In a YouTube video titled “A Great Depression Worse Than 2008 – Surviving and Thriving During the New Economic Reset,” Arthur Hayes offered his bleak vision for the future of the global economy.
On October 9, industry researcher arndxt pulled out the best parts, highlighting that “the next five years will be radically disruptive,” according to Hayes.
“The next five years will be a complete mess.”
Break 163 minutes with @CryptoHayes
Here are 11 total crypto predictions pic.twitter.com/BSSjzA6p43
– Arndxt (@arndxt_xo) October 9, 2023
Hayes A major financial crisis worse than the Great Depression and the 2008 crisis is believed to be looming towards the end of the decade.
The Great Depression was a severe economic crisis that began in the United States in 1929 and lasted through most of the 1930s. Causes included bank failure, stock market collapse, high unemployment, and collapse of international trade.
Hayes believes this may happen again due to the global adoption of Keynesian economics. this However, it calls for active fiscal policy by the government This has led to the accumulation of huge amounts of debt and a lack of innovation in alternative energy sources.
Hayes also explained the challenges the United States faces, including rising health care costs and defense budgets. There is difficulty in reforming these areas without losing support from the baby boomer generation.
Furthermore, higher debt levels and default probabilities will lead to a depreciation of the currency. The US national debt has reached a record high of $33.5 trillion, and billions of dollars are being added every day.
Hayes also discussed the relationship between money printing, inflation, and resource nationalism and how these factors can contribute to rising prices.
All of the above has already been happening in the United States in recent years, accelerated by the pandemic, lockdowns, stimulus measures, and rampant money printing.
Banks look increasingly fragile, with deposits outflowing and lending standards tightening to recession levels.
There are a lot of comparisons to current conditions and previous recessions.
Interestingly, banks are now significantly tightening lending standards.
According to Apollo, lending standards are now close to 2008 levels.
However, the Fed and many major banks say we are on our way… pic.twitter.com/JqOtxY1lPo
– Al Qubaisi Letter (@KobeissiLetter) October 9, 2023
Dumping crypto markets
As if on cue, cryptocurrency market volatility returned, sending everything into the red again. The total market cap fell by 1.6% during the day, which equates to about $24 billion leaving the market.
Bitcoin It failed to break the $28,000 level, marking another lower high, and fell back to $27,597 at the time of writing. while, Ethereum More was lost due to the institution’s sell-off, sending the asset down 3.3% to $1,578.
What adds to the pain is that the specter of another war looms in the Middle East, in addition to the long-standing conflict in Ukraine.
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