Today the top trends forecaster in the world, Gerald Celente, warned King World News about what is about to rock global financial markets and gold.
The Fed Is In A Trap
Gerald Celente: “You have all of this money that has been borrowed and it went into emerging markets and inflated them artificially. But if the Fed raises interest rates the dollar gets stronger. If the dollar gets stronger, the resource-rich currencies get weaker. And they have to pay back all of this debt in dollars. So the Fed is in a trap…
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Gerald Celente continues: “They are running out of juice with the low interest rates and the QE. We already know they are running out of bonds to buy from the government, so now they are buying corporate bonds, both in Japan and Europe.
This Is About To Send Shockwaves Through Global Financial Markets
So here is what they (the Fed) are going to do, and they are sending out the signals already. Get ready in the next few weeks to keep hearing more and more about ‘fiscal stimulus.’ That’s the way they are going to play it. They are going to embrace fiscal stimulus. They gave the hint away at the G20 Meeting that they just had. The big talk at the G20 Meeting was to counter the ‘populist movements’ that are spreading around the world as a reaction to Fed and central bank policies that have enriched the already very rich and pushed the middle class into the lower class.”
Eric King: “But, Gerald, how do they counter that movement? What does that mean?”
The Next Card They Will Play
Gerald Celente: “What they are going to do to try to counter it (the populist movements) is to say, ‘Look folks, we’re going to try to help you. We’re going to try to stimulate the economy and create jobs.’ But it’s just another way to tax us and steal our money and give it to their buddies under the guise that they are going to build infrastructure or whatever else they can invent.
So they are going to make it seem as though with fiscal stimulus, and the governments getting involved, that that’s going to generate more growth. I am saying to you that’s what is going to be the next card that they play.
Whether or not the card is in a winning hand or not is a whole different story because how is Japan going to increase fiscal spending when their Debt/GDP is a (jaw-dropping) 240 percent? China’s Debt/GDP is 245 percent and the United States has $20 trillion in debt. But that is what they are going to try to do.
And all of this is bullish long-term for gold. But they are going to try to do everything they can to try to talk gold down! That’s all this is. It’s cheap talk and they do it all the time. And talk is cheap, but when the talk is controlled and it’s the only message that the markets are getting…to continue listening to one of Gerald Celente’s most important interviews of this year CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: Fleckenstein – Gold Could Blast Through $1,350 And Be $1,500 In The Blink Of An Eye CLICK HERE.
***KWN has also now released one of Bill Fleckenstein’s greatest interviews ever and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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