This is a must listen to episode for investors. Our guest, Harry Dent, has written over 7 books on using demographics to predict economic outcomes. Harry and Jason discuss the inevitable Chinese market crash, the deflation that is headed our way and the massive amounts of debt in the private and public sectors. For real estate buyers, it appears that the everyday house is the best place to invest for the next 3 to 4 years. We just might see the lowest interest rates on mortgage loans of this lifetime. Harry warns that the bigger the bubble the bigger the burst, and predicts we will see the Dow drop below 6000 in the coming years and fracking bonds will be crucified.

Key Takeaways:

[2:24] A ‘something for nothing’ life is not realistic

[3:26] Deleveraging the debt leads to money disappearing

[4:36] Debt grew 2.7 times faster than GDP

[6:38] We are sitting on unfunded liabilities at 4 times the GDP

[10:06] Is the U.S. in a legitimate economic recovery?

[13:25] Harry’s opinions on high-end real estate

[15:26] Banks and governments made bad loans

[17:37] The greater fool theory – the Chinese are the last fools standing

[20:02] Speculation will cause the crash in China

[24:33] The U.S. fracking industry will default

[25:48] Deflation is the sign a bubble is bursting, 100 trillion dollars will disappear

[27:06] The Dow will drop to under 6,000 in the megaphone pattern

[30:15] Junk bonds will be crucified and growing default rates

[31:36] Mortgage rate will come down in 3 or 4 years

Mentions:

Hartman Media

The Demographic Cliff

The Great Boom Ahead

The Roaring 2000’s

The Great Depression Ahead

HarryDent.com