I’ve been warning all year about the various signs I see that could be the trigger for the next global financial crisis.
The slide in commodity prices…
China’s slowing economy and stock bubble…
Falling oil prices and the collapse of the fracking industry…
Gold’s lost glory…
The list goes on.
Right now we’re in the most volatile time since 2011, maybe 2008. Less than a month ago, U.S. stocks broke through a resistance level that, to me, is a sign this bubble is finally on the brink of erupting. The stakes are high, and this will no doubt be a huge talking point at our conference these next few days.
While I consider myself a “cycles” guy, we’re widely known for our demographic research. At the heart of demographics are the spending decisions people make. And the “Spending Wave,” as I call it, is still my No. 1 cycle for predicting the future of the economy.
That’s how I’ve known we were heading into a deflationary period, when everyone was expecting inflation.
It’s one of many reasons I know we’re in for a downturn ahead.
People have called me nuts for making these claims over the years.
What I find nuts, is how anyone can just bat an eyelash at how we’ve produced the greatest debt bubble in history and not think anything of it! This craziness isn’t normal.
The Fed thought it could spend its way out of a downturn. That by printing a bunch of money, it could force people who would otherwise save to spend. And they were surprised when it didn’t work out that way.