By Mac Slavo
Bestselling author Nomi Prins says the ultimate destruction of the economic system will be the global debt. Prins, who wrote the upcoming book titled Collusion: How Central Bankers Rigged the World, says that one tiny interest rate hike could destroy everything.
Prins says the debt is historically high, and that this will create untold problems whether governments want to admit it or not. Politicians cannot keep spending imaginary money that they don’t have and neither can regular everyday Americans. In an interview with USAWatchdog‘s Greg Hunter, Prins takes us through what will likely happen to the economy and the reason for its failure.
“These are levels that they have never been, and they are all at their historic highs. That’s why debt will ultimately be the destructor of the system. In order for that to happen, the cheapness of money that allow states, municipalities and corporations to continue to borrow at these cheap levels has to go away. . . . At some point, there will be a mistake. There might be a tiny smidge of an interest rate hike at some central bank, probably the Fed, which ripples throughout the system as a mistake, not because real growth has happened, and that’s why interest rates have been raised. That will incur defaults throughout the system. People will incur personal defaults, and that will cause problems in the mortgage market . . . then it becomes a knock-on credit crisis, and then banks start not to lend . . . . Then we have the makings of a broad crisis.” –Nomi Prins
Prins, who was also a top Wallstreet banker says central bankers have no idea how to stop the easy money policies that they started after the financial meltdown Click to see the original article