Please Read 2/2/10 post on M3. Re-Read it if you did in the past.

Long story short. As I reported in early February, the Double Dip has begun and is accelerating faster than ever.
Each time M3 (Blue Line) goes negative, the economy goes into recession or a double dip recession intensifies. That is what we are experiencing.

Past negative readings: 1969, 1973, 1980, 1991 and we went negative in December 2009. The problem this time, our economy is already on the ropes and the second wave of the economic huricane has landed!

What does this mean over all.
GDP will contract and the government will be forced to borrow a lot more money than expected. Current estimate is $1.6Trillion deficit. I believe we'll see upwards of a $2+ Trillion deficit which would put us at a deficit to GDP ratio  worse than Greece.

Like I've mentioned in the past. Europe is the pre-show to the real deal. The implossion of the US economy and eventually its debt and currency.

Imagine a world where the US can not borrow and must live within its means. The government borrows half of the projected budget of $3.8 Trillion. That would be cut in half and thus since government spending is 40% of the GDP, GDP will contract by at least 20% or more.

Boy, the good old days of the Great Depression seem like a dream today compared to what is going to happen. The major difference between then and now is the US citizen had savings then. They atleast could ride out a lot of the misery.

Todays savings rates are the worst ever. Most people can't go a week, much less a month without a paycheck.
IE: 33% of people making over $100k per year, can't go a month without starting to miss bills.

Are you ready for this? Are your investments?