Op-Ed piece in The New York Times (October 16, 1998), Gerald
Celente predicted that government intervention to rescue "private
corporations deemed ‘too big to fail’," would result in the
demise of free-market capitalism.
he called it "Capitalism
it’s called stimulus programs and rescue packages.
Celente warned the bailouts wouldn’t work.
Celente repeats the warning … they still won’t work.
the government warned that if Long Term Capital Management, a
hedge fund, was not rescued, the global financial markets would
with the markets imploding, the government warns that if favored
banks, brokerages, leverage buyout firms, insurance companies,
etc. are not rescued, the global economy will collapse.
Gerald Celente accurately forecast, "The global contagion
may be temporarily suppressed by doses of monetary amoxicillin,
but when an outbreak recurs, it will be in a bailout-resistant
and far more virulent strain."
contagion was suppressed, the outbreak has recurred, and the more
virulent strain is upon us. And, as Celente predicted, it is proving
Celente forecasts that no amount of monetary amoxicillin can cure
the spreading virus.
Warning #1: What’s being pitched today by the government has
been tried before. It didn’t work then, and it won’t work now.
the Group of 20 summit, Barack Obama, while acknowledging there
are no guarantees of success, declared, "I have no doubt,
though, that the steps that have been taken are critical to preventing
us sliding into a depression."
President Obama cannot provide guarantees, how can he "have
no doubt"? Moreover, all of the bailouts, rescue packages,
stimulus plans that he has supported/and or initiated to date,
have already failed. And since the new plans are but variations
upon tried, tested and failed policies, they, too, are destined
to fail. The G-20 will not be a "turning point" and
while the steps taken may slow, they will not prevent us from
"sliding into a depression."
Warning #2: Don’t be seduced by temporary equity market spikes
or leading economic indicator upticks. Be especially wary of pitchmen
claiming the markets have bottomed and headlines insinuating that
the worst is over ("Car sales not as horrid in March"
and "Investors jump on good financial news," USA
Today, 2 April 2009).
What is being
sold as "good financial news is, upon examination, news that
is marginally less dismal than expected. Nevertheless, for insiders
and professional gamblers, there will be opportunities to briefly
ride the market waves.
also be ephemeral selling opportunities following accounting rule
changes allowing banks to set their own prices for assets regardless
of market values, and thus dramatically reduce their losses. This
is not a step to recovery. This little reported Financial Accounting
Standards Board (FASB) ruling is accounting flimflam, a capitulation
that allows banks to set values to their own toxic assets.
Back in 1998,
Gerald Celente was virtually alone in forecasting both increased
government intervention, its inevitable failure and its catastrophic
consequences. In the midst of the dot.com euphoria, with markets
flying high, fortunes being made and optimism pandemic, any negative
vision was ignored or sloughed off as gloom and doom.
every element in that decade-old forecast a daily reality and
making global headline news, derision has replaced neglect. No
longer able to dismiss, they attack. First it was TV clowns, now
it is equally unqualified commentators.
to face inescapable realities themselves, they try to deflect
the public’s attention away from uncomfortable truths with unhappy
endings. In his New York Times Op-Ed piece, Ben Schott,
having cited Celente for correctly forecasting "The Asian
Crisis and other calamities," sneers away his current predictions
as "Pessimism Porn." (NYT, 26 March 2009.)
Schott is more comfortable with the exhortations to Hope, Confidence
and Optimism delivered by the Confidence-Man-in-Chief and his
cadre of boosters. But if we are purveying "Pessimism Porn,"
Schott & Co. are peddling "Optimism Opium."
panacea anesthetizes the public. "Optimism Opium" dulls
the pain – lost jobs, foreclosure, financial ruin – relaxes anxiety,
decreases alertness, impairs coordination, and is highly addictive.
Repeated or chronic use results in mental deterioration. Overdoses
can result in stupor, coma and death.
facing crises far beyond the financial. The implications are momentous.
We are witnessing the decline of Empire America.