Donald Trump :“Remember the word “bubble”, you heard it here first…”
Love him or hate him there is one thing nobody can deny:
Donald Trump knows a lot about the US economy!
He is part of the top 1% running this country and has built a multi-billion dollar fortune
So is the Republican frontrunner full of hot air again?
Or is this a slip of the tongue from somebody who knows more than he is willing to share with the rest of us?
THE ANSWER TO THIS QUESTION WILL SHOCK EVEN HARDCORE LIBERALS.
Here what Trump had to say about this “bubble” on December 19th 2015.
“We could be in bubble and that bubble could crash and it’s not going to be a pretty picture. You know the market is going down big league the last couple of weeks. But we could be in a big fat bubble and if that bubble crashes it’s a problem. The word bubble, remember the word bubble… you heard it here first… I don’t want to sound rude but I hope that if it explodes it’s going to explode now rather than 2 months into another administration.”
If you too are feeling scared or confused, than this presentation will shed light on what’s really happening right now.
If give me just 10 minutes of your time,I promise that by the end of this short video you will understand more about the economy than many Harvard graduates.
My name is Charles Hayek and I am a retired economics Professor.
For most of my life I have studied macroeconomics and the cycles of boom and bust in the global economy.
In my research I have uncovered a strange pattern that has been going on for the past 20 years.
A BIZARRE ECONOMIC CYCLE INTIMATELY LINKED TO EVERY US ELECTION SINCE THEN.
Right now, I will show you the hard facts that lead me to this conclusion in plain and simple English
So that by the end of this video you can make your own choice
And be better prepared for what’s to come.
But to understand how this bizarre pattern works, we need to take a short look back at 1999.
It seemed like a totally different America than the one we are living in today.
The stock market was booming thanks to the internet companies, affectionately called “the dot coms”.
For many Americans, investing in the internet companies seemed like the quickest way to become rich.
More and more people put their savings into the stock market driving it higher and higher.
They gambled their money on the hope that they could sell these stocks for 2 to 3 times their value.
And everybody was praising the Clinton administration for creating the biggest economic growth in US history.
Donald Trump- “Remember the word “bubble”, you heard it here first…”
TO MANY, IT SEEMED LIKE THE PARTY WOULD NEVER END.
Even the Chairman of the Federal Reserve, Alan Greenspan said:
“Technology is creating a new economy, one where the old rules no longer applied”.
The FED was so confident that in February 2000 it began raising the interest rates to their highest level since 1995.
At the same time, bad economic data started to come in.
The previous holiday season that was supposed to bring big profits to internet based companies was a major disappointment.
And it was not just online shopping… ordinary Americans bought less and consumption was dropping.
While the nation was preparing the next election, the house of cards built around the stock market started to collapse.
ON THE 12TH OF APRIL 2000, THE NASDAQ DROPPED BY 386 POINTS.
It was the largest drop ever recorded and by the end of the next week, Wall Street had lost almost a quarter of its value.
The long economic boom of the late 90s became a gigantic bust.
Clinton’s economy grew on the back of the dot com bubble. And now, everybody was looking to Bush to get the economy going again.
But before going any further, let’s take a short step back and see what we can learn from this:
An economic bubble grows around an asset that becomes very attractive to investors.
In the 90s this asset was the internet company stock.
Greed attracts more and more people who gamble their money hoping that prices will go up and they will sell for a profit later.
When people are blinded by the bubble they think that growth will never end.
This delusion is fueled by the media, economic experts and even the FED.
At this point something very interesting happened: as the economy showed signs of slowing down the FED raised the interest rate.
And, curiously, some months before the next US election, the bubble bursts crating massive economic pain.
We now have a theory that we can put to the test:
-A bubble emerges and grows on low interest rates.
-Investors and speculators are “all in” as the experts say everything is fine and growth will continue.
-The FED raises interest rates before the next Presidential election.
-The economy begins to slow down.
-The bubble bursts and the next President has to deal with the aftermath.
WHAT WOULD A CRASH LOOK LIKE?
You need only to picture what happened in Greece to get an idea:
The first thing that happened is that all the banks closed. The only way people could get their money out was with ATM withdraws. And they were limited to 60 euros/day. That’s about $63. Ask yourself this: if the banks close in the US could you live with 63$ per day? Immediately, huge lines formed in front of ATMs. People waited in the scorching heat for hours to get a tiny fraction of their savings and deposits out.
In numbers, according to a recent report from the Organization for Economic Cooperation and Development (OECD), 17% of the Greek population is currently unable to meet their daily needs for food. Approximately 30% are living below the poverty line.
The official unemployment rate is 27%, 52% of under-25s.
In Athens, Greece’s capital one of these is 53-year-old Athenian Vassilis Dimopoulos, who used to earn up to 3,000 euros per month until his employer folded in 2008. “I sold my home in 2007, though the small profit I made is now gone. I was on the streets for six months,” he said. Now Dimopoulos lives in a Red Cross hostel, selling Athens’s street paper “Schedia”.
Jenny Varvagianni, an Athens public official, claims that the capital of Greece and other urban centers have been pushed beyond a socio-economic crisis into a humanitarian crisis. “What’s bringing us to our knees are the people who had jobs, had their lives in order, were supporting their families, educating their kids… Regular, middle-class couples who lost both, or maybe just one job, and are now on the brink. Many have had water or electricity cut off or face eviction at any moment because they’ve fallen so far behind with their rent or mortgage,” she said, “People’s pay and pensions have been cut, everyone is more and more squeezed.”
DIONYSSIA MICHAELIDOU, Retiree: I have no insurance. I have no pension. I have nothing.
Today, as many as 15,000 Athenians can be classified as homeless. Most homeless are men, half of them non-Greeks. 60% of them are addicted to alcohol or drugs and two thirds have physical or mental health issues.
The budget for Greece’s 132 hospitals was $735 million before the economic crisis. This year, that number dropped to $50 million.
THEO GIANNAROS, Director, Elpis Hospital: With this problem, the next months, even the insured people aren’t going to have the proper treatment. So, if we don’t have any money, our treatments are going to be aspirins, or red peppers, like in Africa. What is happening here is a crime against humanity. Here, some thousands are going to die or died already.
the deepening poverty has led to an increase in suicides and preventable deaths. Since the crisis, suicides have increased by roughly 50 percent.
EMMY CHRISTOULAS, Daughter of Suicide Victim: “If one Greek was to take up a Kalashnikov, I would be the second. I find no other solution than that of a dignified exit before I begin searching through the garbage for my food. I believe that, one day, because the younger generation has no future, they will take up arms and hang the traitors of the nation.”
The collapsing medical system, like the increase in suicides, are both symptoms of the impact of the crisis on Greece.
This is just a brief glimpse on our comprehensive guide to surviving and thriving during the coming financial meltdown.