Harry Dent: Gold Target $700 or Lower/ In the Short Term, All Gold-Hoarding Nations and Individuals Will Lose Big

by bluesbaby5050 on December 21st, 2014

Harry Dent: Gold Target $700 or Lower/ In the Short Term, All Gold-Hoarding Nations and Individuals Will Lose Big. ForbiddenKnowledgeTV
Alexandra Bruce
December 15, 2014.

Contrary to what many "sky-is-falling" financial prognosticators are saying, the fall in oil prices will not cause an inflationary environment for the US dollar but the opposite, just as it has in every past similar crisis. The US has increased its petroleum output by 2 billion barrels, since 2008 primarily by using the controversial "fracking" of shale oil in US territory and it is Saudi Arabia, which is keeping it's own output high because it doesn't like this competition - which is having a primary inflationary effect on other oil-produving nations' currencies - but when push comes to shove, and the bottom falls out of the market, there will be less money chasing less resources, which will have a deflationary effect on the US dollar and put a downward pressure on all commodity pricing until the 2020s, by the time the big commodity-exporting nations economies have kicked in and commodity prices will begin to rise again.

In the short term, all gold hoarding nations and individuals will lose big and China, with perhaps the largest real estate bubble on the planet - but hardly alone, in that arena will be the biggest loser of all.

Greg Hunter interviews economist and best-selling author and financial guru, Harry Dent, who thinks the economy is teetering on the edge and contends, "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 will 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 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." - See more at: http://www.forbiddenknowledgetv.com/videos/money/harry-dent-gold-target-...

 Filed under: Banking / Economics

1 Comment

pasqualie: There is a variety of factors here

Dents only giving one perspective.

Oil may be going down in price, to what extent more remains to be seen, but where the actual level bottom is, dependent on what harry dent is not saying. When the saudi's decide to cut production of oil, that is when oil starts to go up again. They are pumping oil at al loss right now, and common sense says they wont be doing it for long term. So i dont expect to see these low prices for more than 6 months to a year. Cuz no one makes a product and sells it for less than it costs to make it.

There are other factors here as well, babyboomers are retiring this year in the developed nations. 75 million legal citizens alone retiring in the states. this is the one scenario there is no solution to, because all the western nations took the retirement money people paid into it, and spent it and never replaced it. in the states it was ronald regan who used the social security money and spent it on star wars and other black ops in nicaraugua.

so what this means is, retiring seniors dont spend money or invest. also it will be a huge drain on governments in terms of social security and medical care. there wont be enough working people to cover the retirees.

also if interest rates go up, the economy goes down and the dollar goes down, and gold goes back up. banks sitting on 2 million foreclosures still in the states. as well hedge funds bought up alot of the cheap real estate and sitting on it. if interest rates go up and the economy goes down, they will be dumping it on the market, causing another plunge in the housing prices in the states.

also the states is not going to be unaffected if the chinese economy tanks, most likely the us economy goes into recession as well because its all integrated. americans have heavy investments in china so if china tanks, the american economy will be affected as well.

other problems on the horizon is europe. greece is an ongoing problem. greece will have elections soon and the party that is leading by a big margin is the one that wanted to separate from the eu rather than undergo austerity.

what this means is if the opposition party gets in, and separates and defaults on their loans. basically they will default on their loans, alot of which were given out by the american banks.

could trigger another meltdown because of insurance companies needing bailouts.

basically banks dont have cash and claim losses to insurance companies, insurance companies dont have money because they sell 100 or more policies for every dollar that is claimed. so insurance company gets another bail out or the go under. then next day the banks go under.

problem here is, they already printed alot of money in the states to bail out the banks the first time, they pretty much tapped out on how much more they can print.

so too many variables in play to say how gold will go either way. but american economy is by no means out of the woods. the stock market only has been going up by artificial manipulation. if they hadnt been doing quantitative easing printing money, and the corporations hadnt been doing corporate buy backs and buying their own stocks to drive up the price, the stock market would not be as high as it is. the earnings and profits dont reflect the stock price, so its a bubble ready to burst. just look at black friday retail sales, they were down from last year. tells you what earnings will be like.

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