Gerald Celente, a renowned American trend forecaster, has predicted that the Federal Reserve’s ongoing initiatives to combat inflation will lead to the ‘biggest crash in history by 2022’.
In an interview with Stansberry Research, Celente suggested that inflation may be higher than it appears now, and rising interest rates, the result of the Fed tapering, will lead to the crash. Fed has maintained the low-interest-rate environment for a long to avoid a crash, but rising inflation means it has no choice.
According to Celente, the pandemic monetary response, like stimulus checks and continuous money printing, lay the groundwork for the expected crash. Still, he acknowledged that the measures were successful in the short term.
The only reason the markets have gone up is the cheap money. All that cheap money is coming in from governments to prop things up artificially. I believe it will crash hard, big, and the biggest crash in history when the Fed rate reaches 1.5 per cent.
He opined the government could have avoided this situation if it had not decided to lock down the country at the onset of the pandemic in early 2020. Celente says that considering the current increase in claims of Covid-19, the initial lockdowns have played a minimal role in harming businesses.
For 2022, Celente emphasised that gold, silver, and bitcoin offer the perfect asset classes to navigate the current inflationary environment. Gold is an ideal store of wealth, and investors should accumulate and store more gold.
Celente also expressed bullishness for silver, stating that the precious metal is expected to surge in value in the future due to its industrial applications. For example, he explained that silver would be utilised in the fields that deal with climate change and the metaverse concept.
Robert Kiyosaki, author of “Rich Dad Poor Dad,” stated that his earlier prediction of a market crash is already occurring. Based on differences between inflation and economic growth figures, Kiyosaki claims the market is already in a technical depression.
