Market Turmoil Means Capitalism Faces Systematic Crisis – Research Institute

© AP Photo / Michael ProbstA trader watches his screens at the stock market in Frankfurt, Germany
A trader watches his screens at the stock market in Frankfurt, Germany - Sputnik International
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Trends Research Institute head Gerald Celente claims that the volatility sweeping world markets over the past week is a sign an impending global economic crisis and the imperfections of capitalism run amok.

WASHINGTON (Sputnik) – The volatility sweeping world markets over the past week is a sign an impending global economic crisis and the imperfections of capitalism run amok, Trends Research Institute head Gerald Celente told Sputnik.

“Capitalism is dead. The markets have become too big to fail,” Celente said on Friday. “It’s a rigged game.”

Celente, who is also the publisher of Trends Journal, noted that markets behave more like a casino than a free market system.

“It is like a casino that plays with two different sets of cards and in one of them it keeps putting its own new wild cards and jokers in the deck,” Celente, who is also the head of Trends Research Institute, continued.

Stock market managers and major financial interests were rigging the market to protect their institutions and profits, Celente argued.

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The expert said it was false to blame China for setting off the chain reaction through the volatility on the Shanghai stock exchange. He argued instead this was a symptom of the underlying problems, not their cause.

“The US and Europeans are buying less products, so China has to export less and therefore its demand for raw materials from developing countries around the world falls,” he pointed out.

“This is a response to global stagnation,” he argued.

The United States, China, Japan and other countries have tried to stave off multiple crises by printing vast sums of money through Quantitative Easing (QE) and other monetary policies, but they have been unable to jump-start growth, Celente observed.

“This is a global crisis. It is a Ponzi scheme,” he said.

He argued the global financial system and central banks tried to resolve the crash of 2008 by printing cheap money and the cracks in that policy are now revealing themselves.

Celente is an American trend forecaster, publisher of the Trends Journal, business consultant and author who makes predictions about the global financial markets and other events of historical importance.

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