Global economic CRASH warning: Meltdown worse than 2008 has ‘ALREADY begun’
AN ECONOMIC expert has shockingly claimed a new global financial crash is underway – and it will be worse than the 2008 meltdown.
By Charlotte Ikonen
DailyStar.co.uk
26th September 2018
Ann Pettifor predicted the last global economic crisis in 2006, more than two years before it actually struck.
Now she thinks the global economy is in danger once more thanks to huge corporate debt, and the prospect of rising interest rates in the United States.
She told Sky News that global debt was now more than three times the level of global GDP.
Ms Pettifor said: “Naturally it is not going to be repaid, and naturally there is going to come a point when that debt triggers the next crisis.
“And, for me, that trigger is going to be high rates of interest.”
“We’re seeing that companies who borrowed too much money at very low rates of interest are now finding the value of their collateral falling.
“Their debt is rising and the interest on that debt is rising too.”
What’s more, she thinks the process has already started.
She said the US Federal Reserve’s decision to wind back its support for the economy, and reverse its programme of quantitative easing (QE), has already laid the ground for the next crisis.
“In Argentina and Turkey, they are already facing a crisis as a result of the Fed’s decision to diffuse the bomb that is QE, and to increase interest rates,” she added.
“Those decisions have both served to strengthen the dollar, which has hurt their economies.”
The 2008 crisis was the worst financial period since the Great Depression following the stock market crash of 1929.
Huge investment bank Lehman Brothers filed for bankruptcy in September 2008, which played a major part in the unfolding of the global financial crisis.
Other financial institutions fell across the world – prompting desperate customers to form huge queues outside banks to grab their cash.
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