Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

September 15, 2018 | Next Financial Crisis – Easy to Predict!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

My prior missive covered the many reasons why the next financial crisis is easy to predict.Today’s Wall Street Journal had another article entitled “Get Ready for the Next Financial Crisis”, page A15. This article explains why the post 2008 fixes did nothing to resolve the debt issues or many of our banking issues. All forms of debt are now multiples of what they were in 2008.

 

The numbers can be visualized here: http://www.usdebtclock.org. The projected deficit for our government (next 12 months) is now at $907.3 billion and growing, 4.421% of GDP, and gross debt to GDP is now 104.67%. If you scroll over to the far right (top) you can witness ‘corporate taxes’ going DOWN. This is ominous as it reveals that the Trump tax program will not help our economy (longer term).

 

As revenues decrease and spending increases our deficits goes UP and our National Debt goes UP. The squeeze is on and all this will come to a head in the next six months. A financial crisis is assured and this is easy to predict. Liquidity is declining, borrowing is declining, home sales are declining, auto sales are declining, consumer spending has peaked, credit card debt has peaked (starting to decline), and asset values appear to have peaked.

 

We will witness home values declining by the end of 2018 and this is likely within the auto sector as well. All the debt and declining liquidity will bring on a huge financial crisis by March of 2019 (or sooner). All this is nothing but extrapolation of current trends. A trend in motion continues until it ends. It is now easy to predict the next financial crisis and its start within the next six months.

 

Our elites who engineered the past ten year temporary period of growth and prosperity must now think in terms of another CRISIS (much more ominous than the last). The big changes since 2008 were our unsustainable debt, our cyber currencies, digital money creation, electronic trading, elimination of the open outcry system, artificial intelligence, robots, algorithms, and high speed computers.

 

The writer of the WSJ article, Mr. Daniel Arbess, says the following: “If the 10-year Treasury surpasses 3.25%, lend and pretend financing could stop cold”. We are now at 3% on the ten year and our Fed will increase rates again later this month. The game is changing fast and the NEXT financial crisis is just around the corner. Prepare now or suffer the consequences later!

 

I am: https://kingdomecon.wordpress.com. Check out my prior missive for more details on why the next financial crisis will develop soon…say by March 2019…the likely day of decision. Current trends now in motion will continue until they end with a CRASH.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

September 15th, 2018

Posted In: Kingdom Economics

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.