The debt-stimulus of China and the pro-business policy of Donald Trump have given a strong lift to the global economy, but the imbalances behind the façade of this economic expansion continue to grow. These detrimental development during the past 9 years is currently converging towards a “perfect storm” likely to engulf the global economy within two years.
We have published a new business cycle forecast. In it, we continue to analyze the world economy, which yields a troubling picture. In the report, we will show why the current recovery lies on unsustainable foundations and why we are closing into a massive downturn in the world economy, a global depression.
The global economic expansion is on its final leg. Signals from the US and from China indicate a slowing economic momentum. Overvalued asset markets have set a stage for a major global deflation. The risk of a global asset crash is growing.