Sunday, December 07, 2008
Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events.
The man who predicted the 1987 stock market crash, successfully predicted the 1997 Asian Currency Crisis, the fall of the Soviet Union, the current subprime mortgage collapse, and the massive devaluation of the U.S. dollar (eventually to 90% of its former value), told UPI in November last year(2007) that the following year(2008) would be known as "The Panic of 2008". In 2007, Celente forewarned that "giants (would) tumble to their deaths," which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others.
Around this time last year, Celente sent the following message to his subscribers;
In 2008, Americans will wake up to the worst economic times that anyone alive has ever seen. And they won’t know what hit them. Just as they were in a state of shock on 9/11, they’ll be frozen in fear when the Economic 9/11 strikes at the heart of Wall Street."America’s going to go through a transition the likes of which no one is prepared for," said Celente, noting that people’s refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.
Celente is now ominously suggesting that next year will come to be known as “the collapse of 2009."
Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
"There will be a revolution in this country," he said. "It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen.Mr. Celente was recently interviewed by Fox News to discuss the trends he has predicted for the next three years.
We’re very confident of that because as we look through history – tracking trends is a way of understanding where we are, how we got here and where we’re going. Throughout the entire 19th Century, and even into the early 20th Century, the major issue was the central banks taking over the country. That’s why you had people like Andrew Jackson. It’s been a major issue since our founding fathers and will continue to be. This is only a temporary take over.
Watch the video clip below.
Linda Moulton Howe Earthfiles interviewed Mr. Celente on October 17, of this year and this is what Mr. Celente had to say:
All they are doing is throwing good money after bad. This is unprecedented. This isn’t the United States of America. It’s now the United Soviet States of America. They are buying banks, brokerages, insurance companies. We (U. S. government) now own the world’s largest insurance company! And mortgage companies. And they are doing it all with taxpayer money. So, anyone with a little common sense, Linda, could figure it out.
If the boys on Wall Street botched a deal before, what makes anyone think that the inept people in Washington are going to pull it off any better? They are not. What they (government bureaucrats) have better than the scammers on Wall Street is that they (government) has unlimited funds from the U. S. Treasury by taxing the people and taking all the money they want to do their deals. So, nothing good is going to come out of this. All they are doing is bailing out the preferred shareholders, the foreign banks that have loaned the money – all on the backs of the American people. This is a ‘Foetus Tax’ in the sense that generations are going to have to pay for this. This will do nothing, nothing! to stop the economic depression that is coming. All it will do is bailout the ‘too big to fail’ companies.
ONE OF THE THINGS THAT APPEARS TO BE BEING BORN IS LIKE A COUP D'ETAT SUDDENLY IN OCTOBER 2008, IN WHICH ESSENTIALLY THE GOVERNMENT OF THE UNITED STATES TOOK OVER THE FINANCIAL COMMUNITY IN WHAT IS BEING DESCRIBED ON CNBC-TV AS THE ‘SOCIALISM OF THE UNITED STATES FINANCIAL INSTITUTIONS.’
I call it a communism! It’s communism when you have state-controlled monopolies running the largest businesses (I call it Fascism, Steve). That’s not socialism. Socialism is something for everybody out there. At least you would get health care and education and other benefits.
This now is communism. Instead of the commissars from the Communist Party, they are bringing the people in from the Wall Street party. In socialism, you get to vote. In communism, you don’t. The majority of the American people were against the bailout. According to all the research, it was running 100 to 1 against. People were calling their representatives, but the representatives don’t represent the people. The representatives did what the Party wanted. So, it’s really communism and why I call it the United Soviet States of America.
THE PRACTICAL ISSUE OF PRINTING ALL OF THIS MONEY TO GET US OUT OF ONE HOLE PUTS US IN THE INFLATION HOLE WHERE PRICES ON GOODS IN THE UNITED STATES – THEY MIGHT BE AFFORDABLE TO US, BUT IF WE TOOK OUR MONEY OUT INTO THE REST OF THE WORLD, TO EUROPE, FOR EXAMPLE, THE AMOUNT OF MONEY THAT EVERYTHING IS GOING TO COST US THERE IS OVERWHELMING AND PEOPLE WILL STOP TRAVELING?
Oh, absolutely. It’s already happening and it’s just going to get worse. We have to understand that even the numbers the federal bureaucrats are talking about - $700 billion and $250 billion for the banks, it’s peanuts compared to the credit default swaps, which nobody knows what the heck they are, including myself. They are $ 353 trillion dollars. I mean, you can’t make up a number like that! That’s only in credit default swaps, the derivatives.
Then you start looking at commercial real estate. When is that going to collapse? When are all the over-built stores? We have been over-stored in this country for over a decade. So, you’re going to start seeing a huge commercial real estate collapse.
The sub prime problem is only about $ 2 trillion at best compared to the rest, but it’s an easy target because the bureaucrats can blame all those irresponsible little people for borrowing more than they should have.
How about all those leveraged buy outs such as the Carlisle Group, Blackstone, Cerberus – they bought things like Chrysler and that Hilton chain with no money down! That’s where a big unraveling is going to come.
BUT IS THIS GOVERNMENT IN THE NEW PHILOSOPHY OF SOCIALISM GOING TO ALLOW THOSE CORPORATIONS TO COLLAPSE? OR ARE THEY (BUREAUCRATS) JUST GOING TO KEEP PROPPING EVERYTHING UP IN THIS KIND OF ALICE IN WONDERLAND WORLD?
They are going to try, but it’s not going to work. This is a temporary fix. They don’t have enough money to do it.
The only power they have is to print cheap money; the more cheap money they print, the worse hyper-inflation gets; the worse hyper-inflation gets, the more people become angry; the angrier people get, the more tax revolts; and that’s when we’ll see a new system. This country was built on tax revolts and it’s going to happen again. We’re only at the beginning stages of this change.
You talked about an Alice In Wonderland world, if private enterprise messes it up as bad as they did (laughs), who in their right mind would think a government that has only proven Katrina quality rescue skills can do something better? I mean, we’re losing two wars. Our health care system is in shambles. Our education system no longer wins, places or shows worldwide. They still have a hole in the ground where the World Trade Centers used to stand. The levies (New Orleans) have not been fixed. And neither have the voting machines!
When we went through the 1929 Depression, Wall Street was hated! They didn’t recuperate until the mid-1950s. So, we’re going to see the same thing. There’s going to be a huge government backlash, particularly for the Democrat and Republican parties and against Wall Street.
Back to Main Street to Survive?
As I see it at the Trends Institute, what is bad for Wall Street is good for Main Street. Wall Street only helps the too-big-to-fails. They don’t care about the rest of us. And we see it over and over again in their CEO pay or whatever greedy thing it might be.