On my way to the beach the other day, trying to disconnect my mind from the craziness of global finances, a rock hit my window and it put a noticeable crack right in front of my forward line of sight. It was within minutes that the crack spidered out until the crack went all the way from the bottom of my window to the top.

In that moment of what was supposed to be rest and disconnecting from the world, I was dealing with a broken windshield, eerily being reminded of the coming economic crack-up boom.

So much for that...

There is much written about the destructive monetary policies of the Federal Reserve and their policy of QE to Infinity.  Straight from the Austrian School of Economics is the term crack-up boom, which is certainly on the horizon.

We are facing a crack-up boom that is spidering globally. The Bank of Japan is now on its tenth QE program. Over the last two years, it has added 338% to Japan’s monetary base (made up of bank reserves and physical currency). Over the same period, the average household income has fallen by 7%.

Japan has failed with ZIRP, and they will continue to fail as they resort to the new fad of economic overdose ZIRP. Consider the fact that the Japanese government now gets paid to issue debt. Why would there be any reason to raise taxes on its people?

In Europe, ECB Chief Mario Draghi spoke for all the world’s central bankers when he assured the financial elites there would be “no limits” to what he might do. Meanwhile, here in the states, the boom is continuing to expand and the propaganda in rising prices has been misleading millions of people in bonds, stocks, and real estate.

New home sales for June represented a milestone for the economy. New home sales are finally back to 1995 levels, which, interestingly enough, was the beginning of the U.S. housing bubble. Nominal prices are skyrocketing, but true value is nowhere to be found.

Since 1971, total public and private debt outstanding skyrocketed from $1.6 trillion to $64 trillion – or an increase of 40x. By contrast, nominal GDP expanded by only 16x. Debt works the same in government debt as it does in private: if you get into too much debt, your world spins out of control. By creating too much debt, the government will continue to lose its option to effectively create more debt and spur growth.

The climax of this crack-up boom will be unprecedented and epic. All you can do is control your own debt and prepare for what is coming.