Economy in Collapse
Gerald Celente – Trends Institute January 23, 2009
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.
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Last updated 31/01/2009