Economic forecaster: Collapse of middle class = no fuel for recovery, "Greatest Depression" coming

[Amerigo Vespucci]

Economic forecaster: ‘Greatest Depression’ coming

By Daniel Tencer
Friday, August 20th, 2010 -- 5:42 pm



http://rawstory.com/rs/2010/0820/economic-forecaster-greatest-depression-coming/

Collapse of middle class means there's no fuel for recovery, Gerald Celente argues

The US economic recovery in recent quarters is little more than a "cover-up" and the world is headed for a "Greatest Depression," complete with social unrest and class warfare, says a renowned economic forecaster.

Gerald Celente, head of the Trends Research Institute, told Yahoo!News' Tech Ticker that there's no risk of a "double-dip recession" because the first "dip" never ended.

"We're saying there's no double dip, it never ended," Celente said. "We're looking at the Greatest Depression. There's no way out of this without rebuilding productive capacity. You can't print money to get out of it."

Celente, who has been credited with predicting the 1987 stock market crash, the collapse of the Soviet Union and the subprime mortgage crisis of recent years, said the US and other developed countries can expect to see the sort of social unrest the world witnessed in Greece this year once government attempts to shore up the economy fail and lawmakers turn to "austerity measures" to plug gaping budget holes.

[Turbineguy]

1. Hmmm.....

looks like I'd better vote for republicans.

[Cirque du So-What]

3. Why stop there?

Go all-out and become a member of the monied classes - the only sure-fire way to survive the coming economic upheaval...until the hoi polloi grow weary of seeing a segment of society living in luxury while their bellies heave with hunger, that is. After the masses finally arise, all bets are off.

[L0oniX]

13. Better yet ...let's keep spending a trillion a year on the pentagon.

[Amerigo Vespucci]

14. If we extend the Bush Tax Cuts, they will trickle down on you in the form off JOBS, JOBS, JOBS!

http://4.bp.blogspot.com/_J4ZdWSdVghE/SM6zTNvzcqI/AAAAAAAAAqM/MhstI1AaviQ/s400/george+bush+drank6.jpg

[Kurt_and_Hunter]

2. Probably grinding stagnation instead... assuming govts spend

If governments around the world stopped spending during a grinding flirting-with-deflation decade the world would probably go into depression.

[NickB79]

15. Europe and China are already cutting government spending.

"Shrinking the deficit at any cost" has become the new meme worldwide.

[no_hypocrisy]

4. All at once or incrementally and is it happening right now?

[burnsei sensei]

5. The affluence of a small class

is the damnation of society.
The affluence of society itself is a blessing for all.
These are simple ideas that have yet to be put into practice in the 21st century.

[indepat]

6. No one except maybe those with even a modicum of knowledge and lick of sense will grasp the

inevitability of Celente's conclusions. :P

edited to add smilely face

[HughBeaumont]

7. Well, taxing corporations and the rich and forcing them to invest in their businesses may help.

That's assuming the rich aren't holding the country hostage, via a low-key, bloodless "Business Plot".

[Panaconda]

8. We must keep in mind

that the accoutrements of the middle class in this country have always been tied to exploitation of other peoples.

As the Empire fades and resources decline the middle class will inevitably shrivel. Now the only way for people to survive this is for a reallocation and redistribution of political power. This means people directly taking control of their means of survival. There is no other way.


“For years I labored with the idea of reforming the existing institutions of society, a little change here, a little change there. Now I feel quite differently. I think you’ve got to have a reconstruction of the entire society...a radical redistribution of political and economic power.”

- Dr. Martin Luther King Jr

[L0oniX]

11. Welcome to DU

[alcibiades_mystery]

9. It's the end of the wooooooooorld!!!

:eyes:

When isn't it?

:eyes:

[lunatica]

10. I agree the money is being put in the wrong places

I'm no economist but it doesn't take genius to figure that spending wisely on the green economy isn't about building more nuclear plants and digging for more coal. It's not rocket science.

[L0oniX]

12. The lemmings will continue to be lemmings.

[kentuck]

16. We read yesterday that more and mre people are withdrawing from their 401K's...

and once that is gone...?

[CoffeeCat]

17. Why do you think the top 3 percent want their tax cuts?

The top three percent is very upset and anxious! Why...Bush's tax cuts will be
expiring, and they need that extra dough. Lord knows they won't be getting it
from the middle class who will purchase products from their companies. The middle
class is broke!

So, they must rake in the dollars where they can.

Have you seen the utter desperation and anger coming out of Republican's mouths
when anyone dares to suggest that the sun should set on Bush's tax cuts for
yacht owners? They practically come unglued.

That's because the top 3 percent contributed handsomely to their campaigns--and the elites
want their quid pro quo.

They aren't getting money from us--so they've got to get it from somewhere!

[Joe Fields]

18. It's not just republicans. Look around.

Several key democratic politicians are in favor of renewing the tax cuts.

[CoffeeCat]

19. Lovely...

I have only witnessed Republicans whining and stammering about the thought
of the yacht owners not getting another windfall.

However, I am sure that a few choice neocon Dems are behaving like assholes too.

I had the displeasure of watching Dick Armey come unglued on MTP this morning--at the
mere thought of these helpless rich people having to pay their fair share.