Just in emerging markets, $9 trillion USD has been borrowed by companies. This is a looming crisis for not only the emerging markets, who are facing a strengthening dollar, but the U.S. itself, who depends on a functioning global economy that is on the verge of its breaking point.

It’s very true that the Federal Reserve balance sheet has grown out of control. Didn’t the Fed print $3.4 trillion of new money from 2008–2015? How could there possibly be a dollar shortage with that much new money around? But with that, NEW leveraged debt has ballooned way beyond the base currency expansion – to the tune of $60 trillion. When the music stops, everybody will want their money back and there will lie the shortage in dollars, which will then be followed by the mother of all money printing experiments.

The House of Cards Will Not Sustain the Credit Bubble

One of the biggest lies that the American people have been spoon-fed by the mainstream media, coming from the government, is the unemployment rate, which is now supposedly 4.6%. Of course, this is a number that has Americans no longer in the labor force at an all-time high of 95.1 million people. On balance, the ONLY jobs being added are PART-TIME, and the number of multiple holders is surging.

Why are the number of people working two jobs soaring to make ends meet if great jobs are being created? They aren’t.

Government’s have a precedence for blatantly lying to its people. Look at the Soviet Union months before they collapsed in 1991 reporting 3% growth in their economy. Turns out at the time, they were shrinking more than the US did during the Great Depression.

When you have government nightmares such as Obamacare plaguing the American economy, a major correction in the economy is certainly baked in the cake no matter what miracles Trump tries to perform.

Americans are struggling and living paycheck to paycheck. So much so that a recent study was done on Household Americans, which actually concluded that 70% of the country can’t come up with an additionally $500 to pay a medical expense in a world of astronomical premiums and thousands in deductibles.

If anyone had any doubts reading the mainstream media that Obama was a disaster for the economy, consider this: since 2009,

  • there are 8 million more Americans living in poverty,
  • 13 million more are on food stamps,
  • and we have the lowest home ownership rate in 51 years,
  • all while doubling the national debt, with nothing to show for it.

In the 1950s, your average worker employed by a company such as General Motors was making the equivalent to $50 in today’s dollars. Times have certainly changed.

The Bubbles are Prevalent in all “Corners” of the Globe

In China, there are 27 ghost cities that are all the size of New York City. This mindless concept that government can generate wealth by spending money out of their own empty pocket is lunacy, and the global financial system is at risk because of it. Those heavily exposed to it are as well.

Kenny Roger’s lyrics hold very true in such a time as this, where $43 trillion of fictitious wealth has been created since 2000. If you have been fortunate enough to place your hands on some of this wealth, I suggest you consider the words of this song:

You’ve got to know when to hold ’em
Know when to fold ’em
Know when to walk away
And know when to run
You never count your money
When you’re sittin’ at the table
There’ll be time enough for countin’
When the dealin’s done

Kenny Rogers

I will be releasing an interview this weekend with James Dale Davidson, who details much of what we are talking about here today. Be sure to visit the home page at CrushTheStreet.com for more posts and updates.