

If you would like your friends and family to be the first to see Meltup, please tell them to become a member of NIA for free by subscribing today at http://inflation.us

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