January 18, 2013
Today top trends forecaster Gerald Celente told King World News the Western world is heading into a massive financial collapse in 2013. Celente also provided KWN exclusively with a small portion of a frightening new piece from the former Assistant Treasury Secretary under Ronald Reagan, which is contained in the interview below.
Celente went on to discuss what is happening with gold right now, and told KWN he is continuing to buy physical gold for himself ahead of this financial collapse. Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world.
Eric King: “This is inside your (just released) Trends Journal (a small portion) from Dr. Paul Craig Roberts (Former Assistant Secretary of the Treasury during the Reagan Administration):
“2013 could be the year that the Western world, based as it is on debt and fiat paper money that is printed in order to support debt, comes to an economic end … Hopefully, the derivative exposure – essentially uncovered bets on interest rates, mortgages, currency exchange rates, and prices of oil and other commodities and equities – nets out in some way so that the net exposure to risk is far less than $227 trillion. Nevertheless, if enough of these bets go wrong, banks can go bust.
So far the “euro crisis” promoted by the US and Western media has protected the US dollar by sending euro holders fleeing into dollars, and the Federal Reserve’s purchase of the banks’ bad bets has kept economic Armageddon at bay. However, the Federal Reserve cannot forever create new dollars with which to purchase the banks’ bad bets and with which to finance the huge annual operating deficits of the US government without undermining confidence in the dollar.
Sooner or later the world is going to abandon the US dollar as the currency in which international accounts are settled. With this drop in the demand for the dollar, its price or exchange rate will fall, and import prices will rise. As the US is now an import-dependent country, from that day on, Americans who walk into Walmart will think they have walked into Neiman Marcus.”
Eric King: “This was powerful stuff from him, your thoughts on this essay?
Celente: “Yes, very powerful. This is Dr. Paul Craig Roberts. This is a guy who was a former Assistant Treasury Secretary under Ronald Reagan. So when Dr. Paul Craig Roberts speaks, I listen. We just saw the new trade data come out, and the United States keeps importing a lot more than it exports, even though they’ve devalued the currency in an attempt to export more.
The clock is ticking. We’ve seen this played before. It was the Crash of 1929, the Great Depression, currency wars, trade wars, World War….
“You are seeing the same thing again. The Panic of 2008, there’s a Great Depression going on in a lot of countries around the world, trade wars are heating up, currency wars are going on, World War is next. So now what you have is that people feel in their bones that something is not right.
The only reason why the world economy is even teetering along at this level right now is because all of the central banks are printing money. All they are doing is devaluing the currencies. They’re debasing the currencies. Why would anybody want to hold this stuff (fiat money)? So I believe gold prices, no matter what they do, are going to continue to move higher. And I put my money where my mouth is, I keep buying.”
When asked about Germany repatriating their gold, Celente responded, “Well, I have to tell you that following the (mainstream media) news covering it in the (United) States, you would think this was, ‘Oh my God, how could they (Germany) be doing it (taking gold out of the US), and whether or not it’s a conspiracy theory and there is really no gold in the vaults (of the Fed)?
I mean this is really basic intelligence. Why would anybody want somebody else to be holding their money when they could hold it themselves? I mean they do have banks (and vaults) in Germany last time I looked. What’s the gold doing everywhere else?
They are making a big deal about repatriating (some) gold by 2020. I tell you, I don’t believe the gold is there. I believe they are saying there is a lot of more gold out in the system (of central banks) than there actually is. So here is my feeling, Eric, there is not a lot of gold out there (in Western central bank vaults), and they can’t account for it. The gold isn’t there to back the money, and they want to keep this quiet.”