The next financial bubble is just about ready to burst and there is little that can be done about it.
Think it can't happen? Then consider this:
Student financial debt is out of control. Over $1.3 trillion in student debt is floating around in the current economic system. The majority of this debt is a burden to younger Americans, who are entering into a job market with incredibly low wages. Student financial loan delinquencies are rising dramatically. Student debt is now the worst performing sector of loans in our economy. This is yet another bubble that is yet to burst. Momentum will catch up and the delinquencies will be the first cracks in the dam.
Global central banks have run out of ammunition. Since March 2008, central banks have cut interest rates 637 times and have purchased a staggering $12.3 trillion dollars worth of assets.
There is not much more that they can do, and now, the next great crisis is upon us. The global economy and the global financial system will continue to weaken before our very own eyes. If we do experience a major "black swan event" that takes place, it will cause the bottom of the stock markets around the world to fall out, and this could happen at any given moment.
Chinese exports have seen their sharpest drop in almost seven years, adding to concerns over the health of the worlds' second largest economy. Exports have dropped by 25.4% from the previous year, while imports fell 13.8%. This weak data comes on the heels of Beijing registering its slowest economic growth in 25 years.
The February 2016 trade figures reflected are likely to raise new fears over China's struggles to maintain economic growth while implementing reforms and trying to shift towards more services and domestic spending. Previously, China was considered the engine of global growth. And now?
The Federal Reserve has been looking at the illusion of recovery, but not the real deal. If this were real, we would not have tens of millions of adult Americans without jobs. There are currently 46 million citizens on foods stamps, as compared to 18 million that were in 2000. Some 35% of the population is receiving some form of public assistance.