Did you know that financial institutions all over the world are warning that we could see a “mega default” on a very prominent high-yield investment product in China on January 31st?
In other words, it could be a
“Lehman Brothers moment” for Asia.
And since the global financial system is more interconnected today than ever before, that would be very bad news for the United States as well. Since Lehman Brothers collapsed in 2008, the level of private domestic credit in China has risen from $9 trillion to an astounding $23 trillion.
That is an increase of $14 trillion in just a little bit more than 5 years.
Now Ask Yourself What Did They Do With All That Fiat Chinese Paper? Here’s Your Answer For Part Of It.
Much of that “hot money” has flowed into stocks, bonds and real estate in the United States. So what do you think is going to happen when that bubble collapses?
- The Big Dogs On Wall Street Are Starting To Get Very Nervous: Coming To America? China & Iran to Execute Bankers On Fraud Charges!
The bubble of private debt that we have seen inflate in China since the Lehman crisis is unlike anything that the world has ever seen.
Never before has so much private debt been accumulated in such a short period of time. All of this debt has helped fuel tremendous economic growth in China, but now a whole bunch of Chinese companies are realizing that they have gotten in way, way over their heads.