Economist Reveals How to Turn Political and Financial Upheaval to Your Advantage

Economist and bestselling author Harry S. Dent, Jr. joined Glenn on radio Thursday morning to discuss his new book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage.

Listen to the interview above or read the transcript below. Here's the teaser for his latest book:

About the Author

Harry S. Dent, Jr. studied economics at Harvard in the ‘70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance where identifying and studying demographic, technological, consumer and other trends empowered him to forecast economic changes. He is a lecturer, bestselling author and founder of Dent Research, which publishes several influential financial newsletters.

GLENN: All right. I've got somebody that's going to scare the hell out of you.

STU: Wow. I can't wait.

GLENN: Yeah. Yeah. Kids will mess with the environment. Actually we're looking at priorities. Harry Dent is the author of a new book Zero Hour, which I've read. And it will scare the hell out of you. Scare the hell out of you. Because it has a lot of charts and graphs and everything else.

Harry has been on with us many times. He's the guy that predicted the 2008 struggle and what we're going through right now. This is a book on how to turn the greatest political and financial upheaval in modern history to your advantage. Harry Dent Jr. is with us now. Hello, Harry, how are you?

HARRY: Oh, hi, Glenn, good to be back.

GLENN: So, Harry, I know you have a lot of charts and graphs, but I have a lot of questions that I think you're going to be able to actually answer for me.

There is a story that I saw on Business Insider and a couple of other places today, that the stocks are flashing ominous signals. Not seen since the financial crisis. And one of them is the -- Stu, help me out. The Hindenburg omen. And the other is the Titanic Syndrome. A, do you find any credibility in either of those, and what do they mean if you do?

HARRY: The Hindenburg, yes, I do track that. And there have been many, many more signals on that. Much more than usual. That is not a guarantee of a crash. The more important thing I've been looking for, Glenn, because you know I've been talking that this bubble is going to burst at some point. It's going to burst violently when it does. It's the only way it happens in history. The Dow transports are tanking while the Dow Industrials keep edging up. That is a big diversion, and the small --

GLENN: Wait. What does -- what does that mean to the average person? Explain that.

HARRY: Well, it means -- okay. If the industrials are going up, it means, okay. We're still producing stuff. But the transport is not going up. Yeah, but we're not distributing them. People aren't buying it.

And when the small caps go down, in which they've down recently. They're down 4 to 5 percent, with the Dow up. It says, hey, the smart money, who buys small caps because it takes more sophistication, they're getting out of the market, while the everyday person, which buys Apple and GE and all the big names, that's what they know. They're piling -- those are the two diversions I've been looking for. They are starting to show warning signals.

You know, I take that more seriously than the Hindenburg. Because the Hindenburg can happen a lot and still not get a crash, although it's a sign it is more likely.

This is the biggest thing I look for. And this is starting to happen. I think we're in a topping process between October and December and January. And I think the thing, Glenn, that I warn people -- because everybody says, well, Harry, if this things going to burst, I'll just wait till there are signs and when my stockbroker tells me to get out. First of all, your stockbroker will never tell you to get out.

GLENN: Yeah.

HARRY: When bubbles crash, and I've averaged every major bubble in the last century -- the first crash tends to be 41 percent in two and a half months, so it's too late when that happens. Better to get out a little early and be cautious. So I think these warning signs are saying that we are getting close. If you look at the chart -- I mean, this is just like -- we said in November, as soon as Trump got elected against the odds -- and, of course, we were warning that was likely because of this populist movement we were seeing happen. We said, hey, we're going to have another 20, 25 percent rally.

Even though I had been talking about -- this market says, it is going up. It is expecting a big tax cut, but we've seen that rally. And it has been 20 to 25 percent since then. So I think this is -- we're getting very near atop. And when this thing goes and people say, oh, governments won't let this happen. Governments create the damn bubble. You know, they created the roaring 20 bubble. And then the Great Depression.

The fed was created in 1913. And then 20 to 30 years later, you get the Roaring Twenties and the greatest depression of all time, because they boosted up the economy artificially, by cutting rates, cutting rates. Making money cheap. Free money always creates bubbles. Well, that's what they've done here. So for somebody to say, oh, the central banks, the federal reserve won't let this market crack, they're the ones that have created this extreme thing. Stressed the market so far. And when they go, it's like a rubber band, going to the extreme. I'm just telling people, I didn't create this bubble. Get out of the way.

GLENN: Okay. So, Harry, we've been warning about this for a long time. I thought we were not as resilient as we are.

I expected this thing to come crashing down just because of the money printing and the extraordinary levels of debt, which -- not just the government debt. But the debt that we have as Americans. Our credit card debt is, what? 119 billion. And -- and we're starting to default on those. And people have jobs now.

I expected this to go a lot earlier. Why do you think it's this time?

HARRY: Well, you know, it's hard to argue with $14 trillion of free money being created. It's hard to argue with mortgage rates that are 4 percent, when they ought to be 6 percent. Car loans are, you know, two to 3 percent, and they ought to be six to seven.

I mean, everybody is getting a free lunch here. And stocks are going up 20 percent a year, instead of the normal 7 percent adjusted for inflation. You know, everybody is getting a free lunch. You know, mortgage -- housing is going up 10 percent, instead of the 3 percent inflation. So everybody is getting a free lunch. And it makes everybody kind of high. I don't know a better way to say it. And people don't want to hear the bubble is going to burst. I get lambasted all the time. And I'm like, look, I'm just the messenger. I've studied history. Bubbles build. They're totally recognizable.

I have a whole bubble model that tells you how it's going to build, how much it's going to crash, how long it's going to take to crash. There's nothing black swan about these bubbles at all. It shouldn't be a surprise. People go into denial because they don't want it to end because everybody is getting something for nothing. So governments don't want it to end.

GLENN: So you put -- the reason why your book I think is accurate on at least diagnosing the problems is you have several chapters on -- on revolution. And the world is going into revolution.

HARRY: Yeah.

GLENN: Most people are not -- they're absolutely denying what is happening. Even the Trump thing was a revolution. And it has just begun. It's only going to get worse. Tell me -- give me the highlights of your take on what's happening globally.

HARRY: Well, you know, I had been talking about for a long time, yeah, we're going to have a crisis financially just because we've got bubbles and debt bubbles. And these things are totally predictable. But I've also been saying we have a 250-year revolution coming. The biggest thing to happen in all of modern history was when Sally met Harry. Free market capitalism met democracy, in the late 1700s.

I mean, that's the biggest thing that's happened ever. And this is going to happen again. And the reason I pushed this book. And this book focuses more on the political side of what I'm talking about, is because I've been waiting for signs. It was Brexit. And it was the surprise Trump election. That told me, okay. The political side of this is starting to happen. And this is going to take decades. We've got a backlash against globalization. The special interests have total taken over democracy. Central banks have totally taken over free market. We're destroying the golden goose that made us rich in the first place, since the late 1700s. And all of modern progress has come since those two things came together. This is going to be that big or bigger. And this is going to go down in history. And people aren't going to realize it until later. We're telling you now. This is going to happen. It's going to be unsettling. It's going to change a lot of things.

You know, we really need a bottoms-up economy. Get out of all this top-down management. All this social and financial engineering, where economists try to create La La Land, with three or four percent growth and two percent inflation, which is the worst thing you can do for the economy. You have no innovation when that happens. Japan has had no innovation for 30 years. No growth for 30 years. Because they've been living off of quantitative easing.

GLENN: But, Harry, you and I know that, a lot of this audience knows that, but that is not where the world is headed. They are -- trust me, even Donald Trump, we go through a Great Depression, and Donald Trump will be FDR. He will.

He will not cut it back. He will become the great state that will take care of everyone. And if he won't do it, there will be somebody there to promise it. Socialism is popular now.

HARRY: It is. And we've been living on more than that for now nine years, with all this quantitative easing and free money.

The problem, Glenn, is this, governments created this. Central banks created this bubble, extended it, took it to extremes. And when it burst, it is going to be out of control. It is going to be impossible to stop. And they're going to lose credibility. My theory is central banks, of course they're going to want to -- they're going to want to do ten times the quantitative easing. It's just people are going to say, hey, you already did that, and it failed. Why would we believe you this time?

I think governments are going to lose credibility. I think central banks are going to lose credibility. And that's a good thing. That's -- that's the revolution, when people say, cut off their heads. We don't want anymore of this baloney.

GLENN: We're going to get into the he says there's six triggers. And then there's some safe havens for you. We'll get into that here in just a second. Harry Dent Jr. the name of the book is Zero Hour.

From the moment the 33-year-old Thomas Jefferson arrived at the Continental Congress in Philadelphia in 1776, he was on the radical side. That caused John Adams to like him immediately. Then the Congress stuck Jefferson and Adams together on the five-man committee to write a formal statement justifying a break with Great Britain, and their mutual admiration society began.

Jefferson thought Adams should write the Declaration. But Adams protested, saying, “It can't come from me because I'm obnoxious and disliked." Adams reasoned that Jefferson was not obnoxious or disliked, therefore he should write it. Plus, he flattered Jefferson, by telling him he was a great writer. It was a master class in passing the buck.

So, over the next 17 days, Jefferson holed up in his room, applying his lawyer skills to the ideas of the Enlightenment. He borrowed freely from existing documents like the Virginia Declaration of Rights. He later wrote that “he was not striving for originality of principle or sentiment." Instead, he hoped his words served as “an expression of the American mind."

It's safe to say he achieved his goal.

The five-man committee changed about 25 percent of Jefferson's first draft of the Declaration before submitting it to Congress. Then, Congress altered about one-fifth of that draft. But most of the final Declaration's words are Jefferson's, including the most famous passage — the Preamble — which Congress left intact. The result is nothing less than America's mission statement, the words that ultimately bind the nation together. And words that we desperately need to rediscover because of our boiling partisan rage.

The Declaration is brilliant in structure and purpose. It was designed for multiple audiences: the King of Great Britain, the colonists, and the world. And it was designed for multiple purposes: rallying the troops, gaining foreign allies, and announcing the creation of a new country.

The Declaration is structured in five sections: the Introduction, Preamble, the Body composed of two parts, and the Conclusion. It's basically the most genius breakup letter ever written.

In the Introduction, step 1 is the notificationI think we need to break up. And to be fair, I feel I owe you an explanation...

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another…

The Continental Congress felt they were entitled by “the Laws of Nature and of Nature's God" to “dissolve the political bands," but they needed to prove the legitimacy of their cause. They were defying the world's most powerful nation and needed to motivate foreign allies to join the effort. So, they set their struggle within the entire “Course of human events." They're saying, this is no petty political spat — this is a major event in world history.

Step 2 is declaring what you believe in, your standardsHere's what I'm looking for in a healthy relationship...

This is the most famous part of the Declaration; the part school children recite — the Preamble:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

That's as much as many Americans know of the Declaration. But the Preamble is the DNA of our nation, and it really needs to be taken as a whole:

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

The Preamble takes us through a logical progression: All men are created equal; God gives all humans certain inherent rights that cannot be denied; these include the rights to life, liberty, and the pursuit of happiness; to protect those rights, we have governments set up; but when a government fails to protect our inherent rights, people have the right to change or replace it.

Government is only there to protect the rights of mankind. They don't have any power unless we give it to them. That was an extraordinarily radical concept then and we're drifting away from it now.

The Preamble is the justification for revolution. But note how they don't mention Great Britain yet. And again, note how they frame it within a universal context. These are fundamental principles, not just squabbling between neighbors. These are the principles that make the Declaration just as relevant today. It's not just a dusty parchment that applied in 1776.

Step 3 is laying out your caseHere's why things didn't work out between us. It's not me, it's you...

This is Part 1 of the Body of the Declaration. It's the section where Jefferson gets to flex his lawyer muscles by listing 27 grievances against the British crown. This is the specific proof of their right to rebellion:

He has obstructed the administration of justice...

For imposing taxes on us without our consent...

For suspending our own legislatures...

For quartering large bodies of armed troops among us...

Again, Congress presented these “causes which impel them to separation" in universal terms to appeal to an international audience. It's like they were saying, by joining our fight you'll be joining mankind's overall fight against tyranny.

Step 4 is demonstrating the actions you took I really tried to make this relationship work, and here's how...

This is Part 2 of the Body. It explains how the colonists attempted to plead their case directly to the British people, only to have the door slammed in their face:

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury...

They too have been deaf to the voice of justice... We must, therefore... hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

This basically wrapped up America's argument for independence — we haven't been treated justly, we tried to talk to you about it, but since you refuse to listen and things are only getting worse, we're done here.

Step 5 is stating your intent — So, I think it's best if we go our separate ways. And my decision is final...

This is the powerful Conclusion. If people know any part of the Declaration besides the Preamble, this is it:

...that all political connection between them and the State of Great Britain, is and ought to be totally dissolved...

They left no room for doubt. The relationship was over, and America was going to reboot, on its own, with all the rights of an independent nation.

And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

The message was clear — this was no pitchfork mob. These were serious men who had carefully thought through the issues before taking action. They were putting everything on the line for this cause.

The Declaration of Independence is a landmark in the history of democracy because it was the first formal statement of a people announcing their right to choose their own government. That seems so obvious to us now, but in 1776 it was radical and unprecedented.

In 1825, Jefferson wrote that the purpose of the Declaration was “not to find out new principles, or new arguments, never before thought of… but to place before mankind the common sense of the subject, in terms so plain and firm… to justify ourselves in the independent stand we are compelled to take."

You're not going to do better than the Declaration of Independence. Sure, it worked as a means of breaking away from Great Britain, but its genius is that its principles of equality, inherent rights, and self-government work for all time — as long as we actually know and pursue those principles.

On June 7, 1776, the Second Continental Congress met in Philadelphia at the Pennsylvania State House, better known today as Independence Hall. Virginia delegate Richard Henry Lee introduced a motion calling for the colonies' independence. The “Lee Resolution" was short and sweet:

Resolved, That these United Colonies are, and of right ought to be, free and independent States, that they are absolved from all allegiance to the British Crown, and that all political connection between them and the State of Great Britain is, and ought to be, totally dissolved.

Intense debate followed, and the Congress voted 7 to 5 (with New York abstaining) to postpone a vote on Lee's Resolution. They called a recess for three weeks. In the meantime, the delegates felt they needed to explain what they were doing in writing. So, before the recess, they appointed a five-man committee to come up with a formal statement justifying a break with Great Britain. They appointed two men from New England — Roger Sherman and John Adams; two from the middle colonies — Robert Livingston and Benjamin Franklin; and one Southerner — Thomas Jefferson. The responsibility for writing what would become the Declaration of Independence fell to Jefferson.

In the rotunda of the National Archives building in Washington, D.C., there are three original documents on permanent display: the Constitution, the Bill of Rights, and the Declaration of Independence. These are the three pillars of the United States, yet America barely seems to know them anymore. We need to get reacquainted — quickly.

In a letter to his friend John Adams in 1816, Jefferson wrote: “I like the dreams of the future, better than the history of the past."

America used to be a forward-looking nation of dreamers. We still are in spots, but the national attitude that we hear broadcast loudest across media is not looking toward the future with optimism and hope. In late 2017, a national poll found 59% of Americans think we are currently at the “lowest point in our nation's history that they can remember."

America spends far too much time looking to the past for blame and excuse. And let's be honest, even the Right is often more concerned with “owning the left" than helping point anyone toward the practical principles of the Declaration of Independence. America has clearly lost touch with who we are as a nation. We have a national identity crisis.

The Declaration of Independence is America's thesis statement, and without it America doesn't exist.

It is urgent that we get reacquainted with the Declaration of Independence because postmodernism would have us believe that we've evolved beyond the America of our founding documents, and thus they're irrelevant to the present and the future. But the Declaration of Independence is America's thesis statement, and without it America doesn't exist.

Today, much of the nation is so addicted to partisan indignation that "day-to-day" indignation isn't enough to feed the addiction. So, we're reaching into America's past to help us get our fix. In 2016, Democrats in the Louisiana state legislature tabled a bill that would have required fourth through sixth graders to recite the opening lines of the Declaration. They didn't table it because they thought it would be too difficult or too patriotic. They tabled it because the requirement would include the phrase “all men are created equal" and the progressives in the Louisiana legislature didn't want the children to have to recite a lie. Representative Barbara Norton said, “One thing that I do know is, all men are not created equal. When I think back in 1776, July the fourth, African Americans were slaves. And for you to bring a bill to request that our children will recite the Declaration, I think it's a little bit unfair to us. To ask our children to recite something that's not the truth. And for you to ask those children to repeat the Declaration stating that all men's are free. I think that's unfair."

Remarkable — an elected representative saying it wouldn't be fair for students to have to recite the Declaration because “all men are not created equal." Another Louisiana Democrat explained that the government born out of the Declaration “was used against races of people." I guess they missed that part in school where they might have learned that the same government later made slavery illegal and amended the Constitution to guarantee all men equal protection under the law. The 13th, 14th, and 15th Amendments were an admission of guilt by the nation regarding slavery, and an effort to right the wrongs.

Yet, the progressive logic goes something like this: many of the men who signed the Declaration of Independence, including Thomas Jefferson who wrote it, owned slaves; slavery is evil; therefore, the Declaration of Independence is not valid because it was created by evil slave owners.

It's a sad reality that the left has a very hard time appreciating the universal merits of the Declaration of Independence because they're so hung up on the long-dead issue of slavery. And just to be clear — because people love to take things out of context — of course slavery was horrible. Yes, it is a total stain on our history. But defending the Declaration of Independence is not an effort to excuse any aspect of slavery.

Okay then, people might say, how could the Founders approve the phrase “All men are created equal," when many of them owned slaves? How did they miss that?

They didn't miss it. In fact, Thomas Jefferson included an anti-slavery passage in his first draft of the Declaration. The paragraph blasted King George for condoning slavery and preventing the American Colonies from passing legislation to ban slavery:

He has waged cruel war against human nature itself, violating its most sacred rights to life and liberty in the persons of a distant people who never offended him, captivating and carrying them into slavery in another hemisphere... Determined to keep open a market where men should be bought and sold, he has prostituted his negative for suppressing every legislative attempt to prohibit or to restrain this execrable commerce.

We don't say “execrable" that much anymore. It means, utterly detestable, abominable, abhorrent — basically very bad.

Jefferson was upset when Georgia and North Carolina threw up the biggest resistance to that paragraph. Ultimately, those two states twisted Congress' arm to delete the paragraph.

Still, how could a man calling the slave trade “execrable" be a slaveowner himself? No doubt about it, Jefferson was a flawed human being. He even had slaves from his estate in Virginia attending him while he was in Philadelphia, in the very apartment where he was writing the Declaration.

Many of the Southern Founders deeply believed in the principles of the Declaration yet couldn't bring themselves to upend the basis of their livelihood. By 1806, Virginia law made it more difficult for slave owners to free their slaves, especially if the owner had significant debts as Jefferson did.

At the same time, the Founders were not idiots. They understood the ramifications of signing on to the principles described so eloquently in the Declaration. They understood that logically, slavery would eventually have to be abolished in America because it was unjust, and the words they were committing to paper said as much. Remember, John Adams was on the committee of five that worked on the Declaration and he later said that the Revolution would never be complete until the slaves were free.

Also, the same generation that signed the Declaration started the process of abolition by banning the importation of slaves in 1807. Jefferson was President at the time and he urged Congress to pass the law.

America has an obvious road map that, as a nation, we're not consulting often enough.

The Declaration took a major step toward crippling the institution of slavery. It made the argument for the first time about the fundamental rights of all humans which completely undermined slavery. Planting the seeds to end slavery is not nearly commendable enough for leftist critics, but you can't discount the fact that the seeds were planted. It's like they started an expiration clock for slavery by approving the Declaration. Everything that happened almost a century later to end slavery, and then a century after that with the Civil Rights movement, flowed from the principles voiced in the Declaration.

Ironically for a movement that calls itself progressive, it is obsessed with retrying and judging the past over and over. Progressives consider this a better use of time than actually putting past abuses in the rearview and striving not to be defined by ancestral failures.

It can be very constructive to look to the past, but not when it's used to flog each other in the present. Examining history is useful in providing a road map for the future. And America has an obvious road map that, as a nation, we're not consulting often enough. But it's right there, the original, under glass. The ink is fading, but the words won't die — as long as we continue to discuss them.

'Good Morning Texas' gives exclusive preview of Mercury One museum

Screen shot from Good Morning Texas

Mercury One is holding a special exhibition over the 4th of July weekend, using hundreds of artifacts, documents and augmented reality experiences to showcase the history of slavery — including slavery today — and a path forward. Good Morning Texas reporter Paige McCoy Smith went through the exhibit for an exclusive preview with Mercury One's chief operating officer Michael Little on Tuesday.

Watch the video below to see the full preview.

Click here to purchase tickets to the museum (running from July 4 - 7).

Over the weekend, journalist Andy Ngo and several other apparent right-leaning people were brutally beaten by masked-gangs of Antifa protesters in Portland, Oregon. Short for "antifascist," Antifa claims to be fighting for social justice and tolerance — by forcibly and violently silencing anyone with opposing opinions. Ngo, who was kicked, punched, and sprayed with an unknown substance, is currently still in the hospital with a "brain bleed" as a result of the savage attack. Watch the video to get the details from Glenn.