As we move closer to a pivotal moment in history, today the top trends forecaster in the world spoke with King World News about a great danger that is now threatening the world. He also warned that we have never seen anything like this in history.
Gerald Celente: “One of our top trends for 2015 is ‘Bankism,’ and yesterday the Federal Reserve proved our trend 100 percent correct. This is no longer capitalism. Read the top story from the Financial Times on Wednesday, ‘Fed Rate Rise Risks 1937-Style Market Slump.’….
Continue reading the Gerald Celente interview below…
“What Ray Dalio said in the note to clients that ‘He’s avoiding large bets on the financial markets for fear that the Fed’s expected change of policy could have dramatic unintended consequences.’ Notice he said, ‘bets.’ These are just gamblers, that’s all they are. These are not investors. These zero interest rates and free money carry trades have boosted the markets. You borrow for nothing and you gamble for free.
This Yellen scheme is a disgrace to America. When you see the pressure that came from the corporate sector, it could not be more obvious. So it’s not only ‘Bankism,’ it’s Wall Street welfare. This is fascism — the merger of state and corporate powers. The Fed bent to the corporate pressures coming from Wall Street and the high stakes gamblers.
Monetary Methadone For The Money Junkies
They also got pressured from Christine Lagarde, the head of the IMF, who also warned that ‘rate increases could trigger instability in emerging markets.’ So if they cut of the monetary methadone to the money junkies it’s going to cause instability. You have to keep giving them their fix. This situation is as disgraceful as anything I have ever seen in my life.
The markets immediately took the dollar, oil and gold lower and the euro higher. Well, today the euro is down and the dollar, oil and gold are higher. What we are seeing right now is unprecedented in the history of the world. No one has ever seen anything like this before.
If you look at the Fed’s statement, they downgraded growth for the end of this year. What’s important about this is there has been no economic growth because of all this quantitative easing and zero percent interest rates. The only people who have grown are the money junkies from all of this monetary methadone that’s been injected into the system.
The Federal Reserve also set new estimates for the Fed funds rate. They are forecasting a rate of 0.65 percent at the end of 2015. That’s a drop of 500 basis points, or more than 40 percent from its projection of having a 1.25 percent increase. A lot of this has to do with the value of the dollar, which has increased some 22 percent because of the anticipation of rising interest rates.
What’s the net effect of all this? Some $35.6 billion has flowed into European equity markets since the start of this year. This broke an all-time record set in the first quarter of 2014. Meanwhile, 33.6 billion has flowed out of U.S. equity funds. So the money junkies keep gambling, they have simply moved to another casino, as the economy continues to stagnate and a once strong middle class continues to evaporate.” Please support KWN below!!
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The audio interviews with Egon von Greyerz, Eric Sprott, Robert Arnott, Gerald Celente, Michael Pento, David Stockman, Marc Faber, Felix Zulauf, Andrew Maguire, John Mauldin, Dr. Paul Craig Roberts, Lord Christopher Monckton, Bill Fleckenstein, Dr. Philippa Malmgren, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.