Bottomline: we are going to have to get back to producing and saving in this country and move away from consuming and spending (particularly money we don’t have) before things get better. It could be a long slog ahead.
Tag: Gerald Celente
Dubai is just a harbinger of things to come for sovereign debt – Jeremy Warner
These are the exact things Peter Schiff and Gerald Celente were warning about a while back. The issue with this surprise Dubai news is not that they may default on $80-90 billion in debt (the news that came out today). Rather, looking into the near future, this event may be a foreshadowing of things to come with the large industrialized nations. That’s why there was a global sell-off.
In 2007 to 2008, a financial crisis came upon the private sector. And so what did governments do? They bought up the debt amounting to trillions of dollars ($15.3 trillion to be exact). So now governments around the world hold an unsustainable amount of debt. Now what? Jeremy Warner explains it well here:
“The fear is that threatened default in this tiny desert kingdom is just a harginger of things to come for government debt markets as a whole. According to new estimates by Moody’s, the credit rating agency, the total stock of sovereign debt worldwide will have risen by nearly 50 per cent between 2007 and 2010 to $15.3 trillion. The great bulk of this increase comes not from irrelevant little states like Dubai, but from the big advanced economies – America, Europe, and Japan.”
“Up until now, markets have assumed that the ruinous fiscal cost of addressing the financial and economic crisis was probably just about affordable to the major economies. That view may be about to be challenged.”
These issues here (amongst others) are exactly why the government should stay out of the free market. Let the companies crash that need to crash. Get rid of the entire category of “too big to fail” and let the market do what it needs to do. Governments, when they intervene, wind up distorting and elongating what should have been a two year economic meltdown at max, only for some form of short-term economic gain. Now, governments are looking like they can’t pay the bills. Lo and behold: Keynesianism in action!
Now we’ll have to see if the rest of Celente’s predictions and forecasting comes true, which is that governments, as a response to not being able to pay debt bills, will have to raise taxes, which will then in response cause some form of a tax revolt among the people. You think the tea parties were crazy? Just wait and see if they try to do this.
Gerald Celente discusses the current status of our economy with Russia Today. In posting this, it is not an attempt at fear-mongering, but simply to point out what needs to be heard so we elect leaders who know what they’re doing to get us out of this. Frankly, even most Republicans don’t seem to understand what to do either. As one guy said recently on a blog I read, “First we need to elect competent leaders who know how the machine of politics and economics works, and then we’ll talk about issues.”
From Calculated Risk:
This is happening all across the country: falling demand [for commercial real estate] and still more office supply coming available as large commercial real estate projects are completed. This means falling rents and property values. And as the construction loans come due, there will be more and more losses for lenders.
From WashingtonPost article cited in Calculated Risk’s blog:
“We may see the commercial version of the subprime situation,” said Steve Silverman, director of the Montgomery County Department of Economic Development.
This was predicted earlier this year by Gerald Celente, founder of Trends Research Institute. The question is, will the effects of this and other situations prove to be as dire as he predicted? We’ll have to see I guess.
I have no idea if these things will come to pass. It’s merely conjecturing and forecasting, so don’t stake your emotions in this and get all worked up. However, at the same time, this particular trends forecaster, Gerald Celente, has been dead-on in predicting major market crises and global events since 1980. He correctly predicted the ’87 crash, the collapse of the Soviet Union, and the dot com bust, amongst a host of other things.