Globalists Are Going To Collapse World Economy

Wednesday, June 29, 2016
By Paul Martin

by AMY S.
PrepperFortress.com
JUNE 29, 2016

AFTER the financial crisis, the world is coming to grips with an unpleasant realisation: serious weaknesses still plague the global economy, and emergency help may not be on the way.
Sinking stock prices, flat inflation, and the bizarre phenomenon of negative interest rates have coupled with a downturn in emerging markets to raise worries that the economy is being stalked by threats that central banks — the saviours during the crisis — may struggle to cope with.
Meanwhile, commercial banks are again a source of concern, especially in Europe. Banks were the epicentre of the 2007-9 crisis, which started over excessive loans to homeowners with shaky credit in the United States and then swept the globe into recession.
Gerald Celente is not the only economist who is predicting an economic collapse in 2016; Professor W. Thompson of Indian University also projects that the economies world over will see a downturn in 2016.

Emerging markets, submerging

Money is flowing out of so-called emerging markets like Brazil, Russia, South Africa and Turkey. Investors pulled $735 billion (€657 billion) out such countries in 2015 — the first year of net outflows since 1988, according to the Institute of International Finance.
And emerging markets aren’t so emerging any more: they provide 70% of expected global growth.
Central banks led by the US Fed responded to the global recession by slashing interest rates and printing money. That encouraged investors in search of higher returns to place their money in emerging markets.
Now the Fed is trying to push up its interest rates, and those flows have gone into reverse, causing financial markets and currencies in emerging markets to sag. Debt becomes harder to repay.
IMF chief Christine Lagarde has warned of “spillback” effects from emerging markets on more advanced economies.
Stephen Lewis, chief economist at ADM Investor Services International, argues the Fed should simply go ahead with raising rates to a more normal level.
“Unless we’re going to paralyse monetary policy in the advanced economies forevermore, it is inevitable that the funds that have gone into emerging markets are going to come back out of them,” he said.

The Rest…HERE

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