In a new interview with the War Room’s Steve Bannon former BlackRock fund manager Edward Dowd says the U.S. is “about to enter the meat of the recession” and that, due to its demographic and debt problems, “China is done” as an economic rival to America.
Former BlackRock fund manager Edward Dowd, who has become internet famous over the past year or so for accurately predicting what would happen with the COVID-19 “pandemic” in May of 2020, has been continuously sounding the alarm over the extraordinary dangers of the COVID-19 “vaccines” and impending economic collapse in the Western world. Now, in a new interview with the War Room’s Steve Bannon, Dowd says the U.S. is about to “enter the meat of the recession” it’s in. He has worse news for China, however, as he believes that its demographic and debt problems means “it’s done” as a nation that could economically overtake America.
“[W]e are on the precipice of a real economic decline—the real economy is imploding,” Dowd says toward the beginning of his brief interview with Bannon. “I know we’ve had a little stock market rally this summer, that’s about to turn around in the next week or two in my estimation,” the Wall Street oracle adds.
In general, Dowd foresees America experiencing “collapsing demand” coupled with “stubbornly high” consumer-product prices. “So even though commodity prices may have peaked, it’s not going to translate into consumer prices,” Dowd says.
As for what that combination means for the average citizen? Stagflation—or the simultaneous appearance in an economy of slow growth, high unemployment, and rising prices—of course. The dire economic confluence “is the bane of existence for central banks and politicians,” Dowd says. “And they know this and that’s why we’re seeing all this crazy activity on the geopolitical scale.”
The catalyst for the rapidly growing stagflation is a financial asset market that’s heading south, Dowd says. He says prices will remain high, but demand will drop and margins will get squashed for corporate America.
Dowd does say the Federal Reserve Bank will probably pivot from quantitative easing to quantitative tightening “sometime in September,” but adds that it’s too late to bolster the American economy. “It doesn’t matter. It’s not going to save the day.”
As for China, Dowd has nothing but bad news. Or potentially good news if you’re not a fan of the Chinese Communist Party (CCP). “I think China has a big problem. China is collapsing—they hit a demographic wall in 2020 and we’re seeing the devastating impact of that,” Dowd says. Indeed, Tesla and SpaceX CEO Elon Musk has also discussed China’s “population collapse” issue, noting that “At current birth rates, China will lose [approximately] 40% of people every generation.”
On top of its population collapse problem Dowd notes the communist country has—since the “great financial crisis” of 2008—“built up internal debt… [in part by building] apartment complexes that no one occupies.” (Musk has also echoed this take, noting that “If [China makes] housing twice as fast as families are forming then, obviously something’s got to give.”) Dowd also notes China has “a lot of debt that’s been put into unproductive assets” and “they’re in collapse as we speak.”
As a result of China’s collapsing birthrate and debt crisis, Dowd says “I suspect we’re going to see [the CCP] start to squawk more about Taiwan because internally they’re going to have to create an enemy outside of China to rally the people around.”
Dowd adds that America’s recession will only worsen things for China. “China is already in trouble so we’re going to suck them down,” the former BlackRock fund manager says, adding that the country’s “zero covid policy is nothing more—in [his] estimation—than cover for bank runs happening all over China.”
“Anybody who talks about China as being… the economy taking over the U.S., is smoking something,” Dowd says, putting a finer point on his POV. But for everybody, including the U.S., he says “the landscape is very uncertain. It’s very dire. And it’s just going to get more insane… .”
Feature image: War Room Pandemic
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