Experts announced the approaching crisis in the US 'worse than the Great Depression'

The world is on the verge of a new global crisis that will occur in the next two years and will be worse than the Great Depression, as global debt has already exceeded 247 trillions of dollars. Financial analysts warn of this, writes Daily Mail.

Фото: Depositphotos

Experts point out that the US economy is in worse shape than a decade ago when the 2008 crisis of the year occurred. Against the background of a decade of continuous growth in household wage arrears caused by low wages, the US government debt more than doubled over the same period, rising to 21 trillion dollars.

By the end of the presidential term of Donald Trump, the situation may worsen. This is despite the lowest unemployment rate, reduced business taxes, and record-breaking growth rates for the Dow Jones index.

It is believed that low wages are a factor that affects the slowdown in economic recovery.

“There is great optimism, but there is also a very high probability that the US economy will slide into recession over the next two years. This is the second largest economic expansion in history, ”said economic commentator Peter Schiff.

He added that the recent fall in sales of new homes and car sales in the US may signal that.

Schiff notes that he was wrong in the past when he incorrectly predicted that the US Federal Reserve would fail with quantitative easing policies to restore real estate and equity markets after the financial crisis.

Schiff’s view is shared by Elliott Wave International Global Research Director Murray Gunn.

He notes that household debt in America currently exceeds the 2008 level of the year and is about $ 13,3 trillion. This is partly due to mortgage lending, which fluctuates at $ 9 trillion - near peak values.

Student loans also rose, showing strong growth — from $ 611 billion in 2008 to about $ 1,5 trillion today.

Auto loans—at nearly $1,25 trillion—have surpassed the 2008 total, while credit card balances are now as high as they were before the Great Recession.

Experts blame the growth of the global debt of the heads of central banks of different countries. Bankers continue to fill their economies with cheap money to save them from stagnation. Now total global debt is $ 247 trillion, which is much more than in the 2008 year, when it was $ 177 trillion.

Gann believes that all major economies in the world are threatened by recession.

“People will turn to central banks for help, but the authorities will simply not be able to cope with the situation,” Gunn warned.

“Our prediction is that, unlike in 2008, when central banks were widely praised for having ‘saved the world,’ today they will be cursed for their impotence in the coming deflationary catastrophe,” experts say.

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