How will the coming economic meltdown happen?

There are a lot of different thoughts on this topic. Looking over most of them here is what I personally think will happen.

Some people say we will see a upcoming deflationary era where interest rates will go up and the economies will shrink to it’s true size. We are currently in a deflationary cycle as there are more forces than a bad economy. One of the main forces is demographics. Baby-boomers are finally starting to retire and that means down sizing their housing and spending a lot less money and they are starting to withdraw their saved up money in pension funds and they will be selling their assets off in order to retire.

So this driving force will put downward pressure on an economic system that needs growth to systemically function. The outcome of that is a naturally occurring deflation and depression as since we saw in 2008 and that we are currently in.

So what I suspect is that we will see deflationary forces in our money supply take over, but at one point the Central Planners will panic and might over flood the economy with money and create a hyper inflationary scenario in our economy for a final destruction of our current economic system.

Here are some evidence the deflationary forces is taking over in the global economy:

inflationrate

The economy is falling into contraction and are getting ready to loose. We will see another halt in the economy late this year or early next year as the forces of deflation will become overwhelming again and the economy might freeze up like in 2008. The latest cycles in the stock market shows about 7 year cycles between big crashes.

Here is an overview over how the stock market has done the last 16 years.

dow 1999to2015

As there has been a constant pressure since 1970’s when the final stage of the economic collapse of the Central Banking system happened they have had to push down interest rates to keep more and more people get into debt to keep the system from collapsing in on itself.

Here are some charts that will wake you up!

united-states-core-consumer-prices united-states-interest-rate

united-states-money-supply-m2

The above chart shows the US M2 Monetary supply. The have stopped giving out M3 which would show an even bigger increase in debt. There are more and more money pumped into the economy as debt, but it is not created by innovation or creation of real goods that would enhance peoples life.

We are keeping the system alive by getting into more and more debt and there are no way out, but to default as Greece is about to do. They have been bankrupt ever since 2008, but lenders kept borrowing to them so they could get back commodities like mines and land as payment for the debt that they owe.

On top of all of this printing the governments world wide keeps spending more and more money to keep the economy alive. What we will see more of is government spending getting out of hand as they try desperately boosting the economy by giving away more and more money for free. They are all becoming bankrupt as when government as a part of GDP goes above 50% there will be no private sector to collect money from.

To provide evidence of this please become a subscriber to our Newsletter where we will give you an extra chapter of the new book coming out called The End of Freedom: How our Monetary System Enslaves Us.

GovernmentIsTheProb

John Thore Stub Sneisen

The Economic Truth