Billionaires and Economists Warn Americans to Get Ready For Financial Collapse

by on May 27, 2015 in Debt News

For the American economy, 2015 didn’t start in a positive way. Residential construction and retail spending dropped significantly in the first quarter. The value of the U.S. dollar caused export revenue to fall as well, according to CNN Money. These trends harmed major corporations like Apple and Caterpillar. Some financial experts and businessmen believe that the situation will only get worse.

Upcoming Depression?

Author and economist Robert Wiedemer recently predicted a severe downturn in the U.S. economy. Using financial charts to support his claims, Wiedemer warned that inflation could rise to 100 percent in only a year. He also forecasted a 90 percent drop in the stock market’s value and an unemployment rate of 50 percent.

The economist explained that the federal government’s plan to save the economy has backfired and will soon lead to serious problems. He blamed current and former Federal Reserve officials, including Ben Bernanke and Janet Yellen. Wiedemer has also criticized governments worldwide for creating excessive debt with stimulus measures and using paper currencies that aren’t backed by precious metals.

While it’s easy to dismiss his predictions as unrealistic, Wiedemer does have experience in forecasting economic downturns. The economist and his colleagues published a book titled "America’s Bubble Economy" in 2006. Even as many analysts were predicting unlimited growth, Wiedemer warned readers of 2008’s mortgage collapse and recession. Nonetheless, major media outlets continue to ignore his forecasts.

Recession Probable

Like Wiedemer, the Jerome Levy Forecasting Center is known for successfully predicting economic collapse. Its founder foresaw the massive stock market crash of 1929 and unloaded his shares before they lost their value. In 2007, the organization forecasted a recession and warned that subprime home loans would trigger serious problems in a range of financial sectors.

The center issued new warnings during November. It released a report indicating a 65% chance that a new global recession will occur by December 2015. This financial forecast was based on an analysis of current economic trends and news from around the world, according to Bloomberg. It contradicts the rosy predictions of top investment banks like Goldman Sachs.

The forecasting center attributed its concerns to high debt burdens, stock ownership rates and America’s growing reliance on export income. Major corporations derive more of their revenue from overseas sales than ever before, putting them at the mercy of volatile currency values and trade policies. The center also cautioned that governments have few remaining options to remedy a downturn.

Billionaires Agree

Two exceptionally wealthy businessmen have predicted that the economy is headed for a long-term recession. Appearing on a TV news program, Donald Trump warned that the U.S. credit rating was likely to be downgraded as its debt burden rises. He pointed to a national debt that has exceeded $15 trillion and could reach $22 trillion by 2016.

The casino owner went on to say that the economy has already entered a downturn, noting the high rate of unemployment. He disputed official statistics, saying that the actual jobless rate is 15, 16 or even 21 percent. Many economic experts agree that the government has used questionable methods to calculate unemployment numbers for at least two decades.

Another billionaire businessman recently made statements about the economy’s worrisome future. Eric Sprott expects hedge fund activity and hidden losses in the derivatives market to drastically cut the dollar’s value, according to King World News. He pointed to the collapse of several commodities and the Brazilian currency as examples of growing economic volatility.

Sprott predicted that bank accounting practices would keep huge losses in derivatives hidden from the public and investors until they trigger a worldwide "financial tsunami." Although he was unwilling to state a specific timeframe, Sprott warned that secretive banks and hedge funds had created a situation in which another global recession is not only likely but mathematically certain.

All of these predictions suggest that the public needs to prepare for a difficult future. Major banks and regulatory agencies continue to operate in ways that shield executive decision-makers from the consequences of their actions. Whenever possible, it makes sense for Americans to prioritize their own survival instead of sending hard-earned cash to irresponsible bankers and abusive collection agencies.