Dow Sinks, Here's Why We're Experiencing 'Crisis Economics'
Gregory Mannarino discussed the market with Gerald Celente
The Dow closed down 980 points on Friday —just a day after Federal Reserve chairman Jerome Powell told a panel that a half-point rate increase is “on the table” for the Fed’s next meeting in early May.
“It is appropriate in my view to be moving a little more quickly,” Powell said at the meeting when discussing inflation in the U.S. The Fed already raised its key overnight rate, which was the first increase since 2018.
Stocks took a bruising on Friday. The S&P tumbled 2.77 percent, and the NASDAQ fell 2.55 percent. The Dow has been in the red for four straight weeks. CNN pointed out that the S&P 500 and Nasdaq have also declined for the past three weeks.
Gregory Mannarino spoke with Gerald Celente on Friday – just prior to the market’s close – and gave his insights of what to expect next in this New World Order of what he called “Crisis Economics.”
“We have the race to the bottom,” Mannarino said. “We’ve got global currencies issued by Central Banks, they’re not going to stop. This mechanism in place right now – again from crisis, to crisis, to crisis, so they can simply throw cash at them is another mechanism that they can pull cash out of the future to keep hyperinflating the debt bubble…it’s a backdoor way of doing it. They’re going to prolong every single crisis.”
Some of the key declines on Wall Street were HCA Healthcare, the hospital operator, that sank 21.8 percent and Verizon Communications that fell 5.6 percent.
Jeanette Garretty, chief economist at Robertson Stephens Wealth Management, told CNBC, “This is all about Powell’s comments, but the cautionary remarks about future sales growth in so many earnings announcements is driving home the essential point: fighting inflation will inflict some pain.”
TREND FORECAST: The worst of inflation is yet to come. And, should America and its NATO allies keep putting sanctions on Russia, as we have greatly detailed in Trends Journals since the Ukraine War began 24 February, the inflation rates will continue to rise beyond “expectations.”
Remember, going back over a year ago, The Street and The Feds were way off in their inflation projections.
First inflation was “temporary,” then it was “transitory.”
Never, ever did they warn of it hitting 40 year highs, and now they are trying to play it down again so the gamblers keep gambling to keep the artificially propped up equity rising and people keep spending more than they will make.
We maintain our forecast for Dragflation: Declining economy and rising inflation.
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