Sunday, July 23, 2017
Gerald Celente: TROUBLE
Gerald Celente July 2017
How naive or evil the think-tanks, top controllers and especially the Central Banks could have thought (or maliciously planned) that keeping zero or negative interest rates, flooding the markets with fiat ( magic) currency and QEs for a decade or so, was going to induce growth and wealthy ?? It would seem logical from a mechanistic stand point but significant unlikely wrong psychologically (understanding how mind works). And for their responsibility in destoying the life of billions of peoples, they ought to be severely punished. The realistic thinkers, obvious see that it did NOT work well at all. There are different reasons for this criminal failure....Once the interest rates are zero, where are the people, the big investment/ pension firms and hedge funds will invest?? Where the retired and retiree-to-be, that were used to earn 5 to 7% annually iincome in their bond investments, are going to put their money?? Answer... they will speculate in the stock markets, housing, automobiles and other assets, creating bubbles every where, as we see right now. They will not buy more discretionary unnecessary goods! And the big corporations will not necessary invest in new factories and expansions, but buy back their own stocks to inflate the prices and/ or do merges and acquisitions with the cheap money. And that is what we have clearly seen. Also, they naively or evilly "though" that flooding the markets with cheap money, it, by logic, would generate a certain level of inflation, which they could control pulling out money of the system and raising interest rates. The realistic thinkers, see that it did NOT work! Economy, like most other things, are not mechanistic and in this case it is more psychological and emotional. There are different roots for inflation, but classically it is induced by the amount of currency in circulation....but there is another parameter that is often forgotten.... the VELOCITY of the currency changing hands. If people are not buying much things, the inflation will not jump up, as we have seen (though there are some hidden inflation and currency devaluation that are not shown on the manipulated official statistics ). On another front, it is naive to think that FORCING minimum wages up will distribute more wealth and growth. Obviously not necessarily, as we also have seen. The corporations are not stupid, they downsize the number of employees, close stores in non-distant radius, change full to part time jobs and increasingly replace humans with machines/ robots. It is just a piling up of stupidities," naiveness or evilness" and/ or lack of understanding of human mind and psychology! We have seen some of these same errors since ancient times, extending thru the tulip bubble burst in Holand in the early 1600's and unfolding until today and at greater proportions. Unfortunately like the true moto states..."One of the main things we learn from history is that we DO NOT learn from history" ....It is really said!! I
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Not just the USA but the entire planet is screwed. We have had uncountable dates and years when it's all going apocalipse, all never happened. But, I do believe, over the next 3 to 9 months, I do feel this time it could really be it, this time round.
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