Investing.com – Dave Cullum, economist and contributor to Zero Hedge, warns that the next decade could be “HardInvestors believe the market is overvalued with up to… 150%. The next big drop is expected to lead to a massive selling wave that will ignite panic in the markets.
“The economy is starting to decline despite what some people are saying. All the signs are there that we are going to decline,” Collom told Michelle McCurry, anchor and editor-in-chief of Kitco News.
Macroeconomic data is inaccurate
Collomb raised doubts about how inflation and GDP indicators are calculated. To watch an explanation of how these signs cross the real picture on the ground, you can follow the video attached to the article. “I think the numbers are dishonest,” he said. “Not only are they inaccurate, but we’re long past where they were trying to get the truth.” He said: “The only purpose of the Fed is to get us out of balance. “
A market crash is approaching
Cullum noted that markets began to lose stability from 1994, citing the Case-Shiller price-to-earnings (P/E) ratio, noting the dramatic increase in debt levels at the that time He said: “The debt rose significantly from that time. Then there was a correction in 2008 back to fair value, but it was not less than that.”
“If you accept my argument that the market is at least 150% overvalued over its fair value, you also have to accept my assumption that at some point you will be angry that you didn’t get your -out of the path of disaster,” said Collom. said.
Colomb said this disaster could take several forms. “Markets could fall 90% like they did between 1929 and 1933. Or they could correct like they did between 1967 and 1981 when the market remained stable without correcting for inflation. But with inflation corrected, markets fell 70%.
He said: “I believe there will be a big correction. When the sales start, everyone will start selling. People will start selling everything they have, even their clothes .In this case, you don’t want to have anything.”
Right now, the markets are at the top, but there is a big warning sign. “We have never been at a peak while people are in such a desperate state. People are talking about civil war and tyranny. Emotionally, it feels like a bun. This brings us to think about the fourth circle. What happens next 10 years could be terrible. “
America fell
One major concern is America’s growing national debt levels, which are close to $36 trillion.
“The federal government is growing its debt at 7% a year, which means we are eating away at the future in advance,” said Collom going down.
Along with rising debt levels, the accelerated move to reduce dependence on the US dollar threatens its role as a global reserve currency. “The story of de-dollarization will happen sooner than we think … with a big geopolitical movement to shift alliances,” said Collom. He referred to the 16th annual summit of the BRICS countries, which will be held in Kazan, Russia, on October 22-24.
He said: “If Russia doesn’t buy our debt, and if China doesn’t buy our debt, and if it stops buying our debt, there will be no one left to buy our debt, which means that we ‘finance the debt with money, and this will lead to decline.’
Collomb noted that the BRICS countries had increased their gold reserves, as the 2024 levels were still close to record numbers. He also said that some purchases may not be announced.
He said: “Let’s say that China has 87,000 tonnes of gold, as some suggest. China could offer gold certificates. What would be the effect of such a move? It would probably destroy the instant dollar.”
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2024-10-20 15:02:00
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