by Graham Summers
The markets are beginning what could in fact be an epic meltdown.
China is on the verge of a “Lehman” moment as its shadow banking system implodes. China had pumped roughly $1.6 trillion in new credit (that’s 21% of GDP) into its economy in the last two quarters… and China GDP growth is in fact slowing.
This is what a credit bubble bursting looks like: the pumping becomes more and more frantic with less and less returns. Check out the collapse in China’s stock market.
We are literally back into 2008 Crash territory here:
Brazil, another “coming economic superpower” is experiencing rampant riots (over two million people in fact) as inflation soars. Here again we are back into 2008 Crash territory:
And the US… well the breakout to new highs is looking more and more like a false breakout. These developments usually result in extreme violent swings in the other direction. In this case… DOWN.
This is just the start. I warned Private Wealth Advisory subscribers in our most recent issue that higher rates were coming noting a collapse in bonds in Europe and the emerging market space.
This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.
No comments:
Post a Comment