WALL STREET EX-N ° 2 ANNOUNCES FINANCIAL CRISIS WITHOUT PREVIOUS BEFORE END 2020
PUBLISHED BY GOLDBROKER ™ | 10 APR. 2019 | ARTICLES16061
By Delphine Denuit and Matthieu Pelloli
The former number two of the New York Stock Exchange is formal. We must prepare for an unprecedented global financial crisis before the end of 2020. At age 74, the current president and Belgian boss of the consulting firm Galileo Global Advisors, Georges Ugeux, sounds the alarm and decrypts the springs in his latest book "The Descent into the Underworld of Finance".
Even more devastating than the one that shook the planet in 2008, this crisis would this time not be caused by the bad investments of the banks but by the extremely high level of the indebtedness of the States. He explains what makes him fear the worst.
Ten years after the 2008 crisis, what makes you say that we are going into the wall?
GEORGES UGEUX: For years, the states have been able to go into debt in excessively favorable conditions and have not deprived themselves of it. So much so that countries like Italy, France, the United States and Japan have reached a debt level that is no longer sustainable. The amount of global public debt now stands at $ 63 trillion (€ 55 trillion), including $ 10 trillion (€ 8 800 billion) from Europe, $ 10 trillion Japan and $ 22 trillion (US $ 19 trillion) of the United States ... As interest rates rise - as is already the case - budget deficits increase and threaten rating of these countries and their ability to refinance without exploding. It's arithmetic. This is what makes me say that by the end of 2020, we will experience a financial tsunami. What happened to Lehman Brothers is lilliputian next to what lies ahead!
What would be the spark?
I do not know the trigger ... central banks and governments may trigger it by their action. By realizing the dangerousness and the level of their government bonds, some of these players may start selling them and start the spiral that will raise interest rates and we know the rest.
What solutions do you recommend?
We must get out of denial. Central banks must absolutely stop lending easy money. Governments must have better fiscal discipline. And we must test the gradual rise in interest rates as the United States has done to urgently exit negative rates. I am convinced that when you have extremely low rates, moving them one way or another has no impact on the decision of an entrepreneur or household to invest.
>> Read the full interview on leparisien.fr
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Tags: Economy Financial Crisis Central Banks Stock Market Interest Rates Debt Policy
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