by Michael Snyder
January 04, 2015
Will 2015 be a year of financial
crashes, economic chaos and the start of the next great worldwide
Over the past couple of years, we have
all watched as global financial bubbles have gotten larger and
larger. Despite predictions that they could burst at any time, they
have just continued to expand.
But just like we witnessed in 2001 and
2008, all financial bubbles come to an end at some point, and when
they do implode the pain can be extreme.
Personally, I am entirely convinced that
the financial markets are more primed for a financial collapse now
than they have been at any other time since the last crisis happened
nearly seven years ago. And I am certainly not alone.
At this point, the warning cries have
become a deafening roar as a whole host of prominent voices have
stepped forward to sound the alarm.
The following are 11 predictions of
economic disaster in 2015 from top experts all over the globe…
"They are trying to make the
stock market go up and drag the economy along with it. It's
not going to work. There's going to be a big accident. When
people realize that it's all a charade, the dollar will
tank, the stock market will tank, and hopefully bond markets
will tank. Gold will rally in that period of time because
it's done what it's done because people have assumed
complete infallibility on the part of the central bankers."
"In the US, Professor Robert
Shiller's cyclically adjusted price earnings ratio - or
Shiller CAPE - for the S&P 500 is currently at 27.2, some
64pc above the historic average of 16.6. On only three
occasions since 1882 has it been higher - in 1929, 2000 and
one of the most respected economic journalists on the entire
"The eurozone will be in
deflation by February, forlornly trying to ignite its damp
wood by rubbing stones. Real interest rates will ratchet
higher. The debt load will continue to rise at a faster pace
than nominal GDP across Club Med. The region will sink
deeper into a compound interest trap."
The Jerome Levy Forecasting Center,
which correctly predicted the bursting of the subprime
mortgage bubble in 2007:
"Clearly the direction of most
of the recent global economic news suggests movement toward
a 2015 downturn."
Paul Craig Roberts:
"At any time the Western house
of cards could collapse. It (the financial system) is a
house of cards. There are no economic fundamentals that
support stock prices — the Dow Jones. There are no economic
fundamentals that support the strong dollar…"
"I have the same kind of feel in
'98 and '99; also '05 and '06. This is going to end badly. I
have every confidence in the world."
Liz Capo McCormick and Susanne
"Get ready for a disastrous year
for U.S. government bonds. That's the message forecasters on
Wall Street are sending."
Phoenix Capital Research:
"Just about everything will be
hit as well. Most of the ‘recovery' of the last five years
has been fueled by cheap borrowed Dollars. Now that the US
Dollar has broken out of a multi-year range, you're going to
see more and more ‘risk assets' (read: projects or
investments fueled by borrowed Dollars) blow up. Oil is just
the beginning, not a standalone story.
If things really pick up steam,
there's over $9 TRILLION worth of potential explosions
waiting in the wings. Imagine if the entire economies of
both Germany and Japan exploded and you've got a decent idea
of the size of the potential impact on the financial
"What this breakdown in the
crude oil price is going to spawn another financial crisis.
It will be tied to the junk debt
that has been issued to finance the shale oil plays in North
America. It is reported to be in the area of half a trillion
dollars worth of junk debt that is held largely on the books
of large financial institutions in the western world.
When these bonds start to fail,
they will jeopardize the future of these financial
institutions. I do believe that will be the signal for
the FED to come riding to the rescue with QE4. I also think QE4
is likely going to be accompanied by bank bail-ins because
we all know all western world countries have adopted bail-in
legislation in their most recent budgets.
The financial elites are
engineering the excuse for their next round of money
printing... and they will be confiscating money out of
savings accounts and pension accounts.
That's what I think is coming in
the very near future."
"The 2008 collapse was just a
dress rehearsal compared to what the world is going to face
this time around. This time we have governments which are
even more highly leveraged than the private sector was.
So this time the collapse will
be on a scale that is many magnitudes greater than what the
world witnessed in 2008."
"What does the word confidence
mean? Break it down. In this case confidence = con men and
con game. That's all it is.
So people will lose confidence
in the con men because they have already shown their cards.
It's a Ponzi scheme. So the con game is running out and they
don't have any more cards to play.
What are they going to do? They can't
raise interest rates.
We saw what happened in the beginning of
December when the equity markets started to unravel. So it will be a
loss of confidence in the con game and the con game is soon coming
to an end. That is when you are going to see panic on Wall Street
and around the world."
If you have been following my website,
you know that I have been pointing to 2015 for quite some time now.
For example, in "The
Seven Year Cycle of Economic Crashes that Everyone is Talking About",
I discussed the pattern of financial crashes that we have witnessed
every seven years that goes all the way back to the Great
Depression. The last two major stock market crashes began in 2001
and 2008, and now here we are seven years later.
Will the same pattern hold up once
In addition, there are many other
economic cycles that seem to indicate that we are due for a major
economic downturn. I discussed quite a few of these theories in "If
Economic Cycle Theorists are Correct, 2015 to 2020 Will Be Pure Hell
for The United States".
But just like in 2000 and 2007, there
are a whole host of doubters that are fully convinced that the party
can continue indefinitely.
Even though our economic fundamentals
continue to get worse, our debt levels continue to grow and every
objective measurement shows that Wall Street is more reckless and
more vulnerable to collapse than ever before, they mock the idea
that a financial collapse is imminent.
So let's see what happens in 2015.
I have a feeling that it is going to be
an extremely "interesting" year.