The Phaserl


Celente – QE, Gold, Silver & The Coming Financial Collapse

from KingWorldNews:

Celente: “It’s all about stimulus and when it’s going to stop. Here’s our forecast and you are hearing it (here on KWN) first: We believe they are going to keep levels of stimulus high enough into the new year.

The reason (for this) is they have to boost retail sales during Christmas time. They are going to do everything they can to keep this economy looking strong. And then, I believe they (central planners) are going to taper back. They are going to have to taper back.

And when they taper back, that is when you are going to see the real collapse start to happen….

Gerald Celente continues @

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4 comments to Celente – QE, Gold, Silver & The Coming Financial Collapse

  • Larry

    Can’t the fed keep interest rates low indefinately? If the Fed is the only buyer of treasuries, then dont they have complete control?

  • Ed_B

    “This has only been an interest rate recovery. It’s these record low interest rates and this unprecedented money pumping scheme that’s never been seen in the history of the modern world (that has facilitated this so-called recovery).”

    Celente really has his finger on the pulse of the US economy. He knows that we do not have a recovery from the 2008 financial collapse. If we did, we would be awash in good jobs by now and we aren’t. The Gov and the Fed are so eager to show positive results from their idiotic policies that they are now reduced to lying about everything that has anything to do with the US economy. Unemployment, for example, now sits at about 15%. But that is a terrible number, so they fiddle with how this is calculated until they come up with a lie that by their method it is only 1/2 of that, which is a “good number”. Inflation is now over 9% but that’s a bad number, so they fiddle with how it is calculated, come up with 2.3% which is a “good number”, so all is well. It IS well, isn’t it? Only if we are dumb enough not to see this for what it truly is and that is pure unadulterated hogwash. So, repeat after me, “THERE IS NO RECOVERY!”. Say that several times until it sinks in and then you will understand that we are in deep economic and financial poop and everyone who says we are not is a bald-faced liar.

    Turning back to interest rates, it should be noted that super-low interest rates, such as we have today, have had since 2009, and are likely to have for a while yet, are not the cure-all that the Fed seems to think that they are. It is a general rule of thumb that lower interest rates foster economic growth because they usually make borrowing money a little cheaper and people are, therefore, more willing to borrow money to buy things and start or expand a business. Like all rules of thumb, however, this one too is generic in that there are limits as to its effects. If a business is considering a project that will cost it $100M dollars, a 6% interest rate means that it will cost them $6,000,000 a year in interest payments alone to borrow this money. This is a significant chunk of change and a well-run business will consider the pros and cons of this very carefully so as to make a good decision that benefits the business. As the interest rates are lowered, however, the cost of borrowing this money drops, which reduces the impact that borrowing has on the business. If it drops far enough, its impact shrinks to a point where it is barely significant. I suggest that we have arrived at this point and that interest rates as an incentive to borrow, spend, and expand have dropped below the threshold where the whether or not to borrow money decision process is taking notice any more. We probably hit that somewhere around 2.5-3%. Because of this, reducing the interest rates below 2.5-3% now no longer matters in this decision and only other considerations now matter. This is how capital becomes misallocated not because it is financially viable but merely “because we can” and “it might work”. Because of this, super-low interest rates are now not only not helping the economy, they are actually hurting the economy. They are also hurting seniors and others who rely on their savings to generate income on which they can live. Interest rates should be raised in a slow and orderly manner and sooner rather than later. Doing this will not harm the economy but it will slow down the misallocation of borrowed capital. It will also help those who are burning through their savings because they cannot earn enough interest on them to meet their cost of living.

    • Glitter 1

      But Ed, The Great Oricle Of Zak says the recovery is excelerating to escape volocity due to the “Housing Boom”,which he prophesied before anyone else.

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