Gerald Celente: Optimism Opium

Back then, Gerald Celente accurately forecast, “The global contagion may be temporarily suppressed by doses of monetary amoxicillin, but when an outbreak recurs, it will be in a bailout-resistant and far more virulent strain.”

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This pernicious panacea anesthetizes the public. “Optimism Opium” dulls the pain ­ lost jobs, foreclosure, financial ruin ­ relaxes anxiety, decreases alertness, impairs coordination, and is highly addictive. Repeated or chronic use results in mental deterioration. Overdoses can result in stupor, coma and death.

From: Rense

Optimism Opium
By Gerald Celente
Trends Research Institute
4-3-9

KINGSTON, NY — In an Op-Ed piece in The New York Times (October 16, 1998), Gerald Celente predicted that government intervention to rescue “private corporations deemed ‘too big to fail’,” would result in the demise of free-market capitalism.

Back then he called it “Capitalism for Cowards.” (http://enews.trendsresearch.com/m/c11Gd7IjCZpvrtXX5dxJ
cA83nzAnrzmq-ue7SsNMOvN-XOQziw — Op-Ed piece.)

Today it’s called stimulus programs and rescue packages.

Back then, Celente warned the bailouts wouldn’t work.

Today, Celente repeats the warning they still won’t work.

Back then, the government warned that if Long Term Capital Management, a hedge fund, was not rescued, the global financial markets would implode.

Today, with the markets imploding, the government warns that if favored banks, brokerages, leverage buyout firms, insurance companies, etc. are not rescued, the global economy will collapse.

Back then, Gerald Celente accurately forecast, “The global contagion may be temporarily suppressed by doses of monetary amoxicillin, but when an outbreak recurs, it will be in a bailout-resistant and far more virulent strain.”

The global contagion was suppressed, the outbreak has recurred, and the more virulent strain is upon us. And, as Celente predicted, it is proving bailout resistant.

Today, Celente forecasts that no amount of monetary amoxicillin can cure the spreading virus.

Trend Warning #1: What’s being pitched today by the government has been tried before. It didn’t work then, and it won’t work now.

Following the Group of 20 summit, Barack Obama, while acknowledging there are no guarantees of success, declared, “I have no doubt, though, that the steps that have been taken are critical to preventing us sliding into a depression.”

Given that President Obama cannot provide guarantees, how can he “have no doubt”? Moreover, all of the bailouts, rescue packages, stimulus plans that he has supported/and or initiated to date, have already failed. And since the new plans are but variations upon tried, tested and failed policies, they, too, are destined to fail. The G-20 will not be a “turning point” and while the steps taken may slow, they will not prevent us from “sliding into a depression.”

Trend Warning #2: Don’t be seduced by temporary equity market spikes or leading economic indicator upticks. Be especially wary of pitchmen claiming the markets have bottomed and headlines insinuating that the worst is over (“Car sales not as horrid in March” and “Investors jump on good financial news,” USA Today, 2 April 2009).

What is being sold as “good financial news is, upon examination, news that is marginally less dismal than expected. Nevertheless, for insiders and professional gamblers, there will be opportunities to briefly ride the market waves.

There may also be ephemeral selling opportunities following accounting rule changes allowing banks to set their own prices for assets regardless of market values, and thus dramatically reduce their losses. This is not a step to recovery. This little reported Financial Accounting Standards Board (FASB) ruling is accounting flimflam, a capitulation that allows banks to set values to their own toxic assets.

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