GLOBAL TRENDS FORECASTER SAYS MARKET SWINGS
AN OMINOUS SIGN; CHEAP MONEY NOT THE ANSWER
KINGSTON, N.Y. (Jan. 15, 2015) — Volatility in the markets are directly tied to weakening fundamentals that global forecaster Gerald Celente and his Trends Research Institute have forecast will amount to an economic meltdown.
At the first signs of the federal government’s quantitative easing and cheap money flooding the markets following the Panic of ‘08, the trend forecaster consistently predicted that the tens of trillions of dollars pumped into the economy to liquefy the markets would have an ugly end game at some point.
“There was never a recovery, only a cover-up," Celente said.
The Dow Jones Industrial Average dropped 186 points, or 1.06 percent, and the Nasdaq Composite declined 22.18 points, or .48 percent, Wednesday on news that retail sales in December were softer than expected, along with a disappointing auto-sales report, JPMorgan Chase results and deepening concerns over oil prices’ downward spiral.
"The record amounts of fake money pumped into the economy to prop up banks, the stock market and the investment pipelines of the wealthy eventually must succumb to economic law," said Celente.
In a special digital edition (available here) of the institute's quarterly Trends Journal forecasting the top trends for 2015, Celente warned: "Too much product is flooding the global marketplace, and there’s a chronic shortage of people with enough money to buy those products... what is being called low inflation are lower prices that are battering commodities: Corn, copper, silver, oil… As with many other core commodities, falling prices are not the sole result of increased supply but an indicator of a slowing global economy."
Celente released his 2015 trends forecast in front of a live audience at the instituite's Kingston, N.Y. facilities on Dec. 6, 2014, during which he repeatedly stressed that the grand manipulation of the markets, including the twisted and ultimately deceptive way the U.S. government distorts key economic information, merely disguises the deep fundamental problems with the economy and has delayed the inevitable. During his December conference, available on video at this link, Celente warned a price would be paid at some point for market-rigging.
He walked the audience through numerous examples of how the core underpinnings of the economy are fundamentally weak and growing weaker.For example, Celente said the debate over the rapid decline in the price of oil among the "so-called" experts repeatedly missed the point. "While supply was a factor, slowing demand around the globe was and is the real driver of falling prices."
And in the special edition of Trends Journal, contributing editor Dr. Paul Craig Roberts, the former assistant secretary of the U.S. Treasury under President Reagan, wrote: "... the markets are rigged, not free. How long can stocks stay up in a lackluster or declining economy? How long can bonds pay negative real interest rates when debt and money are rising? How long can bullion prices be manipulated down when the world’s demand for gold exceeds the annual production?”
One of the institute's four economic forecasts for 2015 is what Celente calls "price wars." In a Dec. 16 press release, Celente forecast: "From commodity exchanges to retail sales, prices are plummeting and the fight is on to sell products at whatever price the market will bear. …We are seeing the dawn of that powerful trend line this holiday season. Simply, too much overcapacity and declining consumption are driving down prices. Unlike in recent years, prices can’t be artificially propped up because with real wages in decline across the globe, there is less money to buy the goods."
Celente calls it "deconsumption" and points to the December retail sales report as proof: Sales declined during the holiday season -- despite history-setting levels of deep discounting. “When overproduction meets a sharp decline in consumption, retailers will wage price wars aimed at a consumer base with dwindling income and bleak prospects for more money to spend,” Celente said. “Depressed consumers are depressing prices.”
“What we are seeing in the markets these first few days of the year is the foundation of the global economy showing you can fool basic economic law only so long,” Celente said.