Monday , 14 October 2024

Another Global Financial Crisis Is Coming – the Question Is When, Not If! (+2K Views)

The attempt to solve what was essentially a global debt crisis with mountains of more debt means we will have another global financial crisis –  the question is when rather than if – and this will have an impact on our economic recovery and on asset prices and hence the importance of diversification in terms of geography and where and how they are owned.

In a world where currency comes into existence as a debt, and the interest on that debt cannot be paid until new currency is created in the form of new debt, governments are left with a choice between:

  • continuous debt expansion and borrowing
  • or deflation and possible depression and economic collapse.

As such, unless and until the debt based system is replaced, there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

The above edited comments – and those below – come from an article by Mark O’Byrne which can be accessed here.

The solutions offered in a report by the McKinsey Global Institute, entitled “Debt and Deleveraging”, analyzes the debt situation in 47 different countries – 22 of which have advanced economies and 25 with developing economies – particularly with regard to dealing with government debt, and focuses, unfortunately, on ever more government and corporate power and financial repression.

For a totally different (i.e. much more optimistic) point of view read THIS article by Larry Cyna.

Have your say on the subject via:

We’d like to know what you have to say.

Related Articles from the munKNEE.com Vault:

1. Central Bank Actions Guarantee A Financial Crash Landing – Here’s Why

As we tip-toe near the edge of the third central bank generated financial bust of this century, there is absolutely no way of stopping the crash landing just ahead. Why? Because the central banks are so caught up in their own self-justifying group think that they are utterly incapable of seeing the massive financial derangement all about them – a casino that is blindly impelled to churn the secondary capital markets and inflate the price of existing assets to higher and higher levels until they ultimately roll-over under their own weight. Let me explain. Read More »

2. World’s Biggest Debtor & Creditor Economies: Where Does Your Country Rank?

In absolute size of net foreign liabilities the U.S. leads the way but, as a share of GDP, its position is much less than that of Spain & Poland who exceed the acceptable level of 60%. Where does your country rank? Read More »

3. Attention America! Your Surging Debt Will Eventually Suffocate You

The history of financial crises and the relationship between growth and public liabilities shows that burdens above 90% are associated with 1% lower median growth – and the United States’ debt level is currently hovering around 90% on a gross basis and 60% netting out assets. Read More »

4. The So-called Credit “Bubble” Will NOT End Soon! Here’s Why

The latest rage is writers saying that the current economic cycle is aging and we had better watch out as the ‘bubble’ will burst soon. NONSENSE. Here’s why. Read More »

5. Bursting of Bond Bubble Will Make 2008 Stock Market Crisis Look Like A Picnic!

Many investors think that we could never have a crash like the melt-down in 2008 but they are wrong. The 2008 Crisis was a stock and investment bank crisis – but it was not THE Crisis. That will happen when the biggest bubble in financial history – the epic Bond bubble – bursts. Let me explain. Read More »

6. When the Bubble Bursts It Will Cause Deflation & Drive Widespread Social Unrest – Here’s Why

Should we be concerned when tepid economic growth and low inflation are accompanied by increasing public and private debt? Are we borrowing just to stay alive? [As I see it,] national governments will increase national debt loads in order to stay in power until one or more of them default. Then their will be financial panic which will most certainly be deflationary. Here’s why. Read More »

7. You Should Be Terrified! U.S. Is In A Debt Trap & Oblivious to the Consequences

There exists in the Congress, in the Obama administration, in the media and on Wall Street, a national belief that America can print paper money and grow its economy as its route map out of debt. With annual GDP growth expectations of 2% to 3% over the next several years, this is a completely false hope! Read More »

8. Derivatives Crisis & Economic Meltdown Could Result From Falling Oil Prices – Here’s Why

We are heading for a derivatives crisis unlike anything that we have ever seen. It is going to make the financial meltdown of 2008 look like a walk in the park. Read More »

 

 

One comment

  1. Yes, the next crisis is coming. BUT! Don’t get PRECHTERIZED!
    Like Robert Prechter, calling for a market crash…he’s now become the greatest destroyer of his subcribers’ wealth!