**[investwise]** Sean Broderick: Have The Bears Tasted Salmon?

 

John Pointdexter Morgan always maintained that he made "millions" because he always "sold stock early". If as expected Bombay falls as dramatically today as the rest of the world, then all those glued to that faux pas brokers channel will feel, why the heck do we ever watch that rubbish. The thing is no one thought sub-prime was a big deal, then came Alt-A loans, and then a slew of investment banks went bust and so did the hedge funds. And just when everything seemed lost governments after governments printed trillions to save the wealth of a few million around the world. But all those mountains of debt need to be paid off-including by India.   By the way, India's Public Debt at 85 per cent of GDP should stand at roughly $ 850 bn or 6 times Greece. And unlike most of Europe where unemployment is like 9 per cent, in India it should be 50 per cent.  No one does any work, see how many people are on the roads doing nothing and how many idle about in railway stations and villages sitting under trees counting birds. So forget long term, India is in as precarious a State as just about any other nation on Earth.   So just as the stock market rally that commenced in March 2009 took everyone by surprise, the reversal of May 2010 could be as dramatic. Just see the downside-another 10,000 Sensex points to the bottom?   Think quick — the power just went out in your house, and the smoke alarm is going crazy! What's the next thing you're going to do? What about your wife or kids? Do they know where to go? Have you practiced this drill before?   I sure hope so, because when an emergency strikes — whether it's a house fire, a power outage, or something even worse — you don't have time to sit and plot your next move. You have to act and act fast ... based on a predetermined plan.   Unfortunately, it's easy to bump emergency planning far down your to-do list.   After all, many people go through life believing that earthquakes, landslides and floods only happen in distant places. That their faucets will always deliver potable water. And that thieves only break into other people's houses.   For a while, I was one of them. But then I watched as Hurricane Katrina caused New Orleans to drown.   The local, state and Federal governments couldn't handle the crisis. And that's when I knew that if the s**t hit the fan, I couldn't count on the government to save my sorry butt. I had to take care of myself and my family.   So, I started researching crisis preparedness. And I came to an awful realization: Our economy, our country and our civilization are skating on thin ice. And I did what any human being would do — I started to get scared.   The fact is, there are at least a dozen things that could end life as we know it. Oh, you could probably survive — but in a radically changed world that would shatter the bubble that most Americans live in.   We think we are an exceptional country. And we are. But all empires end, and the biggest giants fall the hardest. Let me give you three examples of what I mean ...   Crisis #1: America's Empire of Debt. Do you think the lifestyle you live is normal? Not by global or historical standards. And yet this is in a country that has hollowed out its manufacturing base and shipped it overseas. The lifestyle we live is only made possible by an enormous empire of debt. The outstanding public debt is $12.3 TRILLION. The U.S. has a little over 307 million people, so that means every single man, woman and child in this country owes more than $40,000. It's increasing at a rate of $3.5 billion per day. And that's just the public debt — consumer and corporate debt add $trillions more!     The Good-Time Charlies in Washington would have you think this party can continue forever. But that bill is coming due, and the longer we put it off, the worse it will be.   How will it end? Potentially, in an economic depression that is worse than the Great Depression. Perhaps even a currency crisis, where the dollars in your pocket lose value day by day and hour by hour.   Crisis #2: Peak Oil Is Rushing Toward Us Like a Runaway Train. The only reason oil prices aren't higher is economic weakness around the world. But countries including India and China are adding to their fuel demand at a rip-roaring pace. Meanwhile, oil companies are now putting drills down 4,000 feet in the Gulf of Mexico to then drill through 35,000 feet of rock.   These wells are deeper than Mount Everest is tall! They aren't doing this because it's fun. They're doing it because it's the only oil they can find! And one thing you can count on — it won't be cheap oil. And as the unfolding drama in the Gulf of Mexico shows, even when we find oil there, it can blow up in our faces! Meanwhile, America is a nation built around the automobile — no one is more vulnerable to an energy crisis than we are.   How will it end? Potentially in an oil crisis that sends the U.S. deeper into an economic tailspin while dramatically changing the way you live. In more extreme cases, an oil crisis can lead to a food crisis. Food travels between 1,500 and 2,500 miles to get to your dinner table, and supermarkets are going to run out of food fast if the delivery trucks run out of gas.   Crisis #3: Water Is the Quiet Emergency That Could Shape the 21st Century. For most Americans, water is less expensive each month than cable television or having a cell phone. And yet the World Bank reports that 80 countries now have water shortages that threaten health and economies while 40% of the world — more than 2 billion people — have no access to clean water or sanitation.   Local water systems around the U.S. are old and in desperate need of upgrades, and legal battles are heating up over water rights across the country. While you can substitute various alternate fuels for fossil fuels like crude oil, there is no substitute for water. This is a crisis that is spinning out of control around the world.   How will it end? Most people would not be able to handle a water emergency. If droughts worsen, we could see people forcibly relocated from cities and areas that just can't support their populations. There's a lot more that can go wrong — potential shutdowns of large portions of the U.S. power grid, civil unrest, pandemics and more. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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