1500Forthcoming Economic Collapse
- Jan 24, 2009
CODE RED - Economy in Collapse
Drastic Actions Will Be Taken
Trends Research Institute 1-23-9
KINGSTON , NY , 22 January 2009 -- President Barack Obama will use his poll shattering popularity to swiftly enact policies that will prove to be among the most costly and potentially destructive in America 's history, predicts Trends Research Institute Director Gerald Celente.
"We are forecasting dramatic measures will soon be taken by the Obama Administration that will worsen the credit crisis and severely damage the nation's economic system," says Celente.
According to The Trends Research Institute Director, the new President who swept into the White House on a tidal wave of unprecedented enthusiasm and the blessings of a strong majority, will have free reign to take whatever actions he deems necessary.
"Whatever Obama wants, Obama gets. Desperate, scared and not knowing what to do to survive the economic storm, people are seeking a messiah to save them, and Obama is their man," said Celente. "When fear rules, reason and logic are ruled out." (According to an AP poll, 71 percent of Americans believe the economy will improve during the first year of the Obama presidency.)
The 332-point stock market decline that greeted Mr. Obama into office (a record breaker for Inauguration Day) and today's 105-point market decline will be followed by a steady stream of worsening economic news and major financial calamities, Gerald Celente forecasts. Just as President Bush exploited 9/11 as a pretext to wage the War on Terror, invade Iraq, abrogate the Constitution and exert broad Executive powers (with bipartisan and majority public support), President Obama will be given even greater latitude to fight a war on economic terror, predicts Celente.
For example, Timothy Geithner, President Obama's nominee for Treasury Secretary, has pledged to expand and prolong government intervention in the financial markets. He said his economic team would take "forceful" and "substantial action" on a "very dramatic scale" to "forge an integrated strategy on how best to achieve currency realignment."
Celente advises to closely read the signals that have been clearly telegraphed by Mr. Geithner. "From proclaiming a bank holiday, confiscating gold to backstop devaluing currencies, mega-bailouts for the too-big-to-fails ... to nationalizing public firms and dollar devaluation ... whichever of these or other actions are taken, the financial burden will fall on the American people," Celente forecasts.
Blame the Little People
In his inauguration speech President Obama warned Americans of tougher times ahead and for the need to make greater sacrifices. In doing so, the President placed equal blame for the global financial crisis on the public's "collective failure to make hard choices," along with the "consequences of greed and irresponsibility on the part of some."
"The President is correct. Many have spent beyond their means, borrowed themselves into debt, took risks playing the markets, and speculated on real estate," said Celente. "But comparing Main Street's financial missteps to the large scale corruption and criminality of the banks, brokers, insurance companies, hedge fund operators, mortgage companies, rating agencies and buyout firms that cooked the books, enriched executives, ripped off clients and rigged the numbers, is further evidence that Obama is a Wall Street man.
Trendpost: Do you know where your money is? Is it safe? Will you be able to get it when you need it? What will you do if trading is temporarily suspended on Wall Street? Will you be able redeem your CD's?
The new Treasury Secretary promises "a very dramatic scale" of action that may in turn require you to take very dramatic counter measures to protect your assets. We forecast with great confidence that whatever actions Washington takes to save the "too big to fails," they will prove very costly for the "too small to saves" who will be forced to foot the bills and eat the losses.
© MMIX The Trends Research Institute ®
Comments by Ron Branson:
Anyone smart enough to understand the simple basics of economics should know that the proposed direction for the current economic stimulus just cannot work. First off, no one can give themselves a blood transfusion, i.e., draw two pints of blood out of their left arm and then insert the needle in their right arm, resulting in a net gain of two pints increase of blood.
The plan, we are told, is to stimulate the economy by spending 850 billion dollars to put America back to work. This is equivalent to borrowing your own money from yourself out of your left pocket and bailing out the lacking money in your right pocket. Where did this 850 billion dollars come from? It came from the collective pockets of John Q Public. And where is it targeted? If we are to believe what we are told, it is theoretically to boost the economic status of John Q. Public.
Assuming arguendo that we can trust the government to be totally honest, and return it all back to us 100% without charging interest, or taking some of it for administrative expenses, the best we can expect is to be restored back to where we were prior to the “economic stimulus package.” Think about this! No one can sit in a sail boat when the wind is not blowing and blow into their sail and propel their boat forward. But this is the logic of the proposed economic stimulus package. All that will happen is that the billions will be gone, and the American citizens will be disappointed as they anxiously await the economy to turn around, which shall never happen.
As a practical matter, America will be much worse off in the end. It assumes that government will charge nothing for its “services” of borrowing your money from you. Further, the government intends to use your money to save the bankers who irresponsibility used your wealth in the first place. I ask, why does the economy need the service of banks anyway? Ah, you say, for a safe place to keep our wealth in. But the entire banking system is insolvent on the brink of bankruptcy. Is this the “safe place” you refer to in which to keep your money in? If we did not rescue the banks and they all collapsed, what is that to you, unless you trusted them with your money? What if you did not trust them with your money and they all collapsed, and you still had your money, would that hurt the economy? Absolutely not! So why are your interested in yielding up your wealth to save their can?
And yes, are we not supposedly concerned about the enemy “over there” coming to take over our country by military action? Let’s take a look at the greatest threat to our county. “I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”
The only remedy for our nation’s future economy is from God as He has ordained through J.A.I.L.