According to Dawn J Bennett, CEO and Founder of Bennett Group Financial Services and host of Financial Myth Busting, the so-called “recovery” being promoted by the government and mainstream media is propaganda to cover failed policy initiatives from both the White House and the Federal Reserve. Unfortunately, real Americans just aren’t seeing the supposed benefits. A good example of this is this year’s holiday retail numbers. Consumer spending makes up 70 percent of our GDP, and holiday retail sales have been disappointing if not depressing; Black Friday sales were down by nearly $1.2 billion.
“Revenues for individual corporations in the market are off: juggernaut IBM hasn’t seen a revenue increase in five years, and even Caterpillar has not seen an increase in sales in 36 months, which is unprecedented in company history,” said Dawn J Bennett. “Junk bonds are being liquidated at an increasing rate, and not at a premium. Corporations are leveraged at record rates. Public and private debt levels in the U.S. have climbed to almost 327 percent of GDP, and nearly 600% of Federal tax revenue. And of course, Janet Yellen and the FOMC raised interest rates last week, sucking up liquidity and increasing risk.”
Below are Dawn J Bennett’s predictions for 2016:
- The Fed will continue tightening monetary policy until our fragile economy rolls over even more. As one of the longest controlled economies in U.S. history, there have been six recessions since the rise of modern fiat currency in 1971, and those recessions have on average brought the S&P 500 down 36.5%. The next crash could well be close to what we had in 2001 and 2008, when all major indices were almost cut in half.
- The junk bond asset class is going to continue to liquidate. This started in August and September of this year.
- Corporate profits and revenues will continue to be weak, along with manufacturing and exports in general, pointing to the fact that we are already in a recession.
- The Fed’s rate hike will prove to be very painful. It will continue to soak up liquidity for 2016, which could be as much as $800 billion in excess liquidity taken out of an already fragile system.
- Worldwide, the Greek tragedy was not averted, just delayed. Greece’s problems will become worse along with Europe’s.
- Gold and silver have a strong potential to rise 25 to 50%.
Read more from Dawn J Bennett here: http://www.releasewire.com/press-releases/dawn-bennett-writes-article-the-year-ahead-regarding-the-economic-year-ahead-652454.htm