Forget China! The Federal Reserve is the cause of the next Great Depression

the cause of the next Great Depression Fed is ...

Find out in this article why most international investors are wrong about the unleashing of a new major crisis and the advice of a former advisor to the Government of the United States to protect it. In recent weeksthe stock markets have suffered significant declines that have wiped billions of euros of investors around the world. at the time of the first great stock market crash in August, was accused China of being behind the stock market setback due to the devaluation of the Chinese yuan. Without But what most investors have chosen toignore is that the true cause of this fall in stock prices is the change in monetary policy by the Federal Reserve.Since the outbreak of the financial crisis of 2008, the central banks of States States, Japan and the Eurozone have carried out a monetary expansion totaling 6.5 trillion (US $ 6.500.000.000.000) , the equivalent to 5 times the size of the Spanish economy! This expansion balance sheets of central banks has led toa sharp increase in public debt, which has reached record highs in developed countries. Without going anyfurther, the Spanish public debt exceeds for the first time in history, one billion euros. the key the new Great Depression lies in the high debt and, more precisely, at the cost of financing. And it is precisely in the latter where the Federal Reserve has made ​​what is probably considered the biggest mistake in the history of economics. With the announcement last December 16, the first rise in interest rates in the United States in nearly 10 years the Federal Reserve ended the era of low interest rates. the main result of rising interest rates is a higher cost of funding, which will hit businesses, families and governments with excessive debt and it is contagious to the rest of the system as in 2008. a former adviser to the US government holds the key "the question is not whether a collapse of the world monetary system will occur, but when"