Two time, best-selling author Nomi Prins says global debt levels are at record highs. Prins contends, “These are levels that they have never been, and they are all at their historic highs. That’s why debt will ultimately be the destructor of the system.
In order for that to happen, the cheapness of money that allow states, municipalities and corporations to continue to borrow at these cheap levels has to go away.
At some point, there will be a mistake. There might be a tiny smidge of an interest rate hike at some central bank, probably the Fed, which ripples throughout the system as a mistake, not because real growth has happened, and that’s why interest rates have been raised.
That will incur defaults throughout the system. People will incur personal defaults, and that will cause problems in the mortgage market, then it becomes a knock-on credit crisis, and then banks start not to lend. Then we have the makings of a broad crisis.”
- Source, USA Watchdog
