Money Morning Members should know two things. First: the 2008 financial crisis was caused by a housing bubble, centered in the U.S., that radiated out through the rest of the world and almost destroyed the global financial system.
Second: The next financial crisis – which is starting to unfold as we speak – was caused by a commodities bubble centered in China that radiated out through the rest of the world and will cause enormous financial damage, threatening the global financial system.
Both crises were aided and abetted by central banks printing massive amounts of debt that can never be repaid. That leaves the world with three choices for how to deal with that debt – currency depreciation (which is why you should buy gold), inflation, and default. Continue reading
A global debt crisis is coming. The warning signs have been emerging for months.
“This market instability is not going away. It’s been building for six years. It can only end one way – with a ‘Super Crash,'” Money Morning Global Credit Strategist Michael E. Lewitt told readers back on Sept. 8. “It’s not just China that’s creating this next (much worse) sell-off. It’s also the massive, $200 trillion global debt bubble that’s driving the world economy to its knees.” Continue reading