By: Harry Dent, Founder Dent Research
Anyone who doesn't recognize that we're facing a serious debt and financial bubble has either been living under a rock, or has retreated into their own fantasy la-la-land to cope with just how bad central bankers and governments have let things get.
News flash: they've gotten pretty damn terrible!
Most of us are presumably aware of the ever-climbing national debt of the U.S. which currently holds a tab sitting at just over $19.5 trillion.
But these issues stretch far beyond our borders...
Banks all over the world have taken on far too much bad debt that keeps turning into more non-performing loans, especially in countries like Greece and Italy. But instead of restructuring those loans to let their stock and bondholders cover the losses, banks are resorting to what I call financial magic tricks.
And as it goes, the further these national governments fall into deep debt, the higher their debt-to-GDP ratios rise. There are examples all over the world, including ratios above 1000% in Europe!
Bank stocks all around the world have seen historical collapses since 2008. And you don’t have to look further than Deutsche Bank in Germany to see the crash in action.
Unfortunately, since 2008 the response to the global debt crisis has been to pump more free money and stimulus into the system to keep our financial institutions from imploding. That's just crazy!
When will people learn that you can't fight a debt problem with more debt!? And that restructuring debt is healthy long-term despite the short-term pain.
I see this all coming to a head, and much sooner rather than later...
The first trigger of the global debt crisis is going to come from Europe, where I see the banks and the economy being the weakest. Italy is the next Greece and it is simply too big to bail out. After that, it will be a domino effect. Then, when China finally blow... it's game over! No stimulus plan will be able to cover that one.
Mark my words: the global banking crisis is here, and if you don't start preparing for it now (or at the very least acknowledge that there's a problem), you're going to have your ass handed to you in the years ahead.
I'm not telling you this to scare you.
I'm telling you this because I'm determined to help you avoid the financial ruin that will befall the majority of investors in the next crash, and to help you take advantage of the opportunities that can arise in this chaotic environment.
To get a better idea of the severity of this debt crisis, you're going to want to read our new infographic below: The Global Banking Crisis 2.0. We give you a complete snapshot of the most distressed major global banks and rising debt levels, both domestic and abroad!