Expert: In 2021, the worst financial collapse in our century will come

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According to the forecast of the famous American economist Harry Dent, president and founder of the consulting company Dent Research, as well as director of HS Dent Publishing and editor of Economy and Markets, in 2021 the planet will be hit by the worst financial crisis in the last hundred years, writes Business Insider.

According to the consultant, this will be the worst market crash in our century. His forecast is based on a long study of the markets and the bubbles that appear on them.



The last global bubble was between 1925-1929. Crises like this happen every two generations and are described by the theory of 90-year cycles. We are just at this point

- he noted.

Dent pointed out that the corporate debt sector has accumulated a huge, record and unbearable burden - $ 10 trillion. It is very similar to what was observed almost a century ago, when the prices of securities and real estate were unreasonably high. The COVID-19 pandemic is exacerbating the situation and the recession will deal a devastating blow to corporate profits as demand continues to fall.

Alarming phenomena accumulated for a long time due to the economic policy... Now the existing "elixir of death" is capable of ruining the business, sending the markets into a tailspin. He compared the pandemic to a "perfect trigger" that became a straw capable of "breaking the back of a camel." The expert warned that all of us are in for a much more severe shock than we observed and felt in 2008-2009.

Now we have the perfect trigger, because we have not dealt with it, have not eliminated its causes. The US Federal Reserve simply printed new money and pulled out of the recession before debt was restructured and companies were recovered.

- he stressed.

The expert explained that there is a certain feature, and when a financial bubble with debt reaches a large size, a forced reduction in the share of borrowed funds begins. This is a natural process. But the authorities set the stage for a new Great Depression with their monetary policy.

He added that each “dose” of stimulus (injecting money into the economy) should become stronger than the previous one. But control over the situation was lost. Therefore, a deep recession in early 2021 is inevitable and many experts agree with this.
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  1. gorenina91
    gorenina91
    -4
    17 September 2020 13: 41
    Expert: In 2021, the worst financial collapse in our century will come

    - Well, if so ... then ... - And what then needs to be done urgently for Russia ??? ... - This is to immediately replace the Minister of Finance A.G. Siluanov and the entire cabinet; nationalize the Central Bank of the Russian Federation, remove Nabiullina E.S. and all her assets; nationalize all Russian gold and diamond mines; with the subsequent nationalization of all subsoil, deposits and all kinds of industries with the obligatory transfer of all Russian land and water territorial zones under the auspices of the state; conduct an audit of the state institute of regional territorial administration with the possibility of quick removal from office of any local ruler (governor) ... - in order to avoid the possibility of sabotage on the ground; and change the political leadership with the creation of a transitional provisional government (something similar to the Constituent Assembly) with the condition of creating local elected Councils on the ground ... and so on and so on ...
    - In a word ... - a change in the socio-political economic course of Russia and ... and the restoration of the institution of Soviet Power and the socialist path of development ...
    - Personally, I am absolutely sure that ... if such a crisis (as predicted by the Americans) will break out; namely :

    the worst financial collapse in our century

    - this is exactly what will happen ... -This will happen sooner or later and this crisis can only push and accelerate this process ...
    -By the way ... such "changes" can occur in the United States ...
  2. Sergey Latyshev
    Sergey Latyshev
    +3
    17 September 2020 13: 50
    The only problem is that no one is ever responsible for unfulfilled forecasts.
    1. Oyo Sarkazmi
      Oyo Sarkazmi
      0
      17 September 2020 18: 16
      Quote: Sergey Latyshev
      The only problem is that no one is ever responsible for unfulfilled forecasts.

      I even suggested that when publishing such forecasts, take a deposit from the author. If about the climate - 10 thousand dollars, about the economy - 100 thousand, about the war - 10 million. If it did not come true - call me. Come true - return in triple size.
      The lottery works according to this principle, why not impose on alarmists and psychopaths in journalism wassat
      1. Digital error
        Digital error
        0
        17 September 2020 18: 38
        Quote: Oo sarcasm
        take a deposit from the author

        Yeah, in the amount of lost profit from premature due to the forecast of withdrawal of deposits from banks / sale of shares. However, here's an ambush - this is a forecast, not a statement. And also, as it has become fashionable to say lately - verbal intervention. The fact that it was done deliberately for the purpose of a certain circle of persons (corpus delicti) - no one will ever prove.
  3. Dmitry S.
    Dmitry S.
    +2
    17 September 2020 17: 00
    There is only one problem: all states live on Stolypin debt. Stolypin once went against this ... Now no one will go for the reason "conveniently" so. For some reason, no one is promoting Stolypin's ideas now, just like the Stalinist gold ruble.
    Bubbles - this is how they are inflated in order to earn money from the spray of bursting bubbles.
    Examples: British pound.
    After his loud "zilch", there was a dollar.
    It is impossible to provide the value of your currency with your resources. Never.
  4. Ky Ky
    Ky Ky
    0
    17 September 2020 17: 30
    And what is bad for mankind as a whole system of debts ?? It has brought unprecedented growth in productivity and technology development. It is a good tool for fast development. Yes, he was vulgarized by the banking system - well, to take control of a bunch of moneybags. But the system itself is quite good and has given the world an unprecedented increase in technology and convenience in 70 years.

    And let this economist obscure it - in the fact that just everything and everyone will be written off to everyone and humanity will move on, as it has already been many, many times. And to be afraid of wolves - do not go to the forest.

    Crises are like exhaling. If you inhale all the time, you will burst. ))
    1. Digital error
      Digital error
      +4
      17 September 2020 18: 45
      Quote: Ky Ky
      Gave the world an unprecedented increase in technology and convenience in 70 years

      The world was given not by the system of debts, but by science. Another thing is that it became profitable in those states to which the "developing" countries owed. Plus the competition was from the USSR - the capitalists, remembering the calls of Lenin's comrade-in-arms (whom they still cannot, although they passionately want, to remove from Red Square) Trotsky for the world revolution, could not afford that Soviet scientific achievements led to a more comfortable existence than under capitalism. Now the USSR is gone - tell me, how many scientific discoveries (achievements) were made from 1990 to 2020, and how many from 1960 to 1990?
    2. boriz
      boriz
      +3
      18 September 2020 22: 06
      The system you have described (inhalation - exhalation) works under the condition of constant expansion of markets. She worked not for 70 years, but from the 17th and even from the 16th century. But even Adam Smith noted that if markets cannot expand, this system does not work.
      Now an unexpected thing has happened: it turned out that the dimensions of the planet Earth are finite. Therefore, the markets have nowhere to expand. And this crisis is not cyclical, but systemic, the last crisis of capitalism. The model has outlived its usefulness. And the other is not yet. This is the whole trouble of the situation.
      Some of our economists predicted and described this situation in 2000. Now, the West is also talking about a systemic crisis. Obvious facts are hard to beat.
  5. Pishenkov
    Pishenkov
    0
    22 September 2020 14: 17
    Judging by the title, I was expecting some serious analytics, but I saw a couple of lines of already well-known cliches ... Why write this at all?