Gerald Celente buys and holds gold and does not speculate, choosing to invest in what he sees as beauty, joy and history. He holds that here is a global depression; zero interest rates are no longer working, the IMF keeps downgrading growth potential, equity markets are only being kept up by stock buy backs and the zero interest rates.
The Federal Reserve wants to keep inflation at 2% but the statistics are manipulated as inflation is politically unpopular, real inflation is likely much higher. The coming crash is going to be much worse than 2008 and it is likely that war will be used to divert attention away from the economy. One terrorist strike on US soil would be all it would take to manufacture popular support.
Strong Middle Eastern countries' economies are headed down, such as Saudi Arabia, who have been recently downgraded and Turkey who are over extended. Brazil is going down the same path as Venezuela. The main place to watch though is the Ukraine and the further demonization of Russia
The Trends Journal holds that we are looking at a Clinton - Sanders ticket with Clinton winning largely due to the womens vote. People turning to Trump and Sanders is indicative of wide scale rejection of the current political system. Sanders has suckered in the millennials but has voted to fund the military and wars and is a fraud. He serves to bring in the votes to Hillary because she has such a negative rating. Meanwhile, Trump has just shown the world what a fraud the whole system is.
Palisade Radio Host, Collin Kettell: Welcome back to another episode of Palisade Radio and returning on the show with us today is a favorite of our listeners, Mr. Gerald Celente, publisher of the Trends Journal. Gerald, welcome back to the program
Publisher of Trends Journal, Gerald Celente: Thanks for having me back.
CK: Trends are all about identifying the major movements, shifts, or changes around the world and 2016 has certainly ushered in a new environment whereby we have seen the stock market beginning to top off and the negatively correlated commodities market which, of course, has been in turmoil the last three or four years particularly the precious metals have at the same time shown a pretty strong move upwards indicating a bottom is in place. Do you see a major shift in these markets happening in 2016?
GC: Well, on the gold market, the precious metals. It is interesting gold is up probably about 18% since the start of the year while most of the commodities they are going up now but mostly down. I mean oil is moving up but that is really based upon whether or not they could keep production where it is and not put more oil into the market. It has really nothing to do with the fundamentals of the economy; it has to do with manipulation.
On the equity market front, I mean just look what is going on. I mean earlier this week the World Bank downgraded world growth. Then the IMF came out again, again and again, and again, keeps downgrading growth potential. There is a global recession going on and people do not want to call it what it is. The markets are being juiced up, the equity markets, by negative interest rates, zero interest rate policy or thereabouts, look at the states, for example. You are looking at the equity markets. They are buying up stock buybacks in about the tune of $60 billion a month.
The equity markets have gone up because of the stock buybacks which is unprecedented at this level because they borrowed the money for nothing and merger and acquisition activity, end of story, and these are the facts: in the States, 95% of the wealth created since quantitative easing and zero interest policy began back at the great recession has gone to 1%. When you look at real wages and earnings in the States the middle class is now a minority and 51% of the people are earning under $30,000 a year.
There is no recovery. Global equity markets are teetering. What is really important, Collin, is to follow the money, and when I say that look at bank stocks. The state's bank stocks are down about 13%. They are coming out with new earnings and they stink. Go, take a trip over Europe, about 20% of the equity in the banks has gone into the energy sector and the energy sectors are in trouble. But it is not only energy, it is shipping, because you got to transport this stuff, and then you keep going on and on and you look at exports numbers coming out of China. Look at steel prices. It is a global recession.
CK: All right, well, I want to ask you what happens, Gerald, if the stock market crash does come. We had Robert Kiyosaki on the show a few months back and he predicted the worst stock market crash in history would come in 2016. I do not know if that will be the case, but certainly the Federal Reserve cannot sit idly by watching as all their hard work comes crashing down.
GC: Well, here is the cover of our Trends Journal for the winter edition. Came out actually- reported it first in December: The panic of 2016. The Federal Reserve cannot do anything anymore other than more quantitative easing. Zero interest rate policy is not working either is quantitative easing. Take a look over in the European Central Bank, the increased equity buying, bond buying, not only government bonds but they are buying corporate bonds. That is called the merger statement corporate powers. Back in Europe, Mussolini called it fascism. They just increased it from €60 billion a month to €80 billion, yet you still have Europe barely growing and mostly the southern countries really in recession.
There is nothing really that the Federal Reserve can do anymore other than shoot blanks and, of course, they will try something. They come up with new schemes undreamed of. I mean here we are talking negative interest rates? I mean in the history of the world there has never been such a thing. They are making this stuff up as they are going along. And who does it hurt? It hurts, we, the little people because as I mentioned all that cheap money allow stock buybacks and mergers and acquisitions so that big could get bigger, fatter, and filthy rich. Where does it hurt the people? How about pension funds? How about savings accounts? You have nowhere to put your dough anymore because they are paying you nothing or you have to pay them to keep it there.
Going back to the crash, yeah, there is a strong possibility of a crash and that is why we are bullish on gold. Our forecast for gold is this: gold needs to move to $1400 an ounce. That means it has to stay strong above the $1270, $1280, $1290 mark to move into the $1300 level. When it hits $1400 and stabilizes above that, flirting with $1480, $1460, even $1440, the next hit for us is the $2000 range because we believe there is going to be a spike when gold prices go up, because what gold is is a safe haven asset. It has since the beginning of the written Word, and it is not going away because Warren Buffet does not like it. It is bigger than Buffet. But I know the guy got billions, so, hey, take it easy. Gold has been around forever. It is not going anywhere. The central banksters could try to bring it down as much as they want and money junkies that the monetary stimulation, the cocaine and the heroin addiction in money form, so they could keep their ponzi scheme going. It is going to die just as the addict dies. That is all this is. It is an addiction, an addiction fed by a criminal group that people like to call the central bankers.
Listen, nothing has changed since the days of Jesus Christ picking up a whip and driving the money changers out of the temple. When anybody says to me, "You know, Mr. Celente, you should not sound angry or raise your voice." I say, "Junior, check it out, man. If the prince of peace could become violent because scum are screwing the people I can get angry."
CK: Well, Gerald, that is a good point, and the stated mandate of the Fed has been to bring unemployment to below 5% and to bring inflation up to 2%. They have, of course, struggled over the last couple of years to get that inflation to be seen in their metrics. But all of a sudden it is creeping up. There have been reports coming out of different Fed chairs that inflation is probably above the 2% metric now, which raises an interesting question. If the Fed wants inflation at 2% or above that means the fed wants gold prices to go up, maybe not at a ridiculous amount, but it is nice to be on the right side of the trade. Do you agree with that?
GC: Well, I do not know if they want gold prices to go up, and this whole 2% inflation thing is a made up thing. You dont learn this thing in Economics 101. They just made this crap up. It is a deflationary cycle because the cost of everything is going down in terms of raw materials. The cost of living is going up. They are rigging the CPI numbers. It started on the Slick Willy, Clinton. If you are buying steak and you can afford steak and now you are buying ground beef, you are still buying steak; in their minds there has been no inflation. Also they do this to keep the cost of living index at zero or declining so you do not have to pay people that retired and are getting social security more money. The whole game is rigged.
This 2% inflation thing is a totally made up metric. There is no basis for it at all. It began with Japan and then the European Central Bank. The European Central Bank had a 2% inflation cap when they began the Euro group back in the '90s because inflation was running at over 5%, so they said that a nation in the Euro group could not exceed a 2% cap. Is not inflation great? Yeah, we are all making less money. Our jobs suck and they want more inflation? I say they are a bunch of sick people, man, with a track record of nothing but failure. All you have to do is look at the Fed minutes, which here in the land of free-dumb and dumb-ocracy which they slaughter people all over the world to bring, we are not allowed to look at the minutes until five years later so you cannot look and remember what a bunch of screw-ups and jerks these people are. They are making this stuff up.
CK: Well, Gerald, you have come to the conclusion that one of the best ways to protect yourself is by holding gold. As you probably are quite aware the gold stocks, the equities related to gold, and as an extension to that many commodity-related stocks had been on the tear the last couple of months. As gold has moved up a couple hundred dollars you have had the main index of gold stocks go up over 100%. With the prediction that gold could be at $2000 an ounce it begs the question: do you have any interest in speculating in the gold stocks or do you just like holding the physical metal?
GC: I just like holding the physical metal because I do not know what is going on behind the curtains with the company. I am not a speculator; I buy to hold. I bought my first buy of gold, by the way, in 1978 at $187.50 an ounce. I just bought and I hold. I hold it for my old age which is creeping up real fast. That is with me is gold is for the golden age.
CK: With so much turmoil around the world you have identified gold obviously as a safe haven. I would not imagine you want to put your money anywhere near the stock or the bond market. Where else are you investing your money?
GC: Well, the way I invest my money and, again, I do not give financial advice. I am up here in colonial Kingston, New York. This was the first capital of New York State and 90% of America's Constitution came from- the Constitution that was written right across the street from where we are right now. I mention that because I own three buildings on the most historic corner in America. It is the only place where there are pre-Revolutionary War stone buildings on each corner. I buy for beauty and integrity. I buy these because I am a freedom fighter for peace. Being that the seeds of democacy were sown here - and I know all the terrible things America has done particularly the slaughter and genocide of the Native Americans.
The Constitution, in what it is written about and the Bill of Rights in what it gives, to me that is worth fighting for. Because I always say that my blood is Italian, but my heart is American. In the sense that I can never have been me if I was born in Upper Viile Vica Cuencia where the family came from, may they rest in peace. so I buy for beauty and for the integrity and the belief of what I am doing and why I do it. As a freedom fighter for peace and a warrior for truth that is why I invest my other parts of my money in beauty and joy. To me that is an antidote of fear and to push more positive movements forward.
CK: There are a spectrum of beliefs on what will come from this global depression that you have identified on the front cover of your Trends Journal for the winter edition that just came out. Some see another repeat of the 2008 crisis which was quite severe, of course, but others see something far worse coming out of it like a world war or potentially even civil war in the United States with the government against the people. You have stated that we are already in a world war and have been in World War III for quite some time. What do you think 2016 will lend to what is already going on?
GC: Well, by the way, I agree that this crash that is going to come will be far worse than the panic of 2008. You are looking at levels, for example, in China where they had $500 billion in debt and credit back twenty years ago. Now it is up to $30 trillion and you have ghost cities all over the place 70 million vacant dwellings, 70 million in a poisoned area; the water pollution there, the air pollution. You have as a decline with no end in sight. There is no way they are going to get out of this thing. The debt bubble in total is about $225 trillion. Again, just looking at China going from $500 billion to $30 trillion and now a debt bubble of about $225 - $250 trillion, the crash is going to leave very few alive in terms of financial security.
Now when all else fails they take you to war and that is what I see happening. You can see how easily it happens. Look what happened in France when they had the terrorist strike? All of a sudden, bam, there go your rights. Now you got soldiers walking around everywhere. Same thing in Brussels. Same thing in the United States. If we have a terrorist strike in the United States, false flag or real, they will blame another country just like they did Afghanistan. Most Americans still believe that Saddam Hussein was responsible for taking down 9/11, taking down the trade towers, the twin towers, and he had, of course, nothing to do with it.
They use war to get your mind off a terrible economy and that is what I believe is going to happen. When all else fails they take you to war. You look at the United States. I mean here we have a Nobel Peace Prize winning president that starts the Libyan war; overthrows a country, a sovereign nation that did nothing to us; destroyed the entire country. He has created radicalism. He is still fighting in Iraq over a million dead. It will be very easy to start a war. All you have to do is start screaming that they are selling ISIS down in Washington and everybody will be up in arms. Again, one terrorist strike is all it takes.
CK: Well, the United States has our police force so entangled around the world and, of course, on the ground and probably around a hundred countries, but we are actively at war in a few of those in the Middle East. Have you identified if the war would continue in the Middle East or have you located places maybe in Asia or Europe that we could end up battling against if this 2016 depression hits and gets worse?
GC: Well, you are talking also, to answer your question about Civil War in the United States. Yes, you are seeing it already heating up and it will have racial overtones as well. Again, when people lose everything, as we used to say in The Bronx, and they have nothing left to lose, they lose it. If you were an Iraqi or you were an Afghan and a foreign nation came in and destroyed your country, killed everybody that you love. Nobody is left. Your country is destroyed. You are in your twenties. All you have known all your life is destruction. You think you would become radicalized?
Now bring that home. Why do you think Trump and Sanders- I mean not why do you think, everybody knows. The reason people are going to both of them is because they are anathema to the system. They are the antithesis of it. It is ready to explode at home. Abroad, I would suggest two places to look at. One, Saudi Arabia. By the way, they just got their credit rating downgraded by Fitch. They need oil at a 100$ barrel to break even and now they are murdering people all over Yemen and they are expanding there. Of course, they are very responsible for what is going on in Syria as well. But their economy is going down as are other countries in the Middle East, the so called royal nations. You know how they got kings, right? A princess kissed a frog and the frog became a king - the dictatorships, the ruthless monarchies, the beheaders in chief.
Then you have the guy over there in Turkey. But I do not want to say anything bad about him because this guy over there in Germany, a comedian, they are ready to bring him up on charges. They are saying that the premier, he did a skit, a comedian, that Erdogan over there was having sex with sheep. Yes, so that has got him in trouble now and the German government may actually prosecute him. Going around the world, Turkey is in decline, way over expanded. They are moving into Iraq. They are moving into Syria. They are killing the Kurds. I cannot say that. They are shooting militants. That is it, yeah. When bomb drops on innocent people it was collateral damage like the United States does, so it is okay.
The other big one to watch is Ukraine, that little boy Yatsenyuk. All you have to do is go on YouTube, put Victoria Nuland in there and Jeffrey Pyatt, our Ambassador to Ukraine and people might remember that cellphone intercept that they got when she was telling Pyatt when they were overthrowing the democratically-elected government of Yanukovych that they wanted- their boy was Yats, yeah, Yats, a little boy, the rabbit. This cat is out now. Poroshenko just got involved with the Panama Papers. He is hiding his dough over there. His popularity rating now is below 20%. They are deep in debt. They need another $17 billion from the IMF and they are not going to give it to them.
What is going to happen? The explosion in Ukraine and you know what will happen? They will blame the Russians and you are already seeing NATO build up on the Russian borders and more in Ukraine. You are seeing Poland become more and more antagonistic toward Russia. They will not blame it on the people that caused the coup, the United States and Germany. No, they will blame it on Russia. That is the other hot spot. The three hot spots for world war are the Middle East, of course, Turkey involved in that, and now Ukraine. What goes on in Somalia, Congo, those places. Although they are slaughtering people in Mali and the United States and their allies were involved in that, people do not care about that. Their skin is too dark down there. They do not rate a high rating. You could kill them. They do not count. They do not count as much as, "Oh, look, they just bombed a market over there in Yemen." Yeah, killed 119 people. Those 119 dead Yemenese civilians do not count for one dead Frenchman, one dead European, or one dead American. That is where it is going because with the hypocrites, that the prestitutes these little boys and girls- just disgusting human beings. Well, they are prestitutes. They get paid off to spread propagandas and lies. They frame the stories that they want. What goes on in Africa will not count that much.
By the way, a big problem also in South Africa because of the raw material prices down as in Brazil. That is the other one. Brazil is ready to go Venezuela. It does not have to be one big explosion. It could be an implosion. Venezuela is on the cusp and so is Brazil. Brazil now is in a recession, the worst that they have had in a hundred years. It is not going to get better because so much of the raw materials, between 40 to 45% are gobbled up by China which is now cannot eat any more raw materials. As a matter of fact they are pushing out steel and they are driving down the prices because they have so much over-production.
CK: All right, Gerald, well, let us move on to the elections. What a comedy it has all been. You have got Hillary leading on the Democrat side and almost certain to clinch the nomination, but Bernie has given her a good fight. Then you have got Cruz versus Trump on the Republican side and Trump is looking less likely to clinch the required 1,200 or so delegates needed meaning a contended convention could be in the cards. What do you think is going to happen with the result of the elections here?
GC: This was our Trends Journal a year ago. Liars, cowards, freaks and fools: Welcome to the Presidential Reality Show. That was two months before Trump, a real reality show champion, threw his hat into the ring and became a contestant. We see going like this: a Clinton-Sanders ticket. Hillary Clinton has very negative ratings in personality, and what Bernie Sanders is doing he is playing the Obama card even to the level where his campaign slogan mirrors Obama's - Change you can believe in. If you want change you could believe in from Obama. I got a bridge in Brooklyn I could sell you, and Bernie selling the same BS with a future to believe in. But he is winning over the Millennials.
Trump has such a negative- even if he wins, if Cruz wins he will go nowhere. We made the forecast actually in the Trends Journal, again, over a year ago, and it still holds even though Trump is in the race. As a matter of fact it magnifies the point. If the election were held today and Hillary Clinton survives the Castor-influence scandal, we forecast Clinton is the winner on issues of gay rights, women rights, and abortion. Cruz, Paul, Rubio, will find weak support among a sizable portion of women voters.
With all the candidates including Clinton on the same war page and none presenting strong and unique economic policies that truly create jobs and increase wages what separates Clinton from the guys is the girls. We go on to point out that over 10 million more women vote than men and that Trump has a 73% negative rating among women particularly where you just- when he came out about a week and a half ago and said that if abortions were illegal in the United States, the woman that got the abortion would have to be punished for getting it. That was the end for him. He already had a long anti-woman platform building up. That is the end of it for him.
Again, as we see it, Sanders is a great bait out there to sucker in the Millennials. This whole Sanders thing, this guy is a fraud, man. All you have to do is go to Truth Dig then go to other places. "I voted against the Iraq war and with the money that was saved from the Iraq war. You got free education." Yeah, save ya Brooklyn kinisha at… "I grew up in The Bronx. I have seen it before." You are full of crap. You voted for Bill Clinton's bombing and destruction of Iraq when you are congressman, Bernie. BS, Bernie, you voted for the sanctions that Clinton put on Iraq and over 500,000 Iraqi children under the age of 5 were dead because they could not get medical supplies or food according to the UN, and Madeline Albright, that lovely Secretary of State under Clinton, when asked by Lesley Stahl on CBS' 60 Minute said, "It was worth the price." Oh, Bernie, you have voted for the Yugoslav destruction by Bill Clinton. And, Bernie, you got people arrested for protesting it, Bernie. Oh, Bernie, you love that Afghan war, did you not? "I voted against the Iraq war." Hey, Bernie you voted to fund it as you did to fund all the other military budgets. And, oh, Bernie, you love those F-35s that you want to bring in to the Burlington airport up there in Vermont, do you not? Yeah, you love those F-35s, that $1.5 trillion debacle. He is full of crap. He is a little nobody that never worked a day in his life, working in a little BS newspaper, local paper. He has been sucking off the public tit the rest of his life. He is a fraud. He will bring in the votes to Hillary because he has such as a negative rating. It is a perfect combination: Hillary and a fraud.
CK: Well, Gerald, I was going to say I personally do not vote so I kind of watch all these from the outside and I do not get too attached to any one candidate. But as much as the populist as Trump is and a self-interested pompous jerk, it is kind of fun to watch him make a total joke of the political system that has become a democracy in the United States. Is there not some part of you that loves watching what Trump is doing?
GC: I am delighted that Trump got into the presidential reality show. He showed what a fraud the whole thing is. Look what he did to the "party"? He left it in shambles, the Republican Party. There is nobody there, the Republican elite. What elite? Look at these little boys and girls. What, Mitch McConnell? Lindsey Graham? McCain? Who is that guy, Paul Ryan? Did not that guy, Paul Ryan, play Eddie Munster on The Munsters? I mean they are a bunch of nobodies. Trump, I love what Trump did in terms of showing what a whole fraud this whole system is.
CK: All right, Gerald, well, I really appreciate you always coming on the show and sharing your insights and the trends you have identified. If you do not mind, if you could take a few seconds to share different places that our listeners can go to find your content and subscribe to the Trends Journal moving forward that would be great.
GC: Yes, www.trendsresearch.com and not only do we have the Trends Journal, we also put out the Trends Monthly; the Trend Alert each week; we have Trends in the News broadcast each weekday night; and we put our money where our heart is. We also launched www.occupypeace.us. Go to that site as well www.occupypeace.us. It is a movement to honor the founding fathers beginning with George Washington who opposed foreign entanglements and the world was at war big time back then, as well as Madison, Adams, Jefferson, all the founding fathers were against foreign entanglements. Close down those bases overseas. Secure the homeland. Put the troops to work rebuilding our third world infrastructure. Do you know, Collin, that the United States, when adjusted for inflation, has spent more money "rebuilding" Afghanistan than we had with the Marshall plan after World War II? So, www.trendsresearch.com, we are trying to do our most in our fight for freedom, for peace, and the truth in trends.
CK: All right. Well, Gerald Celente, everybody. He is the publisher of Trends Journal. You all know who he is. Gerald, thank you so much for coming on the program.
GC: Thank you, Collin.
Gerald Celente is an American trend forecaster, publisher of the Trends Journal (www.trendsjournal.com), business consultant and author who makes predictions about the global financial markets and other events of historical importance. Celente has described himself as a "political atheist" and "citizen of the world". He has appeared as a guest on media outlets such as CNN, The Oprah Winfrey Show, The Today Show and Russia Today.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.