Apr 11, 2025
By: Britt Gillette
The world is now facing the worst economic environment since the Great Depression, and before the dust settles, the world will also witness the greatest financial crisis in human history.
A debt-based monetary system (such as the one the world runs on today) is much like a Ponzi scheme. It requires ever increasing amounts of debt to avoid implosion - just as a Ponzi scheme implodes once it runs out of new investor cash.
In a system such as ours, once debt reaches its pinnacle, the system starts to collapse. This is because bankruptcies and defaults result in a shrinking currency supply, and that shrinking currency supply makes it more difficult for other borrowers to meet their debt obligations. This, in turn, leads to more defaults/bankruptcies and further shrinking of the currency supply. This vicious cycle continues until it reaches a free market equilibrium, and then growth can begin anew.
This process is known as a deflationary spiral.
The Great Depression was a deflationary spiral spurred on by massive central bank credit creation, and we’ve seen many of the same policy mistakes that led to the Great Depression repeated our day and time – most notably, massive central bank credit creation in the aftermath of both the Great Financial Crisis and the COVID pandemic.
Now, the consequences of those poor policy decisions threaten to plunge the world into a new economic depression.
Below are five signs we’re already in a global depression, and one set to get much worse before it gets better:
Global Trade War
A Broken U.S. Economy
The Second Largest Economy Trapped in Deflation
German Deindustrialization
Japan Locked in a Currency Crisis
READ the full article on Britt's Substack.
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