Gerald Celente on KFNN 1510 with Ken Morgan on December 29, 2009.
(Interview follows excerpts and commentary)
“Actually, it’s going to be global. Not made in China is going to be something on a lot of peoples’ minds. It’s the golden rule – those who have the gold rule. With all the money going to China there’s a lot of concern.
You have countries like Indonesia, a very poor country, that can’t even compete even making nails, which are basically made out of wire, compared to China. So, you’re going to start seeing trade protectionism going up around the world.”
There is almost no doubt that Gerald Celente’s call for a “Not Made In China” trend will take off in 2010. When a country’s economy starts imploding, they will almost always blame another country for their woes. In this case, we have China essentially using slave wages to manufacture low quality goods at hyper-cheap prices, making it almost impossible for any other country to compete. The response by most governments will be 1) protectionism 2) debasement of their currencies in order to become more competitive.
With point #2, because of China’s currency peg, there may be difficulty for the US using this method to compete with China, but it does make the US more “competitive” insofar as pricing is concerned with other countries, for example those in the EuroZone.
China’s response will not be amicable.
I firmly believe we are engaged in a global war. No missiles have been fired yet, but perhaps at some point in the future they will be. Or, it may end similar to the Cold War, where the USA completely destroyed the economy of the Soviet Union through a variety of methods, namely by forcing them to spend billions to keep up with our defense spending. Eventually, the Soviets were bankrupted.
This is economic warfare folks, whether you want to believe it or not. And we’re all playing for keeps.
Listen to Gerald Celente: