Tuesday, June 07, 2016

In The Coming Financial Crisis 
There Will Be Nowhere To Hide
"The U.S. economy, as well as that of many other nations, is bankrupt and only has a temporary stay of execution due to massive money printing and zero or negative interest rates. U.S. federal debt has more than doubled since the crisis started .. Student and auto loans have grown exponentially and are both now above $1 trillion. Corporate profits are falling and most economic statistics are in a downtrend including housing and retail sales. Market observers are totally ignoring the real figures and the long term trends, and are instead focusing on what the Fed will do. Most people don’t realize that the Fed can only fool the world for so long .. World markets are focusing on short term indicators and actions and totally ignoring the desperate situation that the world economy is in. Global debt has grown by over 60% since the crisis and is likely to accelerate at a much faster rate in coming years. Just take U.S. federal debt which is forecast to grow from $19 trillion to $25 trillion in the next nine years. But that is the optimistic forecast and debt could easily increase to $35 trillion. And if the banking crisis flares up again, including a derivatives failure, we could easily be looking at money printing in the hundreds of trillion dollars .. I know that all of this sounds like scaremongering but we must remember that virtually no one believed that the subprime housing crisis would develop into a disaster that almost brought the system down. Since none of the problems have been resolved since then, we are only looking at a temporary postponement which will eventually lead to a crisis that governments and central banks are unlikely to solve next time around. Last time it was mainly a U.S. and a European problem. But this time around the problem is not only in these two areas but also in Japan, China and Emerging Markets. In an interconnected world, the crisis will spread like wildfire and there will be nowhere to hide."
- Egon von Greyerz
LINK HERE to the article

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