Is A Global Financial Crisis Inevitable?

6 Potential Triggers for the Next Global Financial Crisis

BRITT GILLETTE

In the aftermath of the pandemic, governments and central banks around the world over stimulated the economy with cash giveaways and ultra low interest rates. In doing so, they created bubbles in multiple asset classes throughout the world. 

Now, faced with inflation, governments and central banks are trying to crack down and reverse the inflationary trend. But the damage has been done. 

We now stand on the verge of a massive global financial crisis. One of the only questions that remains is what will trigger the crisis? By definition, no one can know what the next black swan event will be. We can never be certain beforehand what the ultimate catalyst will be for a global financial crisis, but in my opinion, these are the seven most probable triggers:

A Global Financial Crisis is Inevitable

Any of these triggers could set off a global financial crisis. The world economy now faces its greatest crisis since the Great Depression of the 1930s. According to the Buffett Indicator – a measure used by world famous investor Warren Buffett – the U.S. stock market is currently more overvalued than it was at the 1929 peak or the top of the Dot Com Bubble in 2000. 

The U.S. housing market is also in a bubble. Right now, the home price to median household income ratio is the highest in recorded history - higher than the peak of the housing bubble in 2006, which eventually led to the Great Financial Crisis. Meanwhile, U.S. Treasuries, long considered the 'risk free asset,' face an enormous challenge. 

The United States is $34 trillion in debt, and interest on the national debt alone is over $1 trillion per year. In fact, interest on the national debt now exceeds defense spending. This means the United States, the world’s largest economy, has bubbles in its three largest financial markets – stocks, bonds, and real estate. 

On top of these massive bubbles is a global derivatives market in excess of several quadrillion dollars. No one in the world truly understands how many derivatives exist or what would happen to those derivatives in the event of a major global financial crisis. 

This means the global financial system is nothing more than a house of cards ready to topple over at any moment. In fact, such a collapse is inevitable. The only questions are when it will happen and what will trigger it.

When the crisis takes hold, you can be sure the solution offered by politicians and central bankers throughout the world will involve granting more power and control to centralized government authorities. They’ve made no attempt to conceal their desire to roll out central bank digital currencies (CBDCs), and the next crisis will give them the opportunity they seek to offer CBDCs as 'the solution.'

This means tyranny on an unprecedented scale, and it sets the stage for the mark of the beast system outlined in Revelation 13:16-17.

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