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Saturday, May 16, 2009

Week In Review: The Depression Deepens (PODCAST)

"When you're right for long enough, eventually they will start paying attention ..." - Amory Lovins

Disinvestment is a aggressive economic attack, in an attempt to coerce an industry to change their product, their policies, or their very existence. Disinvestment is usually attempted by ideological groups who believe that they have 'the fix'. It's effects can be exceedingly destructive, because it is an attempt to directly combat free market forces. The Soviet Union believed that they knew better than the free market forces of the agriculture market and the directly combated those forces. They believed that human management could 'better' and 'fix' things.

What was the result?

1932 to 1933. One of the worst famines that has ever descended upon mankind - within one of the most agriculturally productive areas in of all of Asia. It is called the Holodomor. It is rarely ever taught in Western schools. It's what I call one of the many, many "forgotten horrors" and crimes against humanity that is not taught in our educational system.

Disinvestment is exactly what has happened to the U.S. auto manufacturers. Through a variety of means.

I've said this again and again. The main problem? Is us. Humans who believe that we can manage our own problems, and "fix" things.

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)

Click here to download this podcast.

Here is the video that I mentioned in the podcast to review, that I found on CountryHorseFive's YouTube Channel ...

Rather shocking, but the effects are not that difficult to understand. It's really not that difficult.

High unemployment, with insanely high inventories.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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