Want More Precious Metals News? Subscribe to Our Podcast!
Gerald Celente, Central Banks are Now Your Problem
Preparation Costs Nothing: Hear Celente's "Guns, Gold, and Getaway Plan"
Don't want to listen? Read the podcast below!
Welcome to Money Metals Exchange's weekly market wrap podcast. Helping precious metals investors during these treacherous times. Now, here's this week's market wrap with commentary and analysis from the fastest growing precious metals dealer in America, Money Metals Exchange.
Welcome to this week's Market Wrap Podcast. I'm Mike Gleeson with Money Metals Exchange and it is my sincere privilege to be joined now by Gerald Celente the publisher of the renowned Trends Journal. Mr. Celente is a frequent, and highly sought after guest on news programs throughout the world, and has been predicting many of the biggest and most important trends before they happen for more than 30 years now and it's a real honor to get a chance to speak to him today.
Mr. Celente, thank you very much for joining us.
My pleasure Mike, thanks for having me.
I know your time is very valuable and I want to jump right into it here. To start off, last week we saw the Fed do another $10 billion tapering of QE, just as you'd been predicting they would for the past few months. Give us your thoughts if you would on the recent Fed moves and what we're going to see now that Janet Yellen is taking over as Fed Chair, and also what effect this will likely have on the equities market?
Look what happened when the Fed announced it back in June of 2013. You saw the world equity markets go into panic. The only thing that's keeping the equity markets going although it's cheap money that the Fed and other central banks are pumping into the system. So where did the money flow to? A lot of it flowed to the emerging markets. Now we're seeing in late December of 2013 when the Fed announced its first round of tapering, you saw the immediate effect. It wasn't a Happy New Year for the equity markets. Not only in the US in the emerging markets but in Asia, and the European markets. They're depending on cheap dough. Now when the Fed announced it the second time, you already saw it leading up to it, the world's equity markets started diving down again. They cannot sustain it without getting more cheap dough.
Look what's going on with Turkey, with India, with South Africa, with the Ruble. You look at one currency after another you're seeing the governments are doing everything they can and central banks, which is the same thing they're raising interest rates.
Okay, now let me get this straight. They're raising interest rates at a time when the economies are slowing down. They can see what the result is going to be and they're raising interest rates, because of all of that hot money and because of the Fed stimulus is flowed into these emerging markets on the Carry Trade. Now it's flowing out and their currencies are crashing.
You're looking at the Turkish lira at all time lows. You're looking at the rupee, the Indian rupee, they said it would never go this low, and it keeps going lower. They're all raising interest rates. You can see that the panic is hitting the streets because here's the deal…as I said the only reason why it was a so called “recovery” after the panic of '08, and I wrote when it happened, this is no recovery, it's a cover up, they're covering it up with cheap money, is because of the cheap dough it and low interest rates. Now you're going to see interest rates going up. They're already going up around the world. When interest rates go up, the economy goes down, period, paragraph. So, what do they do next?
You mentioned about the new Fed Chairperson, Yellen. They're going to come up with another scheme. They won't call it a stimulus maybe they'll call it “Yellen-omics”, or make up some other stupid name. Quantitative easing, give me a break, quantitative easing. Buying up a lot of worthless crap! And building a deficit in the Fed at the point of over two trillion dollars.
The same thing is going on in China. Look what's going on over there. Interest rates are going up. Their economy is going down. The only reason there was a so-called recovery in China, they just called it something else. Instead of the money going into the equity markets over there and making the 1% even richer, in China what they did was they built the infrastructure. They also built a building boom. Now you're seeing the unwinding happen.
Again, we believe that they're going to come up, the ECB, the Chinese, the Fed they're going to come up with another scheme to juice the economy. When they do that, that's when you're going to see gold and silver prices take off particularly gold. Me, I may call it a bias, I try to be as even thinking as but I have more of a bias toward gold. My first buy of gold was $187.50 an ounce back in the late '70s. I was there. I bought it at the peak, at the highest point of the trading day on January 20th 1980. So I went through that as well. These are very different times now. You see purchasing of physical gold that did not exist back in the '80s.
That's the way we see it playing out. Again, you're seeing, last week you saw it, with the Fed tapering and you saw the reactions on the global markets. They're going to cover it up. There're a lot of methodologies they have to make it look better whether it's the Fed's purchasing, the Plunge Protection, all of these other little deals they have. It's a scam. The game is rigged. Everybody knows it's not a theory it's a fact. They've rigged the LIBOR rates, they've rigged the Forex we know it's a fact. They're going to rig the markets to make it seem as though it's not as bad as it is.
One thing I like about your publication with all that said, is the fact that you just don't pull any punches at all and don't shy away from giving an honest outlook on the state of the world. There's simply too many people seem to have their heads in the sand, and this is important stuff for everyone to be aware of. Now we've got obviously very precarious situations with our economic and monetary systems these days as you mentioned, and talk about in your publication. When things do fall apart, talk about your guns, gold, and getaway plan motto and how important that's going to be.
As I've also written, when all else fails they take it to war. This is all history. People are now making the comparison that I made in 2013, the top trends for 2013 that taking us to that war is building on the horizon. Look what's going on around the world. How much more proof the people need.
The civil war in Syria, the civil war in Libya. You have a civil war in Bahrain that never makes the news because the Fifth Fleet is there. You have a civil war in Yemen and the administration keeps sending drones there. There are civil wars going on throughout Africa, Central Africa, the Sedans, in Somalia. You have really populist movements which are really civil wars going on throughout Europe – the pitch-fork movement in Italy, in Greece, in Spain, in Portugal. They aren't making the news. You have people that haven't left the streets in Thailand going off for two months. You have protests going on continually in Cambodia and Bangladesh against the government.
One after another. Then you have the unraveling as I was mentioning in the emerging markets on what's going on down in Argentina, the people taking to the streets. The Peso is diving. People are taking to the streets in Brazil. As I said, when all else fails, they take you to war. And I remember what happened in 9-11, I live north off in Colonial Kingston from New York City and now I'm 45 minutes north. I am a New Yorker in case you can tell by the accent. I know the area pretty well.
They are telling us that planes are coming down the Hudson River and I know the Hudson River really well and there is an Indian Point Nuclear Power Plant 45 miles north of ground zero. I said to myself, if they whack this thing, you are going to see chaos that the world has never seen before and that's where I came up with GC's 3G's – guns, gold and a getaway plan.
I got my gold, in those days I was stupid enough to keep it in the safety deposit box, which now I have it off site to a place would nobody will find it and I had my gun because if people are going berserk and if there is a nuclear attack of that kind, you have to protect yourself and a getaway plan. I'm 4 1/2 hours south of Canada. In those days back in 2001, they didn't have a Gestapo, excuse me, Homeland Security. What a disgrace with this crap, Homeland Security, NSA. It's a factious takeover.
So anyway, I was ready to bolt over the border. Now the next thing I did was I called up right after, the woman I was going out with, a French woman. I told her, get all your money out of the bank and she had a money in the Key Bank in Red Hook, New York and they wouldn't give it to her and they started making fun of her because she was French. Saying once again the French weren't supporting the United States. She had a trouble getting her money out but with her being French, she got it though.
I had my money in certificates of deposit with Fleet Bank, which is no longer exists and I wanted my CDs cashed out and the guy went in and cut me off, I was giving him the money transfer information and he said to me, "Wall Street is closed.” Certificates of deposit are financial instruments. You'll be able to get your money back out when Wall Street reopens. That was my lesson. If you don't have your money with you, you don't have it. It ain't yours. And then I got screwed by John Corzine. The former head of the Goldman Sachs gang. The former Governor and Senator of New Jersey, was head of the MF Global, and he stole the money out of my segregated account. I lost a lot of that money as well, a good portion of it. I got most of it back but lose some.
The story is this, if you don't have your money and you don't have a plan, you have nothing. If you prepare for the worst and nothing happens, what have you lost? Nothing. If you don't prepare for the worst and something happens, you lose everything. People lost in Cyprus. You could see they are all ready again. I've been writing about this for years in the Trench Journal, it's old news. HSBC has limits on how much money people out and to the Chase Manhattan Bank, JP Morgan Chase. When they pulled it off this summer, putting limits on how much you withdraw. And said “oh that's only for new accounts” and they made up a story.
You're seeing it unraveling in front of our eyes. So be prepared. What do you have to lose? Nothing. Again you have everything to lose if you don't prepare.
In terms of the gold and silver markets obviously you follow those sectors very closely, I know we've come off of a couple of really rough years for metal investors. What do you expect to see here in 2014 and beyond for gold and silver?
As I said, they're going to come out with other stimulus scam because the tapering is not going to work. The markets need low interest rates and plenty of cheap cash. They got to come up with another we call it “Yellen-omics” or second quarter. That was our forecast at the end of December of 2013 and by the end of the second quarter of 2014 you are going to see some kind of panic and we hold by that. whatever you want to call it, whatever they call it. When they do that, you are going to see gold prices and silver to follow sky rocket, particularly gold, and I think gold is in store…again timing is tough, but the best that we can see something ... there is going to be panic on the street before the end of the end.
So when that happens gold becomes to play. Again, you are looking at physical demand, you are looking at the mint not stopping printing in Austria and other countries. This is a very strong physical demand and we see it very positive for gold in a long run. Again, I'm not ... I use to trade gold back in the late 70's and again I got blown out of the market in the 1980's, I know what it feels like. I've been buying possession since that time. That's the only way I buy. I buy for my gold in years not as a trade and you put it away and you don't think about it and again as you know it's a fact.
I called the beginning of the gold bullion run and now in Trends Journal in December of 2002 or 2001 I forgot, it's on our website, trendsjournal.com, when gold was trading at $275. The only way that they could sustain this is by throwing cheap money and ... by the way, I don't go with the inflation issue. I just go to currency devaluation, the result is the same. Inflation often happens because the supply and demand and there is a lot of demand and people are willing to pay more for the product. The price of the product goes up.
This is more like Zimbabwean dollar. Price of coffee hasn't gone up. It still cost the same amount to buy a pound but your currency is worth less and that's what I see, a currency crisis. A currency crisis is driving or will be driving gold prices. I believe not inflation threats. Again it's the same, the result is the same. It's going to cost you more to buy something and that's the issue whether it comes through devaluation of currency or typical economics 101 supply and demand.
Well Mr. Celente, I certainly want to thank you for joining us and before you go, please talk to folks here about how they can get their hands on the tremendous information you put out there at the Trend Research Institute and with the Trends Journal publication, and also give us an idea of what you've got in store here for the soon-to-be-released Winter Edition of the Trends Journal.
Sure. First I want to say that we make it available to everyone that we can. We have a discount request page because we know people having a difficult time and I could say with full confidence it's the only magazine published that will give you history, you'll read history before it happens. It's beyond life and ahead of time and what we also do is every weekday we have Trends in the News broadcast. This is the real news going on. It keeps you again ahead of the news and on top of the trends.
What we're coming up with now is a recapping of our synopsis of the top trends that we put out at the end of the year and now we are putting them into really actionable programs on what you can do to avoid the dangers and seize the opportunities and it's out now and again it's a money back guarantee. It's 52 pages, full color with not one advertisement in it. There is no magazine like it in the world and there is nothing like Trends in the News and if you don't believe me, go to our website or go on to YouTube, plug in Trends of the News and you'll see what you get from us each night, every Monday through Friday.
Yeah, it's a very substantial publication and we definitely urge everybody to check it out.
Well, that will do it for this week's market wrap podcast, thanks for listening. Again we want to give special thanks to Gerald Celente for his fantastic insights and for more information, again the website is trendsresearch.com. Tune in next Friday for our next weekly Market Wrap Podcast. Until then have a great weekend everybody.
Thank you for joining us for this edition of the Money Metals Exchange Weekly Market Wrap. Be sure to come back next week, and don't forget to subscribe to our weekly podcast through iTunes. For answers to all of your questions, or to discretely and securely buy or sell gold or silver coins, bars, and rounds, call 1-800-800-1865. Our knowledgeable and no-pressure specialists are standing by between 7:00 a.m. and 5:30 p.m. mountain time, Monday through Friday. Visit us at www.MoneyMetals.com or call 1-800-800-1865.