The Global Bank Credit Crisis
The Global Bank Credit Crisis
By Alasdair Macleod – Aug, 2023
[Matthias Chang’s comments: I have said repeatedly that the global financial collapse is a PROCESS and not a sudden, one time hit! The time, which I had forecasted in 2021, as having commenced already, will be aggravated by the global banking crisis and made irreparable by the current US$ currency crisis. This analysis by Alasdair Macleod is most timely and reinforces further my analysis. Prepare accordingly!]
Globally, further falls in consumer price inflation are now unlikely and there are yet further interest rate increases to come. Bond yields are already on the rise, and a new phase of a banking crisis will be triggered.
This article looks at the factors that have come together to drive interest rates higher, destabilising the entire global banking system. The contraction of bank credit is in its early stages, and that alone will push up interest costs for borrowers. We have an old fashioned credit crunch on our hands.
A new bout of price inflation, which more accurately is an acceleration of falling purchasing power for currencies, also leads to higher interest rates. Savage bear markets in financial and property values are bound to ensue, driving foreign investors to repatriate their funds.
This will unwind much of the $32 trillion of foreign investment in the fiat dollar which has accumulated in the last fifty-two years. And BRICS’s deliberations for replacing the dollar as a trade settlement medium could not come at a worse time.
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