Global Economic Recession: Coming To A Town Near You!
Gerald Celente runs The Trends Research Institue and has been analysing economic news and data and predicting trends for over 20 years. He advocated buying gold in 2001 when it was under $300/oz and has been accurate in a lot of his predictions.
Right now he’s predicting a revisting of the Great Depression era with huge vacancies in commercial real estate, large amounts of unemployment, a spike in gold prices. He also thinks we’ll see a surge in crime rates and a tax revolution with a revolt against property taxes first followed by school taxes. He thinks Obama’s promise for change is hokum and has no faith in his economic stimulus plans. On the bright side, he doesn’t believe this is the end of the world and says that a new technological revolution similar to the internet in the early 90s will bring us out of it.
Check out this very interesting video:
One person who obviously doesn’t believe him is Elliott Spitzer. He just bought a $180 million office building in Washinton DC, just down the street from the now infamous Mayflower hotel. He paid about $42 million in cash for this acquisition!
Eliott Spitzer is quoted as being optimistic about the real estate market!
If you found this post helpful, consider donating to my coffee fund!![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
- Investing In Japanese Real Estate In a previous post I had mentioned that a Japanese REIT was going IPO. I was wondering how I could get in on the action. It seems like a good idea - the Dollar should weaken against the Yen and Japan's Real Estate should appreciate after almost a decade and......
- Housing Update Interesting update on some markets from the Real Estate Journal. Utah homes worth their salt Utah apparently has missed the news about the end of the housing boom, with median selling prices on the way up. For example, Utah County's Alpine area saw median selling prices rise 57.2% to $529,000......
- Is It Time To Buy Real Estate? Over the past few weeks, several of friends have asked me if its a good time to buy a house now that real estate prices have bottomed. Encouraged by the media, everyone seems to think that home prices have bottomed out and the recovery is about to begin. Even Jim......
Related Websites
- How I found my real estate agent Buying and/or selling a home is often one of the big financial decisions many people face, and it can be helpful to have the services of someone to assist you through the process. A real estate agent can be of great help, especially in states where it's not typical to......
- Realizing The Finite Availability Of Fossil Fuels Is Fundamental To Climate Change Talk. The debate surrounding the extent to which the burning of fossil fuels leads to climate change misses a more fundamental point. That is, fossil fuels are an inherently finite resource. This resource is dwindling at an accelerating rate as economies such as those of China and India expand rapidly. Fossil......
- Wealth Creation: Is it a Myth? "Can we really create wealth?" That was a simple thought that popped in my head on the way to work yesterday. The "we" that I had in mind is the all the people in the earth collectively, not individuals. Surely, one individual can create wealth for him or herself. In......
[All content is copyright of Living Off Dividends & Passive Income]
March 7th, 2009 at 12:08 pm
Nirav, why would a scenario that “revisits the Great Depression” cause a spike in the price of gold? That was certainly not the case in the 1930s. The US currency was on the gold standard during the Depression. The gold price did get officially moved up from $20 (where it had been for most of the past 100 years) to $35 in 1933 under FDR. But that is less than 100% and does not constitute a spike (IMO). But that move may have just been to relieve pressure built up by a run on gold caused by the panic of a global depression. (if gold was trading for a lot higher than $20 on the world spot market, as it was, then there was an arbitrage to be had by demanding gold from the US Treasury and selling at a higher price on the spot market).
Panic aside, a deflation induced depression will cause the value of a currency to increase (as money supply decreases). So the rational, mathematical relationship between a dollar and gold during a depression is for gold to drop in value, not rise. It will only rise during an inflation when the opposite happens.
March 9th, 2009 at 7:48 pm
Geezus…..this is the worst forecast I’ve heard, much worse than Roubini. It even has me feeling panicky. It’s too bad there’s so many guns in the US, because that’s obviously going to contribute to the probs this guy forecasts. Guns are not the answer….
Too bad gold orders are already backed up at all the major dealers. If you know of another one, let me know!
March 10th, 2009 at 12:55 am
I like french gold coins