By Tom Dennen
The Great Reckoning, by James Dale Davidson and Lord Rees-Mogg, documents a 9-year gap between commodity peaks and market crashes over the last 300 years.
Add 41 years (the average number of years between the 9-year peak-and-crash cycles) and you have a boom-bust cycle twice every hundred years or once every other generation, meaning every second generation of Western working and middle-class citizens has, for the last 300 years, been good and truly and thoroughly plucked.
Today's 'Great Recession;' is just another plucking that started with the subprime foreclosures, the first modern major transfer of wealth through the confiscation of 'cheap' properties. The more 'expensive' properties, shopping malls and office blocks will be taken in the next bubble, the Commercial Real Estate (CRE) bubble.
Follow the trend:
* First Plucking: Commodity prices peaked in London in 1711. The ‘South Sea Bubble’ burst exactly nine years later in 1720. A Depression followed.
* Second Plucking: Producer prices peaked in London in 1763. The London stock market crashed again in 1772 (nine years later). A Depression followed.
* Third: Commodity prices peaked in London in 1816.The London stock market crashed in 1825 (nine years later). Another Depression followed.
* Fourth: Wholesale prices peaked in New York in 1864. Worldwide assets crash began in May 1873 (nine years later). Yet again, Depression followed.
* Fifth: Then followed our beloved Great Depression in the 30s, about which much has been said, from which, little learned.
Commodity prices peaked some fifty years later – the sixth time, this time, in Tokyo, 1980.
The Tokyo stock market crashed in 1989 (again, nine years later). The depression following that crash is now upon us and will seriously dig in by 2020, which is the reason for all those dire predictions: Gerald Celente knows, Nouriel Roubini knows. The trend is three hundred years old.
Look around you and do the math: I'm not a conspiracy theorist but I consider it FACT that once is an accident, twice is a coincidence, and three times is a Declaration of War.
Four times is the realization that the Declaration fell on the deaf ears of sleeping fools, five times is simple daylight rape and plunder of the same fools – the sixth time, this time, what I call Grand Theft, Planet ©, is perhaps and hopefully, the lesson finally learned, and do we now wake up?
All we have to do is throw them out of the Temple. For the last time. Forever.
** (Compiled from ‘The Great Reckoning: Protecting Yourself in the Coming Depression James Dale Davidson, William Rees-Mogg - 1994 - Business & Economics - 608 pages.)
Editor's note: If the above information is any indication of future events, this book is a must read for everyone who wishes to survive the next depression.
James Dale Davidson is an American investment newsletter writer and author of The Sovereign Individual, The Great Reckoning, and Blood in the Streets, all three co-authored with William Rees-Mogg. He also wrote The Plague of the Black Debt - How to Survive the Coming Depression. He is also the founder and former head of the National Taxpayers Union. He has helped fund the Arkansas Project against President Bill Clinton and is an investor in NewsMax.com.
Rees-Mogg began his career in journalism at The Financial Times in 1952, before moving to The Sunday Times [London] in 1960, become its Deputy Editor. Here he wrote an article which many believe convinced Alec Douglas-Home to resign as Tory leader, making way for Edward Heath, in July 1965. He was Conservative candidate for the safe Labour seat of Chester-le-Street in a by-election on 27 September 1956, losing to the Labour candidate Norman Pentland by 21,287 votes. Rees-Mogg was editor of The Times from 1967 to 1981, and still writes comment for that paper.