Ameripris has warned that the stock markets of Australia and New Zealand are on the verge of a crash, as the world’s largest economy has a debt load greater than $10 trillion.
Ameripress has warned in a report that the global financial system is over-leveraged and is facing a massive sovereign debt crisis, in a stark warning that the “financial system is about to collapse”.
“Our economy has gone into a tailspin, we are in a deflationary spiral and we are facing a global financial crisis,” the company’s chief executive, Tim Carmody, said in a press conference on Monday.
“There is no question about it.
It’s not just Australia, it’s the world, it is a global problem.”
Carmody said the global system is “over-leverage”, meaning that the debt is far greater than its current assets.
“The total amount of outstanding debt is about $10tn,” he said.
“We have a total outstanding debt of about $1.6tn.”‘
We are in deflationary spirals’The economy is now over-specced and the debt load is “at the threshold of a financial crisis”, Carmody said.
“We are now entering a deflational spiral, a spiral that will take many, many years to correct.”
“We have had a crisis for the last three years,” Carmody added.
“It is a systemic problem.”
Carmony said there were a “lot of people” who were in denial about the risks, while others were “trying to take advantage” of the system.
“When we have been through this we have learned from this and we will learn from this,” Carmony said.
Carmoni said the crisis would be felt for decades to come.
“What we’ve been talking about, as you know, is what happens in three to four years, we’ll go through this again, we’re going to come back from this.”
Curtis Harnish, head of financial markets at the Institute of International Finance (IIF), said the financial system was now “overleverged” and had a “serious risk to the world economy”.
“It’s not a crisis, it could be a crisis but it’s not one that is going to be dealt with quickly,” Harnishes told Al Jazeera.
“A major concern for the world at the moment is the global economy’s ability to absorb the shocks of the crisis.”
So the real question is: Is there going to need to be another recession in the world?
Or is there going be a longer period of deflationary downturn?
“That’s going to play out over the next few years and it’s going on now.”
Harnish said the “fiscal and economic shock” of this would have a significant impact on the world economic recovery.
“In fact, the effects of this crisis on the global recovery will be very much amplified,” he told Aljazeera.
The collapse of the financial sector was already starting to have a ripple effect in other countries, as it was pushing down borrowing costs in emerging markets.
“As you can see, emerging markets are now suffering from a very severe debt crunch,” he added.
“You have countries like South Africa and India that have been able to absorb some of the shock from this.”
This is just another sign that the financial crisis is real.
“Carnage, the chief economist at Commonwealth Bank, said the risk to global growth was very real.”
It is just going to accelerate in coming months and years,” he predicted.”
If you look at the recent past, the worst was over a decade ago, the current crisis is going on for two to three years.
So it’s already starting a long way down the road.”‘
A real risk to world economy’The world economy has been in a “fatal” deflationary cycle since the mid-2000s, according to research by the IIF, which predicted the global economic system was over-inflated and in a crisis.
Carny told Al jazeera the global crisis is the “greatest global financial shock since the Great Depression”.”
If we were to say that the world is at the bottom of the food chain, it would be the greatest global financial disruption in the history of the world,” he warned.
Cars, homes and consumer goods have become unaffordable and the world has become a “death trap”, according to Carmody.”
One of the reasons for this is that it’s a matter of supply and demand.
We are seeing that the supply of consumer goods is declining.
He said there was “very little supply in the market” as the global economies were “going through the motions” of trying to”
And as a consequence, the demand for goods is down, and that’s what’s happening right now.”
He said there was “very little supply in the market” as the global economies were “going through the motions” of trying to