The issue hear is Global Growth. China accounts for 1/3 of global growth. A china collapse is deflationary and will directly impact Australia, NZ, Japan, Korea, South East Asia. The flow on effects will impact US and Eurozone more than the 7% which US exports. Falling prices in china effectively translate to worldwide deflation and, I think a $20 oil price could eventuate - which would be even more deflationary. US will find it harder to pay its debts and this could have a nasty upward lift on T notes to attract investors who already come from countrys which are slowing economically.
45Trillion debt added worldwide since 2008.
US 20Trillion govt debt in 20 months time.
Obama has single handedly added more US govt debt than all the US presidents before him. Of that previous debt prior to Obama which was around 9Trillion dollars - GW Bush was responsible for 5Trillion Govt debt.
Move along folks, there's nothing to see here! lol. GFC2 - 25yr Great Depression is imminent.
If you look at the 1929 depression, things actually started to fall apart from 1927 onwards.
If you look at GFC1 - 2008, things actually sharted to fall apart from 2007 onwards.
The big bubble to burst is worldwide housing - I hope the 4 pillar banks in AUS have created a big Derivative bet that this bubble will burst so they can cover some of there upcoming loses - but they own NZ banks - they raked in 5Bill profits from NZ in the last 12 months!
Yes I am happy to have my money in the bank! Nope.
