Posted on 12/18/2014 7:37:48 AM PST by GilGil
"I'll give you a couple of things to look for in 2015. Fundamental economic activity as measured in areas such as retail sales, industrial production, housing starts, payroll numbers and the broadest measure of unemploymentall those numbers are going to deteriorate. The economy is going to head down as we get into reporting in early 2015. Along with that will come renewed expectations of action by the Federal Reserve to accommodate the financial system, particularly the banking system, and the combination of those factors will, I believe, help to trigger a massive decline in the U.S. dollar. As a result of that, we will see spikes in commodity prices, such as oil. We will see a flight to quality in areas such as the precious metalsgold and silver. We will see the stock market and the bond market generally suffer some real selling pressure."
(Excerpt) Read more at gold-eagle.com ...
>>the combination of those factors will, I believe, help to trigger a massive decline in the U.S. dollar
Against what?
An economy and “prosperity” built on borrowed and printed money, with ongoing deficit spending and a minimum of $75 trillion in unfunded liabilities, will inevitably collapse Fed or no Fed.
“the combination of those factors will, I believe, help to trigger a massive decline in the U.S. dollar
Against what?”
That’s my question, as well. Maybe against gold, but the currencies of most our major trading partners look riskier than the dollar.
> “Against what?”
Yeah really. It’s a race to the bottom.
And herein lies the unseen reason for the Cuba deal bringing Cuba's failed economy under the wing of the American banking system and ultimately the American taxpayer who will be responsible for the bailout. Russia and Venezuela are kaput financially and can no longer sustain their ventures in Cuba. The Castro power base will erode without outside money and Obama is proud to provide it for his Marxist brothers.
John Williams, Hyper-Inflation Coming in 2011
LOL!
The Fed is on a terminal treadmill. They cannot raise rates they are trapped. They will have to continue to print and keep rates low. They have no idea of how to get out of this mess.
Williams predicts this every year. He and Kyle Bass should get together and cry on each other’s shoulders.
Juan Williams is deluded. We are headed for a deflationary depression.
This charade will end soon I fear.
Sep 13, 2015 is a date a lot of “date-setters” are using because it’s the end of a sabbath year and like the last sabbath year (2008) we had a crash, and the sabbath year before that we had another crash (2001).
Figure in Blood Moons and the literal world in chaos with Russia, Ukraine, the Middle East, China bullying it’s neighbors. We may be in for a rough ride.
The USD permabears believe that we will simultaneously see a dollar collapse against all other currencies and gold in the midst of a deflationary crash.
In their estimation, stocks, bonds, and real estate will collapse while commodity prices (especially physical gold & silver) will skyrocket.
The shred of evidence that they have to predict this set of outcomes is the strong performance of Homestake Mining after the DJIA bottomed out in 1932. The USD was of course taken off the gold standard that year, and FDR and Treasury Sec. Morgenthau engaged in outright manipulation of the gold price, to break the back of the “barbarous relic”...
Many stocks, such as Curtiss-Wright, GM, Bethlehem Steel, and RCA outperformed HM during the same period. The attempt by the Fed and Treasury to counteract deflationary pressure with monetary and fiscal policy produced a strong rally in stocks, just as it did in the hyperinflations in Germany and Hungary.
Look at leading Russian stocks over the past few weeks- strong rallies as the Rouble was collapsing. Equities tend to be a better store of value during reflation attempts.
My view:
The permabear logic makes no sense.
During a deflationary downdraft, why wouldn’t one want to be long bonds and short gold?
During the attempted reflation, why would one not want to be long equities and corporate debt?
There is only one indicator you need to follow to know what is coming and that is the BDI (Baltic Dry Index). And its not looking too good.
With cheap oil and low interest rates into the foreseeable future I don’t think this prognosis is correct.
The economy is going to head down as we get into reporting in early 2015.
.................
The economy always responds to lower oil prices by increasing. Low oil prices are hard on the oil patch but pure oxygen everywhere else. On the top line they work like a tax cut. On the bottom line they make workers more efficient and increase profits of companies.
Well, at least you know where he is coming from: He wants to sell you gold.
Just one more guru who has an idea that he knows the future course of the economy. You can take your pick of all the gurus out there and make your economic decisions based on how good you calculate their predictions are.
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