The Financial System Is Breaking Down And Collapsing
The Investment Watch
Celente – The Financial System Is Collapsing Before Our Eyes
Today top trends forecaster Gerald Celente told King World News that the financial system
is breaking down and collapsing right before our eyes. Celente had correctly forecast back in 2012 that a bank holiday would occur in Europe, and also said events continue to spiral out of control going forward. Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world.
Eric King: “Gerald, I have to start off talking here about the bank holiday we’re seeing in Cyprus. You had called for bank holidays, your thoughts here?”
Celente: “First we thought they were going to happen in the United States, but we didn’t know they were going to be dumping quantitative easing unlimited into the economy. This is unprecedented. So we knew there was going to be a bank holiday, and in 2012 we started warning about bank holidays in Europe. I’ve been saying it for the last 14 months, there are going to be bank holidays….
The Dow is at a record high, and there is rejoicing on Wall Street in reaction to the stock market rally. In fact, the stock market rally appears to have made more people rich. A total of 300,000 newly minted millionaires were created from the current multiyear stock market rally, according to Spectrem Group. (Source: Frank, R., “US (and Booming Market) Adds 300,000 New Millionaires,” CNBC, March 19, 2013.) This is great news for the new members of the $1.0-million club (excluding primary residence), but the reality is that there continues to be a mass of Americans collecting food stamps—around 48 million according to USDebtClock.org—and they have not reaped any rewards from the stock market rally.
The headlines commenting on how America is becoming richer are myths; that is, unless you don’t care about the other 95% of Americans who are just getting by and the bottom rung of this group who are considered America’s poor, making minimum wage.
What is also alarming is the low saving rate, which shouldn’t be a surprise, given that income levels have flattened out and declined over the past decade. According to the Employee Benefit Research Institute (EBRI), a staggering 57% of workers surveyed said they had less than $25,000 in combined household savings and investments, aside from their homes. (Source: Greene, K. and Monga, V., “Workers Saving Too Little to Retire,” Wall Street Journal, March 19, 2013.) The survey also reported that 28% of respondents expressed no confidence that they would have sufficient money to retire in a comfortable manner. Trust me when I say this group doesn’t care about the stock market rally.
$900 Million Says Euro Crashes In 2 Weeks: PUT Trade Rocks London Options Market
Someone has placed a GIGANTIC $900 million EURO PUT trade on the Euro to crash vs. the dollar within 2 weeks. Is this a ‘smart bet’ by someone who has seen the writing on the wall with the situation in Cyprus or does someone have inside knowledge that something big is about to happen? Beware! We have seen this before as shared in the videos below; in fact, it happened prior to September 11th, 2001, and we ALL saw what happened thereafter….
Euro may be doomed whether Cyprus stays or goes
Commentary: No one can now trust Brussels, or Berlin
However the crisis in Cyprus is resolved, there will be lasting effects on the European Union that may well have sealed the fate of the euro (ICAPC:EURUSD) .
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It is impossible to imagine that politicians in Germany, for instance, would dare to confiscate nearly 7% of the savings of their own citizens for any reason. But they were willing to do it to Cypriots.
“What we are witnessing is the slow death of the European Project,” Anthanasios Orphanides, the former head of Cyprus’s central bank, said in an interview with Bloomberg TV this week. “We are in a situation that some European governments are essentially taking actions that are telling citizens of other member states that they are not equal under the law.”
Orphanides, who worked as an economist at the U.S. Federal Reserve before his stint as central bank governor from 2007 to 2012 and who currently teaches at MIT, added that the Cyprus proposal endangered the banking union seen as necessary to preserve the euro by undermining confidence in deposit insurance.
“Indeed by making a mockery of that right now, the governments who pushed for this measure are sending a message that they want no part of a banking union,” Orphanides said.
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CYPRUS: Talks With Troika In Final Stages, Next Few Hours Will Determine The Future