Gerald Celente 2010 forecast - CKLN Rude Awakening hosted by Black Krishna
CKLN Rude Awakening: Do Gerald's Crystal Balls Reveal What Will Happen in 2010? - May 10, 2010
Why tens of millions of Europeans want
as much gold as they can get their hands on.
as much gold as they can get their hands on.
And why tens of millions of Americans will soon
be doing the same thing.
be doing the same thing.
Dear Silvia,
 |
The European Union and the euro are beginning to disintegrate because the incompetent bureaucrats who designed the euro in 1998 thought they could take some paper, print some ink on it, and turn it into a currency that everyone would trust.
They effectively crammed the euro down the throats of 500 million people from 27 different nations and cultures speaking 26 different officially recognized languages. That in itself was a recipe for disaster, a disaster I warned about right from the get-go of the euro's birth.
But the seeds of the unfolding euro disaster go even deeper. The bureaucrats in Europe had more than five years before the euro launched to put in place the necessary fundamental infrastructure for a union and a single currency to work. But they failed to do so.
They failed to unify the tax codes of the 12 different founding countries. Or even the now 27 members.
They even failed to put in place uniform labor laws and welfare policies.
They even neglected to make the European Central Bank a true central bank. All 12 original national central banks of the founding states of the European Union — the Bank of France, the German Bundesbank, just to name two — still exist and still have their own independent policies.
The people of Europe as well as investors and traders around the world gave the bureaucrats their chance. Initially, they even bet the European Union could succeed, and helped push up the value of the euro on international markets over the last few years.
But the plans and best expectations for the euro are now failing miserably, the result of initially, the real estate crisis, and now Europe's sovereign debt crisis.
Either way, when you build a house of cards, sooner or later it's going to fall.
Unemployment in the euro zone has now reached 10.1%, its highest level since the euro came into existence in 1999.
More than 23 million European men and women are unemployed. In debt-riddled Spain, unemployment among those under age 25 is a nightmarish 40.3%.
 |
| Unemployment in Europe has reached its highest level since the euro came into existence. |
The German economy — considered to be the pillar of the European Union and the euro — is now mired in its worst recession since World War II.
France's economy is also in dire shape. The country's deficit is set to hit 8% of GDP this year, more than two and a half times the European Union's 3% limit. France's budget minister Francois Baroin is now worried that his own country could lose its AAA credit rating.
So it's not just Greece, Spain, Portugal or Italy that are in trouble. It's the entire euro zone.
Is it any surprise that tens of millions of Europeans now despise the euro and are dumping it in increasing numbers? Hardly!
Is it any surprise they're talking about bringing back their francs, marcs, liras, guilders and drachmas? Is it any surprise tens of millions of Europeans are buying gold hand over fist? Hardly!
Will it be any surprise then when tens of millions of Americans buy gold like crazy? No way!
Like the euro, the U.S. dollar's future
doesn't look so bright either.
doesn't look so bright either.
Yes, the dollar has rallied for a few months on international foreign exchange markets.
But those jumping into the dollar ... and those heavily exposed to the dollar's value — which is most of us — will soon be in for a very rude awakening.
If the U.S. didn't have a host of its own problems, Europeans would dump the euro and gobble the dollar right back up, pushing the greenback wildly higher. Investors and savvy traders would jump back into the greenback, too, and the dollar would regain its former glory in international currency markets.
But that's not happening, nor is it about to happen anytime soon. After all the supposed flight to safety in the dollar, the greenback is still down more than 34% from its July 6, 2001 high.
And, even worse, it's merely 12.59% off its record low of March 2008.
I ask you, if the Dow Industrials had rallied a mere 12.59% from its March 2009 low to 7,250.88, would you think all is well with the Dow?
I bet not.
The fact is the U.S. is the most indebted country in the world. Investing in the dollar — or being overly exposed to it — is like being on the stern of the Titanic before it went down.
This is where Wall Street and most investors
have the consequences of the euro crisis all wrong.
have the consequences of the euro crisis all wrong.
Indeed, other than a short-term rally here and there, I don't think the dollar has a chance of surviving the sovereign debt crisis.
Make no mistake about it: The U.S. dollar will lose its status as the world's reserve currency.
By the year 2015, the world will be forced onto a new monetary system that is not backed by the dollar or by debt, but rather, by an index based on a basket of commodities.
Until then, the sovereign debt crisis will get worse, the euro will lose more purchasing power, and the dollar will get hammered lower.
 |
| The days of the current monetary system are numbered. |
When the world's two major fiat currencies are in deep trouble, there's only one wise choice: Gold.
Keep in mind that the gold market is tiny in comparison to the amount of paper dollars and euros in circulation and the credit and debt markets built upon them (an estimated $250 trillion). All the gold ever mined in the world is about 165,000 metric tons, or about 5.3 billion ounces.
At today's price of say, $1,225 an ounce, that's only about $6.5 trillion of gold, or about 2.6% of the value of money out there.
If just 1% of the U.S. dollars and euros in circulation were to go into gold, it could be enough to send the price of gold rocketing higher to well over my conservative target of $2,300 an ounce, to my extreme target of $5,000 an ounce.
Which is why I continue to pound my fist on the table and implore you to own gold, just like myReal Wealth Report subscribers do, who have open gains of as much as 227% in their core gold positions.
Right now gold is consolidating its recent gains after having just hit another new record high of $1,249.70 on May 14. It may even pull back to $1,200 ... or as low as $1,180 before blasting off again. If it does, consider it a blessing in disguise — it's an opportunity to make sure your portfolio is in synch with my Real Wealth Report.
As the possibilities of the future become clearer and society begins to understand the implications of the trends that lie ahead, people will be buffeted between paralyzing fear and exhilarating hope. But as the new century unfolds, the realization will come that even the worst fears can be surmounted and the heights of exhilaration were set too low...
Generation of Disorder
Gerald Celente in THE TOP 10 TRENDS OF THE 21st CENTURY :RENAISSANCE 2000
As the possibilities of the future become clearer and society begins to understand the implications of the trends that lie ahead, people will be buffeted between paralyzing fear and exhilarating hope. But as the new century unfolds, the realization will come that even the worst fears can be surmounted and the heights of exhilaration were set too low...
No hay comentarios:
Publicar un comentario