Last year, as the world’s financial minds met at their annual meeting in Davos, Switzerland, we all seemed to be so engrossed in the primaries of our Presidential election season that we either did hear or the media did not report the dire warnings for the economy that eminated from that meeting. Last year’s report from the World Economic Forum (WEF) correctly predicted the crisis in the financial sector, the volatile energy market, and impending food shortages.
The WEF is once again meeting in Davos, and the talk has turned to the global economy, the global crisis, and global control. The identified risks are:
1. The outlook for the global economy remains grim. Markets will remain volatile as liquidity has not returned to the markets.
2. Unemployment will continue to rise as confidence remains at record lows.
3. The WEF predicts the U.S. economy could drag the Chinese Eeonomy down to 6% growth as opposed to the current 8% target. This could have widespread implications.
4. Asset prices around the globe in equities, housing and corporate debt will continue to fall. In fact, they suggest the markets will be flooded with more assets than they can absorb. This will trigger further erosion in assets and massive government spending and intervention particularly in the financial arena.
In light of the economic concerns, on a global basis, one has to wonder the actaul impact of where these problems may be leading our country, and closer to home, the impact on your household.
Gerald Celente is the head of the Trends Research, which does trend analysis studies for businesses, industries, etc. Within the scope of their studies, the Trends Research, over the past decades, has had great accuracy in the trends that have become reality in our economy. In his recent newsletters and interviews (on FOX, CBS, MSNBC, among others), Celente paints a dire picture of our coming months and years. For example, he has predicted that the Christmas season will change over the next few years to become more traditional in gift giving and sharing the holidays, because the retail industry will be in such an upheaval. The Greatest Depression is on the horizon, as we look toward a horrendous summer, the Crash of 2009.
The greatest problem that we as individuals face in interpreting these types of predictions is how to prepare for such events. How much food and supplies should be bought now, and how to store them? How much ammunition, which is already in short demand, should one buy? What should one do with their finances (invest in gold, collectibles, put in the mattress)? How does one monitor the warning signs, the red herring stories?
Mr. Celente is warning of the “Commercial Real Estate Collapse of 2009″, which he says will dwarf the financial collapse of 2008. The following interview was done in December of 2008:
Since this interview, Circuit City has laid the groundwork to close their doors. Linens & Things has alreday closed. Near me, they are located directly across from each other.
A lot to think about!!
Update: Mr. Celente mentions “camps, or holding centers, in his interview. Rep. Alcee Hastings (D-FL) has introduced legislation this week that would authorize the building of six “security” facilities that could be used for several purposes, including “other purposes the government may deem”.