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Financial experts point to several worrying economic indicators, including rising student loans and US household debt, which could predict a collapse "worse than the Great Depression," according to a report in the newspaper. New York Post.
Goldman Sachs' budget forecast for this year would be "not good" and US household debt has risen since the 2008 housing crisis, prompting US taxpayers to bail out the big banks.
In 2018, experts estimate that a $ 247 trillion global debt will be the main reason for the next catastrophic financial crash. In addition, low wages and the steady rise in US public debt should weigh on the economy.
Economists have downplayed recent positive indicators such as the low unemployment rate and growing business confidence, reaffirming that they will not last during Trump's first term. At least one expert predicted that recent slumps in home and auto sales may be the first step toward a recession in the United States.
Murray Gunn, head of global research at Elliott Wave International, told To post"We believe that the major economies are on the verge of becoming the worst recessions we have seen in the last 10 years. [U.S.] The economy is starting to contract and our analysis suggests that high nominal debt rates will instantly become a very big problem. "
Experts warned that several economic indicators have worsened over the past decade, especially with regard to borrowed money. US household debt of $ 13.3 trillion is now much worse than it was at its 2008 peak, mainly because of mortgage lending.
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Outstanding student loan debt rose from $ 611 billion in outstanding debt in 2008 to more than $ 1.5 trillion. Auto loans far exceeded their peaks of 2008, standing at around $ 1.25 trillion today, and outstanding credit card balances are just as high as in the years before the Great Recession.
Central bankers have also more than doubled global debt as they have flooded national economies with cheap and easy money. In 2008, global debt was $ 177 trillion, up from $ 247 billion today.
"We can not call it a recession, it will be worse than the Great Depression," said Peter Schiff, an economic commentator. To post. "The US economy is much worse than it was ten years ago."
A general drop in spending and revenues means that default rates are likely to worsen in the coming years. Schiff also blamed the US Federal Reserve and other central banks in part for the looming crisis.
"I think we're going to have a dollar crisis – you think the Turkish lira seems bad now, wait to see when the dollar implodes and we have a sovereign debt crisis in the US," he said. declared. To post. "The US government will have the choice between a debt default or massive inflation."
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