By Greg Hunter’s USAWatchdog.com
Renowned analyst Charles Nenner says the biggest cycle he sees coming is the war cycle. Nenner says, “For the last couple of years, I have been saying, in the second decade of the new century, we will have a big war. Why, because there is a 100 year cycle. If you go back 100 years to the first world war in 1914 to 1918, that led to the second world war. That was actually one big war with peace in the middle. It you go back 100 years before that, you get Napoleon. . . . If you put ‘big war’ in Google, you see always in the second decade of the new century, there is a huge war. Nenner goes on to say, “The fear has started already. So, this is going to be exploding soon into a major war. . . . Based on the weaponry that becomes better in every war, I guess that’s why we get more dead bodies in every war.”
Other troubling signs are the tensions between China and Japan that should not be underestimated. Nenner says, “That’s a biggie because if you look at the aerospace index in the area, China, Vietnam and Japan, it has outperformed for a long time. So, something is cooking over there, and we know there is a conflict about the Islands (in the South China Sea). Japan has to be protected by the United States–that’s the agreement, and if Japan gets into a war with China, who knows where the end is. That would be a big one.”
On the deflation question, Nenner says you have to look at the big picture. Nenner contends, “In a cycle, all things that can go wrong, go wrong. All this has to be combined into the deflation scenario. This is all deflation. Corn price came down, wheat price came down, cotton is coming down, gas is almost at the low, the oil price is coming down and copper price is almost at a new low. I don’t understand why people don’t understand there is a problem with deflation. Europe is in deflation, and we have a strong dollar and that means deflation over here. I don’t think people understand you can’t do anything against deflation. If you have inflation, then you can do something about interest rates. If you have deflation and interest rates are already at zero, what are you going to do about it? You can’t do anything about it. . . . You have huge deflation coming up.”
On stocks, Nenner says, “The big crisis is going to be starting in 2017 to 2018. Then it’s really going to accelerate down, and then you are going to lose as much as you have in the market.”
On oil, Nenner says, “It’s all in a sell signal and (the chart) goes straight down. If lines go straight down on a yearly chart . . . there is a major, major issue going on here.
On gold, Nenner says, “On the cycle front, we are looking for a low in gold, and that seems to be forming. We are looking for a new bull market in gold. . . . If stocks go down and bonds are already at very low rates, so it’s very dangerous to go into bonds. If you get 1% on the 10-year, you don’t want it. Real estate is coming down again because nobody is going to spend money. You don’t trust the banks; you don’t want to be in the monetary system, so you buy gold. There are some very good reasons that deflation is going to lead to a bull market in gold.
So, is Nenner firmly in the deflation camp? The answer is yes and no. Nenner says, “We will start the whole inflationary process soon, but first we are going to have the scare of deflation.”
Join Greg Hunter as he goes One-on-One with analyst Charles Nenner of the Charles Nenner Research Center.
(There is much more in the video interview.)
After the Interview:
If you would like to get a free two week trial of the market research done by Charles Nenner please click here to sign up.