4 Signs the Economy is Cracking Up
GramsGold.com
2/24/2015
Few people understand the global economy and its (mis)management better than David Stockman — former director of the OMB under President Reagan, former US Representative, best-selling author of The Great Deformation, and veteran financier.
David is now loudly warning that events have entered the crack-up phase, which he predicts will be defined by the following 4 developments:
We had a tremendous study come from McKinsey, who track and total up the amount of credit outstanding, public and private, in the world. We’re now at the $200 Trillion threshold.
That’s up from only about $140 Trillion at the time of the crisis. So we’ve had a $60 Trillion expansion worldwide of debt just since 2008.
Increasingly desperate moves by the world’s central banks
Increased market volatility and losses
Deflation in industrial and commodity prices
Decreasing demand due to Peak Debt
As the crack-up phase gains momentum, he predicts an increasing number of “financial breaks” that will add to the unpredictability and instability of the environment for investors. Even ‘dancing close to the door’ sounds excessively risky at this point.
We’re in the crack-up phase. I think there are four big characteristics of that which are going to shape the way the economy and the markets unfold as we go forward.
The Rest…HERE
