HYPER-ECONOMICS, HYPER-DEBT, AND ANOTHER GREAT DEPRESSION. By Gregory Mannarino

HYPER-ECONOMICS, HYPER-DEBT, AND ANOTHER GREAT DEPRESSION.

According to the Congressional Budget Office, US Debt is expected to exceed FIFTY-FOUR TRILLION DOLLARS by 2034. With that, the World Economic Forum, (WEF), President, recently stated that; “We Have Not Seen This Kind of Debt Expansion Since the Napoleonic Wars.” (Vast debt expansion during the Napoleonic Wars fostered the illusion of economic prosperity which led to a Post-War Depression). What is important to take note of here is vast debt expansion invariably creates an unsustainable illusion of economic prosperity, which also invariably ends in economic disaster, and depression).

The current HYPER-CYCLE of vastly expanding hyper-debt expansion will also lead to another Great Depression-on a global scale.

Today the pace at which global debt is rising has accelerated beyond that of any other time in history, and this mechanism is what is directly responsible for mass-currency devaluation/loss of purchasing power, and inflation.

Currently the world economy, despite VAST debt expansion, is slowing at its fastest pace on record. The mechanism of vast debt expansion and thus accelerated currency purchasing power losses, creates a need for MORE CENTRAL BANK ISSUED NOTES, (as the currency continues to lose purchasing power, it takes more currency to purchase the same goods).

Currency creation is debt creation, which is itself inflationary/purchasing power negative-so the need for even more currency creation/debt expands faster. (This mechanism further empowers central banks). The NUMBER ONE GOAL of every central bank on Earth is debt expansion. Debt is the ONLY product of any central bank, and the more debt a central bank can issue, or is allowed to issue, or is called upon to issue- THE STRONGER THEY BECOME.

Today it is “HYPER-ECONOMICS” again fostering a grand illusion.

HYPER-ECONOMICS is also responsible for the stock market hitting a series of new all-time highs with now the SP500 having its longest winning streak since the “Financial Crisis.”

The fact is this: WE ARE IN A FULL BLOWN-FULL-ON Economic HYPER-DEBT nightmare CRISIS, which is being deliberately engineered. Moreover, the “Illusion” of the market will be maintained leading up to the US Presidential SELECTION… EXPECT THAT THE US STOCK MARKET WILL CONTINUE TO HIT NEW RECORD HIGHS.

Currency devaluation, and ESPECIALLY ARTIFICIALLY SUPPRESSED BOND YIELDS, (AS CENTRAL BANKS BUY MORE DEBT) will continue to create MASSIVE price-action distortions across the spectrum of asset classes.

Expect commodity prices to remain under pressure. Also expect the price action of cryptocurrencies to fall under pressure as cash is “pushed” into risk assets/stocks.