Celente: The "Bailout Bubble" The Bubble to End All Bubbles

Hi guys,
This is the latest i received from Trends Research (Gerald Celente). Thought it may interest some of you.

KINGSTON, NY, 13 May 2009 -- The biggest financial bubble in history is being inflated in plain sight, said Gerald Celente, Director of The Trends Research Institute. "This is the Mother of All Bubbles, and when it explodes," Celente warns, "it will signal the end to the boom/bust cycle that has characterized economic activity throughout the developed world."

Either unwilling or unable to call the bubble by its proper name, the media, Washington and Wall Street describe the stupendous government expenditures on rescue packages, stimulus plans, buyouts and takeovers as emergency measures needed to salvage the severely damaged economy.
"All of this terminology is econo-jargon," said Celente. "It's like calling torture 'enhanced interrogation techniques.'
Washington is inflating the biggest bubble ever: the 'Bailout Bubble.' "This is much bigger than the Dot-com and Real Estate bubbles which hit speculators, investors and financiers the hardest. However destructive the effects of these busts on employment, savings and productivity, the Free Market Capitalist framework was left intact. But when the 'Bailout Bubble' explodes, the system goes with it."
The economic framework of the United States has been restructured. Federal interventionist policies have given the government equity stakes, executive powers and management control of what was once private enterprise. To finance these buyouts, rescue and stimulus packages -- instead of letting failed businesses fail and bankrupt banks and bandit brokerages go bankrupt -- trillions of dollars are being injected into the stricken economy.
Phantom dollars, printed out of thin air, backed by nothing ... and producing next to nothing ... defines the "Bailout Bubble." Just as with the other bubbles, so too will this one burst. But unlike Dot-com and Real Estate, when the "Bailout Bubble" pops, neither the President nor the Federal Reserve will have the fiscal fixes or monetary policies available to inflate another.
With no more massive economic bubbles left to blow up, they'll set their sights on bigger targets. "Given the pattern of governments to parlay egregious failures into mega-failures, the classic trend they follow, when all else fails, is to take their nation to war," observed Celente.

Since the "Bailout Bubble" is neither called nor recognized as a bubble, its sudden and spectacular explosion will create chaos.
A panicked public will readily accept any Washington/Wall Street/Main Stream Media alibi that shifts the blame for the catastrophe away from the policy makers and onto some scapegoat.
"At this time we are not forecasting a war. However, the trends in play are ominous," Celente concluded. "While we cannot pinpoint precisely when the 'Bailout Bubble' will burst, we are certain it will. When it does, it should be understood that a major war could follow."

[edit on 13/5/2009 by wycky]

I give it 16 months

til Burst!

When this bubble bursts, will it create a blackhole that will completely engulf the entire planet into nothingness?

reply to post by FX44rice


Your WAY too optimistic. I give it 2 months til the final POP! With China canceling the US credit and all.. Two months for those ships to arrive.. then nothing....

reply to post by titorite

Hard to say, but it is going to take time to allocate and spend the stimulus dollars.

This I believe will create a malaise in the economy to businesses and individuals for about 6 months.

As it took the real estate bubble a good year to get in full swing, IMO it will also take this amount of time for the stimulus bubble to blow.

Who really knows? Either way eventually we're Fk'd.

it will pop when the BOND Market doesn't allow the nation to finance the borrowing with low interest rates...........the gov't will collapse the stock markets to keep the bond yields low (money flow from stocks to bonds) so they can finance their spending

this could continue for a while.........IN CASE PEOPLE have not NOTICED the 12 trillion in CREDIT is not BEING LENT OUT BY BANKS......it has gone to artificially elevating the value (of debt on bank balance sheets.....which would otherwise be falling i.e purging the system of bad debt) and also a few hundred billion in credit has also flowed into EXCess reserves hoarded by banks and held at the fed....where the fed pays interest on the excess reserves which also gives banks incentives NOT to lend in a already risky enviornment................This credit is not flowing to the real economy for CRYing out loud.........

a few trillion here and a few trillion there mostly to artificially prop up some key credit markets.........so long as the lending enviornment is risky (will be for at least another YEAR..prob 2) and the fed pays intrest on reserves INFLATION via credit/lending will not be an issue

(consumer price inflation is another animal all together and depends on the relative strength or weakness in the dollar) rember the consumer prices inflating for oil and food in 08 before the fed spend 12 trillion or so......so yes it is complex but still "followable"

P.S don't underestimate the REASON people like Bernanke and other economists you hear on MSM will try to get people to fear inflation returning "soon"........a lot are trying to get consumers to spend and not save........they have to MANAGE future expectations regarding prices....and they want you to think it's a good idea to take on more debt and spend spend spend....deflation gives incentive to wait for lower prices.....you must keep this in mind.........however some just parrot faulty logic and join the chorus



[edit on 13-5-2009 by cpdaman]

Looks like a new term has been coined. Thank God for Celente telling it like it is. Unfortunately, it isn't going to be just another war it will be WW3. TPTB want and need this to unfold to bring about their NWO. Looks like things are going as planned.

On C2C last night:

World War III:

In the first half of Tuesday night's show, political scientist and expert in relocation for personal security, Joel Skousen warned that WWIII was in the works for the United States, China, and Russia. One of the main purposes behind staging such a conflict is to scare Americans into giving up their sovereignty to a new global government, he suggested.

Can anyone say "Fall Out Shelters"?

www.fema.gov...

A perspective I did not think of. Kudos to Celente. One of the few truth tellers out there. The storm headed our way is very ominous.

IT will happen this year. Everyday there is new news that we are losing track of the bailout money. The Fed itself has no idea where 9 Trillion of its money has gone too.

I give it 2 months at the least, 9 months at the most till it pops.

I guess I better hurry up and find a new GF before the world explodes.
Perhaps a virgin? (evil laugh).
No seriously, we all saw this comming for a long time, and this supports those views.
we are all screwed.

I don't about everyone else but I am paying the few bills I have first with my paychecks and the rest go to preparations. Preparations I hope I never have to use.

I am in complete agreement with Mr. Celente here.. I posted this earlier on another thread:

This goes on, and on, and on... until something stops it. since the 1970's we have always relied on a "New Market" to drive a Bubble to bring about a way to end a recession. Usually, it didn't have to be a big Bubble, just enough to get people working. As years went by, Dot Com Bubbles, Energy Bubble, Housing Bubble.. all saved us from a recession, and each Bubble was bigger then the last.. until the whole scheme pops and we see our first real deflationary spiral since the Great Depression. I think the administration hoped for a "Green Energy Bubble" .. but with unemployment and dollar devaluations.. who can afford the new Green Energy? not many.

IMO, from what I have researched and understand about this particular economy.. we will continue with a Deflationary Spiral until a time comes where the Government manages to increase wage growth via a new technological Bubble.. or a major increase in economic output is needed due to, say, a very large war. I believe the extent of damage to the Economy is drastic and beyond repair of typical interest rate changes and capital expansions... a failing economy that could prolong a recession by 10 years or more, regardless of the drastic "bailouts" the government is promising. They only create Zombie Corporations that don't produce wealth.

Which basically says the same thing. I don't know if I would call the Government's spending a Bubble per se, simply because Bubbles usually indicate periods of economic growth, job creation, etc.. a lift from recession .. though I completely agree that at some point the Dead Corporations will fall apart, we wills pend our selves in oblivion, or our debt system will collapse around us.. and all indications point to, given historical reference, a major war of extreme proportions will be needed to create a new economic era.

It is also most alarming to see (and Celente has forecasted this as well) that as the economic situation continues to deteriorate, there is a divide in American's between those that accept the Government as supreme, and those that refuse to believe a word they are being told. the big question being raised: Is the Government the solution.. or the Problem? American's for reasons unknown to most, seem to believe the typical trials and tribulations of lesser states then us will never reach our shores.. I believe they are sadly mistaken.

Its more a 'Bailout Scheme'

which is being used to Monetize the counterparties of derivatives, CDSs
and other big-player/financier 'bets' that have been erroneously considered Insurance instruments or even a type of 'bond'...

monetizing these fraudulent, counterfiet scraps of 'gentlemens' paper
is an outrage...
the 'bubble' is the Trillions of $$ in these 'bets' that are given 'value' at all,
let alone being monetized with the taxpayers money & future.

those 10 or so mega banks/investment banks with Trillions in counterparty swaps ...should rightfully have nullified all those unfunded derivatives
they held,,, whenever those Investment Banks underwent the
Charter provisions switch to a 'Regular Commercial Bank & Bank Holding Company'

whats transpiring is not a 'Bubble' its more of a swindle, imho

what is amazing is most people think everything is just fine. It is obvious there is no way we can print what we have and give billions away without it impacting us at some point.

Oh - but MSM is only about American Idol right now - we are suppose to focus on who is going to win and who will not!

S and F

reply to post by questioningall


Skeptic pointed out the correlation with the last poll results and increasingly optimistic views on the economy from MSM:

MSM propaganda works incredibly well.. if they say it, people believe it.

Well the Bilderberg meeting in Greece starts today. I'm sure this is a topic of discussion for them. I would imagine them to devise a way to get even more power as a result of the collapse.

My guess is that this year the MSM will get hold of 'leaked' info from inside the Bilderberg group setting in motion the collapse of the (world) economy.

well if Lindsey Williams is correct, and he always is, then we'll have "hyper-inflation" here in the next 6-9 months...

i wonder if that has anything to do with this "bubble"

reply to post by cpdaman


Hey, well written, what do you think of the derivatives market (credit derivatives, swaps etc) i.e insurance that is cross spread between banks all over the globe, that market has a value of more than 50 trillion dollars. No one seems to mention that market anymore, perhaps thats what is happening, they are unwinding some of the larger contracts and the banks and credit institutes need a lot of cash to avoid bankrupcy during that process ? The house prices has collapsed already so that can not be saved by pumping money into the real economy, its a post factum now.

Edit: Kudos to St Udio aswell, spot on, maybe a huge swindle is the case, i cant fathom how its being done though as most banks seem to keep a neutral position, if not, some must have been gambling and taking on HUGE bets, just as you said.

Regards.

[edit on 2009/5/14 by reugen]

If we take what G.C. says is on the horizon and compare it to what has been said by others from Coast to Coast. It seems that this Fall will show some big changes coming our way.

I think it will begin in July, 09, with the US not being able to pay its bills, and the grand finale in November.

However, if you follow the corporate TV or print news, the "Recession" is over and everything is great! Obama has brought Real Change!