Bailout bubble: Washington fiddles while economy burns
By: Barbara Hollingsworth
Local Opinion Editor
10/08/09 12:07 PM EDT
The guru who predicted the collapse of the Soviet Union and the bursting of the dot.com and real estate bubbles before they happened has bad news for Americans. Gerald Celente, director of the Trends Research Institute (www.trendsresearch.com), is predicting the collapse of the commercial real estate market this year which he says will “dwarf’ last year’s residential housing collapse, followed by what he calls The Greatest Depression.
“There’s a major financial crisis ahead. The United States, the world’s superpower, is failing on its most basic level,” Celente said recently.
In March, right after the $787 billion stimulus bill was passed, Celente laid out a grim scenario: “If the Fed lowers [interest] rates, they crash the dollar. If they raise rates, they crash the economy. The game is over.”
Celente believes the coming economic crisis is irreversible. “This is a trend I’ve long predicted. I’ve been saying over and over again that you can’t print phantom money... and they’ve been doing it for decades. The whole world knows it - the only surprise is it’s taken this long.”
Oil traders have already begun refusing U.S. greenbacks. If the dollar collapses in what he calls “the bailout bubble,” it will spell economic disaster, not just for the United States, but for the entire world, Celente notes. “Every nation out there went on borrowing/spending spree brought on by cheap currency. All of them have been playing the same game.”
He also predicts the currency crash will be followed by a “very violent” revolution in America that will be sparked by a tax revolt, with gas and food riots and tens of thousands of people forced to live on the streets or in storage units. “When people get hungry and desperate, things get ugly.”
And the federal government will be powerless to stop it. “You can’t spend your way out of [financial] problems, you have to produce your way out of problems.” So while Washington fiddles with new schemes to loot what’s left of our productive sector, the economic wildfire continues to burn.
Follow The Examiner
