Eric King: “The Fed tends to never do anything in December, and yet long ago you predicted this (tapering action). How did you know they were going to start tapering in December of last year?”
Celente: “They have to do something. This is the greatest Ponzi scheme in modern history that the Fed has pulled off by dumping all of this money into the system. And at some point they have to start pulling back....
“They have no plan. They are running blind. But they have to do something because it’s the only thing that’s fueling world growth.
After the January Fed meeting, we believe that absent a real market shock between now and then, they are going to go in for another round of tapering. They have to. But what it’s doing, it’s unraveling all the emerging markets.
The real news started coming out, as we were talking about it (on KWN), in mid-December. This so-called shadow banking system in China, it’s not a shadow banking system. When I was a kid growing up in the Bronx we called them ‘loan sharks.’ That’s what’s going on now.
You have all kinds of booms going on in China and it’s being fueled by the same cheap money. Now, what happened is the people could not get their hands on the cheap money, so they starting going to the ‘shadow banks.’
You look at these shadow banks over there (in China), and they are now accounting for an estimated 20% to 30% of fueling the GDP by dumping that money into the economy. So now the interest rates are really high and going higher in China.
And, as I said, we believe they (the Fed) are going to do another round of tapering in January. What does that do to the emerging markets? Simple: The only reason a lot of these emerging markets emerged was because of all of this cheap money coming out of the United States and into the carry trade -- the hot money going into the emerging markets. Now that hot money is flowing out and you can see the repercussions all over the world.
So here is our forecast: Barring a major economic panic between now and when the Fed meets later this month, absent that they taper. You are already seeing the investors fleeing the emerging markets in droves. You are looking at their stock indexes going way down. There is going to be (even) more panic with another taper.
After this taper, they are going to come up with another stimulus plan and they will dump more dough in there (to the system). That is when you are going to see gold and silver prices spike. We started off the new year and the Asian markets, the emerging markets, US markets, the European equity markets, all of them (are) down. But gold has been moving up nicely. So this is a lesson for everybody to watch: This is not a happy new year for the equity markets.”
Celente added: “You look around the world and it is unraveling before our eyes. I’ve written about this -- it was the top trend of 2013 last year. Now everybody is talking about it, how it looks so much like pre-World War I, as we are watching all of this unraveling going on around us.”
Replies
SteveQuayle.com
Dear Steve,
I’ve been watching CNBC on and off today. You can hear the fear in
their voices. As I type these words the Dow is down 244.
Our nation is reaping the direct consequence of the genocide of 56
million innocent human beings. Did anyone seriously believe that America
could skate away scot-free from this horrendous crime against humanity and
God? God will not be mocked. What we are now witnessing is the beginning
of the end. As I stated in my previous e-mail to you this morning–”IT HAS
BEGUN…”–the world is utterly unprepared for what is about to happen.
Even the “preppers” will be stunned. And I reiterate that the sun will do
something “massive” in the first week of February.
Again, you could hear the fear in their voices on CNBC. Even as I
type these words, their commentators are poo-pooing today’s fall.
Steve, next week will be pretty much the final week for people to
stock up on food gasoline, etc. Once we have entered February, God will
unleash His full wrath upon this unrepentent, wicked world. It is time for
those of us who have accepted Jesus Christ as our Lord and Saviour to go on
our knees and pray, pray, pray.
It has begun…Praise God!
Sincerely yours in Christ,
Jan 24, 2014
(Before It's News)
Peter Schiff joins Joe Rogan for a blunt conversation about the American economy and our ever more clear road to collapse. Although many Americans believe that Wall Street is to blame, Schiff makes clear that the blame for the upcoming collapse should lay squarely at the feet of government.
“The government wants to maintain the illusion of prosperity, the illusion of economic growth and so the way they do that now is through financial markets, through assets. They get the stock market to go up, they get the real estate market to go up and somehow they pretend that that means the economy is getting better just because asset prices are rising.”
“It’s not like we’ve got more factories turning out more stuff. All that they do is they get asset prices to rise so that people can borrow more money against those inflated asset values and then spend it. But we’re buying things that are made in other countries. It doesn’t evidence economic growth here, it evidences the economic growth in the countries who are able to produce all the things that we have to borrow money to consume.”
Schiff goes on to say in the conversation that the financial policies of the government are a complete failure.
“Everything they are doing now is just setting the stage for a economic disaster that is going to be much worse than what we had in 2008.”