JP MorganTrends Forcaster Gerald Celente joins Sprott’s Ask the Expert for this excellent interview on the Fed, the economy, and the markets.  Celente states that the Fed’s premature tapering will kill the economy and crash the markets:
The tapering’s going to kill the economy. It’s already doing it. Emerging markets have had their worst opening of the year in history. You’re looking at the Asian markets plummeting despite all the dough that Abe over in Japan pumped into the system. Yeah, the stock market went up 57 percent last year. It’s down now 14 percent this year.
This is a big Ponzi scheme. When they can’t pump money in, the economy goes down. The only thing everybody knows that watches these things and pays attention to them is that the only reason that the global economy rebounded at any level is because of all of the tens of trillions of dollars that they were pumping in. Now, you’re seeing interest rates are going up around the world with the tapering.
The emerging markets are crashing. The Asian markets are way, way down. And, the US market’s having a terrible beginning of the year, too. It’s not a happy New Year. So, no, it’s only going to get worse.  

 Celente’s full MUST LISTEN interview is below:

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  1. I’ve been listening to Gerald for about 7 or 8 years and I have watched him get more and more unhinged as time passes. He is so passionate and so Italian that he let’s his true emotions show. The man has been fighting the good fight for a long time and if the world changes for the better any time soon, it will be because of the dedication and the tenacity of people just like him! He gets the large majority of his calls right too….his Trends Journal is worth the subscription price.

  2. Trader Dan - http://www.traderdannorcini.blogspot.com/2014/02/velocity-of-money-still-falling.html
    Velocity of money still falling- “What we began to notice was that all this liquidity being created by the Fed, it was not having an inflationary impact as expected…  The banks are not lending it into the economy at nearly the same rate that it is being created by the Fed…Given the continued drop in the Velocity of Money and the continued surge in excess reserves, it is unclear to me how inflationary pressures going to be unleashed into the broader economy as long as the reserves remain parked at the Fed.”
    This is the main reason why PM’s are going to face trouble at certain price levels ($1450 gold and $26 silver), the velocity of money needs to stop dropping, at this point investors are more fearful about deflation, not inflation.

    • The financial media doesn’t even cover topics like Velocity of Money, but it would be very difficult to say the economy is improving but velocity is at an all-time low.  If PM’s are going to head higher, the velocity of money is going to have to change directions.

    • Baloney, that’s not true. Velocity has been falling for over a decade as gold went from $252 to almost $1900. And you do realize that Trader Dan used to write for Jim Sinclair and screamed and hollered very loudly about manipulation in the PM market? Seems like he has lost his mind now to me, as TA does not work anymore. But hey, keep shilling for the guy if it makes you feel better. I doubt anyone here really gives a rats ass about Norcini’s views on gold and silver.

    • @Bay of Pigs
      Exactly, brother.
      The velocity of money can be on the up, going down, or stable for an asset price to move in either direction.  Talk about the velocity is just horseshit from the paid shill, zeroman.
      Money can ‘change direction’ for a variety of reasons, as you and most others know full well.  The primary trend of the day is the movement away from paper instruments into real “hold in your hand” assets, as faith is leaking from the faith-based system like crazy.
      The zeroman’s fallacious notions is like stating you need to be driving faster to turn left than turn right, or to paraphrase – the velocity of money needs to be faster to buy PM’s than to buy paper assets.  Complete nonsense and just prepared ramblings from a zero that works for the man.

    • As we have discussed here on more than one occasion, Dan Norcini is a fine trader.  His views generally reflect from his trading experience.  But on this discussion of the Velocity of Money affecting metals demand and pricing, I would observe that his view of the effect of a decline of velocity of money on the gold demand precedes from a US-centric view.  I assure you that the decline in the US velocity of money is NOT slowing foreign demand one iota, as China would certainly demonstrate.  Further, the decline in the velocity of money in the US is actually fueling a declining confidence in fiat currencies WORLDWIDE. And that declining confidence is resulting in a shift in worldwide demand for safety which is starting to be reflected in the metals pricing.  The rest of the world will move away from those fiat currencies irrespective of the Fed and the Bankers collusion to collapse the US economy and into the safety of tangibles such as gold and, to a lesser extent, silver.  To reinforce this view, let’s remember that, here in the US, we still aren’t major consumers (acquirer) of gold or silver, having been psychologically warned off these holdings by a well-organized disinformation psyop.

  3. I too like Celente.  I’m also thinking Jim Willie and Bill Holter are on the money on this issue if I am reading them correctly.  First off, I’m not too sure I believe the story of the taper.  They lie about so many other things, why tell the truth about this? There is no telling how many FRN’s leave the back door of the Fed every month. 65 Billion is just what we the sheep are told.  That said, the Fed cannot stop buying USG bonds because there are few other buyers at these interest rates.  At the same time, the Fed cannot buy all the USG bonds as that removes too much “collateral” from the system and in and of itself would cause a collapse.  So they are well and truly trapped.  So is the taper a sign of the end game? Is the Fed being forced to taper and damn the consequences (i. e. rising interest rates, or emerging market collapses which eventually come back on us?)

  4. QE at $65 billion is the tip of the iceberg according to Willie.  He can be off on some things but when you see the Fed report they sent $1.3 trillion to Europe the first 3 months of last year.  Those are unsecured loans to help capitalize the zombie banks in the Euro zone.  Those funds are one of the reason Europe did not collapse last year.  $1 trillion of QE kept us going last year.  The velocity of money maybe low but the ability of FIAT to float the economy is unquestionably what is being done here.  $1 trillion keeps the doors open.  $1 trillion is what out government spent on transfer and entitlement programs, AKA welfare.  Another $750 billion is SS and Medicare. 
    The GDP is pretty much dead at this time, supported by debt and government spending which comprises 43% of the entire GDP at local, state and federal levels.  the rest of the economy is supported by part time and low income businesses and employees.
    We are running on fumes  IMO

    • “when you see the Fed report they sent $1.3 trillion to Europe the first 3 months of last year”
      I didn’t knowed that. That means that FED create money that ECB do not want to create. And FED loan us (or give us) these “money from nothing”. What is the deal ?

    • You have to realize that the US Federal Reserve is THE final financial backstop tool for the NWO One-World Government cabal.  Europe is the crown jewel pilot One-World Government experiment.  But it’s only tied together by a common currency and when push comes to shove for the European nations, Nationalism will trump globalism every time and these nations will act in their own interests first financially.  The Globalism card has been pushed the hardest by Angela Merkel and Germany which has bent this rule a little bit in their support of the southern European economies..  But the cost of this NWO push has been so expensive to Germany, she can’t afford it any more.  And this is why we are starting to see her make overtures into the arms of the Sino-Russian sphere.  As for Europe,  without the deep-pocketed US (Uncle Sam) Federal Reserve providing the quiet financial backing, Europe would have imploded completely by now without the infusion of liquidity provided by nearly a trillion in swaps from the Fed in 2013.  This is what allowed Mario Draghi to say that they’d “Do whatever it takes” while being actually powerless to do ANYTHING to stem the tide of economic collapse of the EU because they were not in a position to DO anything.  If the EU had imploded, the One-World government experiment would finally be seen to be the abject failure it really is.

  5. maxsilver  I assume that the foreign owners (banks) of the Fed demand that their piggy bank (The Fed)  save them.  The largest banks in Europe are in terrible shape with highly leveraged. balance sheets.  If the Fed can no longer ship funds to the Euro banks, or refuses for whatever reason, the Plan B of bail-ins and wealth confiscations will begin in earnest.  The Plan B has been outlined thoroughly by Reuters.  We have the same plans in the US and Canada.  The wealth confiscations in our country will be similar in nature with Pension and MYRA expropriations.  I do not know the exact flash point in Euroe or America  that start the bail-ins etc but the meeans to steal our wealth is firmly in place and ready to implement once certain events take place.

    • I know about confiscation plans that are ready, and fully aware (and afraid) about that. I also know that european banks are in terrible shape.
      But I didn’t known that FED send us money. And also I didn’t known that FED has foreign owners.
      We learn every days. 2 years ago I didn’t known that FED was a private company that belongs to privates banks…

    • I don’t see bail ins working in the USA as long as we own guns, kind of stands in their way because people would start sniping and taking out bankers, and probably blow up a bank or two

    • @MaryB
       
      Another factor against US bail-ins will be that if this occurs, it will completely expose the lie of “FDIC depositor insurance”.  Can the US Gov really afford for it to become common knowledge that money in a bank is NOT safe?  Somehow, I have to think that they can’t.  If they do, then capital will flee the US banking system in HUGE amounts.  Yes, they can slow this down via capital controls but that will only pi$$ off more people and create a LARGE and VERY angry new voting block with which neither party wants to contend.
       

  6. What economy is he referring too the one that is built on money printing?  That is not a real economy or are the employment, GDP or other statistics real statistics./  This is a sham economy so better it goes and we start over?

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