The US is heading towards the biggest economic crash in our lifetime, an outspoken economist has warned.
Harry Dent, the founder of HS Dent Investment Management, said: “Since 2009, this has been 100 percent artificial, unprecedented money printing and deficits; $27trillion over 15 years, to be exact. This is off the charts, 100 percent artificial, which means we’re in a dangerous state.
“I think 2024 is going to be the biggest single crash year we’ll see in our lifetimes.”
Speaking to Fox News Digital, Mr Dent added: “I’m the guy that’s praying for a crash while everybody else is not. We need to get back down to normal, and we need to send a message to central banks.
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“This should be a lesson I don’t think we’ll ever revisit. I don’t think we’ll ever see a bubble for any of our lifetimes again.”
Mr Dent believes that overvalued markets and excessive stimulus spending will be the catalyst for the crisis.
He continued: “The Roaring 20s bubble was not an everything bubble. [A] real estate barely bubbled [in 2008], it was stocks and urban real estate that bubbled.
“This is the one time I’m telling you, do not listen to your financial adviser. Things are not going to come back to normal in a few years. We may never see these levels again. And this crash is not going to be a correction. It’s going to be more in the ’29 to ’32 level. And anybody who sat through that would have shot their stockbroker.”
“That’s an 86 percent crash in the S&P and a 92 percent crash in the NASDAQ. And crypto, it’s going to be 96 percent. So that is a big deal.
“And real estate, by the way, is only projected, by me, to go back to its 2012 lows… but that’s a 50 percent crash for the average house, which went down 34 percent in the last crash, more than the Great Depression, more than any time in history. That is what’s going to hurt people the most.”
An economic crisis in the US could pile further pressure on President Joe Biden, who is languishing in the polls as we head into an election year.
It would also have huge repercussions around the globe.If the value of the dollar were to decrease, this could lead to similar issues for other countries.
Inflation in the US could also impact interest rates, not only in North America, but on a global scale.
This would make borrowing more expensive globally, restricting what governments around the world can spend.
