Each time the Gross Domestic Product numbers are reported in a country near you, economists are “puzzled” why the GDP keeps rising but wages keep falling.

It’s no surprise. It’s a decades old “Five-O” formula trend that conventional economists fail to understand and Banksters and multi-nationals benefit from.

To understand the emerging trends in today’s global economy and what they will soon mean to your bottom line, we take you back to 1999, when global forecaster Gerald Celente introduced his “Five-O” economic formula and directly predicted today’s state of the economy.

For example, with second quarter GDP in the United States at 4.1 percent, unemployment at 3.9 percent, the Dow Jones up about 15 percent year to date – the message from Washington and Wall Street: “The economy is strong, with full employment and high satisfaction.”

On Main Street, however, the vast majority of the United States’ working population, and much of the world’s, have been living through decades of wage stagnation.

While the extremely wealthy 1 percent are much more wealthy, and the top 10 percent are astonishingly more wealthy, working families are living under the same purchasing power ranges of 40 years ago, when factoring inflation.

While many economists and business media “experts” are searching to understand why waves of “good” economic news — favorable job and GDP reports, strong corporate profits – are not resulting in higher wages for the average worker, to Celente, the answer is clear. And it has been clear since he forecast the “Five-O” formula that would shape the economy in the 21st Century.

Based on our trend tracking and analysis, we are at the moment when the Five-O model has come to fruition.

As Celente wrote in the Trends Journal, Fall, 1999:

“The so-called experts and those holding out hope that at some point the strong financial performance on Wall Street, solid corporate earnings and hollowed out promises from political leaders that average workers will soon see higher wages, are all wrong…wages won’t rise appreciably and the middle class will be the losers.”


Celente, using his patented Globalnomic® formula, predicted five socioeconomic, high-tech and geopolitical dynamics would merge to create today’s era of low wages, job consolidation, loss of middle manager jobs, declining entrepreneurial opportunities and, absent wild card events, restrained inflation.

“The 21st century economy will operate off a new set of equations defined by market forces that did not exist in the 20th”.

Celente defined those factors as:

Overproduction —there are more products and services than can be consumed.

Overcapacity — there is a glut of advanced facilities and excess service capabilities to supply the world market place with more than can be consumed.

Open Markets —a borderless new millennial marketplace provides products and services free from traditional economic channels.

Overpopulation — companies are now positioned to exploit a 6-billion-plus labor pool without geographic constraints.

Online —a planet full of browsers will enable and drive a universal economic culture of cheap product and service production supported by cheap labor expenses.

Remember, this was forecast long before the days of massive online shopping and Amazon’s monopolization of the Internet retail sector.

It was before China was initiated into the World Trade Organization that opened up the global cheap labor stream.

In that short time, another 1.6 billion people were added to the planet … and ultimately the workforce.

Now, as the second half of 2018 unfolds, we observe the state of the economy with an eye on the emerging economic trends that demonstrate how the Five-Os will continue to transform how we live and work. TJ


Across the globe in most civilized countries, the story is the same: More workers in the labor forces than jobs available. This is one of the major factors driving the massive migrant trend: People fleeing their countries looking for work.

And, as populations continue to increase, there will be a greater supply of workers than the demand for jobs, thus adding further downward pressure on wages.

And in the new world of high-tech innovations such as robotics, Artificial Intelligence, online retail and services, etc., from top to bottom, jobs will be replaced and the pay scale will continue to be lowered.

Comments are closed.

Skip to content