Thank you for a very interesting and informative article.
At this stage in the economic cycle a recession is overdue but has been avoided by the gigantic money printing of central banks across the globe.
Of course, the money printing by the Fed, BOJ,ECB, BOE and BOC has grown debt to astronomical proportions but it has not solved the underlying stagnation tendency of modern day capitalism.
In its latest economic newsletter the San Francisco Fed is stating
"the U.S. is facing a future of slow growth, a “new normal.”
Last year the head of the San Francisco Fed, John Williams, pointed to the
''global growth slump'' as a long term trend caused by demographics etc.
Last July Williams was warning:
"monetary policymakers will need to prepare for the next storm by taking appropriate actions in advance ...''
Have central banks initiated any fundamental reforms of the global economy. Of course not. The global ponzi scheme that passes for the world economy managed by world central banks is caught in a terrible dilemma. Debt levels have risen dangerously high. They are trying to ease this problem by gently rise rates and cutting back their money printing programes. Sadly, for them global consumers, especially U.S. consumers in debt to over $13 trillion, are drowning in debt that they cannot ever afford to pay back.
The markets are responding to this rise in rates, especially short term rates like Libor, with increasing volatility.
The next global recession will be much worse than 2008 as central banks have only compounded the problems that caused the crash then.
What happens when the global derivatives market goes down for the count?
When the stock and bond markets tank we are liable to see QE4 by the Fed and more money printing by other central banks. I would be surprised if this did not lead to hyperinflation after a nasty bout of deflation caused by the collapse of global markets.
As little people all we can do is to prepare for the coming financial storm as best we can. Knowledge is power.
I strongly recommend reading about the the causes and consequences of the 2008 economic crisis. A great short book for this is:
The Great Financial Crisis:Causes and Consequences by John Bellamy Foster and Fred Magdoff.
I agree with most of your suggestions for prepping for the next global depression. Get ready for huge social, economic and political turmoil.