Harry Dent – Over $100 Trillion in Wealth Will Disappear

by Greg Hunter, USA Watchdog Best-selling author Harry Dent says the stock bubble we have today is the biggest in history. Dent contends, “Now we’re in a third bubble, and each of these bubbles peaks at higher highs, and then they each crash to lower lows. We’ve been looking for the Dow to peak right around here between 17,000 and 19,000. So, we are right in the middle. We are looking for an even bigger correction likely in late 2016 to 2017. This whole thing has been in an artificial bubble. . . . We’d be in a depression right now if it were not for $11 trillion or $12 trillion free money printed out of nowhere. So, this is an artificial environment, and this has never happened before. The charts look to me that we are at a top, or after a 20% correction, a top later this year.” Dent goes on to say, “I think the crash is finally going to start this year, but it will be at its worst in late 2016 early 2017. . . . I expect new lows on the Dow, and I think it will go to 5,500 or 6,000 in this next crash.” Dent thinks deflation is what’s coming, not hyper-inflation. Dent predicts, “When debt is restructured and financial asset bubbles burst, you are destroying. I’m estimating over $100 trillion in wealth will disappear. When you create money by magic and QE and bank loans, it can disappear like magic. Now you see it, now you don’t. When that money disappears, there’s fewer dollars chasing the same goods. That’s deflation, and gold is not going to like that.” Dent goes on to explain, “People don’t realize that there is not near as much government debt, or Fed created debt, than private system money. Banks create most of the money. They lend against asset that aren’t even theirs, your deposits, on a 10 to 1 basis. Banks only have to have 10% reserves. They can take a little bit of money and create a lot of money. At the peak of the debt bubble, we had $10 trillion in federal government debt and $42 trillion in private debt. It’s not so much the Treasury bonds held outside the United States, its dollar denominated loans. Most emerging countries buy in dollars. They buy and sell commodities in dollars. The gold bugs get everything right except they don’t get how fast this money can disappear. There is no good house in the neighborhood here. Way more dollars will be destroyed here. Way more than yen and euros. So, the dollar will go up in value because there will be fewer of them. Fewer dollars chasing the same goods is deflation and paradoxically makes the dollar more valuable. . . . I’d rather have cash, and I’d rather have U.S. dollars.” Continue Reading>>>

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