As people continue to digest breaking news from around the world, the Godfather of newsletter writers, Richard Russell, warned people three years ago to prepare for something worse than the global collapse of 1929 – 1932. Russell also answered the all-important question: Will the U.S. seize gold?
Legendary financial writer Richard Russell issued a dire warning before his passing.
Richard Russell: “Subscribers may remember that I thought the stock market would have a melt-up before it settled into a destructive bear market. It occurs to me that the chances of a melt-up are diminishing because the market is losing its upside momentum.
Prepare For Something Worse Than 1929 – 1932
My thinking is that the market is preparing for one of the worst bear markets in history, one that will out do the 1929-32 affair. My old friend, Robert Prechter, of Elliot Wave fame, believes the Dow will go below 400. If this happens I think there will be doubts about whether the US can survive.
It suddenly occurred to me that my job will be to insist that no matter where the Dow ends, the US will survive, just as it did during the Great Depression.
In reading the newspapers, I note that almost every article is negative. And at the same time, the state of the country is bearish. Even such stalwarts such as McDonalds and Wal-Mart are having a hard time. An article in the NY Times warns that Apple is fated to go the way of IBM.
As for the US economy, I think it will follow FDR’s recipe of make-work programs sponsored by the government. In the 1930’s, men working on government programs were paid $30 per month and most of that was sent home for the care of their wives and children.
I Was Happy Just To Have A Job In 1939
In 1939, I had a job loading trucks for the GW Button Company for $18.75 per week. The week included half a day on Saturday. Before that, I was working at the Postal Telegraph making 2-3 dollars per day. I never complained; I was happy to have a job.
Will The U.S. Government Seize People’s Gold?
Many subscribers ask me whether I believe the US Government will call in its citizens’ gold. I don’t think so. If the Government needed money, it would go where the money is, which is in the pension funds or 401Ks. Money from them will be taken and in their place they will find US Government Bonds or even IOUs. Russell advice – buy and own physical silver and gold.
A voice tells me that America’s best days are ahead and the same goes for the precious metals. My wish is that my family and my subscribers are all enjoying peace of mind at this time. Unfortunately, the news in the newspapers and on TV does not support peace of mind. But I believe that once the current parade of bad news passes, the people of the world will relax and enjoy peace of mind.
“The Hand Of God”
The following has occurred to me. Despite all our advances in science, scientists have never been able to produce a living cell. An amoeba is a one cell living organism. Science has created atomic bombs and fighter planes that can surpass the speed of sound, but it has not been able to create one living cell. So where did life begin? Some of the greatest scientists believe that life began with the hand of God.”
King World News note: So many of us miss Richard Russell’s wisdom and advice. It is nice to revisit some of the comments that made him a legend.
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