Is a Global Debt Crisis Finally Here?

The US Dollar is going to blow up the global debt markets leading to a global debt crisis.

The blogosphere is rife with talk of the “death of the US Dollar.”

The US Dollar will eventually die, as all fiat currencies do. But the fact remains that everyone on the planet has been borrowing in US Dollars or leveraging up using Dollars for decades and a massive debt crisis is coming first.

When you borrow in US Dollars you are effectively shorting the US Dollar. So when leverage decreases through defaults or restructuring, the number of US Dollars outstanding diminishes.

And this strengthens the US Dollar… which means you debts become more expensive… leading inevitably to more defaults and a debt crisis.

With that in mind, it looks as though we are in the early stages of a massive, multi-year Dollar deleveraging cycle. Indeed, the greenback is now breaking out against EVERY major world currency. As I said before, a crisis is coming!

The US Dollar Has Broken Out Against Every Major Currency

Here’s the US Dollar/ Japanese Yen:

The Debt Crisis Means the US Dollar Outperforms the Japanese YenHere’s the US Dollar/ Euro:

The Debt Crisis Means the US Dollar Outperforms the EuroEven the Swiss’s decision to break the peg to the Euro hasn’t stopped the US Dollar from breaking out of a long-term downtrend relative to the Franc:

The Debt Crisis Means the US Dollar Outperforms the Swiss FrancThe fact that we are getting major breakouts of multi-year if not multi-decade patterns against every major world currency indicates that this US Dollar bull market is the REAL DEAL, not just an anomaly.

With that in mind, I continue to believe the US Dollar is in the beginning of a multi-year bull market. And this will result in various crises along the way culminating in a global debt crisis far greater than 2008.

Globally there is over $9 trillion borrowed in US Dollars and invested in other assets/ projects. This global carry trade is now blowing up and will continue to do so as Central Banks turn on one another.

This will bring about a wave of deleveraging that will see the amount of US Dollars in the system shrink. This in turn will drive the US Dollar higher triggering a debt crisis for any debt that is priced in US Dollars.

The US Dollar Is Now Outperforming Stocks!

Indeed, consider that the US Dollar actually MATCHED the performance of stocks for the year of 2014.

The Debt Crisis Means the US Dollar Outperforms StocksAnd it continues to crush stocks’ performance in 2015 as well.

The Debt Crisis Means the US Dollar Outperforms StocksAny entity or investor who is using aggressive leverage in US Dollars will be at risk of imploding. Globally that $9 trillion in US Dollar carry trades is equal in size to the economies of Germany and Japan combined. That is a heck of a debt crisis.

Smart investors are preparing now.

If you’re looking for actionable investment strategies to profit from this trend we highly recommend you take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter that can help you  profit from the markets: we just closed TWO new double digit winners yesterday.

This brings us to a TWENTY NINE trade winning streak… and 35 of our last 36 trades have been winners!

Indeed… we’ve only closed ONE loser in the 12 months.

You can try Private Wealth Advisory for 30 days (1 month) for just $0.98 cents

During that time, you’ll receive over 50 pages of content… along with investment ideas that will make you money… ideas you won’t hear about anywhere else.

To take out a $0.98 30-day trial subscription to Private Wealth Advisory

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Disclaimer: The information contained on this website is for marketing purposes only. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice by Phoenix Capital Research or any of its affiliates, nor is it to be relied upon in making any investment or other decision. Neither the information nor any opinion expressed on this website constitutes and offer to buy or sell any security or instrument or participate in any particular trading strategy. The information in the newsletter is not a complete description of the securities, markets or developments discussed. Information and opinions regarding individual securities do not mean that a security is recommended or suitable for a particular investor. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. 

Opinions and estimates expressed on this website constitute Phoenix Capital Research's judgment as of the date appearing on the opinion or estimate and are subject to change without notice. This information may not reflect events occurring after the date or time of publication. Phoenix Capital Research is not obligated to continue to offer information or opinions regarding any security, instrument or service. 

Information has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. Phoenix Capital Research and its officers, directors, employees, agents and/or affiliates may have executed, or may in the future execute, transactions in any of the securities or derivatives of any securities discussed on this email. 

Past performance is not necessarily a guide to future performance and is no guarantee of future results. Securities products are not FDIC insured, are not guaranteed by any bank and involve investment risk, including possible loss of entire value. Phoenix Capital Research, OmniSans Publishing LLC and Graham Summers shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. 

Phoenix Capital Research is not responsible for the content of other websites or emails to which this one may be linked and reserves the right to remove such links. OmniSans Publishing LLC and the Phoenix Capital Research Logo are registered trademarks of Phoenix Capital Research. Phoenix Capital Management, Inc.
What Happens When the Everything Bubble Bursts?
  • By trying to corner the bond market (risk-free rate)
  • the Fed has created a bubble in everything
  • We call this THE EVERYTHING BUBBLE
  • Reserve your copy of our Executive Summary
  • To prepare for what's coming down the pike!