World Affairs Brief, May 9, 2014 Commentary and Insights on a Troubled World.
Copyright Joel Skousen. Partial quotations with attribution permitted. Cite source as Joel Skousen’s World Affairs Brief (http://www.worldaffairsbrief.com)
THIS WEEK’S ANALYSIS:
Russian Interim Strategy Against Ukraine
Chinese Staking Out Oil Claims in Disputed Waters
US Military Pivot to Asia a Paper Tiger
Economy: Celente will be Wrong Again
Political and Legal Moves around FATCA
Three Major Court Rulings Against Liberty
ECONOMY: CELENTE WILL BE WRONG AGAIN
Famous trends forecaster Gerald Celente is still claiming that the economy will collapse in the second quarter of this year (we are in it already). He predicted another collapse last year and it didn’t happen. He says that currently, the financial system is still being pumped with cheap money, such as $45 billion a month in mortgage-backed securities, and interest rates remain at record lows [true]—but once those interest rates go back up, the economy will tumble. –Not necessarily.
While the US continues its behind-closed-doors propping up of the economy, “I still believe we’re going to see something like a panic level by the end of the second quarter,” Celente remarked. I too decry the inflationary tactics of the FED, but I think he’ll be wrong just like last year. Even if the high flying stock market is due for a 20% correction, the economy still won’t collapse.
I’ve never challenged the phony basis of US economic strength—fiat money. It constitutes theft of all existing values and cannot be sustained forever. But Celente doesn’t understand that the financial Powers That Be aren’t nearly out of ammunition, nor does he understand the globalist agenda whereby the PTB are going to subject us to a nuclear war, not only to drive us all into a militarized global government for “protection” but to give them the excuse to switch to a new world currency and control system—and escape the blame. “The war forced this upon us” they will say.
Fed Chairwoman Janet Yellen confirmed as much this week when she said the “US Economy still needs stimulus…. a ‘High Degree’ of Accommodation is still needed.” But, contrary to what Peter Schiff claims, this does not necessarily mean hyperinflation. The Fed is perfectly capable of keeping the bailouts going while still keeping real inflation below 10%. They’ve been doing it now for 20 years, and most people keep pace, even though it is painful.
Yellen refused to be pinned down on any specifics, but did hint that “The Fed is steadily cutting its monthly purchases of Treasury and mortgage-backed securities, now at $45 billion a month, and Ms. Yellen affirmed that it planned to end those purchases in the fall. The bank must then decide when to start raising short-term interest rates, which it has held near zero since December 2008.
But I guarantee you, she is perfectly capable of reneging on that interest rate change if they think it would cause the housing market to tumble, as Celente predicts. That’s the trouble with predicting anything in today’s manipulated economy—it’s manipulated by a conspiracy of power.
So, unless you can see, as Peter Schiff did in 2007, that a specific type of manipulation has run its course (the mortgage backed securities expanded as far is they could because they ran out of buyers who could qualify under even zero down conditions) then you can’t predict a collapse. Besides, economies never totally collapse anyway—except in a complete war of devastation. I’m predicting the collapse won’t come until war hits America.
(audio/text) Joel Skousen: ANALYZING the PROMOTERS OF DOLLAR COLLAPSE — The number of voices calling for a collapse of the dollar is reaching a crescendo and I’m compelled to do a detailed analysis to keep my readers from panicking. The Powers That Be show every sign of trying to keep things afloat with continual BAILOUTS, WITHOUT CAUSING HYPERINFLATION. I’ll cover three of the most prominent purveyors of the dollar collapse scenarios.