There has been no recovery in the west since 2007-8. Communism had to collapse
and now its sister socialism will collapse too. Governments can not keep
borrowing money with no intension of paying anything back. All western economies
are collapsing because everyone has too much debt. We are about to go into a
deflationary cycle which will see multiple sovereign defaults and wealth
destruction like never before. We will all be looking for someone to blame. The
laws of maths are universal and apply to everyone. You can not enjoy a life
style you have not earned. The Fed has infected the world with all that cheap
USD it has been printing and has inflated nearly every housing market in the
world. When the flight to quality starts and the herd causes the dollar to
rally, then those loans wont be looking so cheap. Emerging markets will get
wiped out and the process has begun. Remember that Japanese real estate is still
60% down from its highs in the 90's. If you have not prepared by now its
probably too late. If you have a medium to large mortgage get out now because
when the panic starts the exit will get really busy. When the bond bubble bursts
liquidity will dry up over night and interest rates will go sky which will
really squeeze the housing market. These are only economic concerns but normally
when an economic event so extreme happens there is usually lots of civil unrest
or they take us to war.The French economy stagnated in the second quarter as household
spending slowed and business investment contracted.
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