Some of the most respected prognosticators in
the financial world are warning that what is coming in 2014 and
beyond is going to shake America to the core. Many of the
quotes that you are about to read are from individuals that actually
predicted the subprime mortgage meltdown and the financial crisis of
2008 ahead of time. So they have a track record of being
right. Does that guarantee that they will be right about what
is coming in 2014? Of course not. In fact, as you will
see below, not all of them agree about exactly what is coming next.
But without a doubt, all of their forecasts are quite ominous.
The following are quotes from Harry Dent, Marc Faber, Gerald Celente,
Mike Maloney, Jim Rogers and nine other respected economic experts
about what they believe is coming in 2014 and beyond…
-Harry
Dent, author of The Great Depression Ahead: “Our best long-term
and intermediate cycles suggest another slowdown and stock crash
accelerating between very early 2014 and early 2015, and possibly
lasting well into 2015 or even 2016. The worst economic trends due to
demographics will hit between 2014 and 2019. The U.S. economy is
likely to suffer a minor or major crash by early 2015 and another
between late 2017 and late 2019 or early 2020 at the latest.”
-Marc
Faber, editor and publisher of the Gloom, Boom & Doom Report:
“You have to say that we are again in a massive financial bubble in
bonds, in equities, in [other] asset prices that have gone up
dramatically.”
-Gerald
Celente: “Any self-respecting adult that hears McConnell, Reid,
Boehner, Ryan, one after another, and buys this baloney… they
deserve what they get.
And as for the international scene… the whole
thing is collapsing.
That’s our forecast.
We are saying that by the second quarter of
2014, we expect the bottom to fall out… or something to divert our
attention as it falls out.”
-Mike
Maloney, host of Hidden Secrets of Money: “I think the crash of
2008 was just a speed bump on the way to the main event… the
consequences are gonna be horrific… the rest of the decade will
bring us the greatest financial calamity in history.”
-Jim
Rogers: “You saw what happened in 2008-2009, which was worse
than the previous economic setback because the debt was so much
higher. Well now the debt is staggeringly much higher, and so the
next economic problem, whenever it happens and whatever causes it, is
going to be worse than in the past, because we have these
unbelievable levels of debt, and unbelievable levels of money
printing all over the world. Be worried and get prepared. Now it [a
collapse] may not happen until 2016 or something, I have no idea when
it’s going to happen, but when it comes, be careful.”
-Lindsey
Williams: “There is going to be a global currency reset.”
-CLSA’s
Russell Napier: “We are on the eve of a deflationary shock
which will likely reduce equity valuations from very high to very low
levels.”
-Oaktree
Capital’s Howard Marks: “Certainly risk tolerance has been
increasing of late; high returns on risky assets have encouraged more
of the same; and the markets are becoming more heated. The bottom
line varies from sector to sector, but I have no doubt that
markets are riskier than at any other time since the depths of the
crisis in late 2008 (for credit) or early 2009 (for equities), and
they are becoming more so.”
-Financial
editor Jeff Berwick: “If they allow interest rates to rise, it
will effectively make the U.S. government bankrupt and insolvent, and
it would make the U.S. government collapse. . . . They are preparing
for a major societal collapse. It is obvious and it will
happen, and it will be very scary and very dangerous.”
-Michael
Pento, founder of Pento Portfolio Strategies:
“Disappointingly, it is much more probable that the government has
brought us out of the Great Recession, only to set us up for the
Greater Depression, which lies just on the other side of interest
rate normalization.”
-Boston
University Economics Professor Laurence Kotlikoff:”Eventually
somebody recognizes this and starts dumping the bonds, and interest
rates go up, and inflation takes off, and were off to the races.”
-Mexican
Billionaire Hugo Salinas Price: “I think we are going to see a
series of bankruptcies. I think the rise in interest rates is
the fatal sign which is going to ignite a derivatives crisis.
This is going to bring down the derivatives system (and the financial
system).
There are (over) one quadrillion dollars of
derivatives and most of them are related to interest rates. The
spiking of interest rates in the United States may set that off.
What is going to happen in the world is eventually we are going to
come to a moment where there is going to be massive bankruptcies
around the globe.”
-Robert
Shiller, one of the winners of the 2013 Nobel prize for economics:
“I’m not sounding the alarm yet. But in many countries the
stock price levels are high, and in many real estate markets prices
have risen sharply…that could end badly.”
-David
Stockman, former Director
of the Office of Management and Budget under President Ronald Reagan:
“We have a massive bubble everywhere, from Japan, to China, Europe,
to the UK. As a result of this, I think world financial markets
are extremely dangerous, unstable, and subject to serious trouble and
dislocation in the future.”
And
certainly there are already signs that the U.S. economy is slowing
down as we head into the final weeks of 2013. For example, on
Thursday we learned that the number of initial claims for
unemployment benefits increased by 68,000 last week to a disturbingly
high total of 368,000.
That was the largest increase that we have seen in more than a year.
In
addition, as I wrote about the
other day, rail traffic is way down right now. In fact, for
the week ending November 30th, U.S. rail traffic wasdown
16.3 percent from the same week one year earlier. That
is a very important indicator that economic activity is getting
slower.
And
we continue to get more evidence that the middle class is
being steadily eroded and that poverty in America is rapidly
growing. For example, a
survey that was just released found that requests for food
assistance and the level of homelessness have both risen
significantly in major U.S. cities over the past year…
A survey of 25 American cities, including many of the nation’s largest, showed yearly increases in food aid and homelessness.
The cities, located throughout 18 states, saw requests for emergency food aid rise by an average of seven percent compared with the previous period a year earlier, according to the US Conference of Mayors study, published Wednesday.
All but four cities reported an increase in demand for assistance between the period of September 2012 through August 2013.
Unfortunately, if the economic experts quoted
above are correct, this is just the beginning of our problems.
The next wave of the economic collapse is
rapidly approaching, and things are going to get much worse than
this.
So what do you think?
Which of the individuals quoted above do you
think are right on the money and which ones do you think are way off
base?
Please feel free to share what you think by
posting a comment below…
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