Trends Research founder Gerald Celente on the Financial Sense Newshour August 02, 2009.

Gerald Celente:

They’re [People] losing everything now. They’re losing their homes, their losing their jobs, and they’re finally protesting. And this is historical and cannot be played down. And anyone that does play it down is doing it out of ignorance of fear. This is new in America that we’ve had these kind of tax protests. It’s just the beginning because they’re not going to be able to solve the problems.

The next shoe to drop after the foreclosure issue and commercial real estate, of course, is going to be the tax issue. People are going to start losing their homes because they’re not going to be able to pay the property taxes. So this is just the beginning.

And, as we’re seeing, the people are being squeezed at every level. Whether it’s raising fees on parking meters to the so called sin taxes. It was the spark that started the first American revolution and taxation without representation is going to be the spark that starts the second one.

Comments: The US Government is borrowing trillions of dollars from foreign entities. This must be paid back somehow. Keep in mind that the government does not produce anything, therefore they do not generate revenue like you or I. The government can generate revenue by only one method — taxes. Some reports suggest that within the next 5 years, the top 1% – 2% of income earners may be paying taxes in excess of 75%. Be assured that the middle class will not be immune to tax hikes. It’s only a matter of time before the tax burden on average Americans becomes so heavy that the middle class will be completely wiped out. There will be no middle class in this country once heavy taxation and government fees creep into every single aspect of our lives. We will have the Upper Class and the Lower Class, and that’s it. Remind you of anything?

I hope Gerald Celente is wrong about a second American revolution — and if he’s right, I hope it is nothing like the first American revolution. He did qualify his statement with a revolution similar to what happened in the 1992 election with third-pary candidate Ross Perot, and I hope that is about as far as it goes. However, as Mr. Celente says, “when people lose everything, and they have nothing left to lose, they lose it,” so be prepared for anything.

Gerald Celente on Financial Sense Newshour August 02, 2009 (Part 1 of 2):

Gerald Celente on Financial Sense Newshour August 02, 2009 (Part 2 of 2):