Friday, June 22, 2012

Gerald Celente: This Thing [Financial System] Is Coming Down

Gerald Celente began by ridiculing the media’s propensity to jump from one hyped event to the next during the global financial crisis, providing a unnecessary distraction from the all-important final outlook he forecasts for investors.
“This thing [financial system] is coming down,” Celente told KWN’s Eric King.
The outcome of the Greek election is not important, according to the founder of Trends Research Institute. What’s happening in any country is not particularly important, per se; it’s the collective symptoms of a global financial collapse that investors should focus their minds upon before considering what to do to protect their wealth.
“The entire financial system is under collapse,” Celente forcefully continued.  “It’s not about the Greeks; it’s not about the Spanish; it’s not about the Italians; it’s not about the English; it’s not about the Americans; it’s not about the Chinese; it’s about everybody.”
‘It all comes back to gold,” he said.  Celente added that he is not an investment adviser, but has repeatedly stated in the past that he likes the yellow metal for its ancient reliability as the ultimate safe-haven during times of financial crisis.
Simultaneously, vital economic statistics across the global economy show steep drops or have begun to resemble bubble-like characteristics.  Suddenly, the global economic growth story, the West-East ‘decoupling’ theory, and the global ‘muddle-through’ thesis, increasingly appear to be nothing more than well-crafted media-driven nonsense.  It’s just a media con job to keep investors back on their heels and away from critical thinking regarding their savings and wealth, according to Celente.
It was Fed Chairman Ben Bernanke and his predecessor Alan Greenspan who claim they didn’t see the housing bubble, nor the dangers of more than one quadrillion dollars of derivatives written since 1999.
In August 2010, Bernanke told attendees of the Jackson hole Summit, “For a sustained expansion to take hold, growth in private final demand — notably, consumer spending and business fixed investment — must ultimately take the lead.
“On the whole, in the United States, that critical handoff appears to be under way.”
As it turns out, nothing could have been further from the truth.  The financial crisis deepened throughout 2010 and 2011, with revelations that Greece could not pay on its gigantic sovereign debt and by implications threatened to take the eurozone with it as other EU sovereigns would be next.
In the U.S., bogus jobs reports issued by the U.S. Labor Department, which showed an economic recovery, streamed in month after month.  In essence, the data merely show a halt of an immediate economic Armageddon, not a recovery.
Back then, gold traded at $1,200.
Today, global statistics point to a deepening of an already recessionary global economy, but the media continues to spin the data to help the Fed ‘manage expectations’.
Though, not complete, below, is a list of items that support Celente’s call for an impending next leg down in the global financial crisis.
  •  A property bubble about to burst in Canada
  • Bank runs in Greece, Spain and Italy
  • Spain housing market to drop another 25 percent, according to S&P
  • Netherlands reports sudden 10 percent drop in retail sales
  • EU proposes currency controls
  • China reports rapidly decelerating GDP, ramps up gold imports
  • Baltic Dry Index approaches 2009 low
  • India’s currency, the rupee, is under attack
  • Slovenia needs a bailout
  • Cyprus needs a bailout
  • Egypt in the throes of civil war, again
  • Fed overtly monetizing debt 30-year treasuries, according to
  • U.S. job market is fictitious, according to John Williams and Charles Biderman.  Real unemployment is 22 percent
  • U.S. consumer tapped out and buying necessities with credit cards
  • Global recession next year pegged at “100 percent” certainty, according to Marc Faber. Jim Rogers agrees with Faber’s assessment and includes 2014 as a worse outlook
Countering misleading comments made by officialdom throughout the crisis—blatantly appearing to follow the playbook of former President of the European Council Jean-Claude Juncker, who once said, “When it becomes serious, you have to lie,” —Celente told KWN listeners to not expect the truth out of Washington or Brussels.  You must “think for yourself” and that “you’re on your own” while the global financial collapse plays out.
What should investors do? Eric King asked Celente.
“Speaking for myself . . . You [referring to Eric King] know me,” Celente stated.  “I’ve always made it clear; I only put my money in gold and in silver,” and added, “And a friend of mine, to me, the best strategy that I’ve heard.  And again, I do not give financial advice.  His strategy is, every month he buys gold and silver.  Every month he buys gold and silver with the extra money he has.  Every month.
“It’s a brilliant strategy. . . I’m in gold for the long term.  I’m not getting out of gold, and I continue to invest in it when I can.”

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