World's Debt Bubble Ready to Burst

Those who pay attention are certainly aware of the dire warnings of an impending financial crisis.  The world is facing a monstrous debt bubble created by central banks, easy money and emerging markets.   

Governments and central banks risk tipping the world into a fresh financial crisis, the International Monetary Fund has warned, as it called time on a corporate debt binge in the developing world.

Emerging market companies have “over-borrowed” by $3 trillion in the last decade, reflecting a quadrupling of private sector debt between 2004 and 2014, found the IMF’s Global Financial Stability Report.

This dangerous over-leveraging now threatens to unleash a wave of defaults that will imperil an already weak global economy, said stark findings from the IMF’s twice yearly report.

Couple that with China and other countries dumping U.S. treasuries on the market doesn’t portend particularly well for us.  I remember the years before the housing bubble popped.  Pollyannaish financial analysts insisted that there was no end to the good times.  Housing prices were going to skyrocket from here to eternity and beyond.  Boy, were they wrong.

Source:

http://theeconomiccollapseblog.com/archives/why-are-the-imf-the-un-the-bis-and-citibank-all-warning-that-an-economic-crisis-could-be-imminent

Central Bankers Lost Pea in QE Shell Game

The world’s central bankers have lost their pea.  The big QE shell game has been exposed as a fraud.  It’s only a matter of time for the fallout.  China’s currency devaluation is just the beginning of what portends to be a global financial meltdown.  Here is an excerpt from Zero Hedge:

The perhaps most pivotal importance of China is that it was the world’s latest financial hope.The yuan devaluation shatters that hope once and for all. The global economy looks a lot more bleak for it, even if many people already didn’t believe official growth numbers anymore.

Because we’ve reached the end of the line, the game changes. Of course there will be additional attempts at stimulus, but China’s central bank has de facto conceded that its measures have failed. The yuan devaluations, three days in a row now, mean the central People’s Bank of China has, openly though reluctantly, acknowledged its QE has failed, and quite dramatically at that. They just hope you won’t notice, and try to bring it on with a positive spin.

Central banks are not “beginning” to lose control, they lost control a long time ago. The age of central bank omnipotence has “left and gone away” like Joltin’ Joe. Omnipotence has been replaced by impotence.

This admission will reverberate across the globe. China is simply that big. It may take a while longer for other central bankers to admit to their own failures (though ‘failures’, in view of the wealth transfer, is a relative term here), but it won’t really matter much. One is enough.

What will happen from here on in will be decided by how, where and in what amounts deleveraging will take place. This will of necessity be a chaotic process.

Source:

http://www.zerohedge.com/news/2015-08-14/weve-reached-end-line-now-game-changes