Brace for Impact: Trump's Market Surge is the Last Rally Before Economic Collapse

The media’s spinning a story of triumph in the markets after Trump’s recent election win, fueling a rally that has investors celebrating. But let’s get one thing straight: we’re not watching a sustainable climb. We’re watching euphoria on the brink of disaster. Veteran economist Harry Dent sounds the alarm, pointing to a tidal wave of private debt and asset bubbles so bloated they can’t end in anything but catastrophe. “I can tell you one thing,” Dent told Fox News Digital, “bubbles never, ever end well.” The Looming Disaster Behind the Rally Since Trump’s win over Vice President Kamala Harris, U.S. stocks have rocketed to record highs. The media’s focusing on a “post-election bump,” but Dent sees an “everything bubble” poised to implode by 2025. And he’s not some fringe figure howling at the moon; Dent’s predictions are rooted in hard data and historical precedent. Markets have surged on Trump’s tax cuts and deregulation promises, but these policies, Dent argues, can’t fix America’s underlying sickness: runaway private debt. According to Dent, the problem isn’t just national debt but a $630 trillion iceberg of global financial assets in private debt that’s expanding faster than any economy can sustain. What we’re seeing now is like watching the Titanic just after it struck the iceberg. Sure, it’s still floating, but the deck is tilting, and everyone’s in denial. Dent warns, “Give it until 2025,” because this ship won’t stay afloat much longer. Debt-Fueled Economy: A Ponzi Scheme Waiting to Collapse Trump’s tax cuts and deregulation might win short-term applause, but they’re masking a deeper crisis. Dent points out the last time we had anything close to a balanced budget was in 2001. Since then, deficits have grown, thanks to both parties running the economy like a debt-funded Ponzi scheme. And that scheme is now driving the market rally, not actual productivity or growth. This is an illusion of wealth based on borrowing, and history tells us how this ends. Look at Japan in the 1980s, or the U.S. housing market in 2008: bubbles create an illusion of wealth that vanishes in a flash, taking trillions of dollars with it. In the wake of COVID, central banks around the world had an opportunity to let the markets correct, to let off some steam, and bring us back down to a sustainable trajectory. But instead, they threw more fuel on the fire with stimulus packages and interest rate cuts, creating a new bubble right atop the old one. Dent doesn’t mince words, saying, “They overreacted to COVID… That would have been a good time to let the economy take a rest.” Historical Parallels: Bubbles Always Burst If you think history won’t repeat itself, think again. Bubbles don’t just happen in the U.S.; they’re as predictable as gravity. The South Sea Bubble of 1720, the dot-com crash of 2000, and the housing crash of 2008—all illustrate a brutal fact: speculative manias, fueled by cheap money, always collapse. Dent’s forecast of an impending “crash of a lifetime” isn’t just a guess; it’s practically a historical rule. And this time, we’re talking about the everything bubble—one encompassing stocks, real estate, and corporate debt on a global scale. Central banks might try to pull every trick in the book, but as Dent emphasizes, they’re out of time and out of tools. Politicians won’t admit it, but this market is over-leveraged and beyond saving. Just as in 1929, we’re staring down a crash that will obliterate portfolios and shatter retirements. And for those in denial, Dent offers a bitter pill: “Failure is the secret to capitalism. It’s not just the opportunity to innovate; it’s also the necessity of allowing failures to happen and flush them out of the economy.” America hasn’t had a real flushing since the early 2000s, and the dam is about to break. The Baby Boomer Time Bomb While younger generations might rebound, baby boomers—the generation with the most at stake—are nearing retirement with portfolios exposed to the whims of a bubble market. If Dent’s predictions come true, retirees dependent on the value of their 401(k)s and other financial assets are staring down the barrel of financial ruin. With housing and stock prices poised to plummet, millions of Americans could lose the nest eggs they’ve counted on for security in retirement. And if inflation kicks in, even Treasury bonds, which retirees often depend on, won’t be safe havens. Dent points to the likely fall of the “velocity of money”—a key economic indicator that shows the speed at which money changes hands in the economy. The velocity of money has plummeted since the late 1990s, a sign that the market’s long been overvalued. The wheels are turning slower, people are holding on to cash, and the economy is running on fumes. The Bitcoin Wild Card and the Crypto Mirage For those looking to hedge their bets, Dent sees potential in Bitcoin but warns of its own volatility. While Dent sees Bitcoin as a revolutionary asset that could rise to astronomical levels by 2040, he cautions that a crash could drag it down to rock-bottom levels before it finds its footing. Bitcoin may be attractive as an uncorrelated asset, but it’s hardly immune to market chaos. For now, it’s another speculative bet in a landscape where nearly everything is at risk of crumbling. The Road to 2025: Brace for Impact The U.S. market, housing prices, and private debt levels are all nearing their breaking points, yet the Federal Reserve and central banks worldwide are still pretending they can engineer a soft landing. Dent argues they’re fooling themselves and everyone else. Just as in the lead-up to the 2008 crisis, the mainstream insists that this time is different, that somehow we’ll defy gravity and float safely down. But Dent’s warning cuts through the noise: “We’ve got an economic picture worse than 2008, even worse than 1929. And nobody’s ready for it.” So where does this leave us? In a situation that would make even the most die-hard bulls pause. “You’ve got to at least acknowledge that this is a possibility here,” Dent concludes, referring to the potential for market crashes as deep as those of the Great Depression. But this time, the stakes are even higher because the financial system is now more interconnected and fragile than ever. End of the Illusion If Dent’s forecast holds true, it’s not just a bad quarter or even a tough few years. This is a structural collapse of the system. The question isn’t whether we’ll see a downturn but how devastating it will be—and whether the United States, or the global economy for that matter, can recover from it. In times like these, with the economy barreling toward chaos, the smart money sees a clear choice: secure your wealth in gold, one of the few assets that can withstand the coming financial apocalypse.

Brace for Impact: Trump's Market Surge is the Last Rally Before Economic Collapse

Bill Brocius Nov 19

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