Mike “Mish” Shedlock says the trigger for the next collapse can come from a wide variety of places. Shedlock says, “Germany is owed something like 800 billion euros from peripheral Europe. How are these countries ever going to pay that back to Germany? It’s not going to happen. We are guessing where this thing is going to blow sky high. It can be anything. It can be insolvent Italian banks, it could be a political leader . . . that decides to take Italy out of the Eurozone. It could be a trade war that can do it.”
Shedlock also lists economic problems in China and possible war with North Korea or any number of things that could tank the global financial system. Shedlock points out, “If the economy wasn’t so weak that any big hiccup could send it into the toilet, then why does the ECB still have all of this QE? Why are we so slow at tapering? Why are interest rates so low, and not just in the United States, but Europe, Canada, Australia and Japan? Why do we still have negative interest rates? Central banks have blown another equity bubble. They have blown a junk bond bubble. Just the collapse of them alone . . . can send this thing down the toilet in a hurry.”
Join Greg Hunter as he goes One-on-One with Mike “Mish” Shedlock, founder of MishTalk.com.
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