Archive for December, 2009
Dr. Marc Faber says that he is highly confident of his prediction that “a total collapse will come.”
Dr. Marc Faber states,
“The future will be a total disaster, with a collapse of our capitalistic system as we know it today, wars, massive government debt defaults and the impoverishment of large segments of Western society…
Peak economic activity probably was reached at the end of 2006. After that, the economies in the world slowed down and then [from] September 2008 to March 2009, we fell off a cliff in the Western world. And now we bottomed out and there can be some kind of recovery, but we’re not going to go back into the world of prosperity [that] we had in 2006…”
Gerald Celente, “5.5 trillion dollars worth of money has been dumped into the system to pump it up after the collapse in March of 2009… It’s going back to where we were and worse because now we have all of this debt piled up on top of it.”
From: Fox Business
Gerald Celente:
“5.5 trillion dollars worth of money has been dumped into the system to pump it up after the collapse in March of 2009… It’s going back to where we were and worse because now you have all of this debt piled up on top of it. You can’t print phantom money out of thin air…
We don’t have the productive capacity; we were a manufacturing giant back then. Now everything is coming from somewhere else.”
David Asman:
“But that’s only a problem if we have protectionism which you say we are going to start to have.”
Gerald Celente:
“It’s already happening, we’re seeing tariffs on chinese tires, on tubing… ‘Not made in China’ is going to become a mantra in the not too distant future… Also [we will see] the genesis of a new third party in America…”
David Asman:
“Which party will that be? The anti-immigrant party or what?”
Gerald Celente suggests that,
“[The Third Party will be] anti-immigration, protectionism, it’s against big corporate, it’s against foreign entanglements, it’s against the Fed, it’s against taxation without representation.”
“Jobless Middle-Class New Yorkers Struggle to Get By”
From: Wall Street Journal
Elena Brijatiouk, an unemployed research scientist, speaks with a recruiter at a New York City job fair Dec. 9th. Residents, city officials and economists said there have been more foreclosure cases this year in that northern part of the Bronx, as well as an increase in small-business closings, illegal renting of bedrooms and basements, and court petitions by landlords seeking back rent.
Restaurant employee Gregory Ramsden, a 46-year-old renter in the Norwood neighborhood of the north Bronx, has been looking for full-time work since June 2008. He has been teaching classes in English as a second language, but hasn’t had enough money to pay the rent on his apartment since July. His landlord has begun eviction proceedings.
“I’d take anything. I’d take a job cleaning toilets,” said Mr. Ramsden, who, as a full-time waiter, used to make $50,000 a year, the area’s median income. “I believe I’m running out of options.”
The Center for an Urban Future, a nonpartisan think tank, has found that food, housing and utility costs for New Yorkers rose significantly between 2002 and 2007 while wages in boroughs other than Manhattan stagnated.
“The path into the middle class has gotten a lot harder for New Yorkers,” said Jonathan Bowles, director of the Think Tank.
Gerald Celente, “If I had a track record as bad as [Bernanke's], I would have been laughed out of business 30 years ago.”
From: Fox News
An excellent and informative interview with Gerald Celente, who is considered the World’s #1 Trend Forecaster. Celente shares his reactions and advice in relation to the declining economy. Judge Napolitano from Fox News: Freedom Watch discusses with him the universal reckoning that things “will get worse in 2010 before it gets better,” and how to prepare.
Judge Napolitano:
“If you have gold how are you going to turn that into something that you can use to buy food with?”
Gerald Celente:
“People buy gold all the time. You hear the stories how people escaped Europe or Nazi Germany with those coins of Gold you always buy freedom with it. That’s why Gold prices are going through the roof now. And the dollar is collapsing. This is going to be a controlled collapse of the dollar whether they’re doing it purposely or out of ignorance… [Soon] everything that we buy is going to cost more…”
Judge Napolitano:
“When will the public learn about the fraud that the people that really own the Fed are perpetrating on the rest of us?”
Gerald Celente:
“When they’re out on the street and hungry… As a ‘Bronx boy’ my line is, ‘When people lose everything and they have nothing left to lose, they lose it.’ And people are going to start losing it. The second American Revolution has begun. It happened with the Tea Parties and protests of this year, it happened again on the 4th of July when people took to the streets Taxation without Representation. We saw it again with the outrage at the town hall meetings and we saw it when people marched in Washington against big government on September 12th. It’s a fraud, you said it, from top to bottom, who could get away with this stuff?”
Morgan Stanley’s Stephen Roach and Euro Pacific Capital’s Peter Schiff on the Dollars Collapse
Stephen Roach comments, “When foreigners lose their confidence in the long term security in the assets they’re holding then the portfolio adjustments can be swift and severe.”
Peter Schiff adds, “I think the countries that are the most suppressing their own currencies in Asia. It’s like holding a beach ball underneath the water.
Once you take your hands away it’s going to shoot up and you’re going to see huge realignments upwards in these Asian currencies and they’re going to have much greater purchasing power.
All the sudden people a lot of people in China who were riding bicycles are going to afford automobiles. Maybe they’ll send some of those bicycles over here because we won’t be able to drive our SUVs anymore.”
7 Reasons Not to Invest in the Stock Market in 2010
From: Daily Finance
“Can you name a single “guru” who told investors to get out of the markets before the crash of 2008 — and to buy back in before the recovery of 2009? If the talking heads can’t call the worst recession since the Great Depression and one of the fastest recoveries in 80 years, why should you rely on their current predictions?”
Some good basic reasons why the vast majority of people must educate themselves before investing their hard earned money (or what little they do have left over). We highly recommend everyone who wants to understand why most “Investors” run with the herd and lose, buy this movie first “Broke: The American Dream”
Peter Schiff, “We need a Fed Chairman that’s willing to be unpopular…”
Peter Schiff discusses the economy with David Wessel, Economics Editor for Wall Street Journal,
“We have to think forward, unfortunately the crisis hasn’t hit it’s peak. It’s going to peak at a much lower level because of the short term stimulus that we’re using.
I’m not criticizing Bernanke because I’m running for senate, I was criticizing Alan Greenspan when I wasn’t running for anything.
And I criticize Bernanke when he was working with Alan Greenspan to undermind our economy, destroy our currency and inflate the housing bubble. We need a Fed Chairman that is willing to be unpopular, that’s willing to give monetary discipline and take the punch bowl away. We don’t want a Fed Chairman to be man of the year.“
Recession Scarring a Generation
From: The Chicago Tribune
“The current young generation has been hit hard directly and indirectly. In their homes, teens have likely seen parents worry about home values. In the workplace, there’s the threat to jobs as the unemployment rate remains stuck at 10 percent, one of the highest levels in three decades…
Beyond family pressures, unemployment among 16-to-19-year-olds is at an extraordinarily high level of more than 26 percent. Students finishing college face difficult job prospects, with hiring of this year’s graduates down 22 percent, according to the National Association of Colleges and Employers.”
Peter Schiff says, “The economy is growing because the Federal Reserve is using inflation to prop up the GDP”
Melissa Lee from CNBC’s Fast Money asks Peter Schiff: “Historically rising rates equals a recovering economy. Why is it different this time around?”
Peter responded, “Well also rising rates can be a sign of inflation I think that’s what you have here.
Remember the only reason it looks like the economy is growing is because the Federal Reserve is using inflation to prop up the GDP and I think that it’s that inflation and the inflation expectations that explains the back up in interest rates and not any positive outlook for the economy…
The weaker the economy, the worse the inflation is going to get because the Fed fights off the economic weakness by creating inflation. The worst inflations that have broken out, historically, happen in very weak economies with high levels of unemployment…”
Jim Rogers says “Geithner has been wrong about everything for the last 15 years.”
Jim Rogers makes his comment on Timothy Geithner, our United States Secretary of Treasury. Geithner’s position includes a large role in directing the Federal Government’s economic response to the financial crisis which began after December 2007. Specific tasks include directing the allocation of the $350 billion of Wall Street bailout funds.
Jim Rogers added “Why are we listening to Mr. Geithner? Why are we listening to any of those guys down there? They are making our situation worse. They said in writing yesterday the solution to our problem is to spend more money, to spend us out of this…that’s what got us into the problem, too much debt too much consumption and now we are going to solve it with more debt and more consumption? That’s like saying to Tiger Woods, you got another girlfriend, and you’ll solve your problems… The next time we have problems in the economy, which will not be too long, we don’t have any bullets left, we have shot everything we have.”
