Friday, January 23, 2009

Gerald Celente: Economic Trends for 2009

Gerald Celente is Editor and Publisher of "The Trends Journal"
Interivew MP3 January 17, 2009

Summary of the Interview: (not quotations)

The trend for 2008 was panic, a crashing stock market, some major retail store closings, and the loss of 2 million jobs in the last quarter of 2008.

The global economy will collapse in 2009, resulting in the worst recession in the post WW II period. The commercial real estate sector is highly leveraged and will collapse beginning in late February and March as major retailers and financial institutions fail, leaving vacant rental space that will not be filled. This will lead to further failures in the finance and banking sectors and higher unemployment.

Real unemployment is 13% and growing.

Some two-thirds of the economy is based on consumerism, which is declining rapidly due to increasing unemployment. Declining personal income means a shrinking tax base and a need to raise state, local, and federal taxes and user fees.

This will lead to the "Greatest Depression," increased street crime, more corporate fraud, taxpayer revolts, rioting, and "revolution." Survival is now a real concept as people lose investments and jobs. A return to frugality and self-sufficiency will characterize the economy in years to come.

No comments: