Like water sifting through a hole in a dam, debt levels to GDP around the world have been increasing exponentially.
Africa and the Middle East
While the editors here at The Daily Reckoning acknowledge and celebrate Australia’s giddy history as the dominant cricket power, they recognise when it comes to the global economy we’re not quite up there with the big boys.
Because Australia is a small, open economy, as an investor you need to watch developments overseas that can impact here. It might be the US central bank driving up the exchange rate, to European hedge funds shorting the market, to trade agreements in Asia changing the investing landscape.
That’s one reason they Reckon every day. If you need to know about it, they’ll cover it.
So whoever wins the election on Saturday inherits an economic time bomb. That they don’t know it doesn’t make it less so.
The British selling their properties could increase the stock of properties available for sale, creating a further fall in Spanish property prices.
Last week, Jim Rickards and I explained to subscribers of Strategic Intelligence and Currency Wars Trader that the Brexit poll predictions were wrong.
When markets ultimately collapse from the insiders’ manipulation, central bankers are going to go from being ‘deified’ to ‘vilified’. And rightly so.
One of the most important issues the Brexit vote has shown is how divided UK society is on the EU experiment. And that divide extends between generations and regions.
I’m probably the most bearish resources analyst in the world. But this doesn’t mean we can’t make money buying resource stocks — far from it.
For European leaders, though, Brexit paves an opportunity for greater integration. Without the UK throwing its (often unwanted) weight around.
The Brexit will kill any of the EU recovery signs we saw during the last few months. And it may even spark a new economic crisis.
One represents the international Deep State elite, desperate to hold on to its power, wealth and privileges. The other promises an American ‘Brexit’…
Just like the Global Financial Crisis, when fear takes over the market, everybody focuses on risk and exiting positions.
If financial risk increases in Europe, it will threaten the flow of capital to Australia. In fact, you’re already seeing this.
The global economy will still function on vast amounts of money creation, with each stimulus effort begetting an even bigger one.
It has now been six months since the presidential elections. And Spain has not been able to elect a president.
Today, the UK decides if it stays or leaves the EU. If the UK votes for a Brexit, what will happen tomorrow?