Posts Tagged ‘Gerald Celente’

Instability, Food Riots And A Heaping Dose Of ‘I Told You So’

March 3, 2011

I saw this headline and the corresponding story on CNN and was thinking to myself, “Why does this sound so darn familiar?”

Riots, instability spread as food prices skyrocket
April 14, 2008

Riots from Haiti to Bangladesh to Egypt over the soaring costs of basic foods have brought the issue to a boiling point and catapulted it to the forefront of the world’s attention, the head of an agency focused on global development said Monday.

“This is the world’s big story,” said Jeffrey Sachs, director of Columbia University’s Earth Institute.

“The finance ministers were in shock, almost in panic this weekend,” he said on CNN’s “American Morning,” in a reference to top economic officials who gathered in Washington. “There are riots all over the world in the poor countries … and, of course, our own poor are feeling it in the United States.”

And what would you know, I was out there predicting Obama would lead the world into collapse way, waaaaayyyy back in 2008 after the Disaster-in-Chief began his “God damn America” regime.  And a few months later I expanded on that dreadful Gerald Celente forecast of food riots by combining it with an economist’s take on Obama’s ruinous economic policies being analogous to a gambling addict “placing wild, desperate bets in the hope of getting rescued by good luck.”

Ah, memory lane…

There were two sides offering their views as to just what Obama’s “hopey changey” would look like.  Liberals said it would be a wonderous Utopia and conservatives said it would be an unmitigated disaster.  And, now, as food riots start erupting all over the planet, who turned out to be right???

But wait a minute, you the ever doctrinaire ideological liberal say.  You say, “It’s not Obama’s fault that global food prices are spiralling out of control.  It’s not Obama’s fault we didn’t get hopey changey.  It’s not Obama’s fault that the trillion dollar stimulus was a total failure even according to Obama’s own standards. 

What can I tell you but “Wrong, wrong and more wrong”???

From The Wall Street Journal:

FEBRUARY 23, 2011
The Federal Reserve Is Causing Turmoil Abroad
Few protesters in the Middle East connect rising food prices to U.S. monetary policy. But central bankers do.
By GEORGE MELLOAN

In accounts of the political unrest sweeping through the Middle East, one factor, inflation, deserves more attention. Nothing can be more demoralizing to people at the low end of the income scale—where great masses in that region reside—than increases in the cost of basic necessities like food and fuel. It brings them out into the streets to protest government policies, especially in places where mass protests are the only means available to shake the existing power structure.

The consumer-price index in Egypt rose to more than 18% annually in 2009 from 5% in 2006, a more normal year. In Iran, the rate went to 25% in 2009 from 13% in 2006. In both cases the rate subsided in 2010 but remained in double digits.

Egyptians were able to overthrow the dictatorial Hosni Mubarak. Their efforts to fashion a more responsive regime may or may not succeed. Iranians are taking far greater risks in tackling the vicious Revolutionary Guards to try to unseat the ruling ayatollahs.

Probably few of the protesters in the streets connect their economic travail to Washington. But central bankers do. They complain, most recently at last week’s G-20 meeting in Paris, that the U.S. is exporting inflation.

China and India blame the U.S. Federal Reserve for their difficulties in maintaining stable prices. The International Monetary Fund and the United Nations, always responsive to the complaints of developing nations, are suggesting alternatives to the dollar as the pre-eminent international currency. The IMF managing director, Dominique Strauss-Kahn, has proposed replacement of the dollar with IMF special drawing rights, or SDRs, a unit of account fashioned from a basket of currencies that is made available to the foreign currency reserves of central banks.

About the only one failing to acknowledge a problem seems to be the man most responsible, Federal Reserve Chairman Ben Bernanke. In a recent question-and-answer session at the National Press Club in Washington, the chairman said it was “unfair” to accuse the Fed of exporting inflation. Other nations, he said, have the same tools the Fed has for controlling inflation.

Well, not quite. Consider, for example, that much of world trade, particularly in basic commodities like food grains and oil, is denominated in U.S. dollars. When the Fed floods the world with dollars, the dollar price of commodities goes up, and this affects market prices generally, particularly in poor countries that are heavily import-dependent. Export-dependent nations like China try to maintain exchange-rate stability by inflating their own currencies to buy up dollars.

Mr. Bernanke has made it clear that his policy is to inflate the money supply. His second round of quantitative easing—the controversial QE2 policy to systematically purchase $600 billion in Treasury securities with newly created money—serves that aim. But even for the U.S. it is uncertain that Mr. Bernanke can hold to his 2% inflation target. Oil is going up. Foodstuffs are going up. And when the Fed sneezes money, the weak economies of the world, and the poor masses who are highly vulnerable to price rises in the necessities of life, catch pneumonia.

The turmoil in Iran is reminiscent of another period when the Fed was on an inflationary binge, the late 1970s. The Iranian oil boom had brought many thousands of peasants out of the villages into the cash economy in population centers like Tehran. On top of the disorientation resulting from that change itself, Iranians were then victims of an outbreak of inflation and a sharp decline in the purchasing power of the rials in their pay envelopes. Confused and angry, they supported the clerical revolution that unseated the shah and has been a thorn in America’s side ever since.

Today’s Iranian revolt has similar causes and, if successful, could be the flip side of 1979, a nation again friendlier toward the U.S. But there is no guarantee of that, or that states now friendly, like Bahrain, will remain so after an Egyptian-style upheaval.

Indeed, it is unlikely that Americans themselves will escape the inflationary consequences of current Fed policy. Aside from the rise in oil and foodstuffs, higher prices of manufactured goods are in the offing. China’s inflation rate is hovering at 5%. MKM Partners, a research and trading firm, last November reported that an internal study at Wal-Mart, a big importer from China, showed that the huge retail chain’s prices are edging up at an annual rate of 4% a year. That recent trend showed up in last week’s consumer-price index report.

The Fed is financing a vast and rising federal deficit, following a practice that has been a surefire prescription for domestic inflation from time immemorial. Meanwhile, its policies are stoking a rise in prices that is contributing to political unrest that in some cases might be beneficial but in others might turn out as badly as the overthrow of the shah in 1979. Does any of this suggest that there might be some urgency to bringing the Fed under closer scrutiny?

And while the above article points out the horrible effect Obama’s massive spending policies are having on the rest of the world, that cold is already catching here in America, too, given stories like this one:

Hope ‘n Change Coming To Fruition: Cost Of EVERYTHING About To Go Up

I told you so.  I TOLD you so.  I TOLD YOU SO.

It’s funny, actually.  As popular as Obama was with fools right here in America, he was even more popular with the fools in the rest of the planet.

And now those fools are beginning to starve because of their Fool-in-Chief.

Think of it: Obama is literally proving to be the fool who flung an entire planet into chaos and war.  After promising so many lies that he would do the exact opposite.

I still remember an arrogant, pathologically narcissistic and delusional Obama saying:

“I am absolutely certain that generations from now, we will be able to look back and tell our children that this was the moment when we began to provide care for the sick and good jobs to the jobless; this was the moment when the rise of the oceans began to slow and our planet began to heal; this was the moment when we ended a war and secured our nation and restored our image as the last, best hope on Earth.”

I’ve said stuff like this many times before, and I quote myself yet again:

Is Barack Obama the Antichrist?  There sure are a lot of signs that he is in the media!  But I believe that he is just one of the false messiahs (Matthew 24:24).  Rather than being THE Antichrist, I believe that Obama is just one of the false messiahs who will so completely screw up the United States and the world that Antichrist will be able to emerge to “save the day.”

You mark my words: the beast, the antichrist the Bible has warned us of two millenia in advance, is coming.  Barack Hussein Obama is a monumental fool who will plunge the entire world into collapse and anarchy.  And it will take a man who seems so great that he will literally be worshiped as GOD to appear to get us out of the destruction that Obama’s despicable and evil policies create.

The collapse may well not occur during Obama’s misbegotten regime.  But he will leave us in such a terrible position that the United States of America will necessarily inevitably collapse.  Once you fundamentally destroy something the way Obama is fundamentally destroying America, you can’t put it back together.  Even the wisest leadership won’t be able to save us.  Four years of Barack Obama was the curse of God damn America that will keep on cursing and cursing.

Liberals always claim that they help the little people.  But their policies HURT the little people.  Inflation is a curse brought about by Obama’s and the Democrat Party’s fiscally reckless and morally insane spending.  Inflation doesn’t hurt the wealthy, because they have the means to buy financial devices and investments such as gold that protect them from the ravages of inflation.  No, it is the poor whom Obama’s evil policies are most hurting.  It is the poor across the world who are rioting now because of food shortages that were brought about by Obama’s reckless polices.  And it will be the poor in America who will soon shortly be rioting in the streets because an evil man brought “God damn America” to our nation.

Reuters’ Nine Reasons Democrats’ Healthcare Surtax Is Dangerous

July 16, 2009

Our republic is in the worst kind of danger.  No enemy could do to us from without what Obama and liberal Democrats are doing to us from within.

9 reasons Pelosi’s healthcare surtax is disastrous

by: James Pethokoukis

So what explains the crazy, cockeyed optimism of House Democrats? Maybe they still believe Team Obama’s rosy-scenario forecast that shows the stimulus package a) keeping unemployment under 8 percent this year and b) launching an economic boom next year and beyond. For some reason, though, they think the battered U.S. economy is so strong that politicians can pile tax upon tax on it with no fear of further harm. Less than three weeks after passing a costly cap-and-trade carbon emission plan, Pelosi & Co. have giddily unveiled a $1.2 trillion healthcare plan partially funded by a $544 billion surtax on the work and investment income of wealthier Americans, including small business owners.

[See why Obama’s economic gamble is failing.]

The ten-year proposal calls for a 1 percent surtax on adjusted gross income — including capital gains — between $350,000 and $500,000; a 1.5% surtax on income between $500,000 and $1 million; and a 5.4% surtax on income exceeding $1 million. (Interestingly, the House fact sheet on the surtax forgets to mention the highest tax rate. Hey, they were in a rush.) How bad an idea is this? Let me count the ways:

It’s not the first Obama tax hike. This tax would be in addition to the $1 trillion in new taxes that Obama called for in his budget released earlier this year. (And then there’s cap and trade, remember.) And if healthcare reform costs more than expected — what are the odds of that, you think? — the surtax would go up.

[See 5 economic stimulus plans better than the one we’ve got.]

It pushes income tax rates above a key threshhold. Once you take into account state income taxes, the top tax rate would sneak above 50 percent. Research by former White House economist Lawrence Lindsey has found that rates above 40 percent really start to hit economic growth especially hard.

It’s risky in a weak economy. Democrats love the “consensus view” when it comes to climate change, so how about the economy? The consensus view is for unemployment to hit double digits this year and stay high throughout 2010 and beyond as the economy staggers to its feet. Even Treasury Secretary Tim Geithner said “it seems realistic to expect a gradual recovery, with more than the usual ups and downs and temporary reversals.” In a “long recession” environment, do we really want a policy that, according to research that current White House economic adviser Christina Romer conducted at Stanford University, is “highly contractionary.”

It actually makes America’s healthcare problem worse. Entitlements, including Medicare, will eventually bankrupt the economy unless action is taken. Agreed. But lowering the potential U.S. growth rate will only make those problems worse by generating lower tax revenue and making the overall pie smaller than it would be otherwise. Yet many economists think government interventions in finance, housing, autos, energy and now healthcare will do just that. And adding layers of additional new taxes helps how?

It makes the tax code more lopsided and inefficient. As it is, the top 1 percent of Americans in terms of income pay 40 percent of taxes. Not only would this plan exacerbate this imbalance, it adds further complexity to the tax code. Most tax reformers favor a simpler system with fewer brackets and deductions matched by a lower rate. Indeed, Howard Gleckman of the Tax Policy Center points out the following:

Many of the uber-rich are unlikely to pay much more in taxes than they do now, despite the rate increase. Since we’d be returning to pre-1986 rates, we shouldn’t be surprised when the very wealthy reprise their pre-1986 sheltering behavior. The hoary financial alchemy of turning ordinary income into capital gains, morphing individuals into corporations, and deferring compensation will return. Remember, the targets of these tax hikes are the people who can most easily manipulate their income. The bad old days of bull semen partnerships may not return, but I suspect the financial Merlins are already cooking up new shelters for what promises to be a booming new market.

It hurts U.S. competitiveness. America already has the second highest corporate tax rate in the world. Under the House plan, the top U.S. income tax rate would be higher than the OECD (advanced economies) average of 42 percent. France and Germany, by contrast, are looking to keep rates stable or lower them. Pro-growth China doesn’t even tax investment income.

It ignores the lessons of Clinton. Democrats love to point out how the Clinton tax increases didn’t tank the economy back in the 1990s. Oh, you mean the economy that was expanding for more than two years before he signed his tax increases? The economy is far weaker today and may be anemic for some time given the history of economies that suffered a banking crisis.

It ignores the lessons of 1937. The slowly recovering 1930s economy weakened again in 1937 and 1938. Again, Christina Romer tells all:

In this fragile environment, fiscal policy turned sharply contractionary. The one-time veterans’ bonus ended, and Social Security taxes were collected for the first time in 1937. … GDP rose by only 5% in 1937 and then fell by 3% in 1938, and unemployment rose dramatically, reaching 19% in 1938. The 1937 episode is an important cautionary tale for modern policymakers. At some point, recovery will take on a life of its own, as rising output generates rising investment and inventory demand through accelerator effects, and confidence and optimism replace caution and pessimism. But, we will need to monitor the economy closely to be sure that the private sector is back in the saddle before government takes away its crucial lifeline.

Except in this the case, Uncle Sam is not taking away a lifeline but tightening the noose.

It pays for a wrong-headed healthcare reform plan. Health exchanges, a public option, subsidies, taxes … well, we could go on and on. Or we could try to create a simpler consumer-driven market. Harvard Business economist Regina Herzlinger recommends reforming the tax system by making the money spent by employers on health insurance available as cash, tax-free, to employees. “Insurers would then compete for customers with policies that offer better value for the money,” she wrote in an analysis for consultancy McKinsey. Not even on the Obamacrat radar screen, though.

All in all, it’s another sign from the Obama administration and the Obamacrats in Congress that their top priority is redistributing existing wealth — at least what’s left of it — rather than creating new wealth. That, I guess, explains those ear-to-ear smiles on Capitol Hill.

Small businesses – widely recognized as by far and away the biggest job- and wealth-creating engines for our economy – are about to get hit with a massive double whammy.  Since most file as “S corporations” by which they are taxed on their total earnings, they will fall under the Democrats plans to “tax the rich.”  More than 1 million of our most successful small businesses which employ the most workers will be hit by this tax.  And at the same time, all but the very smallest small business will be hit with Obama’s additional 8% payroll tax unless they provide health care insurance that passes liberals’ scrutiny.

Meredith Whitney, who gained a great deal of credibility after predicting much of the economic calamity that has since come to pass, has predicted that unemployment will surpass 13%, and continue to harm the banking industry and the overall economy for years to come.  What fool thinks it’s a good idea to impose job-crushing policies while our unemployment rate is already soaring?

We are facing deficits and debts that dwarf anything ever seen in human history.  And we are about to reach a critical mass, a point at which the entire house of cards comes crashing down.  And America is going to experience suffering on a scale never even imagined before.

Gerald Celente, CEO of the highly regarded Trends Research Institute, predicted that we will have food riots and tax revolts by 2012.  He said “America’s going to go through a transition the likes of which no one is prepared for.”

Obama and his giant nest of liberal snakes have already imposed shocking levels of debt on this nation that will almost certainly result in hyperinflation in coming years.  And he is hard at work poisoning our economy with stupid and immoral health care legislation and even more stupid and immoral cap-and-trade legislation that will kill our economic output without even slightly reducing overall global warming gasses.

What is going to happen in the next few weeks is the difference between whether this nation has any chance whatsoever to recover, or whether we are destined to become a banana republic spiralling down a cyle of violence and repressive government regimes.

Fund Betting Big That Obama Kills U.S. Economy With Hyperinflation

June 2, 2009

There’s a memorable line in the movie, The Hunt For Red October.  A fanatic  Soviet submarine skipper – trying to complete his mission to destroy the renegade Soviet sub “Red October” before it escapes to America – makes a fatal overconfident miscalculation.  As the torpedo he fired boomerangs back toward the very submarine that fired it, a Russian officer turns to the captain and shouts:

“You arrogant ass!  You’ve killed US!”

Essentially, a hedge fund that was wildly successful last year is betting that the American people will be shouting that very same line at Barack Obama.

The June 2 article from The Wall Street Journal:

Black Swan Fund Makes a Big Bet on Inflation

A hedge fund firm that reaped huge rewards betting against the market last year is about to open a fund premised on another wager: that the massive stimulus efforts of global governments will lead to hyperinflation.

The firm, Universa Investments L.P., is known for its ties to gloomy investor Nassim Nicholas Taleb, author of the 2007 bestseller “The Black Swan,” which describes the impact of extreme events on the world and financial markets.

Funds run by Universa, which is managed and owned by Mr. Taleb’s long-time collaborator Mark Spitznagel, last year gained more than 100% thanks to its bearish bets. …

A Bloomberg article offers a little more.  An excerpt:

June 1 (Bloomberg) — Universa Investments LP, the hedge- fund firm advised by “Black Swan” author Nassim Taleb, is adding a new strategy, betting that government efforts to pump money into economies around the world won’t prevent deflation or could result in hyperinflation. […]

Policy makers have no control over the outcome of their actions,” Taleb said. “The plane they are flying will either hit the mountain, which is hyperinflation, or crash in the ocean, which is deflation. There is a chance of the pilot hitting the runway. But if he’s not skilled, it’s less than he thinks.

Obama has – and this is a direct quote from another Wall Street Journal piece – been “adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined.”  We have a national deficit of $11 trillion that has been racking up since the 1920s, and the Congressional Budget Office is estimating that Obama will nearly double it with a further $9.3 trillion in his own deficit spending.  Even as “[t]he U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion.”  And growing.  And spent in order to spend us out of a hole that was created by the weight of excessive debt in the first place.

“You arrogant ass!  You’ve killed US!”

A C-SPAN interview with Obama reveals a fascinating mindset.

SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.

Notice that Obama acknowledges that the government is out of money, and then immediately starts discussing spending what is expected to top $1.5 trillion MORE for his  health care “investment.”   He is an addict who cannot stop his spending.  He’s like a gambler who thinks he’ll hit it big on the next roll of the taxpayer dice.

And that $1.7 trillion figure from the C-SPAN interview, as bad as it is (I mean, you have to understand: people complained about Bush’s spending raising our debt $1.2 trillion over THREE YEARS), is still likely a lowball figure.  The numbers keep changing.  McClatchy Newspapers has an article describing the rosy numbers, fuzzy math, and constantly changing numbers coming out of the Obama administration.

According to Strategas analyst Dan Clifton’s budget analsis as found in US News & World Report:

Based on our analysis, the deficit is actually $2.2 trillion for the fiscal year or nearly 100 percent higher than is being reported. In fact, the deficit will finish the fiscal year at an astonishing 15.5 percent of GDP! Federal spending will rise to 32 percent of GDP.

The United States will have to borrow nearly 50 cents for every dollar it spends this year.  By 2019 Obama will have so exploded the debt that it will exceed 82% of gross domestic product.  And we are simply doomed.

“You arrogant ass!  You’ve killed US!”

China has been warning the Federal Reserve over “printing money” – a warning that comes amid growing fears that America could lose its AAA sovereign rating.  The dollar has weakened sharply against other currencies due to the Treasury simply creating money out of thin air.  China is increasingly concerned that all this “money creation could end up debauching the dollar … inviting a global inflationary crisis.”   The policies that the Obama administration has been pursuing have led another writer for the UK Telegraph to conclude, “From now on, think of the US as a bigger Zimbabwe.”

A Bloomberg article describing Treasury Secretary Timothy Geithner’s hat-in-hand visit to China said:

U.S. government securities have tumbled 4.3 percent this year, the worst performance since Merrill Lynch & Co. began tracking returns in 1978, as so-called bond vigilantes drove up yields to punish President Barack Obama for increasing the budget shortfall.

Concerns about international investors have grown as the U.S. Dollar Index weakened 8.6 percent since February and Obama and Federal Reserve Chairman Ben S. Bernanke committed $12.8 trillion to thaw frozen credit markets and snap the longest U.S. economic slump since the 1930s.

It was while Geithner was speaking before an audience of Chinese that the following event occurred:

Speaking at Peking University, Mr Geithner said: “Chinese assets are very safe.”

The comment provoked loud laughter from the audience of students. There are growing fears over the size and sustainability of the US budget deficit, which is set to rise to almost 13pc of GDP this year as the world’s biggest economy fights off recession. The US is reliant on China to buy many of the government bonds it is planning to issue but Beijing’s policymakers have expressed concern about the strength of the dollar and the value of their investments.

Obama has until October to sell about $1.9 trillion in debt.  Geithner is actually in China right now to pitch a major bond sale next week.  And neither China nor anyone else seems crazy enough to keep buying our debt in sufficient amounts to fill our bottomless pit of federal spending.  That means either that the US has to raise interest rates to make its debt more attractive – which will kill the economy and plunge the US into a further cycle of recession – or else simply keep printing money which creates the core element of hyperinflation.

“You arrogant ass!  You’ve killed US!”

Obama and the Democratic spin machine keep laying the blame on Bush policies, but it is Obama’s spending that has created this “Sophie’s Choice,” not anything that Bush did.

It wasn’t Bush who fired the salvo of spending “torpedoes” that are now coming back to blow up in the bowels of our economic and financial system.  It has been Obama’s uncontrolled spending.

It certainly isn’t just Universa and it’s “Black Swan” fund that is betting on Obama-caused hyperinflation, just as it isn’t just the UK Telegraph comparing the US under Obama to Zimbabwe, as a brief excerpt from Bloomberg shows:

May 27 (Bloomberg) — The U.S. economy will enter “hyperinflation” approaching the levels in Zimbabwe because the Federal Reserve will be reluctant to raise interest rates, investor Marc Faber said.

Prices may increase at rates “close to” Zimbabwe’s gains, Faber said in an interview with Bloomberg Television in Hong Kong. Zimbabwe’s inflation rate reached 231 million percent in July, the last annual rate published by the statistics office.

“I am 100 percent sure that the U.S. will go into hyperinflation,” Faber said. “The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”

David Rosenberg, the chief economist at Gluskin Sheff, disagrees slightly with Marc Farber and the Black Swan fund: he doesn’t think that the savage beast of hyperinflation will begin devouring the U.S. economy until after consumer spending has rebounded.  In a Newsmax article entitled, “Experts Fear U.S. Will Suffer Zimbabwe-Level Inflation,” Rosenberg is quoted as having told The Wall Street Journal, “Not until the household sector expands its balance sheets are we likely to see the re-emergence of inflation on a sustained basis.”  It’s not that we’re not doomed; it’s merely a question as to how long before we’re doomed.

I feel another refrain from the song we’re singing coming on:

“You arrogant ass!  You’ve killed US!”

Famed Trends Research CEO Gerald Celente has predicted food riots in the United States by 2012.  He put his reputation on the line by making that claim.  Now we’ve got more financial experts like Marc Farber, Nassim Nicholas Taleb, David Rosenberg, and a mega-successful hedge fund putting their money where their mouth is in essentially predicting the same scale of disaster.

Like the Russian submarine skipper who arrogantly and foolishly removed the safeties from his missiles which would have protected his sub from his own torpedoes, Barack Obama has arrogantly and foolishly taken actions that will torpedo the U.S. economy.  It’s only a matter of how much time we can dodge the impending explosion of massive spending triggering massive inflation.