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Page added on September 25, 2018

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Financial Experts Predict Crash Under Trump Greater than Depression

Business

Financial experts noted several ominous economic indicators, including skyrocketing student loans and U.S. household debts, that could predict a crash “worse than the Great Depression,” according to a report in the New York Post.

Goldman Sachs predicted that this year’s U.S. fiscal outlook would be “not good,” and that U.S. household debt had been increasing since the 2008 housing crisis led to American taxpayers bailing out the big banks.

In 2018, experts said, a $247 trillion global debt will be the greatest cause of the next cataclysmic financial crash. Additionally, low wages and the U.S. national debt’s steady rise are expected to drag down the economy.

RTS20WJU Economists downplayed recent positive indicators such as low unemployment and soaring business confidence, reiterating they wouldn’t last through Trump’s first term. Reuters | Shannon Stapleton

Economists downplayed recent positive indicators such as low unemployment and soaring business confidence, reiterating they wouldn’t last through Trump’s first term. At least one expert predicted that recent slides in housing and auto sales were the first step toward a U.S. recession.

Murray Gunn, chief of global research at Elliott Wave International, told the Post, “We think the major economies are on the cusp of turning into the worst recessions we have seen in 10 years. Should the [U.S.] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue.”

Experts cautioned that several economic markers had gotten much worse over the past decade, especially in regard to borrowed money. The U.S. household debt of $13.3 trillion is now far worse than it was during its 2008 peak, due primarily to mortgage lending.

Outstanding student loan debts have simultaneously increased from $611 billion of unpaid debt in 2008 to more than $1.5 trillion today. Automobile loans have far exceeded their 2008 peaks, sitting at about $1.25 trillion today, and unpaid credit card balances are just as high as the years leading up to the Great Recession.

Central bankers have also more than doubled global debt as they flooded national economies with cheap and easy money. In 2008, global debt sat at $177 trillion, in comparison to $247 trillion today.

“We won’t be able to call it a recession, it’s going to be worse than the Great Depression,” economic commentator Peter Schiff told the Post. “The U.S. economy is in so much worse shape than it was a decade ago.”

A widespread drop in spending and income means that default rates will likely worsen in coming years. Schiff also blamed the U.S. Federal Reserve and other central banks in part for the impending crisis.

“I think we are going to have a dollar crisis—you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the U.S.,” Schiff told the Post. “The U.S. government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.”

Newsweek



21 Comments on "Financial Experts Predict Crash Under Trump Greater than Depression"

  1. Sys1 on Tue, 25th Sep 2018 1:58 pm 

    As I told many times on this site, the crisis will occur just like in 2008.
    1) Oil prices go up
    2) Central banks increase intervention rate to cool down inflation
    3) Real estate bubble pop again, banks collapse with and as countries are now severely indebeted, they won’t be able to save the day.

    Of course, all the coming storm will be the fault of Donald Trump, Iran, commies or whatever fairy tales mainstream medias will create out of thin air to avoid riots or any public protest.
    The question of time crash is impossible to predict, I’m not Nostradamus. Nevertheless, the last crash occured with a 147$ barrel, meaning that the next one will occur BEFORE oil reach this price as global economy is far weaker. So things will be interesting when WTI will be somewhere between 100 and 150$. A 100$ price will probably have a psychological tremendous effects on investors and central banks.

  2. Duncan Idaho on Tue, 25th Sep 2018 2:34 pm 

    Well, Trump has been bankrupt 4 times, and is essentially a scammer—-
    Perfect late stage capitalism leader.

  3. Davy on Tue, 25th Sep 2018 2:47 pm 

    Shiff has been whining disaster for years. He is not as legitimate as he thinks he is. That said we are in uncharted water with debt and tools to manage the risks associated with too much debt. This debt is also about malinvestment and parasitic wealth transfer from productive economic sectors to the nonproductive. This issue is very fluid so predictions are sloppy. It is far better to highlight the risks as a gambler knows the odds associated with his games. This is emergent and self-organizing so blame and complain misses the systematic nature of a system made up of billions of individual decisions. We are due for something but when? Will we survive this something? Science tells us that extending thresholds can lead to catastrophic bifurcations with the resulting stasis as unrecognizable. It is also possible this can be extended for years with the right combination of inputs and human nature. If we want it we may have it at least until the well dries up.

  4. I AM THE MOB on Tue, 25th Sep 2018 2:58 pm 

    Post collapse I will just tell the rich man NO..One time..And then watch him stroke out while I breed his daughters..I am going to have more kids than Stanford!

    LMFAO!

  5. GetAVasectomeyAndLetTheHumanSpecieDie on Tue, 25th Sep 2018 3:07 pm 

    In Canada, Montreal we pay 1.43$/liter. The last we pay 1.50$/liter in was when oil was 150$/barrel.

    Inflation is showing everywhere in Canada. I believe Trudeau is voluntary flooding Canada with immigrants to generate growth and pay interest on Canada debt. Basically mass migration in Canada is an attempt to avoid Canada finale meltdown.

    I believe of better indicator for the collapse of US is the price of gasoline and diesel. Once the price of gasoline and diesel reach the same level as 2008, we will see the collapse of US banks.

  6. Jerome Purtzer on Tue, 25th Sep 2018 3:08 pm 

    Hey Davy, google Michael Pento and listen to Peak Prosperity on when the yield curves invert on the 2 and 10 year Treasury Notes. That is the point of inflection.

  7. Davy on Tue, 25th Sep 2018 3:24 pm 

    Thanks Jerome. I have read many articles discussing the yield curve flattening and inflection. Many are over my head. I am wondering if the significance of this is now altered because of global central bank financial management? Fascinating times we live in. I wish I could say that in a positive way

  8. Antius on Tue, 25th Sep 2018 4:24 pm 

    I hope there is a crash now. A lot of people will suffer and that is unfortunate. But bankruptcy is the only thing that will end the totalitarian regimes that now control the western world. It is only after people have lost the anaesthesia of affluence that they will throw off the yoke of tyranny. If Brexit is economically disastrous for the UK, so much the better.

  9. boney joe on Tue, 25th Sep 2018 6:33 pm 

    “Hey Davy, google Michael Pento and listen to Peak Prosperity on when the yield curves invert on the 2 and 10 year Treasury Notes.”

    Hey, Jerome, why not cast pearls before swine? It’s the same thing.

  10. boney joe on Tue, 25th Sep 2018 6:39 pm 

    “Shiff has been whining disaster for years. He is not as legitimate as he thinks he is.”

    DonaldDavyTurd (DDT) has been whining for years. He is not as legitimate as he thinks he is.

    DDT, your thoughts reflect and project perfectly like a mirror; the subconscious perceptions that are held about the Self. Your frequent whining, bullying, and incessant assaults are a perfect reflection of your present state of mind and how you feel about yourself. Your resentment and anger toward others reveal anger and contempt of yourself, rooted in jealously, fear, and a sense of failure with who you are, questioning your ability to aptly compete with others.

  11. GetAVasectomyAndLetTheHumanSpecieDie on Tue, 25th Sep 2018 8:21 pm 

    I was at the shopping center doing my personal racial census.

    Since the last two year, I see more and more brown people and mix people and less and less Whites people. I really believe Western government are lying and Whites people of European Northern linage (UK, Ireland, Germany, Sweden, ..) are going extinct faster then report4eed by governmental population census. A lot of Latinos and Persian and Mix people considered themselves White this is why census are not accurate.

    Canada can only do background check on 50 000 immigrant a year, yet they bring 300 000 a year now. I am starting to believe that this mass migration in Western countries has to do with keeping the debt Ponzi scheme alive nothing else.

    Anyway as Whites people of European Northern linage die, so is the Western civilization. Very soon all the countries in the world will be 3 world countries.

    Western countries are desperately trying to save themselves from collapse

    I didn’t come here to live this kind of life’: Skilled immigrants on desperate hunt for jobs in Quebec

    https://www.cbc.ca/news/canada/montreal/i-didn-t-come-here-to-live-this-kind-of-life-skilled-immigrants-on-their-desperate-hunt-for-jobs-in-quebec-1.4833739?cmp=rss

  12. Free Speech Forum on Wed, 26th Sep 2018 12:02 am 

    The USA is an immoral bankrupt warmongering police state.

    The government and church are corrupt. Americans are immoral.

    Jobs have been offshored. Illegal immigrants are flooding the country. The world has the biggest bubble in history. The lost wealth has been replaced by a fake debt bubble economy. Hard work is punished with regulations and laziness is rewarded with welfare.

    There is really no reason to work now that everything is illegal and the 1% will end up with everything through taxes, forfeiture, fines, inflation, tariffs, subsidies, and fees.

    The US will collapse when the Ponzi economy pops, Civil War 2.0 will break out, Americans will be sent to the concentration camps, and WWIII will start.

    The end is certain. The question is when.

    https://www.nationalreview.com/2016/01/trade-restrictions-closed-borders-1930/

    https://openborders.info/hong-kong/

    https://www.austrade.gov.au/Australian/Export/Export-markets/Countries/Hong-Kong/Doing-business/Tariffs-and-regulations

    http://mecometer.com/compare/hong-kong-sar-china+north-korea/gdp-per-capita-ppp/

  13. Cloggie on Wed, 26th Sep 2018 1:50 am 

    Currently I’m in Belgrade, Serbia, arriving from Rumania two days ago. Visited the Nikola Tesla museum yesterday. Before that I was in Bulgaria, Macedonia, Kosovo, Albania, Montenegro, Croatia, Italy.

    All relaxed 100% white countries. Very pleasant atmosphere, like I have known from the sixties and seventies. And very important, they have no intention to open their doors for the third world. And it looks like they are going to win from Brussels.

    Western Europe can help lift the economic level of Eastern Europe, including Russia. The core of the EU: Germany, France and Low Countries managed to do that, first with Italy and Spain, now entire Western Europe can apply that to the East.

    Eastern Europe can return the favor in reminding Western Europe the great value in preserving your national identity.

  14. Go Speed Racer on Wed, 26th Sep 2018 2:13 am 

    My thousands of shares of Amazon and
    Apple stock, is going to infinity.

    I am OK with this.

  15. dave thompson on Wed, 26th Sep 2018 5:34 am 

    Looking at the history of the capitalistic boom and bust system the price of oil has historically been the catalyst for a boom or a bust. Oil price rises we get a bust and VS a VS. Stack on top of high oil prices the debt, personal, household,government and the financial banking system. What we will see is going to be big and bad.

  16. deadly on Wed, 26th Sep 2018 10:38 am 

    Probably about four hundred million vehicles on the roads today from London to Beijing. Victoria on over to Mumbai, coast to coast, LA to New York, all along the highways and byways, the flyways, ships out on the ocean, it is all going to go.

    Nothing to worry about and it won’t matter what Trump says, it’ll keep happening.

    At ten gallons per vehicle average, one quarter barrel, there will be one hundred million barrels of oil in the usable form of energy, gasoline or diesel. Without it, some chinaman will be pulling a rickshaw.

    You’ll be able to deliver the goods all over the world using planes, ships, trains, trucks, cars and electric bicycles.

    Gotta have a steady supply of crude oil. It seems to go purdy doggone fast if you ask me.

    Trump is going to make a difference, the wheels will fall off if Trump isn’t involved.

    All that yapping has some benefit.

    Life is good.

  17. twocats on Wed, 26th Sep 2018 1:09 pm 

    I agree strongly with Davy on the lack of credibility throughout this article.

    1) Schiff is a known Gold Bug – he dreams of currency collapse

    2) don’t blame this on trump – everything bubble started in 2009.

    3) the system did what it needed to do to survive.

    even with all the advances in technology and efficiency – the capitalist system has been buckling since the tech bubble of the late 90’s. and wages stagnant since the 70’s. this is why most people – left and right – don’t care if the system survives or not: it’s not delivering the goods for them.

  18. boney joe on Wed, 26th Sep 2018 4:28 pm 

    “most people – left and right – don’t care if the system survives or not: it’s not delivering the goods for them.”

    IF this statement were true, there would be a worldwide spasm of revolution. Most people are quite satisfied with BAU, and that is the problem. There’s no appreciation of the consequential externalities involved in maintaining BAU.

    “don’t blame this on trump”

    Really? Trump himself braggs almost everyday that he deserves responsibility for the present economic circumstances.
    If according to your definition Trump is not responsible, when exactly does be assume responsibility? After 21 months, 22 months, 24 months, 30 months, never?

  19. twocats on Wed, 26th Sep 2018 5:41 pm 

    the article talks about debt – and if accumulation of debt is the measure – then obama’s tenure added more. give trump 6 more years (heaven help us) and you might have a case for trump blame.

    lack of caring and actively undermining the system are two entirely different things. most people have no power to affect the system and are basically keeping a low profile. but BAU is a miserable son of a bitch for the poor and working class people of the US. for any country that is growing more than 4 or 5%, it might be different. I know a lot of Asia-ex.Japan are very excited over the past ten years, so that’s something.

  20. JuanP on Wed, 26th Sep 2018 6:29 pm 

    Will the next US financial crisis happen under Trump? I don’t know; they’ve been milking this cow for so long that all bets are off. The longer the present growth period lasts the more painful the next crisis will be, and it will be extremely painful. I am telling everyone I know how I feel. Save and prepare now while we still can. Most people react negatively. My wife and I are as ready as can be.

  21. Nostradamus on Wed, 26th Sep 2018 6:55 pm 

    “Anyone who believes that exponential growth can go on forever in a finite world is either a madman or an economist.” — Kenneth Boulding.

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