Founder of Trends Research Institute Gerald Celente predicts an economic 9/11 for the United States is just around the corner.
Though last Friday’s U.S. Labor Department employment report showed a remarkable drop in the unemployment rate to 8.6 percent for November, down from 9 percent in October, Celente’s said nothing has changed in the employment picture. In fact, he said, the economy will get worse.
Moreover, because of the Celente’s deteriorating jobs outlook, continued inflation and a deepening recession slated for the first quarter of 2012, American will explode into “economic martial law,” according to him.
America is being fed the hope of a recovery; it’s all a “lie,” Celente said, and will blindside many Americans who still believe Washington’s propaganda and numbers fudging.
“It’s food stamp employees. Oh, there were jobs created in retail,” Celente told Russia Today. “You know, those wonderful jobs where you take people’s money and say, ‘Have a nice day’. And there were jobs in hospitality. That’s another word for cleaning up somebody’s room. Oh, and there were jobs in healthcare. You know, working in nursing homes, making $62.50 a week by the time after taxes. You know, so these aren’t real jobs. This is a plantation economy.”
Not only are poor quality jobs created, but buried in the November labor data reveals 315,000 unemployed workers haven’t found jobs in the last 12 months. These long-term jobless Americans fall off the radar, no longer counted by the Labor Department, thereby artificially lowering the unemployment rate. (For more on government manipulation regarding employment statistics, see Shadowstats.com)
The number of Americans who want to work but still cannot find work stands at 13.3 million. And the jobs picture gets worse after taking into account a naturally growing U.S. labor pool.
“And the big lie, that no one’s talking about as they pump up this weak number, is that, you need a 125,000 jobs a month to account for the new people moving into the economy and population growth,” Celente explained. “So that leaves all the people that have lost all these jobs since the Great Recession hit still out of work.
“It’s going to get worse,” he added. “As a matter of fact, we’re coming out with our top trends for 2012, and one of them is going to be economic martial law. We’re going to go into an economic 9/11.”
Celente notes a disconnect between the reality of an impending economic collapse and Americans taken in by hype surrounding the day after the Thanksgiving Day holiday, or ‘Black Friday’. While the U.S. economic ship sinks, the passengers seem not to notice, according to Celente.
“What they’re [the Fed] doing is that, they’re pumping this up to get the people to spend their last pennies that they don’t have on Christmas junk,” he said. “And you saw with all the hype with this Black Friday. They’re not solving the problems over in Europe.
“The European Union is collapsing, the European monetary union. What did they do? They just came out with credit ratings, showing 15 of the banks have lost their credit ratings because they’ve been degrading. The same day they come out, central banks around the world are pumping trillions of dollars into them to keep it afloat.”
The so-called smart money, however, isn’t fooled. Stock prices, which are regarded as a reliable leading economic indicator of future economic growth, have stalled from the bear market rally of March 2009.
And the Fed appears to be confirming the fear on Wall Street. On Dec. 8, the U.S. central bank released a report showing a $2.4 trillion drop in U.S. household net worth for the quarter ending Sept. 30.
“Americans’ wealth last summer suffered its biggest quarterly loss in more than two years as stocks, pension funds and home values lost value,” according to Reuters. “It was the sharpest drop since the tumultuous period after the September 2008 bankruptcy of investment bank Lehman Brothers.”
Adding to the worries of a renewed downturn in the U.S. economy include Europe’s and Japan’s financial problems as well as a China slowdown, which, taken together, have never conspired simultaneously since the Great Depression.
If the U.S., Europe, Japan and China, together representing more than half of global GDP, how will America, Europe and Japan pay on its sovereign debt?
Following the collapse of Lehman Brothers in 2008, governments backstopped the financial system to prevent financial Armageddon. Today, it’s the governments that need backstopping. Who will backstop them?
“When the New Year comes, the Winter of Discontent is going to set in, reality is going to bite,” Celente concluded. Brace for an economic 9/11.
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Thanks to Jay for submitting this video.
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