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Faber, Rogers, Dent, Maloney, & Stockman – What Do They Say Is Coming In 2014?
Submitted by Michael Snyder of The Economic Collapse blog,
Some of the most respected prognosticators in the financial world are warning that what is coming in 2014 and beyond is going to shake America to the core. Many of the quotes that you are about to read are from individuals that actually predicted the subprime mortgage meltdown and the financial crisis of 2008 ahead of time. So they have a track record of being right. Does that guarantee that they will be right about what is coming in 2014? Of course not. In fact, as you will see below, not all of them agree about exactly what is coming next. But without a doubt, all of their forecasts are quite ominous. The following are quotes from Harry Dent, Marc Faber, Gerald Celente, Mike Maloney, Jim Rogers and nine other respected economic experts about what they believe is coming in 2014 and beyond...
-Harry Dent, author of The Great Depression Ahead: "Our best long-term and intermediate cycles suggest another slowdown and stock crash accelerating between very early 2014 and early 2015, and possibly lasting well into 2015 or even 2016. The worst economic trends due to demographics will hit between 2014 and 2019. The U.S. economy is likely to suffer a minor or major crash by early 2015 and another between late 2017 and late 2019 or early 2020 at the latest."
-Marc Faber, editor and publisher of the Gloom, Boom & Doom Report: "You have to say that we are again in a massive financial bubble in bonds, in equities, in [other] asset prices that have gone up dramatically."
-Gerald Celente: "Any self-respecting adult that hears McConnell, Reid, Boehner, Ryan, one after another, and buys this baloney… they deserve what they get.
And as for the international scene… the whole thing is collapsing.
That’s our forecast.
We are saying that by the second quarter of 2014, we expect the bottom to fall out… or something to divert our attention as it falls out."
-Mike Maloney, host of Hidden Secrets of Money: "I think the crash of 2008 was just a speed bump on the way to the main event… the consequences are gonna be horrific… the rest of the decade will bring us the greatest financial calamity in history."
-Jim Rogers: "You saw what happened in 2008-2009, which was worse than the previous economic setback because the debt was so much higher. Well now the debt is staggeringly much higher, and so the next economic problem, whenever it happens and whatever causes it, is going to be worse than in the past, because we have these unbelievable levels of debt, and unbelievable levels of money printing all over the world. Be worried and get prepared. Now it [a collapse] may not happen until 2016 or something, I have no idea when it’s going to happen, but when it comes, be careful."
-Lindsey Williams: "There is going to be a global currency reset."
-CLSA's Russell Napier: "We are on the eve of a deflationary shock which will likely reduce equity valuations from very high to very low levels."
-Oaktree Capital's Howard Marks: "Certainly risk tolerance has been increasing of late; high returns on risky assets have encouraged more of the same; and the markets are becoming more heated. The bottom line varies from sector to sector, but I have no doubt that markets are riskier than at any other time since the depths of the crisis in late 2008 (for credit) or early 2009 (for equities), and they are becoming more so."
-Financial editor Jeff Berwick: "If they allow interest rates to rise, it will effectively make the U.S. government bankrupt and insolvent, and it would make the U.S. government collapse. . . . They are preparing for a major societal collapse. It is obvious and it will happen, and it will be very scary and very dangerous."
-Michael Pento, founder of Pento Portfolio Strategies: "Disappointingly, it is much more probable that the government has brought us out of the Great Recession, only to set us up for the Greater Depression, which lies just on the other side of interest rate normalization."
-Boston University Economics Professor Laurence Kotlikoff: "Eventually somebody recognizes this and starts dumping the bonds, and interest rates go up, and inflation takes off, and were off to the races."
-Mexican Billionaire Hugo Salinas Price: "I think we are going to see a series of bankruptcies. I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis. This is going to bring down the derivatives system (and the financial system).
There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates. The spiking of interest rates in the United States may set that off. What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe."
-Robert Shiller, one of the winners of the 2013 Nobel prize for economics: "I'm not sounding the alarm yet. But in many countries the stock price levels are high, and in many real estate markets prices have risen sharply...that could end badly."
-David Stockman, former Director of the Office of Management and Budget under President Ronald Reagan: "We have a massive bubble everywhere, from Japan, to China, Europe, to the UK. As a result of this, I think world financial markets are extremely dangerous, unstable, and subject to serious trouble and dislocation in the future."
And certainly there are already signs that the U.S. economy is slowing down as we head into the final weeks of 2013. For example, on Thursday we learned that the number of initial claims for unemployment benefits increased by 68,000 last week to a disturbingly high total of 368,000. That was the largest increase that we have seen in more than a year.
In addition, as I wrote about the other day, rail traffic is way down right now. In fact, for the week ending November 30th, U.S. rail traffic was down 16.3 percent from the same week one year earlier. That is a very important indicator that economic activity is getting slower.
And we continue to get more evidence that the middle class is being steadily eroded and that poverty in America is rapidly growing. For example, a survey that was just released found that requests for food assistance and the level of homelessness have both risen significantly in major U.S. cities over the past year...
A survey of 25 American cities, including many of the nation's largest, showed yearly increases in food aid and homelessness.
The cities, located throughout 18 states, saw requests for emergency food aid rise by an average of seven percent compared with the previous period a year earlier, according to the US Conference of Mayors study, published Wednesday.
All but four cities reported an increase in demand for assistance between the period of September 2012 through August 2013.
Unfortunately, if the economic experts quoted above are correct, this is just the beginning of our problems.
The next wave of the economic collapse is rapidly approaching, and things are going to get much worse than this.
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Take 50 to a 100 million people on the East coast fanning out from the cities, looking for food shelter. Some have guns cars bad attitude. So what? Wrong answer. But wait the Govt will handle them right?
People are already getting together to form loan companies, paying reasonable interest on savings and charging reasonable interest on loans.
I think their predictions fail and rally continues long next year because solid profits. They just are doom mongers
p.s. i trust more Mr Blankfein than Faber, thanks
The world is ending so how should we be prepared ? Here in the US, we have abundant gas and oil and is going to last for a few decades at least , not to mention we have tons of coal that will last longer than the life time of our great grand kids. So there will be energy for transportation, electricity generation, heating, and industrial consumption. The abunadnace of natural gas will supply us with feritlizer and we will eat and get fatter. We have more houses than we needed to shelter everyone. So if the USD loses it s wrold reserve status, we jsut sit at home and eat. What is the problem ?
The photo needs to be Carson as Karnak.
All the doomsayers are correct, and have been for most of the past 10 years.
It is taking extraordinary efforts around the globe for TPTB to keep this ship afloat, but what I don't think they figured out was that the banksters would steal oll that free money they poured in, and invent a tonne more in derivitives games.
They are having to keep heavy pressure on the mainstream media to keep them from asking the right questions. They are changing as many rules as they can about freedom of expression and public dissent. They are setting up new rules to steal your pension and also your bank accounts.
These are very desperate acts by very desperate people. Congress and the White House will never face up to the facts. Never. Only when the peeple are camped on the lawns of Washington will they show the slightest amount of concern. And by then the police will be full paramilitary and the National Gurad will have been re-invented as a mercenary brute squad.
As the great idiot-savant Greenspan put it, there was a flaw in the plan that he couldn't see. Greedy people love money above everything else. Until they are ruined, gutted, or put in jail, they will keep going with their madness, and enslave us all.
The other great mystery is that, despite two thousand years of evidence, common folks just don't want to wake up. Keep 'em busy looking for the next meal, and they won't look at the mess they are in, and who caused it. Go figure.
Translation: no one on Man Street who has lost a job to offshoring gives a crap about the Rothschild family or the bank cartel.
We HAD massive levels of debt that threatened the financial system until the Fed decided to absorb most of it, and in so doing erase it from existence. At this point, from a macro perspective, debt in the U.S. is imaginary, replaced by imaginary money.
Ironically, the saving grace of Fed policy has been the short term horizon of investors. On a short term time scale, the debasement of the USD doesn't matter, risk doesn't matter, confidence doesn't matter, and the only thing that matters is momentum. It's party time in the markets and the party ain't over til its over.
The same blindness to long term consequences and short term gratification rules the political sphere as well. Which is why we end up with a one-party, victim-based entitlement system.
Prudence, liberty and self-reliance are the values of yesterday. This time, we can (in the words of a writer recently on Marketwatch) meld the marxist and capitalist models because "this time it's different". I just hope I don't live to see the ultimate downfall of my country.
I have taken this view: Instead of plummeting over a cliff, the global economic system is sliding down a 5-7% grade. As the momentum builds, it takes more energy to apply the brakes, ergo, more QE, or, the descent just comes faster. At some point, the grade may become 10 or 15%, and that's when things really start to roll. The brakes begin to fail, eventually the wheels fall off. I figure we're anywhere from 2-10 years away from the final crash.
In the meantime, as things get suckier and suckier (gotta luv Pelosi's "embrace the suck" comment, that dim bitch), it's the duty of every capitalist American to turn pirate and play both sides against each other. Personally, I've fucked over a bank by living in a glorious three-bedroom house (inherited, I fell into this), paying no mortgage, in foreclosure since March 2010, and now that the place is falling apart, I'm negotiating wit them for a cash for keys deal (plus stopping my fraud lawsuit). They're at $5,000, I'm kinda fond of $12,000. Fuckwads will come back with something close to the middle, and I'll settle somewhere around $8,500, I figure. Already have my 3 1/2 acres in SC, moving in Feb. from NY.
This is great since they've been paying the taxes, but, but, but, I've mowed the lawn and shoveled snow religiously. HAHAHAHA.
Also, I've run my business to the bone, still hawk stuff for 5-10-20X what I paid (collectibles, other junk from garage sales, etc.), so I'm taking a bit of advantage of those distressed (plenty of them) and selling to those still with money.
Pumped most of my funds into paying down debt (almost there), cash, PMs, useful assets (vehicles, farm tools, equipment). I now have cash, solid credit, land, tools and a clear conscience. Best of all, where I'm moving, the people are even dumber.
Be a prepper for sure, but be a capitalist first. My dad (RIP) always said the people who prospered (note, not survived, but PROSPERED) during the Depression were people with CASH. Same as it ever was. Money talks...
Stack like mad.
Thinking you can reliably predict stock and share markets is a triumph of hope over experience.
There are so many forecasts that some of the forecasts will be right some of the time. Unfortunately, it is not possible to know which of them will be right.
A forecaster being right in the past by chance offers no greater certainty that they will be right by chance in the futuire.
Even knowing the future GDP for next year and individul earnings outcomes would not help predict the reaction of markets to the information.
Of course what we can predict is that forecasters will continue to provide a good forecasting story so as to try to monetise it for their own benefit.
Still its fun to speculate - both by forecasting and investing.
"bears" that keep calling for deflation are "useful idiots". Has the FED not made it abundantly clear that they will stop at nothing(up to and including destroying the currency) to prop up paper asset prices while simultaneously exploiting reserve currency status by manipulating interest rates?
Bears needed to get their act together and warn against inflation. Hedging deflation supports the status quo by keeping prices lower than what is being telegraphed by the owners of the worlds reserve currency.
Have a little faith in the system, will you? If you don't like the price, don't buy it. If you think it's bullshit, say something. But don't be a grouch.
One has to take in consideration that the market has risen on low interest rates for over four years. This tends to make it an artificail rise that can only be sustained by the continuation of these lower rates. I prefer a growth market not one pushed up by the printing of money. A correction is quite possible as everyone is in equities the only game in town!