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Gerald Celente – Trends In The News – “No Real Cure For Chinese Meltdown”

Tuesday, July 14, 2015 19:36

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(Before It's News)

By: Voice of Reason

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In the first video, Gerald Celente gives his overall insight into trends going on around the world. When asked for an update on the Chinese Stock Market, Celente said the update for the Chinese market is the same as it is for every other market around the world today, including the U.S., and he knew the words it in every language: Pure Bullsh**! He went on to call the U.S. a new experiment in NeoFeudalism where the markets are “100% rigged” in favor of the rich, and the hell with the rest of us.

If you’re on this page, then chances are you no doubt already know who Gerald Celente is, and therefore you know I can’t be half as entertaining as him, nor as insightful. As you listen to Gerald speak about the MASSIVE downturn in the global economy, remember a few things:

1. If you ask Obama, we’re in one of the most robust recoveries in history… uh… yeah… it just has no jobs, that’ all.

2. Gerald is VERY clear; The Global Economy is slowing to a crawl. Below the videos is information on 6,000 major retail chains closing entire STORES this year, along with an update from Forbes on the Chinese market.

I HAVE BEEN WARNING YOU FOREVER. WHAT’S COMING IS GOING TO BE THE WORST GLOBAL DEPRESSION IN HUMAN HISTORY… SO I HOPE YOU ARE STORING FOOD. IGNORE THE PEOPLE LISTENING TO PROPAGANDA!

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MAJOR U.S. RETAILERS ARE CLOSING OVER 6,000 STORES…

Michael Snyder of the Economic Collapse Blog writes:

If the U.S. economy really is improving, then why are big U.S. retailers permanently shutting down thousands of stores? The “retail apocalypse” that I have written about so frequently appears to be accelerating. As you will see below, major U.S. retailers have announced that they are closing more than 6,000 locations, but economic conditions in this country are still fairly stable. So if this is happening already, what are things going to look like once the next recession strikes? For a long time, I have been pointing to 2015 as a major “turning point” for the U.S. economy, and I still feel that way. And since I started The Economic Collapse Blog at the end of 2009, I have never seen as many indications that we are headed into another major economic downturn as I do right now. If retailers are closing this many stores already, what are our malls and shopping centers going to look like a few years from now?

The list below comes from information compiled by About.com, but I have only included major retailers that have announced plans to close at least 10 stores. Most of these closures will take place this year, but in some instances the closures are scheduled to be phased in over a number of years. As you can see, the number of stores that are being permanently shut down is absolutely staggering…

180 Abercrombie & Fitch (by 2015)

75 Aeropostale (through January 2015)

150 American Eagle Outfitters (through 2017)

223 Barnes & Noble (through 2023)

265 Body Central / Body Shop

66 Bottom Dollar Food

25 Build-A-Bear (through 2015)

32 C. Wonder

21 Cache

120 Chico’s (through 2017)

200 Children’s Place (through 2017)

17 Christopher & Banks

70 Coach (fiscal 2015)

70 Coco’s /Carrows

300 Deb Shops

92 Delia’s

340 Dollar Tree/Family Dollar

39 Einstein Bros. Bagels

50 Express (through 2015)

31 Frederick’s of Hollywood

50 Fresh & Easy Grocey Stores

14 Friendly’s

65 Future Shop (Best Buy Canada)

54 Golf Galaxy (by 2016)

50 Guess (through 2015)

26 Gymboree

40 JC Penney

127 Jones New York Outlet

10 Just Baked

28 Kate Spade Saturday & Jack Spade

14 Macy’s

400 Office Depot/Office Max (by 2016)

63 Pep Boys (“in the coming years”)

100 Pier One (by 2017)

20 Pick ’n Save (by 2017)

1,784 Radio Shack

13 Ruby Tuesday

77 Sears

10 SpartanNash Grocery Stores

55 Staples (2015)

133 Target, Canada (bankruptcy)

31 Tiger Direct

200 Walgreens (by 2017)

10 West Marine

338 Wet Seal

80 Wolverine World Wide (2015 – Stride Rite & Keds)

So why is this happening?

Without a doubt, Internet retailing is taking a huge toll on brick and mortar stores, and this is a trend that is not going to end any time soon.

But as Thad Beversdorf has pointed out, we have also seen a stunning decline in true discretionary consumer spending over the past six months…

What we find is that over the past 6 months we had a tremendous drop in true discretionary consumer spending. Within the overall downtrend we do see a bit of a rally in February but quite ominously that rally failed and the bottom absolutely fell out. Again the importance is it confirms the fundamental theory that consumer spending is showing the initial signs of a severe pull back. A worrying signal to be certain as we would expect this pull back to begin impacting other areas of consumer spending. The reason is that American consumers typically do not voluntarily pull back like that on spending but do so because they have run out of credit. And if credit is running thin it will surely be felt in all spending.

The truth is that middle class U.S. consumers are tapped out. Most families are just scraping by financially from month to month. For most Americans, there simply is not a whole lot of extra money left over to go shopping with these days.

In fact, at this point approximately one out of every four Americans spend at least half of their incomes just on rent…

More than one in four Americans are spending at least half of their family income on rent – leaving little money left to purchase groceries, buy clothing or put gas in the car, new figures have revealed.

A staggering 11.25 million households consume 50 percent or more of their income on housing and utilities, according to an analysis of Census data by nonprofit firm, Enterprise Community Partners.

And 1.8 million of these households spend at least 70 percent of their paychecks on rent.

The surging cost of rental housing has affected a rising number of families since the Great Recession hit in 2007. Officials define housing costs in excess of 30 percent of income as burdensome.

For decades, the U.S. economy was powered by a free spending middle class that had plenty of discretionary income to throw around. But now that the middle class is being systematically destroyed, that paradigm is changing. Americans families simply do not have the same resources that they once did, and that spells big trouble for retailers.

As you read this article, the United States still has more retail space per person than any other nation on the planet. But as stores close by the thousands, “space available” signs are going to be popping up everywhere. This is especially going to be true in poor and lower middle class neighborhoods. Especially after what we just witnessed in Baltimore, many retailers are not going to hesitate to shut down underperforming locations in impoverished areas.

And remember, the next major economic crisis has not even arrived yet. Once it does, the business environment in this country is going to change dramatically, and a few years from now America is going to look far different than it does right now.

WANT TO KNOW WHAT DIRECTION MARTIAL LAW IS COMING FROM?

WHEN PEOPLE CAN’T GET FOOD… EXPECT MARTIAL LAW!

MAJOR U.S. RETAILERS ARE CLOSING OVER 6,000 STORES…

Mainland China’s stock market continued to gyrate wildly last week after crashing by more than a third since mid-June. After plunging earlier in the week, stocks finally surged on Thursday and Friday due to several aggressive countermeasures taken by Chinese authorities. These countermeasures include an interest rate cut, curbing IPOs, loosening margin requirements, allowing the use of property as collateral for margin loans, and encouraging brokerage firms to buy stocks with cash from the People’s Bank of China. Short sellers have even been threatened with arrest, which has raised eyebrows around the world.

China’s benchmark Shanghai Composite Index experienced a major technical breakdown after it fell beneath both its 4,000 to 4,100 support zone and uptrend line that started in November. These technical levels are now resistance levels that the index needs to surpass in order to negate the breakdown. Interestingly, the index bounced off the 3,400 support level that formed at the highs in January. If Chinese stocks take another turn for the worse and break below 3,400, the next major support level and price target to watch is the longer-term uptrend line that started in July 2014.

The Dow Jones Shenzhen Index fell harder than the Shanghai Composite and is now under both its uptrend line and 600 to 660 resistance zone that needs to be surpassed to reverse the recent breakdown signal. The index bounced right off of its longer-term uptrend line that started in June 2014. A break below this longer-term uptrend line would likely lead to further bearish action.

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The U.S.-traded DB China A-Shares ETF sliced under both its uptrend line and $45 level that are now resistance levels that the ETF needs to clear to improve its technical situation. $38 (the January 2015 high) and the longer-term uptrend line are important support levels to watch if Chinese stocks experience another bout of weakness

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It is very difficult to predict how China’s markets will act in the shorter-term because government intervention is, by nature, very hard to predict. I have been warning for years that China’s debt-driven bubble economy will end in a crisis like all bubbles do, but massive intervention on the scale of the past few weeks has the potential to inflate the bubble even larger than it was by creating a moral hazard.

Please follow or add me on Twitter, Facebook, and LinkedIn to stay informed about the most important trading and bubble news as well as my related commentary.

(Disclaimer: All information is provided for educational purposes only and should not be relied on for making any investment decisions. These chart analysis blog posts are simply market “play by plays” and color commentaries, not hard predictions, as the author is an agnostic on short-term market movements.)

Read the article at Forbes here:

By: Voice of Reason

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www.thelastgreatstand.com

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