0 $
2,350 $
4,700 $
1,159 $
COLLECTED IN NOVEMBER

Global Economy Teeters on the Brink of a Recession that will Transform Geo-Politics

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Written by Dr.Leon Tressell exclusively for SouthFront

As we approach 2019 the global economy teeters on the brink of yet another recession which will plunge geo-political relations into a period of great upheaval and rapid change. In 2019 global stock markets will continue to face unprecedented volatility and gigantic losses as the Ponzi scheme pumped up by the cartel of central banks comes crashing down.

The central bank cartel of the U.S. Federal Reserve, European Central Bank, Bank of Japan, and Bank of England together with the Bank of China have flooded their national economies with astronomical sums of money since 2008 in an attempt to stave off collapse of the global financial system. Their money printing experiment has driven global debt from $177 trillion to over $277 trillion today while interest rates have been artificially suppressed enabling a wealth transfer to the 1% of historic proportions. This massive expansion of central bank balance sheets is illustrated below:

Global Economy Teeters on the Brink of a Recession that will Transform Geo-Politics

Click to see the full-size image

During this period global stock markets surged to new historic heights pumped up as they were by the financial heroin provided by the central bank cartel. The chart below clearly illustrates the correlation between the tremendous growth of the S&P 500 and the money printing by the central bank cartel.
Global Economy Teeters on the Brink of a Recession that will Transform Geo-Politics

Click to see the full-size image

Now the chickens are coming home to roost as the global economy slows down and the central bank cartel tries to end their money printing colloquially known as Quantitative Tightening.

The withdrawal of this financial heroin is behind the collapse of global stock markets during 2018 that has wiped trillions off the values of a range of inflated assets.
Global Economy Teeters on the Brink of a Recession that will Transform Geo-Politics

Click to see the full-size image

There is a very clear correlation between the shrinking balance sheets of global central banks and the continuing crash of stock markets. The collapse of the stock values of globally systemic banks poses great dangers to the global economy.

The central bank cartel policies of quantitative tightening, as they attempt to wean financial markets off their monetary heroin, are taking us towards a period of stagflation, reminiscent of the 1970s, which will usher in a period of depressed economic growth and rising inflation. Geo-political relations, as in the 1970s period of stagflation, will become even more unstable and volatile intensifying many current conflicts and threatening new wars between nations and military blocs.

The next world recession will pose severe challenges for the great powers as they jostle to maintain control over strategic raw materials, trade relationships and economic resources. Meanwhile,

The great powers will struggle to cope with the devastating consequences of the collapse of inflated assets from bank failures to the return of mass unemployment. They will all face unprecedented social and political upheaval from their own citizens suffering from the effects of economic collapse.

One thing we can be sure of is that 2019 will be very different to 2018 and the years that have gone before as nations struggle to redefine their political and economic relations with one another.

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  • clearmorning7

    You know what, this is bullshyte, they already stole from us during the TARP, during QE1 & QE2, who got the money? The BANKERS plus MILLIONS in BONUSES!
    We lost our houses, we lost our 401K’s and they are doing this to us AGAIN.
    Wall Street made out like bandits and then President 0bama promised us that they would be punished, and yet, they were ENRICHED, Do you remember him complaining about the bonuses they gave themselves, and yet, it was allowed! Do you know that POTUS 0bama who went into office worth 1/4 of a million is now nearing to be worth a Billion, how the flock did that happen???
    The lobbyists need to be punished, George Soros money needs to be taken away, The promise of the punishment to the bankers needs to happen. OUR wealth, Our hard earned money of us middle classes have been taken from us for decades, how is it that a very wealthy man pays ZERO percent on a loan, but a Middle classer pays 25 to 29% How the flock does that happen or allowed???
    If this recession happens again it better be the RICH that pays for it this time and not our 401K’s. The knashing of teeth tis time will be no joke, there are already too many out there angry, and all you need is a populace with no job, no money and nothing else to lose, that has been maligned, called all sorts of bad names-no matter how innocent we were, no matter how calm we were while we were attacked simply because of who we supported, simply because we were patriots. Well, believe me, there are a lot of Patriots out there that have had just one too many straws on their backs, it is not going to take much more and the Democrats will finally get the war they have been pushing for close to a decade now!

    • FlorianGeyer

      It’s time to dust off the pitchforks and make sure we have a stock of rope :)

      • clearmorning7

        Plus tar and feathers, some good ole fashioned punishments are very, very necessary, plus I would not mind bringing back the stockades and putting a few CONgressmen/woman as well as SINators in them, lets us remind them of our founding and why we did it. It was not all about religion as to why we pulled away from the King, but it was also the theft of our labors and wealth and lands. which our most beloved representatives think they OWN and are better than us, we might as well have a monarchy with their type of behavior!

        • FlorianGeyer
          • FB

            LOL

        • Sinbad2

          The original American revolutionary’s were the original American plutocrats, the only difference between them and the Lords in Britain was the title.
          American plutocrats refused to pay tax back then, and still don’t pay tax today.
          Poor working Americans pay tax to keep Americas plutocrats in luxury.
          The whole equality story is just BS, to keep you in line.

    • Brother Ma

      Why is obama worth a billion? I believe he had been enriched but with what?

      • Jesus

        I do not know if Obama is worth a billion, however, the presidents that play by the rules and are malleable receive many benefits from the elites after they are out of office.
        Look at Clinton, he established a foundation and most donors were involved in some political paybacks.

        • Brother Ma

          Yes, that is right.

    • Jesus

      Stay in cash or convert to cash, the markets are gradually going down, it’s not an immediate crash, it’s a continuous hemorrhage.

    • Zionism = EVIL

      Americunt economy is in real trouble after 18 years of lost wars for Zionist parasites.

      • Jens Holm

        You are a parasite or zionist.

    • Zionism = EVIL

      A third of natural-born Americans are thinking about packing up and living … percent) to live abroad is the simple desire to live a better and peaceful life. US ranks lower in human quality indices than most of its neighbors and most OECD nations.

  • Daily Beatings

    The Federal Reserve doesn’t fire up the printing presses as everyone believes. Quantitative easing (QE) just involves numbers on a computer screen allocated with the purchase of securities, usually from the Federal Government, in order to increase the money supply. Also by charter the Federal Reserve allocates back the to the Federal Government any gain while holding the securities, minus a small administration fee.

    • Empire’s Frontiers

      The fed is inventing currency and using it to purchase bonds on the secondary market, and at auction.

      Doing this artificially changes the global lending environment, and creates an endless liquidity environment for any creditor.

      It also allows for many arbitrage schemes to spring up.

      The ‘press’ is digital, but at the end of it all, those with access to credit have experienced an essentially limitless printing press.

      Your point seems to not address an economic point, but a semantic point regarding the phrase ‘printing press’

      • Daily Beatings

        Teach your grandmother to suck eggs? Yes we know it changes the lending market by providing excessive liquidity and is unsustainable in the long run. I made a statement on how QE actually functions for those who may not be so adept in monetary policy.

        • Empire’s Frontiers

          You didn’t

          You made a remark about currency not being ‘printed’

          Which everyone knows.

          • Daily Beatings

            Not only does the Federal Reverse not physically fire up the printing press but metaphorically they also don’t fire up the printing press.

            The debt instruments purchased are assets that are entered on Federal Reserves books. As such the additional liquidity placed into the marketplace is the offset to the underlining asset, therefore currency itself is not created or “printed”.

            You’re the one that want’s to be pedantic about the phase, not me.

          • Empire’s Frontiers

            Now you’re just adding to my post.

          • Daily Beatings

            No, you made the assumption I was taking about “printing on stacks of paper” without actually following the discussion.

          • Empire’s Frontiers

            You literally made the remark about not firing up a printing press, then stopped there. You can still go read that post.

          • Daily Beatings

            No, the article spoke about “money printing” not once, but twice. Printing money usually involves a printing press of some type, therefore my statement was relevant to the article.

          • Empire’s Frontiers

            So you’re acknowledging a semantic quibble with the article was the point of your first post.

            That’s what I’m saying too.

          • empiresfrontiers 5++

          • Daily Beatings

            In addition you made the statement that the Federal Reserve was “inventing currency”, which is completely inaccurate since they still hold the underlining asset.

          • Empire’s Frontiers

            The underlying assets keep being brought into existence too.

            You know where treasuries come from, right?

          • Daily Beatings

            Treasuries can be sold on the open market as they are liquid. Until the United States defaults on such obligations the debt is booked as an asset.

    • Ger

      How much is a small administration fee on $22,000,000,000,000 …. my eyes got crossed. Is there enough zeros?

      • Jens Holm

        You are expectig a baby ? :)

      • Sinbad2

        American banks charge 0.1% fee to exchange currencies, American banks make 1 billion dollars a day in money changing fees.
        It’s a great racket.

        • Jens Holm

          And You work for nothing as a gift.

          • Sinbad2

            That statement is so Jewish.

  • AJ

    Get prepping if you already havent. Stock up on freeze dried foods, gold/silver. Get your money out of the banks & markets.

  • occupybacon
    • Empire’s Frontiers

      Tell us what that actually means.

      Not in the sense that 1 dollar trades for more units of a foreign currency, but what that circumstance means in real terms.

      Following up that answer, I wonder what you think of Chinese policy geared toward ‘de-valuing’ their own currency against the dollar.

      I’ll look forward to hearing back.

      • occupybacon

        That means the Russian citizens can buy less stuff from themselves and the oligarchs can sell more stuff outside enlarging the already huge gap between the upper class and working class

  • Jesus

    The central banks have primed up the global stock markets with liquidity in order to drive stock prices higher and provide the banks with the opportunity “to recuperate” the losses suffered during 2008. Now, ventral banks are raising interest rates so that they reach a neutral rate to correspond with the prevalent economic activity, and the stock markets don’t like it because:
    1. In case of a screw up the central bank does not guarantee intervention by pumping hundreds of billions or trillions to avert the financial meltdown.
    2. Higher interest rates constrict speculation, using borrowed money (margin) to gamble an stock market movements.
    3. Higher interest rates affect the liquidity of money available for big banks to play around doing nothing and earning billions as a result.

  • Empire’s Frontiers

    Every time a citizen votes, and files his taxes he offers his consent.

    The first step for any citizenry is to disengage these two activities first.

    21st century revolution must be intellectual.

    Anyone daydreaming about a 3rd violent American revolution, for example, should start day dreaming about what happens to nuclear power plants without engineers. Among other pertinent modern considerations.

    If global citizenries carry on voting for, endorsing, and funding their governments, this period of machines and fascism will stretch 1000 years.

    • clearmorning7

      Easy enough to state for some, but there are many that cannot. I can attest that my 401K was killed under 0bama, my family took a huge financial hit. There are many in the same spot as myself, through various circumstances. I have a very expensive special needs child that seriously drained my finances and also cost me several very good paying jobs. I know others in different circumstances of reasons why they cannot be in a position so as to pay taxes or ask for refunds, even though we do not qualify. Whether you vote or not, it is near impossible to be off of the grid, sometimes banks are a necessary evil, and yes we were fools to once again trust our companies that we could save in 401K-for some, like myself, we have few options! So the powers that be ARE killing us slowly, and that straw, once we have no other recourse WILL be broken, the best savings my friends right now is ammunition-of that, I have plenty!

      • Empire’s Frontiers

        The hard choice you’re facing is the death of your child, abandonment of your present life, and the adoption of an largely unimagined future.

        Just as you suggest the federal system is killing slowly, the only way to kill it is to turn your back on it.

        Stop voting, stop filing.
        Pay, but don’t file.

        Don’t go off grid, begin excluding the federal order from your life, and keep up the dry fire practice.

        If you stay compliant, nothing can change.

    • Ricky Miller

      I disagree. We need to follow the law, pay our legal tax, and network for a new political movement outside the political parties that always find their place near the halls of power. Voting matters. You can’t take care of your family or prepare for a breakdown in the current economic order if you’re in jail or always paying a fine to the man. And if I, and several tens of thousands of others here in the upper midwest hadn’t voted at all in 2016 then Hillary Clinton would be President and the USA would never leave Syria. And as a consequence Russia and the U.S. would probably be engaged in a low boil air war in Syria contesting her no fly zone. What we need is a real citizens led movement electing non conformist candidates from a new party hell bent on major change. We can’t get there if we’re not involved, if we don’t vote.

      • Empire’s Frontiers

        Every form of engagement with the system will be co-opted and controlled.

        The only way to prevent this is disengagement en masse. No one can co-opt being ignored.

        The federal order is much smaller than society, but the fear present in your post blinds you to this.

        We can live without them, it cannot live without us.

        • Ricky Miller

          The problem is that for every person you convice of that, who withdraws, several others will remain plugged into the system with even more votes that enable the power elite. Our disengagement simply solidifies the entrenchment of the ruling elite, leaving fewer political opponents. This means less chance of escaping both an economic and ecological twin catastrophe.

          • Empire’s Frontiers

            It’s the reverse.

            For every two that stay plugged in, they are having lunch with a disengager and the news spreads.

            The entrenchment of the ruling elite at this time is absolute.

            Hundreds of millions of people compliantly funded their entrenchment in April, and hundreds of millions reaffirmed and consented to the system giving rise to that entrenchment in November.

            The ruling class is fully liberated, and the citizenry fully captured.

            Your suggestions can only extend this present circumstance because you suggest carrying on exactly as you have been.

            Compliance can change nothing, and a system cannot be fixed while it’s operating.

            Put simply, you have to abandon the myth of America.

  • David Wadström

    Idk, I´ve been hearing this from time to time ever since 2008, yet the behemoth keeps sloshing forward… their means of manipulation keeps getting more and more sophisticated, while people in general remains the same as we´ve ever been, for the last 5000 years anyway.

    • Promitheas Apollonious

      everything has an expiration date.

    • Sinbad2

      Yes they have been manipulating the markets, but it costs money to manipulate the markets, money that they have to print. Since 2008, in fact since 1972 they have been manipulating the price of gold as a way of maintaining the US dollar value.
      Since 2008 every asset class has inflated, except gold.
      It seems that some people have finally decided to jump ship on the US dollar, and are boarding the gold express to the moon.
      Now maybe they will manage to throw enough dollars at the gold price to bring it back down this time, but next time or the time after reality will prevail, and the US dollar will display its true value, about 50,000 greenbacks for an ounce of gold.

      • Jens Holm

        Again mainly crap. The prices of oil and gas systematicly are manipulated as well.

        There is no true price for gold at all, but You can try to define a level making stability,.

        • Sinbad2

          Yes the price of oil is was manipulated, originally by the French and British, and then by the Americans. But Iran and Russia are not controlled by America, that’s why the Americans are so eager to control or invade both countries.

          • Sinbad2

            PS
            If you notice it’s still the FUKUS countries that invade the oil producing countries.
            FUKUS needs to control oil/gas supplies to control the world.

          • Jens Holm

            Thats right. Before oil only was for local lamps and You got nothing.

          • Jens Holm

            No, offence but Russia did invade Iran in WW2.

          • Sinbad2

            What has that got to do with the price of fish?

            But as long as we are off topic, Russia also invaded Korea, and withdrew from both countries as soon as Germany and Japan were defeated. The US still occupies the countries it invaded during WWII.

          • Jens Holm

            You started being fishy Yourself. Sorry catching it like that.

          • Reza Rezwani

            Wrong, UK and Russia invade Iran in WW2

          • Jens Holm

            https://en.wikipedia.org/wiki/Lend-Lease

            They took the western part of Iran with britts and americans for import of military equipment.

            It was for minimum a railway and a mainroad passing Quam.

            Many 1000 bedford trucks wirh fuel came in there as well as stacks airplanes. It also included many 1000 jeeps.

        • Empire’s Frontiers

          Sinbad’s suggestion is that there was a situation when the US transitioned away from a gold-backed currency.

          There were already many more dollars than there was gold.
          If physical delivery had been requested en masse, the shortage would be known and the ‘true price’ as he puts it, would have been discovered.

          Yet today, there is a lot more paper gold out there than there is metal that can actually be delivered.

          But people don’t want gold, they want to gamble.
          The music will stop when they find they suddenly need their dollars, and find their GLD etf shares are worthless. At which point the real gold shortage will be known.

          Correct me if I’m mistaken.

          • Sinbad2

            True President Johnson sold Americas gold to pay for the Vietnam, war via the London gold pool.

          • Jens Holm

            Well I remeber that, but I also remember fx GB pounds being floaters and named as shit by Germans and Dutch on my vacation.

            Danes have a very open economy. True its a choise but its not gambling. Investments are not random, so You choose and as seen during many years western edonomies has grown. We have less poor people then ever.

            Here gold or gambling are one by many options. As I have written here free schools education, skills, hard work and You are paid pr hour for, whay You actually fo – is much mpore important – as lomng as You can buy/trade it for, whaty You need.

            And no, music will not stop, when they need their dollars. We will help them, because we export more to USA then we buy from then. If their need becomes big, we cant sell our produced things.

            But of course we will ask them to improve by spending less money and produce more or better. And You might have forgotten, that USA today is in the high level, so stepping down a little wont change much.

            But off course they will get trouble if they cant improve. Well, then we could help them buying some more of their companies. Many are owned by americans and others here too.

            Loook at their car industry. Others did better and cheeper partly by wages but also about design and quality. Foreigners bought parts of the good ones having hopes inside and Obama reduced old very good but to old producers and helped them to produce, what they were good at only.

            But they dont need cars.

            Thats how things are. verytyime You buy a cow its same thing. It start with giving no milk, gives milk, gives a lot and then less and less. So what do You do. I am no hindu and let it die by age. I slaughter the cow, eat or sell the old meat and buy a new an hopefully new cow.

            Of cpourse there is a risk there too, but we do export a lot of milk even to China.

          • Empire’s Frontiers

            I don’t think we’re talking about the same things.

        • Sinbad2

          “There is no true price for gold at all”
          If you accept that money is merely an intermediary used to trade, the amount of gold need to buy wheat is a good place to start.
          Look at how the price of wheat in dollars has risen, but the price of wheat in gold has fallen.
          In 1960 a bushel of wheat cost US$1.58 today that same bushel of wheat costs US$5.14.
          In 1960 a bushel of wheat cost 1.5 grams of gold, today it would cost only 0.3 of a gram.

          All fiat currencies eventually debase themselves out of business, it’s in the nature of man.
          You can’t just print more gold, that’s why man has trusted gold for 5000 years, and fiat currencies only last about 200 years.

        • Luke Hemmming

          Yes gold is manipulated by the Rothschild Banking cartel because it is the front companies they control that do it. The large tentacles of the Rothschild family reach out to many economic sectors as well as many different industries. Using front companies and family trusts to hide themselves from direct identification is easy as they own the accounting firms that ‘cook the books’. They control the BIS (Bank of International Settlements), the bank that the Central Banks borrow from. They are at the top of the ponzi scheme. They are the tip of the triangle. If you understand this concept then you know how it is ALL manipulated and it is ALL planned. Total economic collapse to usher in some form of one world currency, ie digital currency.

    • Empire’s Frontiers

      This cycle of monetizing ‘good assets’ [US T bonds] has been oscillating since at least the early 1900s.

      These crashes are built in, and anticipated by those in power.

      https://en.wikipedia.org/wiki/Emergency_Banking_Act

      • Jens Holm

        Funny if true.

  • Real Anti-Racist Action

    We want a total collapse of the current Zionist world order.
    We want nations states based on ethnic tribes.
    Finally, fair equality. Everyone has their own land for their own peoples to do with as they please.
    All cases settled.

  • FB

    Excellent article…if you have been paying attention, you could see this coming a mile away…

  • Jens Holm

    Another doomsday prepper. If true Russia wil be the first to callapse, bacuse we then will buy less oil and gas as well as they build big pipelines for it.

    Dresscode for Oligarks might be naked according to Tressel.

    It will be nice see them back in their little daccas well suppported by the Russian Pensionfond for average people.

    Tresel also talk about the many empty money by the Bans, but not where they come from. Among many
    the danish banks by dirty tricks has transmitted for billions and billions of Russian money out putting them anywhere, where they pay non or hardly none tax.

    So remember that, when You next year will see Russian Oligark Mafiosas desperat raising chickens for and egg now and then in Youtube.

    Stagflation is no option in most of the world unless its much more sick then most others. Only few are that, so mainly high interest can buy time for solving.

    Danes and Nato also wil not be invaded by the Russians, because they cant effort to produce and buy their own fuel.

    And if Tressel is correct even the chinese has to save money by using only one chopstick and never a spoon :)

    • Sinbad2

      It’s easy to get confused about economics, the level of abstraction in today’s financial world seems to have nothing to do with the reality of trade, but it is all based on exchanging goods you have, for goods you want.
      So what does Denmark have to trade, fish?
      What does America have to trade, dollars?
      What does Russia have to trade, energy and food.

      The reason Danes(Vikings) pillaged other countries is Denmark is a snow covered rock.
      America grew rich because of its vast resources, but like the Saudis they squandered their resources.

      So Russia grows rich, and you are eating fish again.

    • Sinbad2

      All of a sudden you can write a coherent sentence, what happened?

      • Empire’s Frontiers

        My guess is British girlfriend.