Jeff Gundlach sees a socialist eutopia taking hold in his latest webcast, which he wittily entitled, “Looking Backward.” 

Looking Backward: 2000–1887 is a socialist utopian novel by Edward Bellamy, a journalist, and writer from Chicopee Falls, Massachusetts; it was first published in 1888. 

“Jeff Gundlach sees a socialist eutopia taking hold”

WEALTH TRAINING COMPANY

Jeff Gundlach’s, Double Line thinks that the classic novel “Looking Backward” is a glimpse into the future, where Jeff Gundlach sees a socialist eutopia unfolding

The decades of the 1870s and the 1880s were marked by economic and social turmoil, which spurred on the intelligenza to rethink the existing economic and social order.

Bellamy’s fictional “Looking Backward” envisages a socialist-utopian where all private property is nationalized, working weeks are shortened and there is an equal distribution of goods, which leads to social harmony, according to Bellamy. 

We wonder whether Bellamy’s “Looking Backward” sits on the bedside table of the ruling elites today because the fictional novel does look like where we are heading. It is a cocktail of socialism, communism, and totalitarianism shaken, stirred, and served as state capitalism where you’ll own nothing and be happy in the Great Reset. 

“We wonder whether Bellamy’s “Looking Backward” sits on the bedside table of the ruling elites today because the fictional novel does look like where we are heading”

WEALTH TRAINING COMPANY

Jeff Gundlach sees a socialist eutopia taking hold, the billionaire bond investor said, 

“So, think about this as we go through some of the slides”, he then moves to US economic growth. 

Jeff Gundlach thinks that despite all the stimulus, the US won’t be fully out of the recession until we regain the economic growth rate. 

The extend of the recent stimulus is illustrated in the Stimulus After Global Financial Crisis versus the pandemic slide. During the Great Recession, total stimulus reached $ 1.8 trillion but in the Covid-19 Pandemic total stimulus skyrocketed to $6.1 trillion. 

In other words, Jeff Gundlach sees a socialist utopia where government spending drives the economy. 

“Jeff Gundlach sees a socialist eutopia, state capitalism evolving, but he warns that it will not come cheap” – Wealth Training Company

Moreover, the government provides a massive 27% of all personal income, as illustrated in the next slide. More households rely on the state for their survival with more than 18MM people receiving various forms of unemployment benefits, more than 10% of the entire US labor force. 

Jeff Gundlach sees a socialist eutopia, state capitalism evolving, but he warns that it will not come cheap

“80% of the budget is borrowing” said Jeff Gundlach and he added, “so why bother with taxes at all?” 

Regarding the trajectory of the US dollar, Jeff Gundlach expects the next move in the dollar to be down after a brief bounce. 

If Jeff Gundlach sees a socialist eutopia where household spending and public investment are all ginned up with the money supply going to the moon what could go wrong?

Perhaps inflation is what could cause the next crash thinks Jeff Gundlach.

Gundlach warns that the Nasdaq may see a decline like in 2000-2003 and makes a shocking prediction that “The VIX will go over a 100 during the next downturn”.

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