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Countdown to the Next Great Depression (It Could Happen Sooner Than You Think)

Blog Nov 17, 2024

Discover the five crumbling pillars propping up the global financial system and the risks they pose to your wealth. From mounting global debt to overvalued assets and rising geopolitical tensions, these threats are accelerating toward a financial reckoning. Learn how to protect yourself and your legacy by taking proactive steps today. Don’t wait until it’s too late—secure your wealth with proven strategies.

 

CHAPTERS:

00:00 The crumbling financial system’s faulty foundation
00:40 Pillar 1: Global debt explosion
01:17 The debt-to-GDP ratio crisis
02:33 Pillar 2: Banking sector vulnerabilities
03:09 Derivative exposure and shadow banking risks
05:00 Pillar 3: Overvalued equities and assets
06:11 Pillar 4: Corporate debt crisis
07:21 Pillar 5: Rising geopolitical tensions
09:38 The potential for hyperinflation and currency reset
10:17 Why waiting to act is not an option
12:35 How to protect your wealth and legacy

TRANSCRIPTION:

00:00
The pillars holding up the global financial system stand on a faulty foundation, leaving you vulnerable. Mountains of debt, complex financial tools, and markets overvalued by years of easy money have created a system that is on the brink of disaster. A system so interconnected that all it takes is one spark—a sudden bank failure, rate changes, or geopolitical risks—to ignite a crash worse than 1929. This, of course, could result in people losing everything. While we may not be able to stop another Great Depression or worse, today we will reveal the five crumbling pillars holding up the financial system and, more importantly, how you can use this knowledge to act now and protect your wealth before it’s too late.
00:40
The first pillar, which comes as a shock to no one, is the historically high amount of global debt, particularly in the United States, which is leading the way with about $36 trillion and counting. This debt explosion has been driven by years of deficit spending and stimulus packages and is now further compounded by the cost of servicing the debt alone. In fact, in the United States, it now costs roughly $3 billion per day just to service the debt—just on the interest alone. And yes, that includes Saturdays and Sundays.
01:17
But that’s not all. As expenses grow, the impact of each dollar created and spent becomes less. Economists use a tool called the debt-to-GDP ratio, which compares the total national debt to the total amount of goods and services a country produces. The threshold for this ratio is 90%. Once you hit that ceiling, the effectiveness of any dollar created or spent decreases. This means it becomes harder to respond quickly during crises, creditworthiness comes into question, and funding critical programs like social services and military spending becomes more difficult.
01:53
Currently, the U.S. debt-to-GDP ratio is 122%—astronomically high and a level not seen since World War I. Most concerning, this level calls into question the stability of the dollar, potentially leading to higher inflation, a currency reevaluation, or even a currency reset—all of which we’ll discuss shortly. But first, let’s look at the second pillar: the banking sector.
02:33
One of the greatest threats to the entire global financial system is the vulnerabilities in the banking sector. These have been brought on by the high-risk, high-reward appetite of a select elite few, despite the consequences for the rest of us. Banks today are in a more precarious position than they were in 2007. Little has been done to regulate them, allowing them to take on more risk and create more leverage, all while their underlying assets have declined in value.
03:09
This risk is heightened by their derivative exposure—the same risky financial tools that nearly brought down the system in 2008. You might be shocked to learn that derivative exposure has only worsened since then. These so-called “financial weapons of mass destruction” now exceed the global GDP many times over. There are no safe assets large enough to offset that risk. All it takes is one significant stock market downturn to trigger a cascading crisis.
03:45
If you haven’t heard much about this in the news, it’s because much of this risk is tied to the shadow banking sector—a parallel universe of financial institutions operating with no oversight. They are allowed to take on massive risks without holding any significant assets or collateral. Even worse, traditional banks often partner with or absorb these shadow banks, intertwining their risks. Should one shadow bank fail, it could bring traditional banks—and potentially your deposits—down with it.
04:24
This has already happened this year and is likely to happen again, illustrating just how interconnected and high-risk the system has become. Now let’s turn to the third pillar: equities and assets.
05:00
We are in a high-risk situation where assets, particularly equities and real estate, are extremely overvalued. This is the result of years of easy-money policies, not fundamental growth. When asset prices rise without real growth, it’s only a matter of time before everything comes crashing down. This doesn’t just hurt the wealthy elite; it impacts the average American whose savings and retirement are tied to the stock market.
05:38
The continual upward growth of the markets over recent years has left many feeling complacent, thinking the good times will continue. But you and I know the truth: it only takes one serious downturn to wipe out trillions of dollars overnight.
06:11
This brings us to pillar number four: corporate debt. Over the past decade, companies have gone on a borrowing spree, fueled by low interest rates. Now, many are struggling with record amounts of debt as profits decline and they face higher refinancing costs. This isn’t limited to a small handful of companies—it’s an economy-wide problem. Layoffs are increasing, job creation has stalled, and companies are proactively cutting costs.
06:46
This wave of corporate debt could lead to defaults across industries, from retail to tech. Given the concentration of market gains in tech stocks, any significant defaults could trigger a market crash, leading to more company closures in a downward spiral.
07:21
And finally, the fifth pillar: geopolitics. Rising geopolitical tensions, particularly the shifting power dynamics of the BRICS bloc led by China and Russia, are targeting the dollar’s supremacy. This creates a direct threat to the value of dollar-denominated assets, as global reliance on the dollar weakens.
08:33
Beyond BRICS, conflicts like the war in the Middle East could trigger energy crises, impacting industries from agriculture to transportation. The ripple effects of rising costs would impact us all. History tells us that all great empires eventually collapse, and the U.S. is not immune.
09:38
Should any of these pillars fall, the financial system could collapse into hyperinflation, a currency reevaluation, or a reset, leaving dollar-denominated assets effectively worthless.
10:17
The system cannot support its own weight much longer. All it will take is a series of bank failures, a market crash, or a geopolitical conflict to spark the domino effect. That’s why waiting is not an option.
10:50
We must act now to protect our wealth and legacy before it’s too late. If you’re not prepared, it’s time to make a plan. Our team of expert analysts can help. They have years of experience navigating financial catastrophes, including currency resets and life cycles.
12:35
Education is the first step, so I appreciate you being here. If you have questions or concerns, call the number below or click the link in the description to schedule a consultation. I’m Taylor Kenny with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.

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