Top American trend forecaster warns of ‘dot-com bust 2.0’

Finance

Top American trend forecaster warns of ‘dot-com bust 2.0’

American trend forecaster Gerald Celente issued a stark warning that the U.S. – and arguably the world – has entered a state best described as the in his April 3 update on YouTube.

According to Celente, the release of DeepSeeks R1 model in January demonstrated the extent to which the situation in global markets has changed, signaling that China will be the world leader in artificial intelligence (AI).

Dot-com Bust 2.0, ready or not, here it comes. And it‘s come. It was happening before DeepSeek changed the whole game, and again, as we said, China is going to lead the AI world. They have got 1.4 billion people. They’re very smart people.

The trend forecaster was quick to blame President Bill Clinton‘s bringing of the People’s Republic into the World Trade Organization (WTO) for the U.S.‘s innovativeness and competitive decline, opining that the Democrat ’sold out the country to the North American Free Trade Agreement (NAFTA).

Bill Clinton sold us out with NAFTA and bringing China into the World Trade Organization and the lousy jobs at Target, Home Depot, Lowe‘s… They’re shitty jobs. They dont pay any money.

Why China will lead the AI world

Along with DeepSeek, Celente highlighted the rise in the proportion of Chinese youth attending university since the 1990s, which, according to his data, rocketed from under 20% to approximately 70% in 2025.

Economists and other experts from both sides of the spectrum have frequently described Chinas entry into the WTO as a major, at best, miscalculation on the part of the U.S.

Indeed, a common assessment is that Western governments assumed that the Peoples Republic would perpetually remain a workshop of the world without its own independent industrial or technological sector.

Are Trumps tariffs a net positive despite the turmoil？

Interestingly, Gerald Celente spoke positively about President Donald Trumps tariff idea, identifying the dilapidation of American industry and the near-total pivot to a financialized service economy as major reasons for the nations decline despite dedicating a large section of the video to the bloodbath the announcement caused.

What a day today, huh？ How about that stock market in the United States and around the world？ Not so good because of Trumps tariffs, And again, I support the tariffs. I said the reason why, you know, bring tariffs but get rid of the federal income tax – because when we had tariffs, we had no income tax – and put manufacturing back in America.

Still, reflecting on the short-term impact of the new tariffs, Celente painted a picture of a clear market-wide correction. He highlighted the S&P 500s 12% pullback from the February all-time high (ATH) while pointing out that the Nasdaq has not been spared either.

Harkening back to his previous assessment that the AI bubble will burst in 2025, the trend forecaster noted Nvidia (NASDAQ: NVDA) stock‘s single-session 8% drop. Circling back to his argument about China assuming global leadership, he juxtaposed Tesla’s (NASDAQ: TSLA) falling share price and sales with BYDs first-quarter (Q1) surge in deliveries.