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I've often said that 2008 was just a speed bump on the way to the main event.
I do believe that we are in for something absolutely catastrophic when it comes to the global economy.
Looking at the chart, this is total debt, including the private sector - home loans and such, as compared to GDP. In 1929, after the crash, there was a huge rise in outstanding debt, but what it actually represented was the economy shrinking. So debt became a larger and larger in proportion, compared to the economy. Mind you, this is not because debt is rising. People did not take on a whole bunch of debt in 1930, '31 and '32. What was happening was that the economy was shrinking. So this chart rises because the debt is a larger portion of the economy. And then, this is all liquidation here. This is people losing the family farm, and homes being foreclosed on, farms being foreclosed on and businesses going out of business.