World on brink of financial crash as ‘wave of debt’ threatens ‘unhappy ending!’
A Global Economic Crisis could soon be at hand according to the World Bank's latest economic report, as reported on January 9, 2020 in its biannual Global Economic Prospects repot The World Bank warned of a "debt accumulation wave" which could have an "unhappy ending". In the report, the World bank highlighted four waves of debt accumulation over the past 50 years. The previous three all ended in a financial crisis in many developing countries. The current wave started in 2010 and according to the World Bank, it is “the largest, fastest and most broad-based increase" since the 1970s. The first three waves of debt were identified as running from 1970-89, 1990-2001 and 2002-2009.
At the same time, economists are forecasting continued growth at around 2.5%, but the state of the economy remains fragile.
During the last crisis, from 2008 to 2015, those individuals and businesses which survived and even flourished, were those with little or no debt and cash in the bank.
This is another warning for us, private individuals and businesses to reduce debt as much as possible, and make sure we have enough cash reserves to carry is through tough times.
Proverbs 22”3 says, “A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.”
At our 2020 conference in Malaga from February 5-9, Kurt Bühlmann, from Lausanne, Switzerland, will be addressing this issue. How can we prepare for troubling times ahead?
There is still time to register... for more information visit www.compass1.eu/malaga2020