As Americans struggle to cope with Bidenflation, one US economist has an ominous forecast of a looming depression.
Economist Harry Dent was unfortunately not full of holiday cheer in his comments to Fox News Digital. “Since 2009, this has been 100% artificial, unprecedented money printing and deficits; $27 trillion over 15 years, to be exact. This is off the charts, 100% artificial, which means we're in a dangerous state,” Dent argued. “I think 2024 is going to be the biggest single crash year we'll see in our lifetimes.” Of course, as we all know, economists can be wildly wrong in their predictions. But it’s undeniable that America is deeply in debt, over-printing money, and, under Biden, laboring under disastrous economic and financial policies.
American families living paycheck to paycheck might take exception to Dent’s comment that he’s “praying for a crash while everybody else is not.” But he explained further: “We need to get back down to normal, and we need to send a message to central banks. This should be a lesson I don't think we'll ever revisit. I don't think we'll ever see a bubble for any of our lifetimes again.” While many are optimistically indicating a mild recession for investors, Dent thinks the “everything bubble” begun in late 2021 is about to burst and rain disaster. He predicted that, for some time, the poor will get poorer and the wealth gap will widen.
“This is the one time I'm telling you, do not listen to your financial adviser,” Dent insisted. “Things are not going to come back to normal in a few years. We may never see these levels again. And this crash is not going to be a correction. It's going to be more in the '29 to '32 level. And anybody who sat through that would have shot their stockbroker.” According to Dent, there’s no chance of a soft landing based on the Federal Reserve’s rate trajectory.
He continued, “That's an 86% crash in the S&P and a 92% crash in the NASDAQ. And crypto, it's going to be 96%. So that is a big deal.” He then prophesied bad news for real estate, “And real estate, by the way, is only projected, by me, to go back to its 2012 lows... but that's a 50% crash for the average house, which went down 34% in the last crash, more than the Great Depression, more than any time in history. That is what's going to hurt people the most.”
Dent explained how depressions and recessions differ. “[Depressions] go much deeper, and they end up in deflation. It's going to bring down a lot of consumer price inflation, and especially housing.” Eventually, the situation will improve, but not without a lot of pain. “When this asset bubble bursts and the price of everything, especially housing, comes back down to reality, imagine, not only can you buy the house you want at half-off... you can buy twice as nice a house here for the same mortgage you were going to get before,” he added.
"If I'm right, it is going to be the biggest crash of our lifetime, most of it happening in 2024. You're going to see it start and be more obvious by May," the analyst stressed. "So if you just get out for six to 12 months and stuff stays at the highest valuation history, maybe you miss a little more gains if I'm wrong. If I'm right, you're going to save massive losses and be able to reinvest a year or year-and-a-half from now at unbelievably low prices and magnify your gains beyond compare.
"We're still up there. We're still near the highs, and that shouldn't have happened. So you've gotten a gift… you've gotten this rebound where you get a second chance to get out near where you could have before. Boy, [that’s] lucky, lucky, lucky."…
He believes continued disinflation will turn into deflation for the first time since the 1930s, and that the central bank has a "weak" economy in its hands… The "everything" bubble will leave a lasting slowdown impact for 12 to 14 years, Dent cautioned.
Despite agreeing that the wealth gap will widen, according to Fox, Dent still predicted more long-term pain for the wealthy. “The average person is going to lose their job for six months to two years. The average rich person is going to lose 50% to 80% of their lifetime accumulated net worth.” In other words, all that economic happy talk from the Biden administration is just nonsense.
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