These days it seems like there is a never-ending stream of dire predictions for the United States and the global economy. Many of them have merit of course, since the fundamentals of our economy are being held together by little more than duct tape and string. However, any prediction that suggests that the system is going to come crashing down at a moment’s notice, is hard to take seriously. It’s certainly a possibility, but it’s not the most plausible end to our way of life.
In reality, our society is enduring a long-term collapse that may take decades to fully develop. There will be moments of rapid decline, much like the financial collapse of 2008, but overall we seem to be falling on a long trajectory.
Goldman Sachs admitted as much this week when their top analysts claimed that the third wave of the financial collapse of 2008 is rapidly approaching. Aside from how weird it is to hear a major financial institution admit that the crash of 2008 never ended – a fact that Austrian economists, conservatives, and libertarians have been saying for years – they also admitted that debt will be at the root of the approaching crisis.
This wave is characterised by rock-bottom commodities prices, stalling growth in China and other emerging-markets economies, and low global inflation, Goldman Sachs analysts led by Peter Oppenheimer said in a big-picture note.
This triple whammy has its roots in the response to the first two waves of crisis — the banking collapse and European sovereign-debt crisis — and it is all part of the so-called debt supercycle of the past few decades.
Central banks all rushed to lower interest rates in response to the first two debt-fueled crises, encouraging investors to lend in emerging markets such as China for a decent return.
Now that interest rates are looking as if they might go up, lenders are heading for the exits and investors are pulling out of commodities, which are closely linked to the fate of the emerging economies.
And Goldman Sachs isn’t the only establishment institution to suggest that something big is on the way. Even Bloomberg thinks that we’re about take a plunge into another recession.
Bloomberg’s new survey of economists’ recession expectations picked up for the first time in 14 months on Friday. Economists were asked the likelihood of a recession in the next 12 months, and the median came in at 15%, the highest since October 2013.
“We tend to have recessions every seven years, more or less in the United States, since World War II,” David Rubenstein, CEO of The Carlyle Group, told Bloomberg TV. “So at some point in the next year or two or three, you can expect a recession.”
But as Goldman Sachs admitted, the financial crisis of 2008 never ended, so we’re not really entering another recession. We’re merely passing an additional stage of a single crisis, because nothing we’ve done for the past 7 years has solved our problems. We’ve shuffled money around to different corners of the global economy, we’ve buried ourselves in more debt to keep our economy afloat, and we’ve bailed out the companies that helped caused the problem in the first place (including Goldman Sachs).
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We don’t have what you would call a ‘healthy economy,’ which would be able to hold itself together when faced with the natural ebbs and flows of the marketplace. We have a ramshackle economy that is running on nothing but fumes and prayers. And soon we’ll find out how much life is left in this crumbling system, when the next wave of the financial collapse arrives.
Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger.
WTF does Goldman Sachs care about the economy? They’re responsible for crashing it (aside from the debt). They make out like bandits (literally) either way, while the rest of us are standing in food lines.
Leave the food line and start something profitable.
no shit. ” )
hell help the GOVT sell illegal drugs, it’s what they’ve been doing for decades to prop the “economy” up… so the war on drugs is a war on themselves… but it was for a reason… America and Europe HAS to survive compared to the alternatives. See, the rest the world’s a bunch of retards looking for constant handouts. I’m talking other countries… but the whole thing is to get Israel nuked, the mid-East reset with Democratic (read leach off everybody) systems to chuck american’s as consumers and profit from RAPING AFRICA and RUSSIA.
OH! and all so a “girl” can claim she’s “g-d”. A GIRL. He will come as beauty, remember? And EVERYTHING’S r/e:versed… and they don’t know the code. Or anything else for that matter, they’re just whores who WANT. WANT. WANT. Like the little girls they are. ” )
Good perspective. Taking it a step further, it would be great if alt media writers start dissecting the elites’ plan for a new global economic model that involves the (1) steady TRANSFORMATION of existing social and economic paradigms, and (2) DEMAND DESTRUCTION to reduce per capita consumption levels.
I find it interesting that a common theme here with the economy is that we always here 1st wave, 2nd wave, and then the 3rd wave is upon us! I agree with you CMRedwood, this is all a slow yet steady transition into what has been unfolding for the 7 plus years.
it’s really easy – cut california and all the free riders off everything and if they don’t make it, oh well… and do the same with the rest of the leach BLUE states…. there’s your problems.