Gerald Celente on Russia Today May 7, 2010. The trend forecaster discusses the economic outlook for 2010 and beyond, as well as his thoughts on the recent market crash and rebound. [Video follows excerpts and comments]
The Crash of 2010. That’s our forecast that we came out with in the Trends Journal on January 13th of this year, and we’re sticking with it. We’re saying that the world markets will have gone through severe economic crash before 2011 begins. And we’re going to see country after country go through this kind of turmoil.
…
Number one, I think you have to be out of your mind to be in the stock market. It’s a rigged game. Look what happened today when the stocks dropped 700 points in 15 minutes. You know how many people got blown out of the market. And what do they attribute it to? Dark pools, high frequency trading, insider trading. I think you have to take no risk at all. When you take risk you gamble…
…I have 80% of my assets in gold…
To me it’s about wealth preservation. Greece, Portugal, Ireland, Spain, Ukraine, Latvia, Italy – go around the globe. You’re going to start seeing defaults on sovereign debts. There is no safe risk to take. When you take a risk, you gamble. No time to gamble now.
After Thursday’s market performance, does anyone still believe the stock markets are on the up and up?
And if you think that there is safety in US Treasury instruments, think again. If the stock markets do collapse, we’ll likely be seeing capital flows into US treasuries (dollars) as we saw over the last two weeks. This will force interest rates on those instruments down – for example, the 10 year US Treasury bond yield a month ago was 3.88%, today it is 3.56% and if stock markets collapse, those rates will go lower. And US debt instruments will be touted as the only safe haven. And for the short-term, they may very well be, but be assured that as the US dollar loses purchasing power, those interest rates are going to rise. In July of 1981, for example, the 10-year yield was over 15%! This means that if you buy those bonds in the low 3% range and they jump to 15%, your portfolio is going to get destroyed, as will your purchasing power as inflation takes hold.
There are NO SAFE paper assets. In our view, this includes paper precious metals assets like the SLV silver ETF and GLD gold ETF. These are instruments that trade with no real physical backing, so if you think you own a precious metal because you own one of these ETF’s, you’ve been lied to.
The only safety you will find over the course of the next 5 years will be in hard, tangible assets like precious metals, energy and food.
And when we say tangible assets, we don’t necessarily mean that you should buy stocks in oil companies or agricultural companies, though this may be a part of a broader strategy. Consider investing in sustainable living assets.
Do you have a home with some acreage? Maybe start growing your own food and invest in soil, seeds, and equipment. What about energy independence? Our dear leaders talk about it from a top-down scale. Why not approach it from the other way around. Build your own sustainable energy facility on your own property using solar, hydro and perhaps even wind technologies. Why buy stocks in energy companies for $25,000 when you can invest in your own, personal power plant and produce the energy for yourself. The dividends will pay off for decades to come in the form of free energy, while oil and electricity prices go through the roof.
Another idea: What about water? It’s been predicted that wars in the 21st century will be fought over water rights. Do you have a well? Can you produce your own water? Why not invest in a deep well on your property and never have to worry about where your water will come from.
When we talk hard assets, we’re talking about not just the physical goods you hold in your possession, but the equipment and skills that give you the advantage of self sustainability.
It is no time to gamble in stock markets. Invest for yourself and your future.
Watch Gerald Celente on Russia Today:
Not all ETF’s are evil. Check out SIVR – backed by physical inventory.
The floor is starting to fall out. Things are worsening each day.
http://www.cnbc.com/id/37020439
http://blogs.marketwatch.com/fundmastery/2010/05/03/long-term-unemployment-soaring/
We used to live in the country with a well, we did a lot of preps back in the 90’s and past the y2k scare; now we’re retired and moved in town into a subdivision. We are staying put.  If we moved out in the country again, and nothing happens and gas goes way up, it would be a hardship having to drive to town. Many want to be near stores, restaurants, hospitals, recreation, etc. when retired. I own So Co, Duke and FPL , drawing qt. dividends, along with C.D.’s at a cr. union. Am on SS, drawing a militarypension and a 401K.  Several friends have since died who were into prep., etc. long term food, wood stoves, etc. Their kids tossed the stuff out. It makes me think that all this prep. may be a total waste..it was for them anyway. Friends have given up on prep. and don’t think anything will happen as people made predictions a few years ago about collapse, etc. One friend had lots of gold, silver, preps and his wife sold it and moved to the city when he died.
Great advise Mac.  ÂÂ
Some people in the U.S. refuse to see the challenge for what it really, refuse to prepare, and won’t make the transition.
Hope and changers’ are the least likely to survive.  ÂÂ
The only thing they need to invest in is a shovel so someone can bury them after the SHTF.   ÂÂ
Either that or we can let the D8’s take care of them at the county landfills.ÂÂ
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Mack, I hear you. But the question I need to ask is what if one day the preppers are right? I’m reminded of the boy who cried wolf. Nobody believed him the first half a dozen times he was making it up. But when it actually happened, NOBODY was listening.
I have grown frustrated too and although I don’t have the life experience you have, I still see this ending badly. Besides, even if NOTHING happens I can still eat that food one day and sell my silver/gold, which probably will be higher than what I bought it for. Plus, when the power goes out as it does where I live 2-3 times/year, I am always relieved to have a Plan B.
If for anything else I sleep better at night knowing I’ve thought about the unthinkable.
Its ok the world just agreed on a $955 billion dollar bailout for Greece. How long will that last, 4 months, maybe 8? Then what? Can America really afford to contribute to these 1+trillion dollar bailout of other countries when we are borrowing and printing money just to keep us going? The problem is debt and spending and they won’t stop.
Freeze dried food can last for 30 years.Im willing to bet if i had 50 cases of freeze dried i bought 15 years ago would sell quickly on e-bay.most food has a 30 year plus shelf life depending on how it was stored.  Investing in gold/silver is like aninsurance ppolicy taht will always be worth something and never go to zero that historically all Fiat paper goes to in time.
People will need to be more convinced .Maybe when by next year The U.S. comes out with a new dollar that is devalued .Maybe it will take another plunge in houseing and commercial property  or an even bigger drop in the market. Strange how the market lost 1 Trillion dollars a few days ago and now the Europen Union came up with a
1 Trillion dolaar bailout package for Greece. Somebody got that money and its the same people that continue to run the show now.
We are going to see diversions everywere. Distractions and from the media words of Hope and things are looking better especially the Job outlook.Meanwhile They are Attacking Miranda rights, expanding the police state, and the continueation of Fanny /Fredde asking for another 8 billion more to stay afloat. The whole thing is a Fraud on the people and the joke is on us ! We die i ntheir shitty made up wars and we have a Government that is absoltely corrupted on most all levels in leadership . Ill take Gold over dollars any day. Wonder what the dollar Bill will be worth in 10-20-30 years from now ?  ÂÂ
Any ideas why Gerald Celente’s video interviews are almost always on “Russia Today”?
@Inland_Northwest, the only ETF I heard worth investing in long term is Central Fund of Canada (CEF). It is widely known as being 2nd only to owning physical metal. I’ll check out SIVR, though.
My question to all of you would be…if everything is rigged like Celenty says, which I agree, How long can they continue to rig the system before reality hits it?
Actually the SLV and GLD ETF’s don’t have as much metal as they have sold, or that is the concern anyhow. PHYS does. Haveing gold or silver in some far off vault isn’t going to help you if you need it and the electronic clearing systems are down for whatever reason. Own and hold physical metals at home. Don’t tell ANYONE. They may say something, and they may say something to someone who may not be very NICE. I knew a family that was killed, because the granddaughter said something about them keeping money at the house and they said something to some scumbag and he came hammered them to death for $500.
While all of you eat your crappy tasting freeze dried stored food for the next 30 years I will be dining on nice grilled steaks smothered in onions, lobster tails dipped in butter, pizza, beer, ice cream and pretzels, and other delicious delicacies.
I love this guy. Gerald and I think so much alike. Out in the country niebors may be miles apart. Well, Gerald is a great niebor to have, even though we live thousands of miles away. I’ll back up and support folks like him any day. Only the Mogambo Guru comes close! Not by much!
Best wishes.