For the last 3 years, economists and investors have been predicting that an economic collapse is imminent. Recently, their predictions have come true and right now, we have the biggest stock market crash since the Great Depression. The market has been plummeting every single trading day despite the efforts made by the US Federal Reserve to inject trillions of dollars to try and prevent this collapse. In less than a month, the stock market has already lost more than $16 trillion. Right now we have a lot of fear and tension in the markets similar to what we had in 1929. We are already in an economic crisis and we are headed to an economic depression. The stock market has already crushed over 20 percent and now we have officially entered into a bear territory in the global markets. This is just the begging! The Federal Reserve is also panicking and they have slammed interest rates to zero for the first time in decades.
For the last 10 years, we have had a weak and an artificial economy. It is at the same time, we have had one of the longest bull markets in history. Consequently, the stock market rose to historic highs. However, with the current global economic slowdown and disruption of supply chains, the whole economy has taken a downturn and many people are yet to realize that we are at difficult economic times and soon we might wake up and find ourselves in a depression. This economic storm will destroy the US economy that has been poorly built on sand. We have managed to survive like this for many years and it looks as if this game is finally over and it will be next to impossible to escape this time!
The economy is already inflated and the bubble has just begun bursting. The Federal Reserve has been trying to fix this using debt and it is doomed to fail. Taking more debt will just make the bubble bigger. Right now we have a lot of rumors that the Federal Reserve will soon begin buying stocks to at least stabilize the market. This will only help for a short time and it will even add more debt to the economy that is has already begun collapsing.
The banking system has been in trouble for many years and this economic meltdown might be the final blow that will make many financial institutions go bankrupt. To be specific, the Deutsche Bank has been shrinking and right now this bank is valued at a liquidation price. It is on a life support machine and very soon it will collapse. Many banks are facing financial difficulties and we might see more bank failures in the near future. Deutsche bank is deeply interconnected with many European banks so Deutsche back failure will trigger a cascade of bank failure that will lead to the biggest banking crisis in history. Many banks are loaded with debt and this will further accelerate the collapse of the whole financial system. The whole banking system is troubled and it just last week when the federal reserve had to intervene in the repo market by pumping about $2 trillion of liquidity.
In just two weeks trillions of dollars have been lost in the stock market! An economic collapse is the next thing that will happen next and we don’t have a way back.
History has taught us that any debt driven economy always ends up at a great depression. Right now the American economy is slowing down at a rate never seen before. The happenings in the markets have been terrific to a point where the Federal Reserve has stepped in to provide extra liquidity. The FED has announced that they are planning to provide $1.5 trillion of liquidity to the markets. When you look at the historical data, this has been the fastest collapse from an all time highs to a bear market. This is just the beginning but everything is smelling panic in the financial markets. Nothing similar to this has been seen before; not even during the 2008 financial collapse.
This time it will not only hit the United States but the whole world. This is the time when our leaders should understand that the whole economic system is already broken. Our economy has always been sustained by debt, imbalances and lies. It has come to a point where this game must be ending. The reality of our economy is materializing and the stock market is just a reflection of how the entire economy is. The Federal Reserve will try to print more money as they did in the 2008 financial crisis but this time their strategy will not work. Instead, printing more money is now will cause a hyperinflation and this will pave a way for the collapse of the US dollar. The collapse of the American economy has just begun and right now we have a stock market collapse that will culminate to an economic depression. The best thing you can do is to prepare yourself to face the tough economic times that are coming our way.