Something's coming, and I haven't felt what I'm feeling right now since 2007. And really, we all could tell something just wasn't quite right back in the years leading up to the 2008 financial crash. Everyone was defaulting on their mortgages, entire neighborhoods were ghost towns, paychecks were low, but for some reason all the top banks were telling us it was all ok. "Keep borrowing and spending!!" they said. And as we head into 2019, I'm feeling that very same chill in the air.
Here's a number no one at the Fed or any of the big banks want you to know about: 250 trillion. That's what global debt is right now. The number is almost incomprehensible. It shatters all previous global debt records. And the Fed and all the big banks don't want you to know this number because it is all their fault. The world's current economic growth - and the reason for why they say we "recovered" from 2008 - was financed by something that is called "debt-financed economic growth."
In layman's terms that means that the governments of the world needed you to keep spending - even though we didn't have any money - so they printed money so the banks could hand out loans like tic tacs. Loans that would eventually have to be accounted for, but they didn't worry about at the time… "JUST GO OUT AND SPEND!" During the 2018/2019 fiscal year alone, over one trillion of dollar denominated debt is set to mature. How much of that will default?
Duke University just completed a survey of 212 Chief Financial Officers at some of the largest corporations in the United States. 48% are predicting the next recession to hit sometime in the next 12 months. But if we somehow make it through 2019 without recession hitting, 82% of the leading CFOs in the country believe recession will be here by the end of 2020. The leading minds at our biggest corporations are giving us only twelve to twenty-four months.
The survey didn't just predict recession for the United States, this will be a global economic spasm.
And here's where it gets even scarier, the survey didn't just predict recession for the United States, this will be a global economic spasm. They predict Canada's economy to get hit especially hard, with all of Europe, Asia and South America following as well.
But, just as in 2008, the banks don't want you knowing this information. "Just keep borrowing and spending! Nothing to see here!!" Don't get taken by surprise like we did ten years ago. Start planning today.