Oil Price Plunge Trigger for Next Global Crisis-Harry Dent
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Economist Harry Dent says falling oil prices will be a trigger for another economic calamity. Dent explains, “Normally, oil prices falling in a good economy like the 80’s and 90’s, where we have falling inflation and booming productivity and good demographic trends, this would be a good thing. It is a good thing for consumers and businesses, but it is a bad thing for financial markets and our whole debt structure. We have the greatest debt bubble in history. It’s the greatest asset bubble in history, including stocks, commodities, real estate and everything. The last time this bubble burst was in 2008 because of the subprime crises. A small tranche of loans went bad, and it triggered a whole debt crisis . . . that’s what I see. I see a fracking bubble here. What’s happened is because of demographic trends, which we predicted years ago, trends in developed countries are set to slow. It will be aging baby boomers spending less money, very simple to see. In addition to that, you get this fracking revolution with all the low cost money from the Fed stimulus and zero interest rates, and what you have now is we created two million extra barrels of oil a day just out of Texas and North Dakota.”
Dent, who has a new book out called “The Demographic Cliff,” goes on to say, “Now, the only way to counter this is if OPEC and Saudi Arabia said we’re going to cut production. Well, Saudi Arabia said no, we’re not going to do that because we don’t like these frackers. They are competing with us long term, and they are seeing this as an opportunity to squeeze out their competition. The more the price of oil falls, the more of these frackers and other marginal countries like Venezuela go out of business when they can’t compete. It’s a good long term move for the Saudis, but I think they are miscalculating that they could help trigger the next global crisis. We have more debt than we had in 2008. The demographics only get worse in more and more countries. . . . So, I think this is the trigger for the global crisis. There’s $500 billion in leveraged loans with the fracking industry. I think this thing is going to blow up.”
Who is to blame for the shaky economy we are in? Look no further than the government, and Dent contends, “What’s happened is the government has created a bubble with all this low short- term interest rates and all this stimulus, and their only defense is to keep this bubble going. . . . We got the greatest bubble in debt in modern history by far. We have the greatest asset bubble across the world in real estate, commodities, stocks; everything is in a bubble. When these bubbles burst, the whole system comes down. They are doing everything to prevent it, but everything they do to prevent it from blowing up is making it worse. This is a game they cannot win–mark my words, cannot win, and we are going to see a major crisis . . . especially over the next two years. These falling oil prices trigger these fracking firms. They have 20% of the junk bond high-yield debt in the United States, and that’s all it takes to trigger another financial crisis, just like the subprime crisis back in 2008. All it takes is a trigger and the whole debt thing comes down.”
On the stocks, look out below. Dent says, “The next crash is going to take us to a new low around 5,500 on the Dow. . . . That’s going to be a 65% to 75% crash.”
On the U.S. dollar, Dent says, “I have debated all these experts, including Peter Schiff, and they are just wrong. They are right about an economic crisis, and they are right about the unsustainability of this bubble and debt. They are dead wrong about what happens when debt deleverages. History proves this 100% of the time. When a debt bubble deleverages . . . money is destroyed. When there is less money chasing the same goods, you get deflation–not inflation.”
On gold, Dent says, “We’ve been predicting gold will go down for many years now, and the next target is $700 per ounce. I think we will see that in the next two years at a minimum.”
Join Greg Hunter as he interviews financial guru and best-selling author Harry Dent.
(There is much more in the video interview.)
After the Interview:
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Greg, I am being somewhat funny and some what sarcastic, but when Harry comes out the near term bottom is probably in.
Also, please don’t forget to bring Harvey Organ back to Account for his call.
Thanks!
Harry Dent came out in late 1999, right before the top in March 2000, with a book called something like DOW 40,000. He had a big seminar at the Beverly Hills Hilton as I recall. Listen to this guy at your peril! It was like a pep rally.. He’s clueless…
I know he was dead wrong in 2000 and I told him he would be wrong when I met him at a seminar in 2000 he held in Palm Springs, CA., however, don’t bet against him this time. You must be able to sense that things are not right.
You might be a little premature re Harvey organ.
December still has a few weeks to run.Judging by the new COMEX “collar”
pricing rules for gold and silver, which become effective Dec. 22nd,
something big is brewing in the paper PM markets.
Buckle up.
greg, BTW, HERE IS A GOOD CHEMTRAIL REPORT.
This is a message I received, from a credible source. This message is (allegedly) from a USAF pilot, who flies Aerosol Tankers, as part of the secret Indigo Skyfold (geoengineered aerosol “chemtrail”) program.
Please save this text, and forward the video! (The text was too long for Youtube to put in the description, so I will put the entire message in the comments section.)
http://sgtreport.com/2014/12/the-haarp-report-secret-chemtrail-flights-pilot-speaks-out/
December 14th, 2014 | Category: Fascism, Geoengineering/Climate, News, NWO Tyranny
ALSO;
Robert Fitzwilson; KWNews;
Einstein lived in an era when the nuclear weapons of war that he dreaded were present and had already been used at the end of World War 2. What none of us could have imagined are the new weapons of war that have emerged since his era. Among them are lasers, drones, miniaturized reconnaissance devices, “dirty bombs” and weaponized diseases (although catapulting deceased and diseased animals over fortified walls in ancient times was a common tactic). Computerized theft of wealth and intellectual property as well as computer viruses such as Stuxnet (first seen in the attack on the Iranian nuclear facilities are additional modern tools for warfare). Disinformation in social media sites and global government surveillance operations are pervasive as well.
The ease and severity of the ongoing computer attacks against Sony Pictures by the North Koreans should be a warning to every government and individual that protecting against such intrusions is probably a lost cause. It was also reported that the Russians recently demonstrated jamming devices never before imagined against a U.S. destroyer in the Black Sea. The story was that all systems, including the weapons systems, were repeatedly disabled by a single aircraft which then staged mock bombing runs on the destroyer to demonstrate the point. The destroyer supposedly was equipped with the most sophisticated systems in the U.S. weapons arsenal.
The Chinese have also been testing a plane that can fly at unheard of speeds. If the plane advances to deployment, it could deliver nuclear weapons in a fraction of the time thought possible. Anti-satellite systems are probably in place by the competing countries as well. Our national electrical grids remain dangerously exposed to the possibility of an electrical magnetic pulse attack (EMP). It was recently suggested that 100 million people could lose power if such an event occurred in the United States.
also;
here is a great video on field dressing a BUCK, fresh after kill.
Here is a great video HOW TO GUT A FRESH KILL DEER, IE BUCK, called field dressing. takes 7 minutes. I recommend long forearm length rubber gloves, and a jug of water to wash off residue. al ols
http://thevictoryreport.org/how-deer-minutes/…
Harry is smart. I’m not smart. When the economy breaks and everyone is poor I can wipe my butt with dollars so they are useful but gold is just pretty but I want it, look how it shines. I bet other people want it too. I can trade it for stuff. I can trade dollars too but only to people that need toilet paper. I like penut budder, do you like penut budder? I bet Harry does.
you smart too Jo Zon
Here’s another link, in which TPTB are now admitting to chem trails.
http://www.activistpost.com/2014/12/elite-think-tank-admits-to-ongoing.html?m=1
MAYBE, but given his track record, which you can find with a simple Google search suggests those who believe it may be disappointed come Jan. 1….we shall see.
Michael,
Karl Denninger would be great too!
Trying to figure out whether the gold price is going to shoot up before the financial system collapses is certainly tricky. It seems like the comex will trade a billion dollars in gold contracts even if they have only one ounce of inventory. They will just cash settle like they have since April 2012 and not call it a default. Even if the have no gold, with no regulators actually doing some regulating, this could go on for quite a while despite shortages in the precious metals. It is going to take the Russians and the Chinese to actively buy gold at higher prices and be public about it to cause this rigged casino to pop. So now I have the US government which is completely captured who have gone completely rogue trying to start a war without realising that the Russian technology is further advanced. The chinese have no conscience and Putin who is no angel looking like the cleanest dirty sheet.
It reminds me of that parody song “Too Depressed to Commit Suicide”
I have retreated to my darkened room for the day awaiting further developments.
See song https://soundcloud.com/neville-greenwood/my-darkened-room
Greg – Harry seems like a nice man, however his view on gold is not realistic if ‘westernized fiat money were to die’ – He avoids the brics topic, and has no idea of the efforts of Karen Hudes and her team. I would like to hear Karen’s view again both before the Holidays and After – Someone you should interview again is Bo Polny, I just learned that the CME Group have implemented a 5 min. stop when both gold and silver reach gains of $100 and $3 respectively ! Effective Dec 22nd.
I enjoy your publication, and look forward to riding this mess out relying on your
credible commentaries.
Sincerely
George
George, Karen Hudes has gone over the cliff:
First she declared there are massive gold deposited in Hawaii
then when pinned down, she said they are in the Philippines.
I emailed her asking WHERE in the Philippines.
NO REPLY!
Now she’s into shape shifting Uber Elites!
Agree on Hudes. I did not know if she was being used, a deceiver, or just a nut. I am convinced that she is a complete nutcase and should become a Prozac spokeswoman.
Harry Dent is a great contrarian indicator.
“the Chinese and Russians are wrong” ??? Where does he get off?
Harvey forgot gold is a currency still in use today and MOST importantly not ALL people run to treasuries for safety. Many will buy REAL things… restate (farmland), gold, Silver oil wells and many other things that are not based on a potential promise to pay from an entity who’s is bankrupt
As we all know Bric’s are moving away from the dollar, as this sentiment continues globally we will see the real value of the dollar sneaking out of the Fed’s secret hiding places.
It was a good eye opener for other possible scenerio’s. I think it holds some merit. In the initial collapse dollars may indeed have buying power, shortly though my expectation is the wheel barrel that went to the bakery filled with money gets stolen. The paper sits blowing in the wind, while a new sign gold & silver accepted in big letters replaces price signs at the local bakery. I can only hope that bankers world wide finally get held accountable for theft, among many other crimes against humanity. They have it coming! My justice shall not be imposed, a shame really, yet my justice tends to be barbaric and unaccepted in todays world. That’s lucky for bankers. No ear necklace I guess, bummer.
I agree with Harry on the demographic cliff (re stocks) and oil ( its not good for the financial markets) but not gold ($700 nope!).
He is correct there is a fracking bubble- a fracking mess I call it. (He is wrong re demographics re oil as there is massive population growth and oil demand in the world-see China and India)
Plenty of money was borrowed at low rates and raised on Wall Street on the assumption that shale oil would take off and solve three issues while making everyone rich:
– The US would become energy independent;
– it would create jobs; and
– the US would no longer needs Saudi Arabia to create demand for the dollar because the export of shale oil would create its own demand for dollar and replace much of the Saudi Arabian demand.
Since Saudi Arabia has only one card to play – oil, they can’t allow the U.S. to make them less relevant through shale oil competition.
The Shale oil industry can’t make money at $57 a barrel so all the potential benefits vanish and worse as lots of shale loans won’t be repaid, shale stocks will crash.
While the low oil prices are good for consumers in the short term-the trade off is not a good one- U.S. consumers can spend more money over the next few months but the US loses high paying jobs in the fracking industry and all that money invested in it may go up in smoke and cause a financial melt down. (agree with Harry)
I call this shale oil implosion the black snowflake that sets off the avalanche.
Cheap gas is not really a good trade off -consumers can spend on cheap Chinese goods for a few months while another made in the USA industry goes down in flames.
More here:
https://smaulgld.com/black-swan-cheap-oil/
Re gold- Harry is wrong if he thinks the dollar will be allowed by the Fed to grow stronger by raising interest rate. That would make oil even cheaper and cause even more deflation. The Fed will is made up of members who have it stuck in their craws that deflation is the enemy that must be fought. They can only fight it with more helicopter drops of dollars-this time perhaps instead of a QE- they’ll dump it directly into the economy.
Harry thinks that the fed would lose credibility if they kept printing money-that won’t stop them! Especially if the Bank of Japan and the European Central Bank are printing their currencies. The Fed will print and print and lose its safe haven status.
When dollar denominated debt goes bad, people won’t want dollars.
If it finally becomes apparent its QE infinity around the world there will be a rush into gold and silver.
BTW having your money in an “investment account” is as a risky as having it in a bank. “They can’t steal your money” LOLOLOLOL Thanks Greg for mentioning MF Global and street name.
Harry fails to recognize the value of having an assets that don’t rely on counterparty risk – like gold and silver.
Hang on! Its going to be an eventful next few weeks, months.
Hi
I agree with you, he is wrong in lot of things, simply because not every bank will fail at same time. So the money which will destroyed at first will be these in big US banks (and some European bank because the derivative exposure), then the rest of the US/Western banks will go Cyprus (not at once), then the FED will start QE. After this the and before QE the rest of the world will want something valuable for their US$, so hyperinflation coming.
So the best thing the CB can do is buying PM’s, so China and Russia is far from being dumb, especially when we look at the GOFO, which signalizing the West run out of the gold. According Jim Willie the London PM vaults are emptied at fastest peace. When will Jim Willie come back?
BTW criminals in COMEX are implementing a 400 US$ circuit breaker from 21st December of this year.
My 2 cents
Oracle 911
oracle
If the global collapse is in part triggered by a collapse of the US junk bond (shale oil) market it doesn’t seem to make sense that people would want dollars. In 2008 people rushed to dollars because there were no alternatives. Since then the Yuan has risen in stature due to more international deals using it and their massive accumulation of gold.
In 2008 initial people dropped gold but within months gobbled it up. This time the dollar wont be the knee jerk safe haven Harry thinks it will be
I agree with you or rather we agree with each other in this matter.
So if the collapse is triggered by big US bank or by US$ denominated asset, then a question arises:
Who in his/her right mind will go into US$ or into US$ denominated assets (with counterparty risk)?
From this point Dent’s advice is dead wrong, rubbish and dangerous.
“I have debated … all these experts and they are just wrong.”
Sorry Harry, YOU are just wrong. Yes, some assets will suffer price deflation, but as far as fiat currencies go, they will suffer much higher inflation as central banks print to oblivion! Leading in some currency cases to hyperinflation.
All the above are precious metals positive. $700.00 gold? No, won’t happen. Add another zero. Remember, high inflation is a political event. Hyperinflation is strictly a currency event.
Sorry Harry, about gold you are just wrong, however your other financial analysis is spot on.
Is nature wrong?
Thermodynamics?
http://solarcycles.net/2014/12/13/state-of-the-markets-10/
exactly. Harry’s assessment is based on NO CHANGE in the world’s economy. In his view king dollar will effortlessly remain on his throne despite the golden BRICS prince who is younger, smarter and far more attractive and is gathering his followers for a coup.
My studies in Sociology covers, demographic and economics and Harry Dent is correct in my view. I like the way he thinks regarding cycles. So here is my 2 cents.
This author, Michael Clark, thinks in terms of cycles in a philosophical way.
5th Comment Down – A Take On Oil Prices…and The Global Economy…
http://seekingalpha.com/user/428250/comments
The Prudent Bear says…
http://www.prudentbear.com/2014/12/the-collapsing-periphery.html#.VIuyjCvF8jU
Dr. Michael Hudson says…
http://michael-hudson.com/2014/12/backfired/
The Fourth Turning says…
http://www.fourthturning.com/html/winter_is_coming…1.html
The Bible alludes to this cycle wisdom, “there is a time for all things…”
And last, but not least Peter Sellers says in the movie “Being There” – The seasons.
https://www.youtube.com/watch?v=TYeVQzTVyLk&html5=1
We might as well adapt, time marches on.
Great work Mr. Dent and Mr. Hunter.
Harry also fails to realize that oil is down because Saudi arabia is ramping up supply and dumping oil on the market.
Silver is in a supply demand deficit and gold is approaching that. Silver is needed in industry for solar and electronics and there are no silver stocks, it gets mined and used.
If the price of silver is well below mining costs, it won’t get mined then the price HAS to rise
Smaulgld
I just read in the below link that Opec doesn’t intend to change its targeted output of 30 million barrels per day even if the price falls as low as $40. Furthermore they will wait at least 3 months before considering an emergency meeting. The next scheduled meeting is not until June 5
Where will this leave the fracking industry of the world, I’d say – a fair bit of it fracked.
Cheers
Col
http://www.bloomberg.com/news/2014-12-14/u-a-e-says-opec-won-t-change-output-even-if-price-drops-to-40.html
Thanks Colin
I saw that and it’s further proof the price of oil is dropping not because of deflationary pressure but mostly because opec in massively increasing supply in response to a small decrease in demand.
Who would do that other then one who wants the price to go down?
Sounds just like the naked short selling of gold and silver – manipulation
Smaulgld/Greg
One small thing may have escaped Obama and the PTB. But then again Mr Obama doesn’t seem to dwell in the real world does he.
I am a beef farmer. I export beef….. in the real world. When I export beef a weakening of the NZ$ means an automatic and considerable increase in my farm income in terms of my local currency. Conversely anything I need to import e.g. fuel, champagne, caviar, Ferraris etc. quickly go up in price as well. This is basic economics and works for little old me in NZ just the same as it does for giant oil exporters in Russia.
This effectively means that the Russian oil industry is not doing as badly out of the fall in the ruble as Obama would like to ‘think’ they are. Furthermore the Russians have low costs of extraction in many cases and won’t have the negative effect of high costs of imports because they don’t even have to import anything in order to extract this oil. Seems to me they are the big winners both ways here.
Furthermore Russian oil baron Leonid Fedun indicated that OPEC has an agenda of cleaning out the US marginal fracking industry at least as far out as 2016. If the price drops to say $40 per barrel how much of the US fracking industry will remain standing by 2016. I will hazard a guess – three parts of buggerall!
Just my thought but has Opec completely sucked Obama/Kerry in with this move where Washington ‘thinks’ they are helping to bring Russia to their knees but in effect all they are doing is destroying the entire US fracking industry – and probably forever.
Then again to coin a Watchdog phrase “is this too stupid to be stupid”
RE the pending demise of the fracking industry, we have an old saying down here;
“It is an ill wind that blows nobody any good.”
Cheers and best Xmas wishes to all. [except Obama and Kerry and a few others that spring to mind]
Col
Colin
Thanks for the thoughts. Where russia is harmed is as in your example the balance of payments. It does not have a diverse economy so it has to import a lot of goods .What it imports has become very expensive as a result in the decline in the rouble.
So russia is indeed harmed but as you point out so is the U.S. Fracking industry , it’s high paying jobs and the bonds and derivatives surrounding the industry
Colin,
Another excellent point of how this is not heurting Russia. I keep emphasising this with others but they all think I am nuts. What if the frackers get destroyed and Russia can hold out and then completetly dominate oil market.
I am amazed at how the world keeps underplaying him- it really makes me wonder how can they not see their own demise- Putin has learned the horrible pitfalls of communism he knows that it is a death wish. He knows there is only one way-and I keep saying that he is a masterful tactian and strategist-look where Russia was and is now.
We are only hurting ourselves, I have heard that Obama is an egomaniac and cant stand the fact Putin keeps playing him- heard from a decent source ( cant prove it). Nice point Colin Z
wd
Napoleon had a go at the big bear.
Hitler did too.
History shows that these guys didn’t do too well.
What makes Obama and Kerry think they will do any better.
Oh…. thats right …. these two are not capable of rational thought. Neither is Nuland. These three reckless and moronic psychopaths wouldn’t have a clue between them.
Putin will run rings around them.
BTW I still regard Obama as potentially a worse threat to the security and peace of the world than Hitler. Last time I stated this on the WD there was nary a whisper of disagreement. Lets see how I go this time.
Cheers
Col
… they won’t come after you, Colin: but they will come after us…. SSSHHH!
I like your style but some quick info on silver mining. 80% of the silver mined is by product from the mining of other metals, 20% is directed at obtaining silver directly. So 80% of silver mining will continue unless the price for base metals falls below production costs. Cheers
True but a loss of primary silver mine production would remove 20% of the mining supply which is about 80% or the total annual silver production.
About another 20% of silver supply is from scrap. A lower silver price would help dry up that market too as it would become less economical to retrieve silver and or to resell it .
As to other mines that produce other ores and mine silver as secondary product, lower prices will curtail out their overall output too. The concept that silver is a “by product” is overstated as the mines clearly factor in their silver production in their overall cost of mining. A lower silver price will act to curb their mining activity as well even in the absence of lower price of the primary ores.
Under the scenarios above supply falls while demand does.
https://smaulgld.com/silver-supply-demand/
Supply falls while demand does not.
Even if there is ONLY a reduction in supply from the primary silver producers that is still a massive loss of supply, but as shown above, secondary mining and secondary scrap production would most likely also fall, so conservatively you would lose 30% of the current silversupply while demand at conservatively remains constant.
Sorry for the bad link.
http://www.fourthturning.com/html/winter_is_coming…1.html
http://www.fourthturning.com/html/winter_is_coming….html
(This is Greg Hunter and these links are broken.)
Thank you Greg.
One of my “credentials” is a “licensed” teacher. – I don’t believe in credentials.
But I do believe in teaching and telling OUR story, at least on how I believe we must make a real difference together as a people. One only look at the effects of Fukushima to see where this culture of death is taking us. Now they can steal our ideas, our pensions, our future, our planet, our very life. It is our DUTY to face this down for humanity itself, and all life on this God given earth. Learn says the teacher.
http://www.lewrockwell.com/2014/09/donald-w-miller-jr-md/the-fourth-turning-fourth-time-around/
http://www.zerohedge.com/contributed/2012-08-13/fourth-turning-finally
http://www.peakprosperity.com/podcast/82232/neil-howe-fourth-turning-has-arrived
http://www.fourthturning.com/forum/showthread.php?88-The-Greatest-Cycle-Rebirth-Of-A-Civilization&s=f8748a253e689f56e07020514cd29ccc
Search your heart and your mind and you will know it is time.
http://www.fourthturning.com/html/the_fourth_turning.html
Greg:
I had a prof once that said you could look long enough and you could find some guy that would tell you s#!* smells good. Gold going to $700, China crashing, Russia starting WWIII. The dollar becoming strong in this coming depression. We will see!!!!! Betts
Most of the posters here could give a better (i.e. more factual) interview. Harry seems to be clueless about Frank/Dodd and how it affects bank shareholders/depositors or the latest bank bailout inclusion to latest budget vote.
Greg Hunter proves to be a very kind and generous interviewer. Keep up the good work Greg; you are a one in a million guy.
Harry Dent will have to explain why the PTB didn’t declare a debt default after Lehman.
Yes, that would have meant all assets prices would have approached zero, and the government would have declared default on treasury securities.
Then, as now, I’m not sure they wanted to risk a global confidence blow.
ZIRP indicates a fear of deflation.
The Chinese, Russians, Indians and the number of central banks who want repatriation of gold stores, say something entirely different. Harry Dent may call that imprudent investing.
I think we’re about five weeks or less from a monumental gut check, Greg. I’m sleeping reasonably well.
The bullion bank suppression scheme is faltering, according to Andrew MacGuire at http://www.kingworldnewsblog.com.
You only have to be wrong once to destroy yourself financially.
Semper Fi!
He’s wrong,look at everything the Federal Reserve did get us to this point and now they’re going to let the economy crash ? I wish Dent would have explained how we get out of this mess after this big deflationary collapse happens.How will the govt fund it’s deficits ? Will they cut spending,or does the Federal Reserve keep printing ?
Mr. Dent seems to complete ignore the loathing other countries are showing for the US and the US dollar. Right now they still have to play with our monopoly money, but they are planning to leave the game soon. I think failing to take into account that Russia and China have other plans which include abandoning the dollar and Mr. Dent just dismissing these countries as being in “bubbles” reveals that his argument about gold decreasing in price and the dollar continuing to the a “safe haven” is not very well thought out. There is a lot more going on with these countries and their leaders than Mr. Dent gives them credit for.
Karen- I’m on your side. Dent think all these other experts are wrong??
talk about crazy talk. Dr. Jim Willie is calling for $18,000 gold within 2 years.
China is not full of financial dummies. I was told by insider friends many years ago, “China is the big one, keep your eyes on them”. And get out of anything paper!!- that includes money!
Al, Mr. Dent in one sentence dismisses 1/6th of the world’s population and their spending habits (i.e., buying all the gold they can get their hands on). I see this often when talking to Americans about the global economy. They can’t seem to think beyond our own borders. American hubris at its finest.
karen al correct
Harry says…………”They are dead wrong about what happens when debt deleverages. History proves this 100% of the time. When a debt bubble deleverages . . . money is destroyed. When there is less money chasing the same goods, you get deflation–not inflation.”…………….. First off, the gov can not stop printing money. They can not allow rates to rise. Yes prices would fall in a deflationary environment, but only assets tied to debt (like your home). In this scenario tax revenue would drop like a rock. So again the gov would have to INCREASE printing. Stagflation is what it’s called Harry. Your one statement really jumped out… ” History proves this 100% of the time “……. Yes history has shown that a fiat currency fails 100% of the time…… Since there’s no other way to pay our debt we will print. That’s inflationary anyway you look at it. Stagflation= homes, stocks, paper assets down/oil, gold, hard assets up.
jeff l
agreed!!!
“History shows that a fiat currency fails all the time”
Touche!
Harry’s USD and investment bank advice is DEAD wrong.
Nice retort by Greg with MF Globa…..customers got shafted on that one, while JPM ran off with what was less (see stolen gold).
There’s no way in the world that when the markets crash you want to be anywhere near an investment bank with its counter party risk and corrupt ethics…..screw that advice – its just flat out dangerous.
Dent is a deflationist. He goes all in on one side of the bet (at least he says he does) and looks in the rear-view mirror in regards to what will happen. Plus, naturally, he has a newsletter and a book. He may or may not be proven right. But NOBODY can realistically get in-and-out of markets at exactly the right hour/minute/second and then buy back in AND expect the product to be there/available plus expect to have their cash safely tucked away somewhere (safe in Ameritrade? Right, sure thing). And even if you could, it would ruin your health. Best to hedge on both sides – deflation and/or inflation. The goal is to survive (for me at least).
Harry has some good ideas about demographics but ignores his previous bad calls. Please go to the grocery store and show me all the deflation in food. Gas is just signaling another stock market crash like it did in 2008 just like the recent crashes in gold and silver. There’s a pattern developing here just due to all the manipulation and intervention its correlation is distorted.
west tegas
u nailed it.
I don’t even consider what is happening in oil to be ‘deflation’ per se (same thing applies to other commodities, including precious metals, uranium, etc.). I think it is more due to ‘price controls’ via derivatives. However, if these derivatives go ‘belly up’ (i.e., the counterparty cannot pay), then we may have true ‘deflation’ (i.e., a collapse/shrinkage of the money supply). That is another way to look at this situation.
I would like to see an opinion expressed by the likes of Eric Sprott, or Jim Sinclair on the
gold gospel of Harry Dent. What would Harry have to say about the Reserve Currency Status of the Dollar going away and be exchanged for SDRs with gold backing?
B BOB.
my thoughts also!!!
Absolute rubbish…..
When i watch the MSM I get sooooo angry.
Talk about people that will soon go the way of the dodo bird.
Just like payphones are nearly non existent MSM hosts will soon be non existent.
These mouthpieces are a waste because none of them talk about anything that matters.
None of them have the guts to talk about real issues and the true news pieces that will effect our lives in the very near future.
When the truth comes out and it soon will the general population will be so preoccupied with survival that they will not even care what BS they are discussing.
The world is filled with lies…but in this case the truth will not set us free…..the truth will destroy most of us.
As far as Harry Bent is concerned…interesting perspective but I am taking the experience of Eric Sprott, Rick Rule, Jim Sinclair, John Embry and the dozens of others much more seriously.
The leaders of the Western World our in my view simply no longer worth listening to..I do not believe anything they say anymore.. They treat us all like morons. We are not Morons and we do matter.
lol. Sinclair is calling for $50,000 an ounce gold, while Harry Dent is calling for gold to fall $300 from where it is now….and you want to hear Sinclair comment on Dent? You actually think gold has a better chance of going to $50,000 than $700?
Greg the word across the wire is $40. a barrel by weeks end possibly. We were in trouble at $60. per barrel, so there is no way out of this without something major happening.
http://www.bloomberg.com/news/2014-12-14/u-a-e-says-opec-won-t-change-output-even-if-price-drops-to-40.html
Important Note Greg: I received a tweet from my source on Sunday who has contacts in some very high places and he is saying that the collapse is picking up speed much faster than the PTB thought it would, and to have your emergency plan in place and ready to go.
Greg did I hear Harry Dent right when he said the dollar was a safe haven for investment? If that’s true , I want whatever he’s smoking. Evidently all the countries that want their gold repatriated didn’t read his book.
Jerry’s rule number #4. Never trust someone named Harry. Case in point Harry Reed.
Global research says that declining oil prices will cause the spill over to collapse the bond market. What say you Greg?
http://www.globalresearch.ca/will-falling-oil-prices-crash-the-markets/5419484
Jerry,
I think this will be 2008 all over again only on steroids. I thought we would not get out of 2014 with out a major event, but I thought it was going to come from the gold market not oil. Gold still might be a big event because guess what? My sources say, everyone out there is losing trust in the paper collateral and my sources also say the panic into gold is going to explode. I think this is why the CME just put a $00 limit up circuit breaker on gold. Also, Congress just passed a spending bill that hangs $trillions’ of derivative losses on the taxpayer. We will see. Harvey Organ still might be on target with his bold call a few months ago.
Greg
Greg
Greg from what I’m hearing, many of the Oil Fracking companies in the U.S. could default on their loans any time if oil stays below $60. a barrel. Its like the housing collapse all over again. People tend to forget that these companies borrow billions from banks in order to operate. When they default it will send ripples through the economy that could implode the debt bubble.
Jerry,
Remember that the fracking industry is the only area where new better paying jobs were being created, not jobs just opening up but created. I have seen reports where in these fracking areas even Subway was paying $ 17 per hour. Some of these workers were making 90k a year driving a truck ( short hauls). This is a huge deal over all. The ripple effect will be brutal. The fracking industry is the only really hot commodity in our country.
Some of these workers have moved there and send money back to their families in the rest of the states. This is brutal and it might not come back if speculators think it will happen again.
Jerrry- do you think its possible we got ” hoodwinked” by Russia and their closer allies? They can survive anything- do you think this was a grand manipulation on their part?
Thanks
WD
This is a full out economic war. The western banking cabal, may have won this round driving oil prices down, but the Chinese will step in and bail the Russians out of the crashing ruble by flooding the markets with our worthless bonds, You know what they say about people who live in glass houses? We have a paper one.
Jerry,
I understand that, but wont this hurt our frackers? Could this plunge shut down the real only major player in this economy.
If a lot of frackers go bust, who is going to take their place, who would finance them? Isnt this drop in oil a job killer for the U.S. also?
Thanks
Sorry for taking up space posting Greg, but this was to good to pass up. Those looking for a cheap source of light for prepping may want to check this out.
http://youtu.be/VRAKf00h1mI
Thanks Jerry this Luci will be a good Christmas gift.
Greg the Ruble is collapsing.
http://www.bloomberg.com/news/2014-12-16/ruble-snaps-six-day-loss-on-surprise-rate-increase-to-17-percent.html
Expect retaliation soon from the Chinese when they flood the market with our bonds. Its like Christmas my friend. Its coming.
jerry
u nailed it toooo!!!!!
I am on emergency footing, picking up silver and gold to pay taxes later in the inflation era.
Jerry …
Did you ever think this oil price collapse might be a Russian sanction on the US??
The Russian ruble was cut in half by the US …
Now the price of oil is cut in half half by the Russians …
What is the result? … The ruble still buys the same amount of oil!!
So was the value of ruble really destroyed by the Cabal?
If the Cabal doesn’t want to see shale oil firms put out of business … and don’t want to see a derivatives implosion putting their big banks into receivership … they may move to take the pressure off the ruble and allow the Russian currency to rise … at that point the Russians will likely allow the oil price to rise …
The Cabal didn’t do their homework … and now because of their stupidity their whole financial system is about to implode … let’s watch to see how long it takes for the Cabal to knuckle under and allow the ruble to double from here … only then will the Russians allow the oil price to double (if they want to play nice).
If the Russians play nice … we will lose the benefit of filling our gas tanks for half the price … but we will get other compensation … like the rise in the price of our gold and silver coins!!!
paul
wow, never thought of this, strong point. al
Harry is no doubt a smart guy. Great interview Greg. However, I think he is wrong in his analysis. He seems to ignore all the agreements around the world with countries agreeing NOT to use U.S. dollars. Seems like it might be a problem, particularly since the Fed Reserve has been printing new money to pay our bills for the last decade. We have very little manufacturing in this country now. Problem. There is NOTHING backing our fiat currency up. Problem. When the rest of the world is inking deals to put us in the secluded corner, I am not sure Harry’s thoughts will work.
Interesting guest. Many thanks again.
RE: Gold and Silver.
Dent’s main thesis is that silver and gold are only commodities and should not be thought of as money. Therefore, like all commodities their value will fluctuate in price depending upon demand and economic circumstance. For the past 50 years this has certainly been the case. This is proved by their price movements, seen in both steady times and in times of crisis. They have, at times like now, been a speculative trade.
The counter thesis, from the gold bugs, is that silver and gold are the only real money, and that all paper money has no real intrinsic value. This is proved by gold and silver’s long history as money, and by the regular collapse of many national reserve currencies in past ages.
The reality is that both positions are true, however they are not true at the same time. For now, Dent is right and will be proved right in the short and immediate future. Metals are currently a speculative trade by a handful of people who believe in impending currency catastrophe. They are also a long term position held by some governments who are trying to protect themselves against US hegemony.
Long term, they will have value but there will be a lot of pain between now and then. When the ‘then’ comes, and both asset prices and currencies everywhere are fully reset, then the intrinsic value of silver and gold may only be on par with their current relative values. This may be the final irony for all, for there is nothing on earth with any real intrinsic value (Matt.6:19-20).
” Metals are currently a speculative trade by a handful of people who believe in impending currency catastrophe “…………….. Yea, like China, Russia, India, all of S.E.Asia, most of Europe, all of the Middle East…….. Spoken by a true “paper bug”….. 5000 years of history and you guys STILL show your “not this time” arrogance.
Put another way…… ” 5000 years of history and you guys STILL display the arrogance ” this time is different” attitude………….. Emeth says… ” for there is nothing on earth with any real intrinsic value “. ……….. Sure , if you want to compare heaven and earth, but right now we all live on earth (frankly, I can’t believe you use that for any kind of argument, shows what we’re dealing with in this country)….. Since nothing has value why don’t you give me your house, cars and wallet ? I’ll send you my address.
Emeth/ Jeff L
Yeah do you think I could please have some of this stuff of no real intrinsic value too! After all its almost Xmas.
Cheers
Col
Colin, I thank you for the humor in your comment.
On the point that many stumble at, as far as material goods, assets or labor is concerned, the first rule of commerce is that anything is only worth what someone else is willing to pay for it. I learnt this through many years of experience in the business world. I met numerous people who had unrealistic ideas on what things were worth, whether their – labor, business, products or assets. Most people delude themselves.
Whether we agree or not, there is little or no intrinsic value in anything. Just go to a bankruptcy or liquidators action and see was things sell for. It is only someone else’s demand/need that determines value. Nothing more. Silver and gold will be the same.
Jeff L, you referenced only the first sentence and implied that I left out China, Russia etc. My second sentence covered them. I am far from a paper bug. So many on this site end up arguing the false dichotomy, as if only ‘paper’ or ‘metals’ were assets. What about land, food, businesses etc etc.
Lastly, many seem to think that metals have not been money for 5,000 years. Money, i.e. coinage was started about 6th century BC. Before that it was weighted metal, land, food, animal stocks etc, all traded assets whose values changed depending upon scarcity and demand.
Correction – added one too many ‘nots’.
Emeth (Alias Dent) said…… ” Jeff L, you referenced only the first sentence and implied that I left out China, Russia etc. My second sentence covered them”………….. Perhaps you might point out that 2nd sentence you refer to. Only exists in your mind………….. While we’re arguing whether gold is money(ridiculous) you might take the time to read some from our Founding Fathers (Constitution), JP Morgan himself, the late Buffet ( Warren’s dad), or even Greenspan’s declaration hardly a month ago. Of course Greenspan always knew gold was money but had to lie/hid the fact while supposedly serving the public………. If you aren’t Dent, you certainly have his thoughts down
Jeff L, to answer your points –
1) The sentence you don’t seem to be able to find .. “They are also a long term position held by some governments who are trying to protect themselves against US hegemony”
2) Your founding fathers, not mine. I’m not a US citizen. However, remember that many of these comments were made at a time when financial sophistication and available instruments were far simpler that that of today.
Money is whatever is accepted as a medium of exchange. In some cultures it was sea shells, tally sticks, salt, livestock etc. Right now it is your country’s currency. Now, silver and gold are only hard assets … and yes, I have heard about the currency vs money argument. It is convenient for your cause, but its really just clever sophistry and misdirection.
Accusing me of being Harry Dent is a bit rich, but I have read his book ‘The Great Crash Ahead’, where he laid out his basic arguments, which, in general I agree with .. but his timing was way out… but he is not Robinson Crusoe in this is he?
It is always so interesting to hear so many assertions presented as “facts”. However, I am old enough to remember the surge in metals in the late 70s … early 80s. Once bitten, twice shy.
I personally think every market is rigged, one way or another, and those in love with metals are just hoping to capitalize on their preference. However, maybe it will be different this time.
Emith
You are correct, we are living under a Babylon money system, the concept of Gold as money was created by the gold smiths and the banking system evolved from there. If I can convince you money is what I have in large supply I have no need to work or produce anything, that is exactly the scam we have fallen for since 600 BC, We are in the age of enlightenment, things are about to change.
For scripture, Isiah 2:20
Isa 2:20
In that day a man shall cast his idols of silver, and his idols of gold, which they made each one for himself to worship, to the moles and to the bats;
What do moles and bats have in common – they are both blind, well bats aren’t but both live in the dark.
To understand money open this link, will change your thinking, well maybe.
Bill Still “The Secret of OZ”
https://www.youtube.com/watch?v=oNyGn7F6tmg
Thanks Don, and may that day that Isaiah speaks of in the earlier part of Isaiah 2 come quickly. Amen.
I agree with Bill Still’s position on money creation, his definition of money, and basically his whole argument.
By the way, Bill is not a fan of metals, but of responsible governments creating sound money (i.e. notes). His thesis is that the US constitution states that money creation is to be solely managed by government. This is money created out of nothing, but backed by the government and its assets, solely for the people and not the moneyed interests. He further argues that money creation power has been given to the banks, and is controlled by them and for them, almost independently of the government. (Just as the princes in the dark ages, who could not charge usury by church law, used the ‘Jewish’ money lenders to lend to their subjects, and then heavily taxed the lenders. This way blame for usury was directed away from the rulers).
What really complicates this issue today is that these Banks are very large, and publicly owned, often through 401k’s. This means that almost everyone has skin in this game. We’ve all been brought into this devilish scheme, which of course is why the government has to bail them out when they get in trouble. No one really seems to address this side of the problem, as it is a conundrum.
The whole system is rotten, through and through.
Emeth
I apologize for miss spelling your name. That day Isaiah speaks of is here, sad to see mortals think they are in control or can ever conquer the world, evil cannot ever unit, they are a house divide, each struggling for who will be Caesar, they self destruct. The 7 seven deadly sins that posses them guarantee this. Good does not fight evil, Superman concept is totally false, they war among them selves till their total demise, sad to say they would take us all with them “unless these days be shortened”. There is a New World order coming and look who is setting it up for another to rule, absolutely hilarious isn’t it, if they only knew !! Get touch with me thru my email address, Greg has my permission to give it to you.
don
Excellent comments Don!
Bill Still’s ‘Secret of Oz’ should be required reading in every high school!
Greg, I trust u’ll get Bill on again before long
to discuss his latest opinions and counter some
of Dent’s comments.
Don,
thanks for that link
” silver and gold are only commodities and should not be thought of as money…. For the past 50 years this has certainly been the case.”
Let see. Gold and silver and to a lesser extent, copper, have been money for 5,000 years. Never, in the history of the world, has a country that used gold and silver for money, had its silver or gold coins default.
Fiat currency is like the Islamic religion. Its based on falsehoods and evil. Face it, paper money is based on faith, not reality.
Correction – Silver and Gold were weighted measures, and not money as we know it until about 600 bc (Lydians).
It was money.well before it.was.coined, which I think is what you.are.referring.to but ill let George defend his own thesis
geo
precisely!!!!!
Emeth,
Arguing that Precious Metals are a commodity and Money – but not at the same time – is a correct observation, only by perspective. Central Banks DO use gold as money currently, as well as gold being a traded commodity concurrently. I believe there will be a great divergence to establish Precious Metals as the ONLY veritable source of wealth – pegged to some veritable fraction of fiat extant. Too long and too badly abused has ‘wealth’ been conjured out of nothing. And while I cannot argue against Bible – Matt. 6: 19,20 – the Old Testament identifies and sanctions the use of gold and silver: which things are not superseded by the New Testament. Gold, Frankincense, and Myrrh – were gifts to Jesus Christ, the young child, to provide support in Egypt to escape Herod’s slaughter of the Innocents. And metals are held the world over by more than a few speculative people. Only in the propaganda soaked Western world are the general masses particularly swayed against history.
Hi Charles,
With respect, I agree in principle with you about central banks. However, they really carry gold as an asset whose value varies depending upon the exchange rate. It is very valuable, very dense, easy to store and move, and very desirable. This makes it a valuable store of wealth. However, it is really only a hard asset. It is not really money, as its value moves up and down depending upon demand, just like shares and property etc do.
In the OT some things were valued in silver weight, but that was an age where usury (interest) was outlawed, and thus an age without inflation. It is unlikely that those currently in power will ever (voluntarily) allow that to happen again. Our economies and those in power, are dependent upon the power of passive income (the rentier class).
Emeth,
Thank you for your good reply. I think we approach splitting hairs when we accede gold is wealth, yet assign it only a value of a ‘hard asset’, and not real money. True that the ‘value’ goes up and down – but be honest: the horrendous manipulation (to protect Dollar hegemony) – what ‘the Market’ is putting out for price is pure baloney. The REAL ISSUE is that the Market of the Western World is gaming the rest of the world. The value and context it is assigned is peculiar to the Western manipulators – one that the rest of the world is diverging from. I think that soon, other governments and economic blocks are going to completely break with America and all it’s puppet economic followers. At issue is that governments and Banking systems have been fraudulent and corrupt (the US and the West) and some standard beyond Fiat Printing must govern economics. India, Asia, SE Asia, China, Russia, Malaysia – perhaps more than half the world population do NOT share the West’s viewpoint of Precious Metals valuation. And the time that America tries to dictate it’s viewpoints and values to the world is ending.
O. T. usury was practiced in the Bible. Deut. 23: 20 “…a stranger thou mayest lend upon usury..”. So a blanket statement suggesting to the contrary is simply not true.
Governments which conjure wealth out of nothing by printing has become the tail aging the dog. It’s time something rare, physically verifiable, and historically proven become money. THEN whatever form Fiat representation directly tied to the source organism can vary within the basket of world currencies. Currencies that are proven will flourish; currencies that cannot show ‘source value’, their instruments will fall into worthlessness.
This way currencies will prove their pedigree (gold money reserves) or lose world share in commerce. And overall value will not be based on manipulated markets; but upon the concordance of nations and the ‘money to fiat percentage’ of what is circulating.
It is simply time to define things correctly, and determine perspective from that – so that the dog may properly control his tail; not visa versa.
Thanks Charles, I agree with much of what you write, and I certainly agree that governments and vested interests everywhere have thoroughly corrupted the system. I worked in the corporate world and I know how easy it is for those with power to bend the rules.
Capitalism only works fairly if it is practiced with sound Biblical principles of morality … love thy neighbor as thyself, do unto others as you would have them do unto you, etc. These are both an OT and NT principles. As people and societies have moved away from these governing principles we are left with the Materialistic philosophy of the Darwinistic model => survival of the fittest, feelings of entitlement, arrogance, and superiority, where the weak are crushed, stolen from and dominated … and it is justified by those who do this because they are weak and vulnerable. Social Darwinism at its best, see –
https://www.youtube.com/watch?v=9n900e80R30
I personally believe this is why capitalism cannot work (fairly or ethically) in non-Christian societies (eg. Japan), among the elites, or increasingly in western societies as they move away from these core concepts.
My point on usury is that it was outlawed in Israel because it basically corrupts societies. Yes, I know that the Jews could lend to other nations on interest.
One last point. I think that you demonstrated my point. Money is whatever we all agree it to be. Metals can be a form of money, just as my house and land is. No more, no less.
Doesnt any.holdings of foreign currency fluctuate which kind of destroys your above.arguments. Gold is an asset classes but its in the same category as foreign reserves. When Reagan sold wheat to Russia, we were paid in gold. IMF.debt is supposed to be paid in gold…at least a percentage of it
charles, tommy al hall;
agreed!!! good posts. al
The street in Heaven is not paved with fiat currency!
“And the twelve gates were twelve pearls; every several gate was of one pearl: and the street of the city was pure gold, as it were transparent glass.”
— Rev. 21:21
Emeth- I have a good friend- connected to the ‘elite’s of the world” and yes they are real.
He has told me many times, they have told him- gold and silver is the only money, it’s all that is real to the. And that paper currency is worthless- only worth the paper it’s printed on! It will seek it’s normal value- zero. From it’s value in 1913 is now worth about 4 cents! Won’t take much to get to zero from here.
Thanks – I am sure that their is and always has been an elite, who seek to rule the world. Soon we will see who really rules … read again Dan.4:17.
Deflation: Goods on the shelf, but no buyers. A simple view.
@Jim: You mean deflation for non-essential items like imported plastic junk from China. Go to the grocery store where essential staple items exist and show me all the deflation in steak, pork, vegetables, fish, milk, eggs, butter, cereal, coffee, etc. There is no deflation in essential items!
We only see DEFLATION in non-essential items but will have Large Gaps Of Inflation on essential items.
Deflation in the money supply, as in noone has any money to buy things. That is why they are printing us into oblivian and “throwing money from helicopters” as Bernake expounded several years ago. I believe this is the condition that afflicted Germany prior to WWII and their massive inflation leading to the rise of Hitler. My local attorney said a number of hs clients are handling lots of money but can’t hang onto much of it. Consequently discretionary spending is less. The news reported last week this may be the biggest discounted Christmas ever.
@Jim: You’re correct except for essential staples like food. You should read when When Money Dies by Adam Ferguson as it details what happened in Germany post WWI and prior to WWII. The interesting part is before the inflation broke out the average household spent maybe 10% or 15% of their budget on food. By the end of the inflation event they were spending upwards of 90% to 95% of their income on food. Once again, critical staples did not experience deflation. Non-essential items is what experienced deflation. By the end of the event a good pair of work boots and a hot meal were some of the most valuable items.
I had a thought over the weekend about these low oil prices. Specifically, how China is taking advantage by filling it’s strategic reserves. Do you think there’s anyone running this country with 1/2 a brain who might want to replenish our reserves using all these great paper dollars ? You know, just in case there’s a war ? Probably not.
Jeff L
chinas and our streg. res. are all ready full, and are the first call by the military above all. al
Dent is very ignorant about the behavior of gold in a deflation. It does not go down, it rises. Same with gold equities. What was the most lucrative group of stocks during the Great Depression? Gold stocks.
As far as deflation goes, ain’t gonna happen. Listen to John Williams. We are looking at a hyperinflationary depression, not deflation.
If he thinks the USD is the place to be, he must be looking at the healthiest horse in the glue factory.
Listen to this guy at your own risk. He is dangerous.
I agree with you-dangerous
tommy t
this is very funny;
If he thinks the USD is the place to be, he must be looking at the healthiest horse in the glue factory.
Greg, why did you ruin your great track record by having this idiot on your show? he has NEVER been right about anything.
(Spanky,
This is Greg Hunter.
I have been asked by several people of have Mr. Dent on to provide an opposing viewpoint. So, I did that to make sure I had as many views as possible to allow folks to decide for themselves. By the way I am responding this way because there is a glitch in the backend of WordPress that removed the “reply” feature. I hope to get this fixed soon.
Greg)
Thanks for the diverse quests Greg. Harry has his good points…… Buy I especially appreciate the thoughtful comments.
Hi Greg,
While I don’t agree with Harry’s views on gold & deflation, I also appreciate the occasional opposing viewpoint. Keep up the good work!
Thanks,
Dan
spanky;
I like the opposing viewpoints, it hones our skills, or actually jerrys, sig s, pfi, charls and others, as for mine, lol, I jut read the comments, and keep prepping, either way it goes, as it will be BAAAADDD, FOR ALL.
I enjoy hearing other views . It helpful in confirming opinions and strategies.
Greg …
Lets say the Philadelphia Experiment was successful … and we have a Dr. Who technology to time warp Harry Dent back to the last Depression in 1930 … when Dent steps out of the “time machine” he sees an old man … Dent tells him to “hold cash and put it in your mattress because during depressions debts are not paid and therefore the money supply decreases and everything will go down in price except for paper dollars”.
The old man … figures this man from the future must know what he is talking about … and listens to this advice (however the old man has little money and must wait in food lines to survive). But, he teaches his 10 year old grandson the value of paper dollars he learned from “this man from the future” …and told his grandson he should save paper dollars in his mattress … the grandson to show respect to his grandfather manages to save up one paper dollar in his mattress [back then a kid could go to a movies for a dime … so that one paper dollar he saved in his mattress would allow him to go to the movies ten(10) times].
Fast forward to today … that grandson is now 94 years old and has Alzheimer’s … but he still can recall “old memories” and remembers the paper dollar bill he saved 84 years ago when he was 10 years old … he retrieves it and gives it to his grandchild and says … “here is a present for you that I have been saving for most of my life … it’s a one dollar bill … you can go out to the movies ten(10) times with it” … his grandchild looks at his grandfather with sadness thinking his Alzheimer condition must be getting worse … he tells his mother that Grand Dad thinks I can go to the movies ten(10) times with this one dollar bill he gave me … his mother to make good on Grand Dad’s thoughtful gesture… takes out a $100 dollar bill from her purse … gives it to her son and says “this is what Grand Dad thought he was giving you … now you can go to the movies ten (10) times like Grand Dad said you could”.
After coming back from the movies … the son hands his Mother back $90 dollars and says “Mom … you didn’t have to give me money for ten(10) movies … one movie was sufficient” … his mother smiles and say’s… ” no son, Grand Dad gave you that one dollar bill because he thought it would retain value equal to ten movies … keep the money”. The son says, “but Mom … I don’t want to see you lose so much money just because Grand Dad has Alzheimer’s” … his mother smiles again and say’s … “son, before your Grandfather got Alzheimer’s he told me he only “partly believed that story given by the man from the future … so he saved gold and silver CASH under his mattress for me … the $100 dollar paper bill I gave you only cost Grand dad one Dollar back then because he figured when his mind was clear that he should be saving (real Cash) … he reasoned that the man from the future must have been talking about saving “Real Cash” (not banker created fiat paper that is created out of nothing and is worth exactly the nothing it was created from)”.
The moral of this fictitious story is. Yes, save CASH in your mattress during depressions … but make sure the CASH you save is REAL CASH MONEY not FIAT PAPER” …
If Dent is right … and we are lucky enough to have depressionary conditions over the next four years and gold falls to $700 dollars … fine … just keep accumulating more and more CASH (not fiat Paper Cash) … but “Real Cash Money” called Gold and Silver … put these physical precious coins in your mattress … they will protect your future … saving “Fiat Paper Cash” the bankers always inflate to infinity during depressions will put you in the poor house.
Thanks for this Paul and thanks Greg for having Harry on and thanks Harry for agreeing to be interviewed by Greg. I enjoyed the interview almost as much as I am enjoying reading the comments. A lot of food for thought especially in light of Jerry’s comment regarding oil going to $40 “by week’s end”. This tells me that for a lot of us folks the theoretical is about to get real practical. The grace and peace of our Lord Jesus Christ be richly with your spirit Greg, Paul and all!
Paul, I think you misread Harry’s point. The time machine goes to the beginning of 1929, before the market crash. The old man still has a job, some money and some shares, so he cashes out and tucks in his mattress and waits. Come Oct 1929 and the market crash, he is thankful he cashed out and holds the money outside the system. Come 1930 on, all asset prices have crashed. He buys 5 houses with his cash store and rents them out to state welfare sponsored renters. He waits out the depression, now living comfortably on the passive income of his assets. He does not need to work anymore. He later passes on to his offspring a nice little nest egg that inflation has kicked along in value when normalization returned.
Emeth …
What you say is perfectly correct for an old man in 1929 who simply sold out at the market top and held “fiat cash” waiting for the collapse and then buying 5 homes.
But what you implicitly assume in your argument is “a continuity of government and continuity of the monetary system” … that’s a pretty big assumption in my opinion … why take such a chances … if this 2014 to 2020 depression becomes worse then the 1929 crash … the entire economic system and government could go down … if that happens fiat paper will become worthless … useless to even think about buying 5 houses with it.
However, those selling now before the 2015 crash and taking the fiat they collect to buy gold … would surely be able to buy 5 houses after the crash with their “real money” that has a long history of surviving destruction of economic systems and the collapse of governments.
Hi Paul,
You are talking about dire times indeed. I doubt those in power will allow this to happen, if they can help it.
This is why. The real economy, in the west, which generates real wealth is at its heart based on industry… i.e. businesses which need a stable system to function. If they cannot work, then nothing can work. No goods and services, no food, water and total chaos.
If that level of catastrophe occurs, it will end up very primal and vicious. Yes, silver and gold would then be useful to have, but food and a safe haven even better. During the siege of Stalingrad, a loaf of bread was worth its weight in gold … or see 2.Kings.6:25.
“There was a great famine in the city; the siege lasted so long that a donkey’s head sold for eighty shekels of silver, and a quarter of a cab of seed pods for five shekels.”
But this is my point … silver and gold are primarily a hedge against this happening, but they are not money per se. They are just another asset that can be traded.
Emeth …
One thing I’m not going to waste my gold and silver coins on is bread … I’ve got a big supply of Yehuda Matzos stored away (along with lots of canned and dry foods) … when my supplies get close to expiration date … I just donate to charity and buy fresh … hey, if the Cabal manages to keep the system together … great … I will no longer have to keep much food storage … there is no expiration date on my gold and silver … they stay fresh forever.
Dent is not even credible. I read a couple of his books years ago , and he doesn’t have a clue. Sure you can have an opposing viewpoint, but get somebody who has the background to bring a plausible thesis. this guy says he has debated Peter Schiff? I’d like to see that debate, but Schiff is a class guy, so he probably would give Dent an “out’ and let him go. Now put him up against Jim Willie and Dent might be left with his underwear ( if Willie was “nice”) Greg if you are gonna get an “opposing” viewpoint go get some guy like Roubini who at least can bring some kind of logic to the table. ( even though he is controlled by the banksters) , at least he is a trained economist. Anyway, Greg, you have many good people on your site, Dent is not one of them. You are getting very close to the truth now, maybe too close, Jim Willie knows the REAL problem , but he cannot go public with it. There are quite a few now that are putting the dots together. Yet you need a long view of history , economics, and the “nature” of those who would seek to enslave us in order to begin to see the big picture, and yet it is right there under your nose if you are willing to look.
Greg,
Cycles, charts, and models…sounds very convincing when systems operate at a steady equilibrium. Unfortunately, we are in uncharted territory – not comparable to past history. To say that gold or silver are going to change hands at prices way below costs to produce seems absurd. Markets and paper-pushers can propose: but people who work to produce, and managers who must make business work are no going to conform to such unrealistic interpretations. The Dollar may by the prince; but king fiat has no clothes.
The Phantom Buyer, who bought ALL the short sales on the Comex – took everything that was offered (many think was China) – I bet will stand for physical delivery. And If the idiots try that again on the Comex: the camel’s back will break for physical delivery and end the paper fraud for good. One can bluff, occasionally, but as a major part of strategy: it won’t work – you have to have the cards to stay in a game.
I have to put a dent into Mr. Dent’s babble.
First Mr. Dent said several times that the Government has done something to prevent the bubble from crashing. He also stated this was due to money printing.
No Mr. Dent it seems you don’t understand the monetary system of this country.
The government does not print money nor does it have any control of that at all.
Second is that the Fed can not allow deflation for if deflation starts then the monetary system will collapse. If that happens then the only thing out there will be printed paper notes which are not enough to cover the needs of the people.
I doubt the government can survive 1 year if such a thing took place.
Bill Still covers topic this fairly well.
Mr. Dent for the first time in history the whole world is on a fiat system.
You first have to understand this before you can say this or that will happen.
What will happen is the Federal Reserve, who is in power to issue dollars, will issue as many dollars as needed to offset the deflationary effects of any slow down at all.
Dollars are not money, they are notes issued by the Fed which by USA law are protected to be used for trade for goods and services through out the world.
It’s value is derived by trust and faith that the debtors can pay their debts.
Mr. Dent is confusing the history of Gold backed notes with today’s fiat notes!
What we have now is what’s called an inflationary depression! It’s called this because this is new territory which has never been seen before.
Mr. Dent also said a bank can lend out money ten times.
A bank can not lend out money ten times.
They are required to keep 10% in reserve of depositors money.
The ten times number, which is not ten times, that many speak of is an effect of money growth due to this policy. I think the reserve is too low but this is due to the US citizen being the lender of last resort.
If we end this nonsense of lenders of last resort then we would have reality in the markets.
There is no reality in markets when you have dollar printing.
Last is there is not a free market (free enterprise ) system in place anymore.
This is a Fascist system!
As to what gold will buy verses what the dollar will buy – gold wins the dollar will lose every time. Why – because 2000 years of history shows this to be true.
Governments have come and gone but gold remained the one item accepted by all people all over the world.
So the real question is will the US government still be intact after the next stock market disaster?
If the US government becomes replaced the Federal Reserve is history.
Pay attention now.
There is no place on earth to run to as they took down all the safe havens.
So the Fed can not allow the USA to go bust.
For if the USA goes down the banks go down with it.
99% of the rich people go down with it also.
This will not and can not happen.
The Fed will run dollars off which will create inflation even if it takes 40 trillion dollars to do it!
Those that understand this run to gold and silver as there are no other safe investments should a worse case collapse take place.
The next few months will prove this.
When governments and people in power make mistakes they will not change direction no matter what terrible things happen. A giant lake in the former USSR that was drained dry is proof of that. It didn’t matter that the lake was being destroyed by them – they wanted cotton and they were going to keep what they wanted. That lake was as big as Lake Erie in the USA. It’s bigger than many countries!
Is it really possible to prognosticate wether we will have an inflationary depression or a deflationary depression. If control gets away from the game masters will they be able to direct the collapse one way or the other. QE I don’t believe had the intended outcome. How can an economic disaster, possibly global, circumstance be directed to a preplanned fruition? I don’ think it can be.
To print, or not to print. That is the question, that Harry does not even consider. Yet, he is smarter than Peter Schiff, Jim Rickards, Vladamir Putin and the Chinese. Combined?
Fawlty
No I don’t think he is smarter than Peter Schiff, Jim Rickards, Vladamir Putin and the Chinese. Combined.
But I reckon he is smarter than Obama and Kerry and Bernanke and Janet….. combined!
Cheers
Col
Thanks Colin – that made my read for the week. Cheers.
BF
🙂
Deflation brings higher gold prices not lower…
The dollar will be the only safe-haven…. Right. Own an Ameritrade account…. Right. The only thing missing from Mr. Dent’s presentation is that he’s not dressed in full clown-suit regalia, – big red nose, big floppy shoes, the works.
Ok, not to be totally disrespectful to Mr. Dent, but this totally cracked me up. Thanks for the laugh!
Iona
Yeah…but …but…but the US dollar is backed by the “full faith and credit” of the US Government isn’t it!
And…and…and… its military might and its global hegemony!
Cheers
Col
Greg: AFTER READING COMMENTS- I THINK PEOPLE THINK DENT IS FULL OF FASCIST CRAP!!!
I, for one, would much rather listen to Jerry Reed than the blather offered up by Harry Reed. Enjoy this clip – Jerry Reed and Chet Atkins live.
https://www.youtube.com/watch?v=Ng__WbaFVz4
Love Chet Atkins. One of the greatest guitarist that ever lived. His playing literally inspire millions of guitar players. Just had to add this
Best
Vincent Love your post. Specifically….. ” For if the USA goes down the banks go down with it. 99% of the rich people go down with it also.
This will not and can not happen.
The Fed will run dollars off which will create inflation even if it takes 40 trillion dollars to do it! ………….. unless they “desire” a collapse (which I’m not so sure of) all they need to do is add another “zero” on their keyboard. Not really all that difficult. Followed by…….Hell, let’s add a couple zero’s tomorrow.
Greg. Interesting views from Harry Dent. He has a different take on deflation then the federal reserve seeing they have printed ready to be dispersed in case of deflation. Also to say China is not able to make a offensive attack made my eyes open wide. 1.3 billion with the knowledge given to them by Bill Clinton to send a nuke to the USA. Who knows how many undetectable subs they have made? Remember the rocket launch off the coast of California ? The official report was it was comtrail being dumped. Remember the China sub that mysteriously appeared in the heart of our war games? 3 emp bombs above America and out goes the grid. Lastly Why has China been meeting with Saudi leaders on a monthly basis? The drop in oil is not about shell oil its about changing the worlds currency. Harry Dent is a very smart guy but I think he underestimates the power of greed, and oligarchs desire for control. Thank you for having him on Greg.
Horse hockey. Every economist knows that we will face inflation quickly after our round of deflation. Also, this guy fails to mention any sort of knowledge of current PM price manipulation. And, he thinks China is stupid for buying gold… wow! Did anyone tell him that fiat bucks only began 43 years ago. I’ll just leave it there. Hope you’re doing good Greg!
Not intended to degrade the information on this site. I found a article from Ben Bernanke on deflation. He mentions the power of the fed to do what ever they see fit to prevent deflation.
http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm
Very good JC. That’s the speech that earned Bernanke the nickname “helicopter Ben” if I am correct, because he referred to economist Milton Friedman’s famous “helicopter drop” of money as a solution for deflation.
Mr. Dent couldn’t be more wrong about everything that he discussed with you. But I suppose there is some value in allowing and listening to different opinions on these very important subjects.
First of all, how can we trust that all the free-market mechanisms are properly functioning when every market is manipulated by government and the big banks? Therefore, is it logical to accept the quoted prices of any commodity or financial instrument?
Secondly, everything in our current system is based on the value of the U.S dollar(including those nasty derivatives) so if the dollar implodes or explodes, then what happens to the entire financial system? Won’t exactly know until it happens, but I strongly doubt that the U.S. dollar will be coveted and appreciating in value. I doubt the dollar will be taken seriously by even the unfortunate souls who beg for money under the bridges and at the street corners.
I would rather put my trust in gold (or even widgets) rather than listen to any assurances and promises coming from any government whatsoever. BTW, hasn’t our government been caught lying about everything you can think of, from Obamacare to Benghazi. I guess the greater public doesn’t watch Greg’s weekend wrap-ups as they should.
Regarding China and Russia. They are joined at the hip, both economically and militarily. America cannot withstand their combined economic and military power, especially when combined with the BRICS nations ,and Germany, Turkey, Saadi Arabia, etc.
The world is becoming a crazy place, and the old world order will soon be no more. I don’t want it or like it, but that’s the way it is. First our money is destroyed, then our societal and political structures. Or possibly, vice versa.
Greg, I listened to this Harry Dent interview twice. At first I thought it was a joke you were pulling on your listeners. I noted that you smiled a bit while asking him some “What about” questions. After the second listening I can describe Mr. Dent in one word… Clueless. The question I have to ask is what is he smoking or what pills is he taking. I follow these interviews loyally 3 times a week. This is the first time I watched with a dropped jaw. Happy Holidays and best wishes to all.
Mark,
I brought Mr. Dent on to provide a different point of view. He did make some very good points about demographics and he was gracious to come on. That said, I thought he might draw some fire with his views but in the spirit of objectivity I put him on and let the folks here decide if they like what he has to say. This has sparked a wide variety of comments and a broad discussion is always welcomed. Thank you for your comment and support.
Greg
Where does scottrade cheap their money? They don’t have a vault with paper dollars. What happens when tax revenues fall? How does the U.S. governments debt get serviced?
The opposite point of view is appreciated Greg. We shouldn’t be in an echo chamber. I agree with a lot of what Harry had to say but he did sound like a cheer leader for the dollar and the US financial system. Money in a brokerage account? Not for me… I’ll keep stacking the shiney… Chip
In lieu of what the Bible says about buying and selling in the last days, it sounds like it is describing a cashless (PM-less?) digital system. If all currencies crash, could this be what is planned? How would you accrue digital money? Could the ammount of digital money be expanded forever this way?
Greg, kudos on casting a wide net and broadcasting a wide variety of view points and opinions. No one can ever say that you push one side of an issue over another. You my friend present a diversity of ideas and ask the hard questions.
One thing I see different from the last time deflation was a real issue, the 1930’s, was that we had “real” money with $20 bill backed by an ounce of gold. All of our debt was implicitly payable in gold. In 1933, contrary to what most think, we defaulted on our debt instruments and devalued our currency by nearly half, to $35 to the ounce of gold. Our government had little debt and we were a net exporter of manufactured goods and agricultural products and a creditor nation. Deflation is caused by a collapse of credit and a limited supply of money. Basically, you have many goods chashing few dollars, all of which were backed by gold or silver.
While nothing is impossible, it is highly unlikely that we, as a nation deeply in debt, that manufactures little but still exports some agricultural products, with a debt fiat currency based on the ability of a country in decline to pay back money borrowed to pay for the modern day version of breads and circuses…seems like deflation is not on the menu, only inflation.
Thank you 500,
I did not think I was taking a risk here as we have some of the smartest folks commenting in the internet here–yourself included.
Greg
Greg,
I agree with you there are some very wise people who comment and contribute to WATCHDOG.
A case in point Texas citizen 12/12/2014 – I will take the liberty of quoting from this post which I thought was quite simply profound and brilliant:
“The strategy is simple – overwhelm the system with so many ‘unbelievable events’ that the public just gets weary and worn out.”
and;
“Yes there remain many who strive for correction and who fight against this cancer, but the vast majority are simply lazy gluttons drunk with prosperity.”
Just a humble suggestion Greg but would it be a fun idea to have a Xmas vote by the WATCHDOG contributors as to the “Watchdog Quote and/or Post of the Year” or some such title. I really do think there are some exceptional posts and it could a little bit of fun to help lighten the load, so to speak.
Just a thought – this doesn’t need to be posted Greg.
Cheers
Col
Colin that appears to be happening now and I think it is a fair observation that deserves to be discussed and posted my friend.
Greg
Dear Greg, your interview with Ms. Harry Dent was a perfect gift to me, because last Friday I suggested you to pay attention to the profitability issues regarding the fracking, when the oil prices are falling. I am not an economist, but I have a gut feeling that Mr. Dent is “right on the money”. If his estimated sum of $500.00 billion dollar investment in the fracking and associated businesses is correct, then losing that amount of dollars will cause some lander banks to go belly up. As far as I heard and understood the latest debates in our Congress, there is no any desire there to keep bailing out any of the banks any more.
Once again, Greg, I thank you for your good and hard work!
Thank you Miro!
Greg
I have been harping about the fact that this drop in oil is 90% manipulation and much less about the Saudi’s. The only thing the clueless MSM understands is “the Saudi’s” and those evil Russians. I dug up some interesting facts………………………………..
The US has 380 Million Barrels of Oil in storage right now, and this time last year the US had 375 Million Barrels in storage, yet the futures price was $97.65 a barrel last year at this time versus $57 and change as of Friday. That is roughly a $40 re-pricing of the commodity on a little US Inventory difference on the WTI contract. In fact just a couple of weeks ago we actually had less US oil Inventories in storage.
On July 4th the US had 382 Million Barrels of Oil in storage, so actually more oil in storage at the heat of the summer driving season than we do today at the weak part of the oil market in terms of demand, but yet price has gone down $40 a barrel on essentially the same level of oil supplies here in the US.
Another interesting tidbit regarding supplies is that the US had its highest level of supplies both at Cushing Oklahoma and overall when the futures price was around $115 a barrel due to Middle East disturbances.
If we look at gasoline stocks the US currently has roughly 216 Million Barrels in storage that compares with 219 Million Barrels in storage a year ago. The RBOB Futures price was $2.73 per gallon a year ago (depending upon the contract), and in the $1.60 range today, so over a dollar re-pricing for gasoline on basically the same level of gasoline supplies…………………………………………….. To reiterate, same oil in storage but a drop from $115 t0 $58………. Amazing. Those Saudi’s are something, huh ? Maybe they are also the villains manipulating my gold ???
Only if they own JP Morgan, Citibank, and the rest of the big money center banks. The markets no longer reflect reality, just the value the manipulator at the banks want it to be….at least right up to and until they loose control
Hi Greg,
Mr. Dent is right about one thing, most of the people who watch your interviews have never been in a depression. However, he is wrong about his history, the only reason “cash” increased in value during the great depression was because the dollar was “silver” and was backed by 20,000 tons of “gold” at Fort Knox. Most of your guests who have predicted hyperinflation have also predicted a “brief” deflation, which will be the main cause of more massive money printing by the federal reserve and more massive money borrowing by the federal government. Fiat currency (currency NOT backed with anything of intrinsic value) eventually loses 100% of its value 100% of the time. I hope nobody who listens to this interview actually begins to hoard paper federal reserve notes and dumps their gold and silver.
Well said, Michael.
I very much agree with you sir !!
That’s correct
As I said in my prior post he does not understand the current monetary system.
What took place in the depression was all things dropped in value against gold.
Or you can say Gold became more valuable.
A different dollar and a different time.
There are two people that are experts on our Fiat system.
Mike Maloney
Bill Still
They are in opposite views as to what the system should be.
Mike believes in a Gold backed system
Bill believes in a Government run Fiat system ( The Greenback )
They both have good points
Using a Government system there is no need to issue US Bonds.
Money can just be issued as needed and it’s debt free.
Where as under Gold the government has to be careful not to spend any more than what it can raise in taxes. And taxes can not be high because there is no Fed to print a bunch of money to bail out the country.
Vincent,
I agree with your take on currency creation/distribution.
While I have yet to read Maloney or Still, I have followed Elen Brown on this subject for years. She advocates “Public Banks” as a viable alternative to our current system of “borrowing money” from a bunch of corrupt Wall Street thieves.
Thanks for your comment…
Harry Dent raises some very good ideas regarding the potential crash of inflated markets and the rise of the dollar. If the US dollar was a sound currency and was backed by something of merit – he would be absolutely right. The Fed would curtail Q/E, other Q/E programs would prove failures, the markets would crash and people would go to T-bills and cash. This is the same type of deflation Robert Prechter also discusses in his book: Conquer the Crash.
However, in this case — it appears that the USA is broke and our currency is of de minims value (i.e., probably worth zero in relationship to our liabilities). While people may flock to the dollar initially in a crisis — we have also have to keep in mind that during a deflation there is massive job losses including in the USA. Yellin and a more dovish Federal reserve will respond to model with more Q/E. Further, eventually we believe that other countries will realize that our economic recovery is an illusion and engineered — causing a loss of confidence in the dollar. In that scenario — people will largely chose a monetary base that is backed by something and that is gold. In that regard, Rickards, Sinclair, Sprott and others appear to be right.
This scenario would only be invalidated in the case that the US actually had a true and robust recovery. However, that does not appear to be occurring. If you believe John Williams (which we do) — the economy is turning down anew and never recovered.
Great show and thanks…
Greg,
I like Harry Dent , he has an interesting perspective. In listening to him, it made me think, those on a fixed income, a pension or even welfare will do very well in his scenario. Those who have stocks, houses, cars, boats, gold , silver, diamonds and art will be hurt the most. The true big winners according to him will be the people with fiat money who were paralyzed with what to do, and did nothing but stayed in fiat money.
Common sense would suggest that its a long shot but I guess its possible.
But I won’t be convinced till the government starts to confiscate our dollars from us and gives us gold and silver for it.
Greg d I like Harry Dent for the same reasons. When stuck in a 4×4 hole with no way out it is nice to dream of a picnic in the park.
Greg d,
“Common sense would suggest that it is a long shot but I guess its possible. But I won’t be convinced till the government starts to confiscate our dollars from us and gives us gold and silver for it..” Ha!!! That really says it !!!! Currently I am of the opinion that “government” or those who hold positions of authority under the appearance of officialdom would never “give” gold or silver to anyone for fiat dollars, but we do know that under the ruse of “asset forfeiture” where “dollars” held by an individual or business are seized upon the presumption that said “dollars” were used or involved in “illegal” activity are now routinely confiscated by “law enforcement” officials and used to help fund their operating costs. I suppose it is worse than I feared, but fear not our citizenship is in the heavens from which we eagerly await a Savior, the Lord Jesus Christ who will transfigure these bodies of humiliation conforming them to the body of His glory according to His operation by which He is able to subject all things to Himself (Phillipians 3:21) The grace and peace of our Lord Jesus Christ be richly with your spirit Greg-d and to all who love His appearing. amen and amen.
Gee I think I said something about this very thing on here just the other day.
Something like never mind gold, watch oil? Got a couple comments that thought I was way off. Guess it sounds better coming from someone important!
Horsenut. I don’t remember your original comment yet I have many times noticed a poor mans wisdom will go ignored. A wealthy mans wealth will gain him many pats on the back. It will be interesting to see if silver and copper will fall in a deflation time.
Thanks JC…. My original comment was to point out that the Saudi’s are playing the same game as in 1984 when they killed the oil boom. I worked in the oil field as a Mud Logging Engineer. Actually my mother worked for FDIC closing banks that crumbled do to the oil field shut down. So I have a double perspective on the topic. They’re doing it again. Watch the banks next. All the loans that were made over the last year for future oil drilling are about to go to crap. Oh and fracking isn’t a long term salution for anything anyway.
Thanks Horsenut for your comment here. Very interesting and valuable perspective.
Paul,
This is way off topic. I don’t know what this has to do with Dent and the markets. There is a lot of sin to go around in the M.E. it’s never just one side to blame. Please let’s stay on point.
Greg
Greg,
There’s too much theological ground to cover for an answer here. I made the statement in question: but will elaborate no further. To stay on topic concerning the interview is completely reasonable and appropriate. paul – let neither of us abuse our host’s leniency. Comments here sometimes skirt religious or spiritual issues: but this is not a forum where it is debated. Greg’s right.
OK!
Mr. Dent, you are aware of the unfunded liabilities (some say $30T to $100T by 2050) and the cost of wars ($30T-$50T by 2050) and welfare entitlements ($30T to $50T by 2050) from now until the end of time? And these estimates are using 2% inflation and a near zero interest rate. Believe me, there will be thousands of times more money in the system by 2050, not less. There isn’t a chance in hell you will ever see a decrease in monetary units with all of these future debt guarantees. Not a chance!! The only way I see hyper-deflation is if the Zionists [evil political Zionists, not religious] get their way and the world population falls below one billion, entire systemic defaults, and the entire industrial and monetary system collapses and we live in a zombieland. Perhaps you devised this radical idea in order to sell books?
Well now I’m confused- $700/oz Gold! Man, who the hell do we listen to? Everyone seems to put forward a good argument but they seem to be say opposing things. It’s like a merry-go-round, yes, no, yes, no,yes, no………………
Isn’t the US$ an ‘inflated asset’ also? It’s being ‘inflated’ everyday in the 100’s of millions of dollars……………
If deflation kicks in, then businesses go under. If businesses go under jobs and banks go under. If jobs and banks go under the dollar crashes. When the dollar crashes PMs should go up. But PMs will probably do little good when anarchy reigns.
If their is no inflation, how do you explain the rising food prices? Deflation?
Exactly what I was thinking Patti. All essential food prices went up at least 15% in 2014. Now that oil has been lower will the price of food drop lower. He.. No. No way. Greed will prevent deflation.
Yes indeed Patti this is the “new logic” which reminds me of the argument that the reason for all these colder temperatures is due to global “warming”.
Dear Greg,
It’s nice to have contrasting view points from different economists so that we can learn from both sides and form our own conclusion. I think we will experience both deflation and inflation in the next few years. The next financial crisis and bubble bursting will create another recession or even depression. In this deflationary environment, real estate, and stock prices will decline dramatically in cliff-diving pattern similar to the last crisis in 2008. At the same time, gold will go up and become safe heaven in this panic market. Our government will response with the same strategy to print more money and more QE to stabilize the market. This time, $85 Billion per month won’t be enough as the debt is much higher than 2008. Maybe $250 Billion a month is the right number. This reckless money printing will eventually cause severe inflation or even hyperinflation. Thus, we will have a brief period of deflation then follow by many years of severe inflation. How do we protect our assets in this scenario? I HAVE NO CLUE. I’ve done lots of research and still haven’t found a solid solution. I don’t trust the bank, but need to have a large sum of money there to buy real estate at the bottom. I don’t trust US Dollars as it may collapse, but I can’t spend all of my money on gold or hide under mattress. I can’t buy stock or real estate now as they’re in bubble territory and will collapse soon. My general strategy is to buy physical gold in that brief panic, deflationary period. Ride gold to the top while waiting for real estate to hit bottom. Once stimulus packages and QE are announced and the market seems to stabilize, start to sell gold and buy real estate. Inflation will eventually kick in and the dollar may even collapse, but by then all of my assets are in real estate and inflation will increase the value of my holding. This strategy will get me out of the US dollar during the panic year into safe heaven gold, then get me out of gold bubble into real estate purchased at the bottom. Again, I still don’t know how to execute this strategy and still have large sum of money in the big, failing-soon banks. Please comment to help. Where would you keep your money, ready to benefit from the coming financial crisis?
St. John,
I would not be thinking of a strategy to “benefit from the coming financial crisis.” I would be thinking of a strategy to protect my family and wealth to support them. Think survival not profit. Thank you for your kind words and for pointing out that I was putting on “contrasting view points from different economists.”
Greg
Hi Greg,
its really great to see new names appearing in the comments because this means people are waking up and taking notice of whats going on .
I didnt even listen to this guy,just your preamble was enough ,
Its obvious he dos not have a clue .
But the final question remains what are we going to do about it aside from vent ?
rezo. I to have noticed some long time debaters in my life changing there minds in the last week. I think the derivatives being backed by the citizens has made there mind shift.
What ta do? Pray and obey. Prepare if your heart says to do so.
This says it all…
Harry Dent: Years Of BAD Predictions – Fabian4Liberty
https://www.youtube.com/watch?v=i3yzL-uqEk8
Greg,
I don’t know about you, but this interview gave me indigestion. Consuming so much data in a condensed time frame is not good for ones health (mentally and physically).
I find it difficult to imagine someone trying to compete with Harry in terms of opposing views. He is a man that knows his topics inside out and that is clearly evident. I could see how his barrage could hold Peter Schiff at bay and hold Jim Rickards accountable.
I have decided not to follow the course of many of the commenters here in terms of “taking a bat” to Harry’s theories. That doesn’t mean I agree nor do I disagree with them individually or collectively. It simply means Harry is no different to anyone else in the world (including those that come on here) in terms of getting it right or wrong within any given time frame.
I do like the concepts he has developed from studying long waves whether its Geopolitical or Economic Cycles and even Demographics. Its all very meaningful and insightful. Every piece of data assists in helping us all understand the predicament the world is in and the potential trajectory it may take.
Studying history does allows us all to reflect on where we are now and potentially (through extrapolation) allow us to forecast what may transpire into the future. But history is no cornucopia. The world dynamics are changing every day. To presuppose that because of some event occurring in the past implies that it can be willed into the present or the future, is false logic.
Putting the pieces together, joining the dots as it were, may shine some light on what can transpire. But that process involves many thousands of pieces and the process is long and arduous. Even when completed, the picture may tell the story , but the story has a different ending.
To have Gold is to ensure your purchasing power. It is not, nor has it ever been, a commodity. It cannot be improved nor can it be consumed in the true sense of manufacturing. That is why Gold is real money.
The world has been hostage to a debt paradigm for far too long. It has been subjected to its twin sister Usury and brother Avarice not unlike the slaves of the Ancient Egyptian Pharaohs. We are all in a very bad place once again. Our so called Rulers (including those unelected ones) show they are still human because they continue to err in their management and their judgement.
I am indifferent to INflation as I am to DEflation. Neither are good. It seems though that once they think that have either under control, that the exact opposite is likely to occur. That is when we get extremes. We are quickly approaching the time when Mother Nature will again show her hand and quickly remind the destroyers of our world, who truly Rules.
Thank you SIG. As one commenter said it is good to have “contrasting view points from different economists.” Smart people , such as yourself, can figure out what is good info and info you can ignore. I thought Dent’s comments about demographics are spot on.
Greg
With every interview I just wait for the moment when I have to stop the tape to replay to make sure I heard what I thought I heard. With Dent that happened several times.
Harry Dent is basically the Kevin Trudeau of the financial world. He comes across as someone credible and knows how to market the BS he puts out but all anyone needs to do is check out his track record and the real Harry Dent emerges.
He predicts a major epic collapse of the financial system and his advice for a safe haven is to have your funds in a brokerage house like Scottrade. I’m still laughing over that one.
He also claimed he was smarter than the Chinese and Russians who are amassing large amounts of gold (which will be the key factor when they announce a new world currency with something behind it other than a printing press). BTW who is the “everyone else is dumping gold” he spoke of and why are so many countries wanting to repatriate their gold?
Next he says China doesn’t have an offensive military. Harry, here’s a link for you to check out since you obviously don’t know what you’re talking about here either http://www.businessinsider.com/the-comprehensive-guide-to-chinas-military-tech-2012-6?op=1
Probably best of all was his comment about there might be a “minor World War 3” sort of like being a little pregnant I guess.
To sum up, don’t worry people. According to Harry we’re heading for a total collapse of the financial system, the dollar will go up while gold plummets, China doesn’t have a military we need to worry about although there might be a minor World War 3, just put your money into Scottrade and you’ll be sitting pretty when everything crashes.
He’s right that Armageddon is just around the corner but pretty much everyone appearing on USAWatchdog is predicting this. The difference is Dent doesn’t have a clue on what happens after the SHTF or before it, for that matter.
thanks Mike for this !!
Mike, I had a good laugh at your post. Your next to the last paragraph sums this poor fool up very well. He is eloquent in is speaking, but what comes out of his mouth is rubbish, in my opinion. It’s funny Greg has a guy like Harvey on. Harvey seems to have the understanding and knowledge of a kindergartener. You, Mike, would be a much more knowledgeable guest than this Dent dude. What was Greg thinking? Oh well, it’s all good for a laugh.
I think he was referring to post financial collapse, although he did say having it in Scottrade is safer than your mattress. What is funny about that one? Do you actually think there is a safer place than Scottrade? Let us in on it.
Hi Greg !
This interview was quite different as compared to your previous ones.
Harry Dent has a totally different view on GOLD et SILVER….. That`s his way of interpreting the future. As of now lets not take it away from him, cause only time`s going to tell what will happen.However,It`s time to get ERIC SPROTT & JIM SINCLAIR for an interview !
To conclude, never mind who comes, you are doing a fantastic job & so are your guests.
Thanks a lot Greg.
I was very interested to hear what Mr Dent actually said, and it was expressed very clearly and with the intention of alarming the observer. But I have to say I found Jim Rickards, who was more measured, far more alarming, and I remain alarmed. In particular it is perfectly obvious that the authorities are expecting the banking system to crash, and to do so in a way that will be unacceptable to good citizens. Can I please make three observations?
a) Whether or not we get deflation or stagflation after the crash, ordinary depositors will be on the hook and will lose their shirts. Talking about the next boom in the 2020s is absurd. The system will not reset. It will not be back to normal. It will be a whole new ballgame. I don’t know what the ballgame will be, but it will be a whole new one.
b) If China’s got all the gold, why would it be valuable? China’s going to be bust and chaotic with gold. China owns a lot of America. Who in America would want more of that?
c) The oil price owes a lot to Russia being unpopular and a poor global citizen. Iran and Russia are being taught some kind of lesson. I suspect the objective is to drive Putin out. But this is not, in my view, the fundamental reason for the current drop in the price of oil. Sure, the timing of this strike at Russia and its allies no doubt has a lot to do with the oil price, but the oil price would have been low anyway. The drop in the oil price has far more to do with a global lack of demand. People are drowning in debt, and that is because of the neo-conservative insistence on c0nsumption being fuelled by debt. Demand will not return, and if people lose their money in the banks this time we will face popular pressure for an economy not based on debt. There would have to be, at that stage, fundamental change.
Wiz, thank you for commenting. I would say that the three points you raise is where Dr. Jim Willie’s work (among others, but he’s the first to come to mind) comes in. As to the coming reset as you mentioned in a) that is presumed to be underway and is essentially a shift from a western – centric axis to an eastern-centric one as evidenced by points b and c in your comment. As to b) China having all the gold. That is because trade internationally is about to be reset in gold backed trade notes (something like 140 nations ready to sign on). As to c) Russia and Iran being “taught a lesson” it is about oil, energy being sold in something other than the dollar and they are busy developing the infrastructure for the development and delivery of energy to an ever increasing global population base. So while we in the west languish under the weight of a failing fiat system of debt fraught with fraud and abuse, the east is busy preparing for an era of unparalleled prosperity and sophistication that will surpass anything many of us have ever imagined. Just my thought at the moment, but then I sometimes wonder how much I really understand about all this anyway. But this one thing I do know, the empty tomb guarantees to all humanity an opportunity to have a place where the lights never go out ! The grace and peace of our Lord Jesus Christ be richly with your spirit Wiz!
Greg……Eric Jansen would be a great guest….with his Kaboom theory(itulip.com)…..a deflationary scenario followed by massive inflation….and how this has been impacted by a strong dollar, increased oil production in the US, and a lower budget deficit….temporary to be sure….
Dear Greg,
What do they call a person who thinks they are right and everyone else is wrong.
So we have Mr Dent against ALL of the cleverest minds in China and Russia. So we have a tough choice. Do we believe Mr Dent or do we believe the actions of China and Russia when it comes to buying Gold? That’s really tough.
Harry has ALWAYS been contraversial! I’m not sure if I agree with him on alot of things.
It caught my ear when Harry said that the U.S. Navy has 20 aircraft carriers. There are 10 carriers on active duty, less than the 13 that I served with in the mid 70’s? A good guest and worthy of listening to.
The botton line is, the legislation is now in place for ‘bank bailins’ and ‘bailing out the derrivatives’, things like that.
Thanks Greg.
Mike DFW Texas
Yeah Mike that caught me too. I seem to recall a figure in the 20’s and kind of wondered at that for a moment, but it was a passing comment just like the “Chinese military is mostly defensive for use in controlling their population” — yeah no threat there to be concerned about…..
I can’t take it anymore. This is getting like global warming. If it’s hot, it’s GW; if it’s unusually cold, it’s GW; if there’s a drought, it’s GW; if there’s too much rain, it’s GW; if there are hurricanes…you get it. When oil was well over $100 it was caused by the dollar devaluation and it was going to $200. Now oil is below $60 catching everyone by surprise and the wagon jumpers say it will continue crashing. These prognosticators are like the penny stock purveyors. Tell half your customers to buy and half to sell and you’ll be right half the time. Why is oil crashing? One, because the purported economic recovery is bull. Two, the US and our Arab buddies are pumping like crazy in order to crush the Russians.
Add Austria to the countries that Dent think have it wrong on gold- they apparently want their gold back, following a long line of gold repatriation requests from Belgium, the Netherlands, Germany, Venezuela etc
https://smaulgld.com/gold-repatriation-austria/
I love that you have both sides of a discussion on your show Greg ! Great questions by the way !! Well done ! The only issue I have is not with an opposing view point…we definitely need that sometimes ! However, economists talking about military tactics and issues, sometimes make me cringe, as I think they should stick to their field of expertise. The economy will always be linked, as a catalyst, to military hot wars, however, these people should avoid topics outside of their field. Harry Dent’s military predictions are very simple minded to say the least…just sayin’. Economists please stick to your “direct” field of expertise, unless you clarify that you are venturing outside of your field, to engage in some amateur speculation !! LOL. Great interview !!
Thank you DC!!
Greg
Sometimes I find myself laughing like Paul Roberts.
The hyper report.
http://youtu.be/iXrx-1hqbEM
Greg,
Sorry to post something away from the subject of the thread, i do not intend to highjack your thread but the importance of it is what makes me do so:
Today as every one read in Sydney Australia the hostage – ISIS situation broke out.
I talked about this in a previous thread, and the comments on yahoo news support my theory.
Muslims in Europe and America are set for a huge CLEANSING using ISIS as an excuse, please keep in mind that the US gov. has released top fierce commanders just before ISIS flourished in IRAQ and SYRIA, also please keep in mind that Assad that the west is trying to topple is fighting ISIS.
So all pieces of puzzle are falling in place, and muslims who are god fearing are set for huge ethnic cleansing after kaos from financial meltdown commences.
Mohammad
Mohammad,
No problem. I like getting your take on events unfolding. Thank you.
Greg
My 2 cents which I’m compelled to add regarding Mr. Dent: Firstly: Russia and China are NOT the only ones buying gold, (look at India, Iran, Indonesia, and a good part of Europe – not to mention some central banks have become net buyers.) Secondly, there is a huge difference between “paper gold” and real physical metal, a difference which is becoming more stark by the day. Thirdly, there is one hell of a demand for the physical metal, (the mint ran out of silver eagles) which dovetails nicely into my last point: Harry, exactly which planet has this “free market capitalism” which you so stridently referred to, because it certainly isn’t on this one?!…….This guy must get a paycheck from the Obama administration.
I would be very cautious about giving Mr. Dent too much credibility. He has been wrong often. I was at a financial services conference in 1999, just before the dot.com bubble burst. Harry Dent was the keynote speaker, and he started his address with the phrase “Asset Allocation is dead”. He went on to point out that an investor need not be diversified, that they only had to own the stocks that represented his demographic growth trends. Within the year, those same stocks imploded. Harry is far too focused on demographics, which leaves many, many other variables unaccounted for. He is flat wrong about precious metals.
Hi Greg,
My head is swimming! Hyper-inflation, no, deflation. Buy, buy silver and gold (and canned goods). No, (fiat) cash will be King.
Over-lapping cycles that seem to oppose or contradict each other.
All these guests whose economic predictions have come true (and presumably making their clients a lot of money).
Then there are the Karen Hudes and Roads to Roota and Steven Quayle with their unique perspectives.
Of course the bottom line is that an historic collapse is coming and we better prepare the best we can.
Greg, this is one time I’m really looking forward to what your audience has to say.
Hi Greg;
I especially like the diverse opinions of your interviewees …..its too easy to blindside ourselves by only listening to opinions we agree with. Regardless of Saudi Arabia’s ploy, we should agree that it is a supply / demand dynamic that SA is taking advantage. We can probably also agree that there is perhaps 500 Billion in loans to the fracking industry that are potentially going to fail. Further, there are possibly many trillions of derivative gambles that may go south with this drop in oil price. I’ve read that the derivatives proviso was slipped into the Cromibus in the 11th hour…which supports the suspicion there will soon be derivative failures….and given the US Congress passing the obnoxious derivative proviso , we might suspect that the PTB have decided there is nothing they can do but go ‘whole hog’ in the printing of fiat. Yes, i agree there will be a deflationary depression, but it will be accompanied by hyper-inflation in all the basics we humans need to survive. Money will be king, but it won’t be the worthless script of a US Dollar…Grisham’s Law will see to that.
thank you James for this. I was not aware until your comment about the provision in the Cromnibus for taxpayers and depositors to be on the hook for liabilities related to derivative failures.
Greg I have to chuckle a bit mr. Dent talks about gold as though there are no illegal enormous manipulations affecting its price. If gold wasn’t falsely being driven down why the huge Blackpool investors nearly every early morning sell off fiasco,…..gold would be significantly much, much higher right now, just as it is outside the United States currently. So have to as I said chuckle because they talk about gold and silver as though no fraudulent illegal outside forces bearing against it falsely keeping it under valued,….massively undervalued at that. I don’t think Mr didn’t has a very good handle on the realities or his thumb on the pulse of really what’s happening out there.
Mr. Dent sees the signs, but blinds himself to the consequences. Gold at $200/oz ? “Your money is afe in an investment account…” Really? Funny that I lost money on Delta Airlines stock when they went bankrupt and then quickly emerged from bankruptcy without owing me a dime. The financial markets are rigged, plain and simple, and if you play, it is by “house” rules. And the house always wins! With respect to shale oil, it is a drop in the bucket and expensive to produce. The US gov. has recently revised shale reserves significantly downward and predicts a peak in 2020 instead of 2040. Lower oil prices in the long term could accelerate the downward trend for shale gas and oil. The major oil companies divested themselves of shale assets some time ago. The mom anad pop oil companies cannot withstand prolonged pricing below $60 per boeq. The House of Saud desn’t really care about shale oil because there is so little of it and it is expensive to produce. The Saudis are all about punishing Russia and OPEC. The oil companies that are into the shale plays are merely innocent bystanders to the Saudis “drive-by ” attack on oil and gas prices. If the shale companies decide to shut-in production temporarily, they risk not being able to start-up and produce again at the current rates without resorting to further well stimulation by hydraulic fracturing – further worsening their sensitivity to low oil prices. Mr. Dent is correct about sustained low oil prices possibly triggering repercussions in the financial markets, but I think that is the only point on which he is correct.
orion
nice point of view, thankyou al ols
Economy 101. There will be no scarcity in cash, therefore, no deflation. The American Federal Government alone will create $100 trillion dollars in the next fifty years to cover its promises, entitlement obligations, and its addiction to wars. A raise in interest rates, which is very likely and will be the only control the Fed has to limit inflation from running away; and you will also increase the amount the Fed will have to create in addition to said promises, just to pay off the interest due on the newly created bonds which will be created by the tens of trillions. Write another book.
hammer dave;
dont forget, china, russia, and the brics dev. fund, and eurasian trade zone, shanghai gld exchange, and all the yuan currency swaps. When CHINA, AND RUSSIA, want to make a move, I THINK, they will decide a lot of what happens to USA’S fin. situation, I THINK.
Harry, Harry, Harry. Oh my.
Lest you forget that you threw in the towel for BOTH your DENT Tactical ETF AND AIM Dent Demographic Trends mutual fund?
“The AIM Dent Demographic Trends fund once had $2 billion in assets, and then was merged into another now extinct mutual fund after 80 percent of the assets evaporated. Dent told me that the poor performance was due to the fund not taking all of his advice.”
http://www.cbsnews.com/news/second-dent-investment-fund-to-disappear/
I actually like Harry and his demographic focused research – but – I’ve never used him for my investment advice and have profited handsomely because of this.
Sorry but this guy is a clown.And we will check it very soon.
Greg-
I have always been in the hyperinflation camp but did you notice what Congress slipped into the spending bill over the weekend? There is a provision that would allow the pension
benefits of up to 1.5 million workers and retirees to be cut. The plan would cut pooled pension plans of mostly union workers across many companies. Maybe instead of more printing, they will simply default on Social Security, Medicare and the national debt. This would be a whole different scenario. Something to keep an eye on.
Even a broken clock is right twice a day. Dent has been preaching for a deflationary collapse forever. So the present deflation in oil somehow validates his thesis? I remember when he said that gold would not go over $400 and if it did he would be a buyer. The divergent opinions and advice from experts makes investing a land mine for uninformed investors. Next time you have Jim Willie on ask him about Harry and stand back and watch the fireworks. LOL. Greg you have one of the best and most informed comment boards on the internet. It is refreshing to read comments without the usual foulmouth trolls.
Harry Dent: you have got to be kidding! This is the guy who said he would “eat his hat” if the disaster did not happen by summer, 2014. He may be right on the content of the fall, but his time line, like most like him, is a joke. Come on Harry, let’s hear some crunching of your hat.
Mr Dent predicates everything he says on the conviction that known and proven criminals will self regulate, that is to say that people clearly enraptured in their own compulsive acts of self gratification will take themselves right up to the cusp of climax and then………just stop and walk away.
Thanks Greg, I have only one thing to say after this one: It is time for another session with Dr. Jim.
I believe it is important to hear all the viewpoints in the inflation/deflation debate – then make up ones’ own mind. When I consider the massive deflation viewpoint, I tend to question how it was that Weimar Germany was able to have a hyper-inflation in the 20s after losing WWI and winding up in massive debt via war reparations etc. And then more recently there is Zimbabwe. Certainly, throughout history, bursting bubbles tended to produce deflation – but in times past, there was a gold standard – sure there was excess credit/money created that violated the standard, and the ‘cure’ was the natural deflation when the credits went bad, and in those cases, credit ‘money’ disappeared. As far as I understand it, we have only been on a global fiat money system since 1971, so there is no standard to return or ‘deflate’ to, and there is no constraint on the central banks or governments to keep them from creating ever more fiat ‘money’. If nothing else, the central banks will create it and if we as individuals and/or businesses cannot or will not borrow and spend it, then the governments, via QE or whatever else they may call it – will borrow and spend it on our behalf. If they do enough of it, then we will have more ‘money’ chasing existing commodities etc and prices of real tangible goods will go up in price – not in value so much – but in price expressed in a moving target of currency. In my view, all wealth comes out of the earth in some form or fashion, and real wealth is created by the action of labor upon those natural resources. It seems that were we to get a real deflation now, and fiat money were to become more scarce and more ‘valuable’, then interest rates would have to rise, debt service would become more difficult for governments, tax collection would go down, along with wages and there would be no capital gains or profits from the financial or commodity markets to tax, resulting a government debt default and chaos on a massive scale. My conviction is that they will ‘do whatever it takes’ to prevent it, and we will pay the consequences eventually.
Agreed!
The new economic law repealed a 40 year old pension law and now pension plans can cut up to 30% payouts to retirees……………The government already knows whats coming!
Get ready………
Good sharp analysis and info Jack. Thank you.
Greg
Agreed !
JACK
pls elaborate, for us pea brains.
Im sorry, but Harry Dent reminds me of a 1987 Wall Street analyst. How anyone with a modicum of sense can believe that the markets, including FX, commodities, etc… run on fundamentals and historical trends is fooling themselves.
EVERY MARKET IS RIGGED. Already proven, open and shut, game over. Harry D. is the EPITOME of the axiom that goes, ‘the learners will inherit the earth while the learned will find themselves unable to cope in a world that no longer exists’.
I found it hilarious that he ignored your mention of MF Global and re-hypothication there Greg. Harry is a timex watch living in a digital age.
Excellent read from Zero Hedge
“Good” inflation is wages rising faster than prices. When wages rise faster than consumer prices, households have more money to spend on consumption, and it’s progressively easier for them to pay down debt and support additional borrowing.
“Bad” inflation is prices rising while wages stagnate. In “bad” inflation, prices keep rising as central bank money-printing devalues the currency, but wages don’t rise along with prices. As a result, wages decline in real terms, i.e. purchasing power.
My comment
Europe and America need to bring back their manufacturing instead of leaving it to China. People must learn to live within their means and adjust to a realistic world.
Harry Dent is dead wrong about gold – not Jim Rickards and Peter Schiff.
When the reset takes place Gold will be re-valued at $9000 per ounce
Mike Harvey
Resident in Ireland
thank you Michael, amen! agreed!
Harry’s fund lost 60% and he had to close it up! people were very upset. So why does he get this info correct? He does not. He only comes out when he know signals are easy to spot, which at that point, even sheep can spot them. He did not want to talk too much about fme global theft because he knows there is no brokerage acct that is safe. SIPC is a scam, really, no one knows the outcome of this final financial disaster. Not him not anyone. Get food, paid shelter that is safe, a good source of water, money in a house safe, and a good church where people help the poor instead of me helping themselves. Everyone will be at the mercy of someone and hopefully that someone will have a heart that gives instead if takes. God bless you Greg for holding his feet to the fire. Great questions. All hands on deck prepare.
Lynn,
I was not trying to hold his feet to the fire. I was just trying to ask the questions the visitors to this site would ask. Thank you for your comment and kind words of support!
Greg
You did hold his feet to the fire, as you do all of your guests. We have only seen him on mostly mainstream media interviews. This was “alternative” for him and we are not used to seeing tough questions. Can you imagine mainstream media asking him about MF Global? No way, so maybe the correct phrase would have been “asking the truth and tough questions”, but you do it with grace and conviction. You aren’t the alternative media, you are mainstream, and the CNBS group is now the alternative. Thanks for all you do.
You are very kind Lynn.
Greg
thank you Lynn, amen!
Whether gold and silver are money or a commodity depends on what is accepted by the consensus reality as having value when used as a medium of exchange for other items such as goods and services. If I took a gold eagle into my grocery store, its face value is $50. A silver dollar has a face value of $1. That’s what they are technically worth as “money.” If I want to buy or sell those same coins for something other than their face value, then they are a commodity, being traded in the marketplace for something else, including paper money or its equivalent.
The same item (gold or silver coins) can function as money and also as a commodity. The pricing of gold or silver per unit of weight (ounces, kilograms, tonnes, etc.) is when it is being perceived as a commodity, not as money. Corn is also priced that way. I have only been watching metals pricing since April 2012, when my “angels” told me to watch the price of gold. I did so and that was when I was able to see the first big smashdown take place and began educating myself as to what was going on behind the scenes.
To complicate matters further, I saw a direct correlation between times when the stock market turned down and a corresponding drop in the price of metals, which seemed to indicate that people (and companies) holding long positions on stocks margin had to sell large enough amounts of metals to cover their position — in large enough amounts to cause the price of metals to fall as well. That was counter-intuitive to what I had heard about gold being a store of value and strongly suggested that gold (and silver and titanium, etc.) was widely regarded as a commodity to be bought and sold, like any other commodity. It was priced by weight, regardless of its physical form (coins, bars, etc.)
Then there was the split between the paper and physical markets, with the paper markets being subject to enormous manipulation by those who run the entire system behind the scenes.The desperation implied by many of the moves being reported on here on this site suggest strongly that we are getting very close to some critical point in the entire process of setting up conditions to create a global system in which all people will be controlled without their consent. It is predictable that it will be messy, painful and deadly for many during that transition, and potential war is definitely a playing card in the endgame being played out now.
I agree that, as others have observed above, conditions are NOT the same as they were back in the ’30s, if only because our currency is not backed by anything at all other than military might and political maneuvering in the short term, and a coming currency reset and replacement in the longer term. I do not know the “when” but it seems clear where all of this is heading. Jim Rickards advised people to protect against both deflation and inflation by having a large enough supply of cash on hand to carry one through while a massive restructuring was going on and having 10% of one’s assets in precious metals which were held outside of the system and under one’s personal control. The rest he advised to be invested in tangible goods that were going to be needed at any time and under any circumstances. That seems to me to be a balanced view and has good reasoning behind it, since (as Ellen Brown said), no one really knows what will happen when the derivatives bubble bursts. Even the elites are not omniscient in that regard. They have their plans and agenda, but even they are not wholly in control of everything.
I am glad Dent was on because it made me think for myself and find the holes in his argument, which is always a good thing, in my opinion, so thank you, Greg, for having him on and asking him the questions you asked him. I also think he is mistaken in his beliefs, so I will also disregard his advice.
Emeth, Matt. 6:19-20 does NOT say that “nothing on earth has value.” It says, “Do not lay up for yourselves treasures buried in the ground, a place where rust and moth destroy and where thieves break through and steal. But [rather] lay up for yourselves a treasure in heaven, where neither rust nor moth destroys and where thieves do not break through and steal.” It goes on to say (in verse 20), “For where your treasure is, there also is your heart.”
My interpretation of that passage is that all of our worldly goods are subject to loss and instead of placing our attention on things that are vulnerable and impermanent, we would do better to do those things that increased our “treasure in heaven,” so that our heart would also be pointed toward heaven as the focus of our lives.
I was raised in a tradition that had no concept of an afterlife, and my father taught me that “living a good life is its own reward.” I have taken that to heart, but I have also read widely on the subject of near-death-experiences, which strongly suggest that when we “die,” we do not REALLY DIE, but rather drop our bodies and go on to other realms and continue on from there. In that case, it would seem that laying up treasure in heaven would serve us well AFTER we are through with our PRESENT life on earth, and for that, we do need to take care of practical matters every day.
Prepping is one way of taking care of practical matters while we are waiting to see what actually happens. I don’t have enough assets to even “prep” in any meaningful way, so my father’s advice is my “gold” for now. I have tried to live my life as a good person and that’s going to have to be enough, because it’s all I have to work with. Only the passage of time will tell the truth of any of it.
We drop our bodies temporarily until the resurrection when we get them again. This life is the time to lay up treasures in heaven. There will be limited ability to do so after death.
NC – I agree with much of what you write.
However, please read my comments in full light of their context.
You said = “Emeth, Matt. 6:19-20 does NOT say that “nothing on earth has value.”
I am not suggesting this, I actually said “This may be the final irony for all, for there is nothing on earth with any real intrinsic value (Matt.6:19-20)”.
In this context “real intrinsic value” means that it has a value all of itself that exists irrespective of what may happen. Nothing has this sort of value, as time change values, whether it be metals, land, currency, equities, food etc (see the dire times of 2.Kings.6:25, where a donkeys head (for food) sold for just under a kilo of silver. A donkeys head normally had no value, as the Jews could not eat it as it was unclean by the Law – not being cloven hoofed).
As for Matt.6:19-20, Jesus informs us that the irony of life is that many strive for earthly treasures, but they all corrupt, lose value, are stolen, are fleeting, and will not last this life, so don’t put your trust in them.
If Harry is banking on our Navy to protect us, here are some sobering numbers I just took from Richard Mayberry’s recent newsletter (Early Warning Report):
The first column represents the 1940’s. The second column is for 2015……………
Aircraft carriers* 97 15
Battleships* 18 0
Battle Cruisers* 3 0
Heavy Cruisers* 31 0
Light Cruisers 48 22
Amphibious warfare 998 20
Destroyers 367 62
Frigates 41 0
Littoral combat ships 0 3
Totals 1,803 117
*capital ships, or “heavies”
Aircraft carriers changed naval warfare and today’s aircraft carriers are massive versus the 1940’s. We have no capital ships because they are obsolete.
FoggyGoogles,
The ships you list are only useful in a very limited war and would likely not last more than a month in a battle with another major force. The Navy knows this and has a strategy for battling another military power – they are the submarines. The US currently has 53 subs and 14 SSBN’s. No one know where they are.
Apologies for the format of the Naval numbers. It looked fine in the comment box, but lost its formatting once submitted.
Very interesting interview. Greg, you are correct that if the firm you have your funds goes belly up..you have exposure. I personally have had two FCM (future commission merchant) where my “segregated account” lost 40 and 60% of it’s value as funds were “commingled”..just like you said.
Keep up the good work Greg..
-Rodger-
Rodger,
Commingled funds is a very big and risky deal. I hope other people know this. When your funds are commingled you are nothing more than a creditor, and unsecured one at that. Please folks, lighten up at the brokerages. Thank you Rodger for sharing your story here!!
Greg
Information forom Germany:
Laut Polizei heute 15.000 bei PEGIDA!
https://mopo24.de/nachrichten/dresdens-montags-demos-im-live-ticker-3125
Police say 15.000 demonstrants on PEGIDA demonstration in Dresden!
Their more than 15.000 in Dresden at least 20.000 on the “Monday” demonstration!
in other german cities are also demonstrations!
MSM Press pukes! LOL, LOL,
The most important thing, the demonstrants do: do not talk to MSM-Press.
No discussion at all, because it makes no sence!
This is the “handbook of demonstration” they use:
http://www.prabelsblog.de/2014/11/handbuch-der-demonstration/
it is on german, but you can translate it with a computer program.
that`s all from Germany right now.
Estimated 15,000 people join ‘pinstriped Nazis’ on march in Dresden
http://www.theguardian.com/world/2014/dec/15/dresden-police-pegida-germany-far-right
the lies of the MSM-Press, the demonstrans are now NAZIS. The politcians are helpless and they can not arguments against the demosnstrans any more. This Propaganda do not work anymore in Germany. The internet work against MSM!
Thank you Klemens for the street level reporting from Germany!!
Greg
Very interesting! Thank you Klemens.
Greg, No Problem! I think you have to translate the handbook of demonstration. Many “normal” people do not like to demonstrate. The goal is to get the people on the street is, to call it: “we walk together” on the street, for example on Monday 18:30 and we do sing some songs, etc. something like this. Next Monday they come together to sing Christmas songs.
So do not call it demonstration just “WALKING” Never ever get agressive!
Maybe make a nice symbole. Take away the 50 freemasons stars on the US flag and put in that place 50 hearts! I did saw a nice flag like this wih US pilgrim, they also do not take the freemason flag. Looks very nice, better than the old one.
G500,
In Greg’s last Weekly News Wrap Up I have just now responded to your replies on my comment (https://usawatchdog.com/wnw-170-budget-battle-cia-torture-distraction-madoff-convictions/). I suggest you take a look if you want to learn something. Just search the page (use the search-function) under your name or mine. I am posting this here because you often don’t look at replies (although sometimes you do) and I wouldn’t want you to miss out.
Mason.
40,000 dow Dent is a paid shill i bet. Wall street maybe. No, the dollar will rise, and rise, and then die, according to Jim Willie and Schiff. My money is on them. Any guy who does not include gold as a hedge is either misinformed or lying about it. Now, it is a probability that cash will buy more gold this next few months, but when the shit hits the fan, gold will begin to soar versus the dollar, and you may not be able to get any then.
Today gold and oil are being driven down hard again. Not reflecting any large moves in the dollar, just simply market price manipulation. Those pulling the strings only know one way and that’s with a big bat…..The Russian ruble dropped again as well as major russian oil companies………. I believe we are at a defining point much like an over stretched rubber band. Something will have to happen soon while Russia still stands on 2 feet………. December has been talked about a lot. Very plausible.
Well, well, this is just a start (but a big one). Anyone care to calculate the US interest on debt if we did the same ? Which should tell you all just how mispriced the dollar is……….. [ http://www.zerohedge.com/news/2014-12-15/russia-shocks-emergency-rate-hike-boosts-interest-rate-105-17 ]
I think viewers of USAWatchdog might be interested in the debate between Harry Dent and Jim Rickards in the Inflation/Deflation Face-Off in one of the Casey Research Conferences. Ok, the debate was two years ago in 2012, but the principles are still valid.
In my opinion, Jim Rickards won the debate. But then again, at the time I didn’t think deflation would have gained such a hold as it now appears to be, and I didn’t think gold would be so down at it is now. I’m just saying: you have to keep sharp, stay open-minded, and be prepared to examine your own assumptions.
Inflation/Deflation Face-Off: Harry Dent vs. James Rickards:
https://www.youtube.com/watch?v=pSOGwthC_JQ
A good percentage of people commenting here tag Harry as some kind of a hack.
Any person who can hold his own against one of the most highly astute business/law minds in the WORLD, demands respect.
Your comment is analogous to my thoughts above.
Some people have highlighted how Harry hasn’t performed well (winding up Funds worth 2Bln)…etc etc….implying his performance is akin to his advice…..POOR !!
Rickards ….btw lost everything too. He was highly exposed to the Infamous TBTF Hedge Fund – LTCM ……of which he was General Counsel.
Even the smartest guys in the Kitchen are not immune….proof that Genius does fail.
if us dollar is safe why half of the wold wont to get read of it ?
One last point.
I do believe it’s his ad I see running on Google PPC titled Gold Will Plummet to $700.
Why would you advertise such a thing if you were a trustworthy source of info?
Why would to put out such an ad?
No way metals can be smashed down to these ridiculous levels mentioned by fiat Harry. In our virtual Central Bank QE world, gold’s price goes down, DEMAND explodes.This is counterintuitive to economic science and won’t last. So smash it down and watch what happens to the ACTUAL metal. A blitzkrieg of endless digital fiat will never extinguish gold’s role in economics.
People need to remember that Dent, Armstrong,et al have made their fortunes in this current fiat paradigm, so the last thing these agents want is for people to actually take preventive measures to avoid their own demise once the petrodollar dies. Real disappointed in Greg for talking to this hack.
SW
I’m not disappointed.
On the contrary I’m flat out delighted Greg ‘threw’ Harry into the mix.
Look at the amount of debate and discussion that this interview has spawned.
Every now and then Greg chucks in a wild card to keep us all on ours game.
Whats wrong with that! – I’d rather have a think tank than an echo chamber.
Cheers
Col
Colin, the Kiwi Farmer – well said!
Dent is smart, knows whats going on. Just one point to make. What Dent misses, respecting the monetary metals, is that when bubbles start popping, all peoples about the globe abandon fiat and rush into that barbaric relic for safety. So, uh, how are those ASE mint sales going, anyway?
Perhaps not immediately. In 2008 it was all about liquidity and staying safe = USD.
Cash was KING….and it seems it still is…given where the Dollar’s at now.
That’s where HD could in fact hit the target. How long it stays up is a matter of Confidence. When that is finally broken (and it will be)….then an alternative will be sought. That alternative will go NO BID.
This Harry dude is an idiot!
Correction ….. this guy is a complete lunatic.
Greg,
As far as predicting whats going to happen, can’t we just look at the Weimar Republic and their “problems” and use it as a blue print?
They were in a desperate spriral, with war debts, obligations, deficits and hyperinflation . Internal strife, desperation, homeless war vets, massive money printing, govt taking control of monetary policy, making balatant laws contradictory to the laws of Germany. As well as incompetent policticians making terrible decisions.
Isn’t this the template we can look to and say this is how to prepare? History does and is repeating himself with nearly identical factors. So lets look at this massive event and prepare, since it was “man-made”. Jim Rogers, who is a very main stream investment guru, who left America, Advises all to buy farm land and get ready- We all got eat right?
What better source for barter than food ? ( Also guns and ammo this is a must!)
Sadly WD, when everything does fall apart, I don’t think there will be any bartering other than looking down the barrel of a gun.
WD
You nailed again my friend!
Cheers
Col
Always good to hear a contrary voice as it makes you double check the cards you are holding. Rickards has stated that the two forces, inflation/deflation, are both acting strongly on the economy; the question being which way will the Fed system let the world economy slide if they loose control? Other factors are the decaying of the Anglo Zionist Empire and the slow rising of the BRIIICS. I hold some PM and some cash but either will eventually run out in a long term economic collapse; having a paid off house and a yard that can be turned into a vegatable garden is probably my biggest asset if shtf.
I found the Dent interview to be profoundly disappointing. Mr. Dent came across as being arrogant beyond belief, as if he has some kind of monopoly not just on financial wisdom, but on all wisdom. I think Greg did a masterly job on numerous occasions of attempting to bring Mr. Dent down to earth, but every time Greg attempted to introduce the notion of humility, Mr. Dent just went on another arrogant rant. The fact is that Mr. Dent has no earthly idea what is going to happen to gold prices … NOT ONE EARTHLY IDEA. When he talked about Gold $700, and Gold $250, he did not provide ONE PIECE of OBJECTIVE ANALYSIS as to how or why gold could fall to such a level. We are just supposed to believe that Mr. Dent is some kind of oracle, and the rest of us are morons who should suck up to his so-called brilliance. What, gold is going to those prices just because Mr. Dent SAYS SO, in the complete, total absence of any kind of fundamental, technical or other analysis??? Arrogance like that is disgusting. His various comments, such as “The U.S. dollar is the safe haven,” “The dumb money is Russia and China,” and “there will be no inflation for decades” are simply preposterous. They are nothing but sound bites designed to sell books to those who are desperately clinging to the past, and hoping for the best. Mr. Dent is so fixated upon the past, that he is incapable of seeing 10 SECONDS into the future. Know this: when they scream at you, as Mr. Dent repeatedly did during his interview / harangue, they are not analysts, they are Barnum & Bailey promoters, and bullies. They are going to ram their ideas down your throat whether you like them or not, or whether they make any sense or not, or whether or not there is any kind of objective support for them. When they are screaming at you, they are trying to force you to buy their books whether or not their sales pitch made any sense to you at all. When they scream at you, they are insecure, and simply making things up. They aren’t trying to persuade; they are just trying to bully. Mr. Dent tries to come across [arrogantly], as if he has some kind of monopoly on the truth. My impression, after listening to him, is that he has a monopoly on falsehood and dangerous propaganda. In my opinion, people who listen to this arrogant bully could get their asses handed to them. He is a dangerous voice of the past (e.g., “the dollar is the safe haven”). People who marry the past, because it is easy, comforting and convenient, are going to be destroyed, in my humble opinion.
Wow, you captured my views perfectly. Greg, you are a rock !
thank you Trident for posting your thoughtful and well expressed “humble” opinion.
Another OUTSTANDING interview Greg…THANKS!
You grilled him pretty good.
The one area where u could’ve gone deeper down the rabbit hole
was in to area of the IMF taking up the QE when the FR finally
runs out of bullets.
Rickards makes a lot of sense when he brings up SDRs and they
could well be part of the mix when the reset or implosion finally
occurs but then again, some other black swan like a war could
bring it on even w/o a reset.
As much as I love Bill Still and g Edw Griffin, my gut tells me
the UE (uber elites) will have their way and continue the Ponzi
Scheme on a global level for a few more years.
OTOH, I deem there is something to this Four Blood Moon
Tetrad as well as Jonathan Cahn’s ‘Harbinber’ and ‘Shemitah’ ~
https://www.youtube.com/watch?v=xn9-ecFrupA
https://www.youtube.com/watch?v=5VsKQQc57IQ
March 20th is the solar eclipse that divides the blood moon
sequence. It is also Nissan 1, the beginning of the Jewish new year.
The last blood moon will occur in Sept and winds up the end of
the seventh yr (Tetrad), since that last financial crisis in 2008 which
was the end of the first Shemitah since 2001.
As a matter of fact, one can go back for the last 49 yrs and note
a major event every seven years….Check it out.
It’s a bit out of your bailiwick Greg but perhaps you could locate
some financial guru who can make better sense out of all of this
and/or trash it.
The third blood moon occurs on the beginning of Passover and the
fourth blood moon will occur on a Jewish holiday in Sept.
You may be onto something there archive Dave.
Along similar lines ….I posted the following on Miles Franklin – Bill Holter’s most recent
http://blog.milesfranklin.com/why-dont-you-listen-to-them-revisited/comment-page-2#comment-15918
“More Debt into Infrastructure is a deflection.
We know more Debt doesn’t solve a Debt problem.
What it does do is it keeps the system functioning, albeit an irrational and distorted one.
More Debt facilitates the “Inflation” mantra along with managing the interest rate cycle (ZIRP).
To have Debt support Infrastructure would imply they want to stimulate growth and therefore an ability to increase GDP with all of its side benefits.
They NEVER did want to stimulate or increase GDP…that was never the goal (nor is it mandated). Witness unemployment, dying industries as well as depressed levels of economic activity and negative real wages together with an inflated bureaucracy which continues to stifle business and gorge its way through the citizenry.
Alas, we are in a world fixated with ever increasing DEBT to the point where everything eventually ceases to function normally and breakdown occurs. At that point TPTB hope to introduce the alternative or successor to the King Dollar Debt paradigm. The next heir to the throne will not have country nor a religion at its core or origin. It will be universal and limited only by the digits available on a data entry point. It will be forced onto the world in the same fashion the USD was, at the end of WWII”.
Interestingly enough, Republicans just sneaked a bit of legislation into a bill that will require working tax payers to bailout banksters if they lose their assets through risky derivative trades. And since big money controls our lawmakers, most Democrats, including Obama, went along with it and the bill passed. Here on USAWatchdog, I learned of the risk to fracking related derivatives due to the collapse in the price of oil. Now I’m thinking that might not be a coincidence. I wonder what would happen if a trillion or so dollars worth of derivatives vaporized and no one was bailed out…
http://www.motherjones.com/politics/2014/12/spending-bill-wall-street-derivatives-elizabeth-warren
Henry,
Go back to the Ellen Brown interview from last week.
I had a very lengthy chat with JMiller about this topic.
Here is a snippet for your consideration:
“The MAJOR point that in fact all and sundry are missing with the exposures of the TBTF BANKS is that technically the larger the Derivatives bets ….the greater the collateral scoop…AND the greater the power in forcing FORECLOSURE. Sure I understand the systemic risks here, but they are all working in shark infested waters. The Biggest Shark has a better chance of survival because it has the biggest BITE”.
In lieu of what the Bible says about buying and selling in the last days, it sounds like it is describing a cashless (PM-less?) digital system. If all currencies crash, could this be what is planned? How would you accrue digital money? Could the ammount of digital money be expanded forever this way?
Greg,
Thanks for having Harry Dent on your show.
The one thing that I see is that many of these people are talking about a time frame of
Mid-September through the first week of October 2015.
Martin Armstrong has had this time frame on his calendar since 1985!!!!!!!!
When I find my notebook that compiles all the people hanging their hats on this time frame for a sovereign debt explosion-followed by a bond and stock market collapse , I will post that list of people and their dates.
So in the big picture, Mr. Dent is just confirming the soon to hit $#!+storm, no ones gonna call this collapse perfectly!
P.S. , I liked your Freudian slip on the Dollar being the cleanest $#!T in the hamper !
It is REALLY THE TRUTH!!!!
Bub,
At the time I thought I covered that up but I guess I didn’t. Thank you for your comment and support.
Greg
What is happening today is unprecedented with derivatives ,debt and no Glass Steagall Act to reign in their excesses. Even during the Great Depression there was always somewhere to hide but this is global and the West has little manufacturing as a back stop. Many people lived off the land during the Great Depression but now they rely on service industry jobs that are not a necessity.
Nearly all assets bar precious metals, stones ,artwork etc are overvalued due to micky mouse computer money created as debt. We know most of the markets including gold/silver are manipulated by derivatives with a digital value of 100 times the real thing. We know that most Western real estate is 30-40 % over valued. Jim Rickards says the share market could easily lose $100 trillion in value and he is a conservative.
The total value of derivatives is a conservative $700 trillion or 10 times the GDP of the planet. Add into the mix the share market based on speculation and over inflated house prices and we have total devastation. Divide $15 trillion into $700 trillion and metals could go up by 46 times. Add into the mix shares and property and 100 times present values is not an absurdity. Everyone is asking, “where do I put my money ?”
Ross,
I am very worried that these idiots in Congress legislated the end of America as we know it.
Greg
My parents were on a farm in the Great Depression and life was tough but there was no fear of starving. BTW that $15 trillion is the total value of all precious metals.
People like Harry Dent really don’t know what will happen because nothing in our past history even approaches these present conditions. Most of the derivatives are denominated in $ US and only faith and speculative greed keeps the present market going. They may be able to spin this out for another 2 yrs but I doubt it.
Thanks Greg for your insights.
Thanks for getting Harry Dent on the show Greg.
All we need to do is the opposite to pretty much anything he says.
An alternative view is good from time-to-time though so the reason for his appearance can be understood, but probably not at a point in time that may well be a key inflection point in history.
Bring Bill Holter back asap…
“The Dollar is the save haven…” Damn… What shall i do with all this silver and gold…? Guess i’ll buy dollars hahahaha no I wouldn’t!
Amazing.. the discussion here is just that…it takes time to read all the discussion but the message that comes through here is that we are all not morons.. There are many that understand the situation and we do matter.
Thank you Greg again for allowing us this conduit to the truth.
I should point out that I am making progress… many family members who have turned a deaf ear to my rumblings the last few years are beginning to see merit in the warnings that I have tried to express to them.
Soon the masses will realize that they have been lied to by those we thought we should trust in..
Ten percent drop in value of the ruble last night. Raised interest rates to 17 pecent trying to slow trading of the ruble. Russia is a big thing and there is plenty of world stress to go around. Can you get someone to talk about this as part of an interview?
Seems like Harry Dent’s demographic theory to analyze whats going on in today’s market and in 5 years is like giving directions to the local supermarket down the street using a World Atlas. He might not be wrong long term with the picture of an aging population 30 years from now, but that doesn’t explain why the stock market is down just a few days ago.
The bottom line is…. “WE’RE ALL SCREWED. ” Harry Dent, Jim Willie , David Morgan, and all those other talking heads are just plain ” snake oil” salemens. I believe some of what he said. One, the U.S.dollar will remain king. Some of us agree, “U.S Dollar is the ” Cleanest shit in the hamper.” Over the weekend, in the business section, “Yuan could get IMF blessing as reserve curreny.” “Approval hinges partly on whether the IMF reverses its 2010 decision that the Yuan wasn’t “freely usable.” Earth to “IMF” it is’nt “freely usable” AND WILL NEVER BE!!!!!!!!!!!!!!! Get that through thin Skulls. Harry said have your money in liquid stuff, he kind of said , brokerage firms. HARRY, THAT’S THE LAST PLACE TO HAVE YOUR MONEY!!!!!!!( They are the BIGGEST casinos .) I agree him , if you have any money in the stock market, get it out NOW if you want any money left two months from now. Like I said before, and everyone of you should do it. I made my “PREDICATIONS” for 2015, I want to see yours, ( that includes you Greg.). For 2015, I hope the Fed don’t raise interest rates, I hope their take the 10 year down to .05% For Saudi Arabia taken the price of oil down, I hope they take it down to $30. to $20. Then we can suck them dry of their oil. After we get the last drop of oil, we have the “BALLS’ to nuke them.
When I first listened to Harry Dent, I was thinking, “oh my, what have I done?” Metals, finance, economics are not my strong points. I read everyone’s reaction and thought about it some more. The collective comments got me feeling comfortable again with my choices.
In making my own money decisions, I ask myself what I can live with losing if my decisions are wrong. For now, I’m sticking to emptying out my bank account every payday. I do a transfer to hard assets, getting rid of all paper. My total expenses each month are only $150, not including food. Food costs you can control to some extent if you cook and bake from scratch.
I have no mortgage or rent payments, no heating costs as it has been in the high 70s in Phoenix still. Even when I finally run the heat, that only amounts to about 20 bucks extra, seriously. I have no debts whatever. I do not have a lot of money, but life is manageable if you can get rid of all expenses other than the basics.
Can start planting tomatoes and beans in February. I have a bumper crop of oranges, lemons, and tangerines in the back yard. They will be just perfect to pick at Xmas time. I’ll have peaches in about 12-14 weeks. I bought my fruit trees at the Wal-Mart garden center, would you believe. I tried nursery trees first and they were all disasters.
It has been hard to rewire my thinking on paper versus metal, but I try to think of it as just one more move among other preparations.
Hi Greg,
This is for Donna who lives in the Phoenix metro area as do I and who I recognize as a regular poster at your site Greg. I am interested in having direct communication with her and maybe even meeting her if she too has an interest similarly. Though my e-mail is “markandpat” my wife went home to be with the Lord back in 2000 as I mentioned in one of my earlier posts here and so I live by myself with no family close by. All the very best Greg. The grace and peace of our Lord Jesus Christ be richly with your spirit! Maranatha! The Lord comes! (I am not intending for this to be posted publicly, but if you decide to anyway, then no problem, but if you have a way to pass this note along to her with my e-mail I would be glad to respond). Thanks again Greg for all you do by the grace of God, amen! (lots of comments from the Dent interview)
Greg,
They are still poking the polar bear, currency wars lead to shooting wars, and this is indeed getting awfully scary….!
http://finance.yahoo.com/news/russian-ruble-sinks-sharply-despite-151849957.html
Donna,
Please don’t support Walmart…
if your looking to purchase from a LOCAL PHX grower that has plants/trees grown specifically in AZ and not from California check out: http://www.rsigrowers.com/
They’re located in the West Valley.
I’ve tried H Depot and Lowes but their trees are grown in Cali and are not adapted to the desert. Walmart is horrible, their employees are basically all PT so that the government (us tax payers) support them thru welfare while they pocket billions in profits. Just like the banks, we subsidize their profits and loses- corporate welfare.
greg,
Needs to move her answer to Donna’s post, I think she hit the wrong reply button….Thx.
Number of comments on this thread is staggering. Bravo Greg. Your readership and participation are BOOMING… Chip
Thank you Chip!
Greg
This may have been pointed out in some of the hundreds of comments, but if not, Harry could be completely correct about gold going as low as $250.00 because of deflation of everything. I’m no PhD in economics but I have done extensive reading about gold, and his primary argument against gold seems to be that you buy it in times of inflation, not in times of deflation, which he is predicting. “An ounce of gold today buys the same amount of crude oil it did 60 years ago – that’s one of the keys to having a successful sound money.” – James Turk. So if gold goes to $250.00, then oil might go to $5.00, and my purchasing power will remain the same whether everything inflates or deflates. Am I thinking correctly?
Jason,
You have to factor in the more than $16 trillion in liquid dollar assets held outside the country. People are going to want to make claims on those dollars. They will want to buy real stuff. Unless we default those dollars will not be destroyed. If we do default that will also produce a calamity. Either way gold works well in the extremes.
Greg
Jason,
Gold performs well in either inflation or deflation.
In case of inflation it protects you against loss of purchasing power. In case of deflation it protects you against counter-party risk of banks and governments going bankrupt.
Mason
Fox News Facebook asked people if they think they will be better or worse off at the end of 2015.
Who knows? Socialism is dying a horrible death……the oligarchs are fighting to keep it going but are running out of ammo.
Will the United States DEFAULT on its foreign debts? Abandon the world to save ourselves?
We do have the largest naval fleet in the world…..don’t we?
Might be our only way out.
What do you think Greg Hunter and posters?
Greg,
How can I buy a stock certificate and get in in hand, a somewhat tangible asset?
Does anyone know if I can?
Thanks
The Russian ruble is collapsing:
http://armstrongeconomics.com/2014/12/16/russian-ruble-collapses-conspiracy-or-warning-of-things-to-come/
Martin Armstrong says in other articles (not in this one) that war comes when the economy is doing bad.
So my question is: Since the war-rethoric between the West and Russia is already in high gear, will the collapse of the Russian ruble trigger war with the West?
I stopped listening to Dent a few years ago when I found out what angle he was coming from. This is not a market, technical and fundamental analysis does not apply in a Casino environment. Celente calls it Bankism and he is very correct.
Greg, thanks for putting old Harry on. It reinforced my notion that the man is living in the 1980s
Wow. A lot of lengthily comments. It’s simple…Buy gold and silver (take possession), invest in food producers, stock up at home, invest in energy and KEEP CASH AT HOME. Dang, wake up people.
Lots of good comments here. As far as Dent, he may be partially correct on some things, however, read the book by James Rickards, called the Death of Money.
What’s unfolding today is nearly exactly how James lays it out, and more importantly what’s happening globally, with respect to the IMF, and SDR’s. Yes, the bubbles are evident, and there’s a ton of debt all over, so the result of it all are terrible imbalances.
A reset is going to have to occur, and it will involve currencies, debts, SDR’s, and be way beyond the simple explanation offered by Dent in terms of demographics. You also will be able to better comprehend the simultaneous existence of deflation and inflation occurring at the same time, but affecting different asset classes and currencies.
Gold could go down in price, based upon dollars, however, your buying power will not change on a global basis. James talks about the possibility of the price of gold itself being reset to somewhere around $9000/ounce, but that’s based in today’s dollars, and US dollars, but with no context around what other currencies will be priced at versus the dollar, or how SDR’s will be valued between central banks. Trust me when I say, if you have $120,000 in gold (~1000 ounces), your buying won’t jump to $900,000 after any global reset. You might be able to buy in the future $100,000 worth of goods, valued in today’s dollars, but if it did get to $9000/ounce gold, then those same goods you can buy today, maybe only worth $100,000, even if some time in the future you were paid $9000 per ounce if you traded in your 1000 ounces and got $900,000 in currency units at that future date. Inflation wont automatically disappear via any reset so your $100,000 may only be able to buy $90k worth of goods at that time.
However, some assets like homes, may deflate considerably, especially since most of the home price is based on massive leverage, and prices could very well drop considerably once a reset kicks in globally. Same thing with wages.
There is just too much of an imbalance, on so many levels. Look at wages between here and China for the same amount of work, or here and India. Debt far into the future has kept the gig going for some folks relative ‘standard of living’ but frankly when you consider a reset of all of this, our standard of living beyond our means, has no direction to go but down in terms of relative prices vs other country’s. It wont necessarily go to 1:1, but the gaps between us and other countries are going to narrow. The rich will likely stay rich, or could get richer, but our middle class could begin to mirror more of what’s considered middle class in other countries like India and China, particularly if our middle class doesn’t vastly improve its skill sets. The internet and world commerce are putting skilled people at competition just not locally, but globally. And that has little to do with immigration policy, and more to do with how global corporations are operating. Find the best talent for the least amount of money. and thats about profits. and that exists in capitalistic societies and today’s supposedly communistic societies. In fact, government called democratic or socialistic or communistic is becoming less relevant, due to corporations expansion globally. Even nations and states are being redefined. Its also not what’s about ‘fair’ or ‘unfair.’ Your definition of fair is completely different from others but more importantly, completely different to a corporation. Lastly, I don’t think you can go wrong holding gold or silver over the longer term. Just don’t expect it to make you rich, and don’t expect it to necessarily be valued at the price you want, when you may need to use it, or sell it. If it acts as some level of insurance, or preservation of wealth over generations, then you are doing ok for your progeny. There are no short cuts in life unfortunately, and while stocks or bonds may not be the way to go presently, it doesn’t mean those 3 asset classes, are the only vehicle to more wealth. Hard work, luck, being in the right industry, constantly honing one’s skills and values to others, maybe starting a business that becomes highly valued, but then again, maybe just doing a lot of saving and some modest investing will get you to what you need in this lifetime. Trying to triangulate on the future, whether its listening to folks like Harry or some others, is just going to be hard work, and its a choice of how much time to you want to spend speculating or maybe just DOING. My two cents. I just wouldn’t get hung up on whether Harry is right or wrong. Its one man’s opinion. Period. Anyone who claims to be a consistent sooth, or some sort of crystal ball, or even claims to get it right just part of the time, I’d still be taking with some grains of salt.
So, Scottrade just has your cash paper money sitting there at the office ready to be picked up in a moments notice?!?! Don’t they deposit the cash themselves in a big Bank?
I just can’t believe that.
If a rush comes for cold hard cash, not 1’s and 0’s in a computer, they won’t have it either.
I subscribe to Harry and have asked if all this money is going to get destroyed
Who is going to loose their money . His people who answer his emails said deposits
in your and mine accounts most likely but don’t worry fdic will protect you even if the Fed has to print the money ,well if they print more money then there is no net destruction of money and his arguments fall apart
What does he mean when he mentions ‘minor nuclear war’ at 18:18?
This intreview is a complete delirium. The guy ignores all the key fundamentals: shortage of physical goals, looming explosion in silver demand, collapse of markets per se, and basically everything. In addition, as psychologist noticed long ago, lack of well grounded thoughts is hidden behind the forceful, and almost always incoherent, gesticulations. I would propose to never ever invite this person again. Also, I agree with one opinion above, that Harvey Organ is badly needed (with his claim regarding $10K gold, and $500 silver.0 We understand that something bad is being plotted around him. At least, you Greg could try to obtain some info on what is going on with Harvey.
Thanks, Xao
X,
“Complete delirium” you win for best description.
Greg
Harry Dent Is Dangerously Delusional by Bill Holter … (see link for article)
http://www.gold-eagle.com/article/harry-dent-dangerously-delusional