On the coming crash

Deflation Coming Not Inflation – Charles Nenner

Greg Hunter

World renowned geopolitical and market cycle expert Charles Nenner said three months ago that interest rates would not rise when everybody else was fearing a spike. Nenner was right. What is Nenner seeing now? Nenner says, “Short term around the 6th or 7th of November, we are going to get a short term low in the stock market. So, we expect a bounce, and there is a better low the middle of December. So, we should have a rally into January, but longer term the market is down for a couple of years. I just remember in 2000 when the market tanked, it was an expansion of 11 years, and I still remember on CNBC them saying how could we be so stupid, we thought it would never end. So, it’s the same thing now. 

The expansion is so long, people think it will never end . . . I wouldn’t count on it. Our cycles also show that GDP should go lower, unemployment should go up and inflation is not going to be there. On the contrary, I am more worried about deflation than inflation when the economy turns down. It’s a whole different ball game than anybody thinks.”

Lots of people have been concerned that interest rates are going up, but that is the opposite of what Nenner’s charts show. Nenner says, “No interest rates are going down, especially on the long side.”

In the stock market, Nenner is sticking to his long time prediction of a huge correction with a downside target of DOW 5,000. Nenner explains, “You know that has been my prediction for the last couple of years, and it should take until the end of 2021 to the beginning of 2022. Based on my cycles, it is not going to start happening until the end of this year. On the contrary, we should start some bounces soon. . . .In the 1990’s, the DOW was 5,000 to 6,000, and don’t think it will be the end of the world. Life is not going to stop.”

On gold, Nenner predicts prices going up during the coming deflation. Nenner says, “It will take a little time to rally, but our target is $2,500 per ounce. People say how can you look for no inflation and also see gold going up in price? If you look at the history of finance, most bull markets in gold were in deflationary periods, not inflationary periods. Why gold in deflationary periods? If everything loses value, people will run to gold because at least they will have something.”

On the U.S. dollar, Nenner says, “Short term, the dollar should start getting weaker. . . . I think the dollar in the U.S Dollar Index is around 96, and I think it goes below 96, and I think it will go lower. I think next year the euro will surprise on the upside.”

On the enormous global debt of $250 trillion, Nenner warns, “In the 1930’s, Roosevelt had the same problem. He had a lot of debt, but because of inflation, he paid maybe 15 cents on the dollar. The problem here is there is no inflation. There is going to be deflation. With liquidity problems, when rates go up, we are really going to have a major problem because the money that you owe doesn’t go down, and you have to pay everything back. That is very concerning.”

Join Greg Hunter as he goes One-on-One with cycle expert Charles Nenner.