In this video Gerald Celente explains the reasons why he thinks economic hell on earth is coming…
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Gerald Celente heâs a trend forecaster, heâs the publisher of the trends journal and he makes predictions about global financial markets and other important events.
Not long ago he came out and started talking about the American economy, what is happening and what is going to be to come. He thinks the economy if things keep going the way theyâre going will look pretty bad. He said âif it stays lockdowned itâs going to be hell on earth. Look at the businesses going out of business! You put your whole life into a business, a bar, a retail shop, whatever it might be, it is gone! Itâs gone!â
âWell, it’s going to go up and down, but the trajectory is going to keep going down. We’re in the early stages of the greatest depressionâ.
So the question we need to ask is why? Why is he saying things like this and what are the underlying facts that heâs got to back up these claimsâŠ
One of the things that Celente mentioned was the trade deficit from the United States. The U.S if you look back 10 years or so, theyâve always had a deficit. Normally it hovers around that $45 billion dollar mark. And then you go to 2020, the start of 2020 was actually looking very good. But then we all know what happened, the pandemic hit, and the deficit shot in the wrong direction, downwards!
Obviously when youâre trading with other countries, generally you want to make a profit. Selling and making more money compared to how much you spend.
And for a long-time the U.S just hasnât been able to do this, theyâre such a big country, but the pandemic has made the deficit even worse.
And this is something that Celente alludes to when mentioning the so called economic hell on earth, weâre constantly at a deficit and itâs been made even larger recently.
But of course, apparently we have the solution for this, says the fed, says the government. Letâs just inject money into the economy. Donât worry weâll give you stimulus checks, weâll send them right to your front door.
If youâre a business with very poor credit rating, donât worry start purchasing junk bonds, thereâs cash for you as well!
But Celente and a lot of other economists are not fans of this policy at all.
He said âWhy would anybody, Iâm only speaking for myself I donât give financial advice, why want this digital trash backed by nothing and printed on nothing when they just keep printing more and more of it?â
And thatâs the thing, people donât really want to hold it these days. So they either put it in the stock market, which is one reason why stocks are so highly priced, or they put it in things like real estate, which is why weâve got such high house prices.
The other risk that comes with this printing of money. Is inflation because if you get more money. What happens? Generally speaking you spend more. And this causes the prices of goods to go up. So in the long-term is it a practical, sustainable solution.
No, the solution is actually to grow the economy and grow output. Thatâs how you make more money, thatâs how you pay off debt.
But lately weâve seen not growth but negative growth when it comes to the economy.
The other thing that Celente goes into as reasons for poor economic times to come is the interest rates. He said âthe other big difference this time, is I mentioned about how economy after economy and government after government, theyâve locked down. Whatâs keeping it up? All the cheap money theyâre dumping into the system! The negative and 0 interest rate policy!â.
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DISCLAIMER: It’s important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser. There is one affiliate link in the description above.
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