by Mitch Kokai
Senior Political Analyst, John Locke Foundation
The next recession could put the 2008 financial crash to shame if two experts’ predictions about the worldwide debt of $247 trillion are correct.
Expected to hit the United States within the next two years, the impact has been compared to the severe worldwide economic crisis which started 1929 and last until 1939.
‘We won’t be able to call it a recession, it’s going to be worse than the Great Depression,’ economic commentator Peter Schiff, told the New York Post. ‘The US economy is in so much worse shape than it was a decade ago.’
It means by the time President Donald Trump’s first term should come to a close, the country – which saw debt more than double to $21 trillion over a decade – could be a dire situation.
This is despite the lowest unemployment rate in a generation, tax cuts for businesses and the Dow hitting record highs.
Low wages are thought to be a factor in the slowing down of economic recovery.
‘Obviously, there is a whole lot of optimism — but there is a very good chance the US economy is in recession within the next two years,’ Schiff continued. ‘This is already the second-longest economic expansion in history.’ …
… [A]nother expert supports his prediction that the economy is more trouble than we realize.
‘Should the [US] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue,’ Murray Gunn, head of global research at Elliott Wave International warned.
He notes that household debt in America currently outdoes what is was in 2008 and is around $13.3trillion.