Oil Price Plunge Trigger for Next Global Crisis-Harry Dent

4By 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: 

If you would like to get a copy of Harry Dent’s new book, click here.  If you would like to receive Dent’s free newsletter, click here and scroll down and look on the right side of the page.

 

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Comments
  1. Michael

    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!

    • beth

      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…

      • Richard

        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.

    • Winston Churchill

      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.

      • allen ols

        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

        • allen ols

          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.

          • allen ols

            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/…

        • Jo Zon

          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.

          • chuck

            you smart too Jo Zon

        • foggygoggles

          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

      • Michael

        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.

    • Charles H.

      Michael,

      Karl Denninger would be great too!

    • Web Guy Perth

      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 an