Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Implications for Stock Market - Nadeem_Walayat
2.Odds of Winning Walkers Crisps Spell & Go olidays K, C and D Letters - Sami_Walayat
3.Massive Silver Price Rally During The Coming US Dollar Collapse - Hubert_Moolman
4.Pope Francis Calls For Worldwide Communist Government - Jeff_Berwick
5.EU Referendum Opinion Polls Neck and Neck Despite Operation Fear, Support BrExit Campaign - Nadeem_Walayat
6.David Morgan: There Will Soon Be a Run to Gold Like You've Never Seen Before - Mike Gleason
7.British Pound Soars on BrExit Hopes Despite Remain Establishment Fear Mongering - Nadeem_Walayat
8.Gold Price Possible $200 Rally - Bob_Loukas
9.The Federal Reserve is Not Going To Raise Interest Rates and Destroy Gold - Michael_Swanson
10.Silver Miners’ Q1’ 2016 Fundamentals - Zeal_LLC
Free Silver
Last 7 days
Will The Swiss Guarantee 75,000 CHF For Every Family? - 26th May 16
Is There A Stocks Bear Market in Progress? - 26th May 16
Billionaires Are Wrong on Gold - 26th May 16
How NOT to Invest in the Gold Market - 26th May 16
The Black Swan Spotter...Which Saw the Oil-Crash coming; now says the “Invisible Hand” will push Brent to $85 by Christmas - 26th May 16
U.S. Household Debt Still Below 2008 Peak - 25th May 16
Brexit: Wrong Discussion, Wrong People, Wrong Arguments - 25th May 16
SPX is at Strong Resistance - 25th May 16
US Dollar, Back From the Grave? - 25th May 16
Gold : Just the Facts Ma’am - 25th May 16
The Worst Urban Crisis in History Could be Upon Us - 24th May 16
Death Crosses Across The Board Are IRREFUTABLE Stock Market Sell Signals - 24th May 16
Bitcoin Trading Alert: Bitcoin Price Stays below $450 - 24th May 16
Stock Market Crash Death Cross Doom Prevails - 23rd May 16
Did AMAT Chirp? Implications for the Economy and Gold - 23rd May 16
Stocks Extended Their Rebound On Friday - Will They Continue Higher? - 23rd May 16
UK Treasury Propaganda Warns of 3.6% Brexit Recession, the £64 Billion Question? - 23rd May 16
Stock Market Support Breached, But Not Broken! - 23rd May 16
George Osborne Warns of 18% Cheaper House Prices - BrExit for First Time Buyers - 22nd May 16
Gold Bull-Phase I Continues to Confound (The Trek to “Known Values”) - 22nd May 16 r
Avoiding a War in Space - 22nd May 16
Will Venezuela Be Forced to Embrace the US Dollar? - 21st May 16
Danish Central Bank Stumbles with Its Currency Peg to the Euro - 21st May 16
SPX Downtrend Underway - 21st May 16
George Osborne Warns of More Affordable UK Housing Market if BrExit Happens - 21st May 16
Gold And Silver 11th Hour: Globalists 10 v People 0 - 21st May 16
David Morgan: There Will Soon Be a Run to Gold Like You've Never Seen Before - 21st May 16
Gold Stocks Following Bull Analogs - 20th May 16
The Gold Chart That Has Central Banks Extremely Worried - 20th May 16
Silver Miners’ Q1’ 2016 Fundamentals - 20th May 16
Stock Market Rally At the End of the Road? - 20th May 16
British Pound Soars on BrExit Hopes Despite Remain Establishment Fear Mongering - 20th May 16
NASDAQ 100, FTSE, and British Pound - When Rare Market Data Screams, Listen  - 20th May 16
Unintended Consequences, Part 1: Easy Money = Overcapacity = Deflation - 19th May 16
The Federal Reserve is Not Going To Raise Interest Rates and Destroy Gold - 19th May 16
Stock Market Final Supports Are Broken - 19th May 16
Gold - Pro-Inflation? Anti-USD? - 19th May 16
Further Stock Market Uncertainty As Indexes Gained On Friday, Will Uptrend Resume? - 19th May 16
What This U.S. Presidential Election Tells Us About Her Millennial Generation - 18th May 16
Stock Market Trendline Broken on Fed Announcement - 18th May 16
An Incredibly Simple, Rarely Used Way to Book 170% Investing Gains - 18th May 16
Statistically Significant Stock Market Death Cross? - 18th May 16
Precisely Wrong on US Dollar, Gold? - 18th May 16
What You Can Gain From One Tech CEO's $355 Million Loss - 18th May 16
The ‘Tide’ has turned… NEGATIVE For STOCKS!!! - 18th May 16
Goldman Sachs's - Regulatory Climate is Chilling Deals; Hatzius Not Worried About a Recession - 18th May 16
Bitcoin Price Remains above $450 - 18th May 16
Crude Oil Price Trend Forecast 2016 Implications for Stock Market - 17 May 16
Could the National Debt Really Grow as High as $31 Trillion by 2023? - 17 May 16
Gold Price Possible $200 Rally - 17 May 16
Crisis Investing - Jim Rogers on “Buying Panic” - 17 May 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Why 95% of Traders Fail

The Coming U.S. Economic Collapse Will Trigger a Revolution

Economics / US Economy Aug 19, 2014 - 03:03 PM GMT

By: Harry_Dent

Economics

When the next economic collapse comes, and it’s inevitable, the revolution against the upper class will kick into higher gear!

Let me explain using my long-term economic cycle — the new 80-year, four season, Generation Wave — and an important 250-year cycle…


Just like the weather, the economy shifts through four seasons as generations pass through it: spring, summer, fall and winter. There are dynamic fluctuations that favor innovation… then efficiency… then inflation… then deflation… all through different booms and busts.

A boom in the fall follows the summer inflationary season. During this fall boom, new technologies move into the mainstream and entrepreneurs and financiers gain the most (as we have witnessed since the late 1970s).

That, in turn, creates a longer-term trend…

That is, everyday people gain as well, thanks to higher wages and increased productivity.

These trends occurred frequently from 1933 to 1972. Everyday people adopted the technologies that enabled a rise in productivity, and so enjoyed an increase in their wages, bringing lower-cost products and a better standard of living.

In fact, we saw the last broad, middle-class boom during the spring season of the economic revolution from 1942 to 1968. During that time, overall income of the average household grew faster than the income of the top 1% and top 10%!

In 1929, the top 1% held 50% of the wealth, but they lost their grip on it. By 1976, they only held 24% of the wealth. Then they regained some of that lost wealth, holding 50% again by 2007.

During normal cycles, 2007 would have been the peak of such income inequality. But not this time…

Since 2000, the middle class in developed countries like America and Europe has seen their wages stagnate as emerging countries like China take over the manufacturing and office tasks at lower prices. We call it “The Great Asian Deflation.”

And the cost of education has inflated so fast that it’s increasingly out of reach of the average person (but that’s a whole other topic for a future article).

However, entrepreneurs have done well, as they create long-term gains for the economy and everyday people through their innovations, new industries and business models.

And financial engineering on Wall Street has accelerated (unfortunately), creating greater speculation and leverage in the economy and generating greater profits for those invested (along with the potential for bubbles to burst like in the 1930s).

The Federal Reserve and central banks around the world have also done some engineering of their own, artificially maintaining stock and debt bubbles. They’ve poured free money into the economy, benefiting the banks, financial institutions and the top 1%.

But here’s the rub.

All of this “engineering” has altered the natural cycle. Instead of peaking in 2007, as it should have, the rich have continued to prosper while everyday people have stagnated or declined.

The thing is, when you fight against nature, you eventually lose. And I believe that all the manipulations and engineering that has distorted the natural cycle will eventually be the Western world’s undoing.

This extended bubble is now (belatedly) reaching its peak, a fact we know because income inequality has become so extreme. We’re rapidly approaching the point where, unless something changes, everyday people will start to revolt.

This is a fact further supported by the larger political and social revolutionary cycle that occurs about every 250 years, when the average Joe rises up against the excessive gains and tyranny of the rich.

In the past we had the Protestant Revolution (early to mid-1500s) against the tyranny of the Catholic Church and the American and French Revolutions in the mid- to late-1700s…

And now it’s time for the next one.

I think that income inequality and special interests have created such an extreme situation today that everyday people will begin to revolt in developed countries. It won’t just be those in the dictator-driven economies of the emerging world trying to make themselves heard and force democracy for the first time.

Sure, the coming “Western” revolution won’t be pretty, but it will usher in the next great resurgence of the middle class in developed countries, and it will accelerate the new middle-class surge in emerging countries.

This revolution will raise the everyday person up and bring the upper class back down to size — as has every economic revolution in history. And as new technologies move mainstream and become less exclusive, the uprising will gather momentum.

So if you’re rich, protect your gains now before Rome falls.

If you’re middle class, hunker down and wait for your day in the sun. It will be well worth it when that time comes.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife