New Survey States Economic Collapse is 99.9% Unavoidable in 2014

Global risks are accelerated: everyone is in a historic transition that few will be able to recover from, says The Wall Street Journal

The crisis ahead will be worse than 2000 and 2008 states the new Wall Street Journal survey that summarized the views of financial leaders who were interviewed over the last year.

The underlying reason is simple: “a monetary policy that is fundamentally flawed” – the Federal Reserve System is still “printing cheap money”.

“The Feds should stop micromanaging the economy, which includes debt buybacks and investing in private companies,” urged David Stockman, director of the Office of Management and Budget of the U.S. between 1981 and 1985.

Meanwhile, William Hunt Gross, founder of PIMCO, one of the largest global asset managers of the fixed income investment world, warned of “supernova credits.” He explained that his company has two billion dollars at risk if cheap money from the Federal Reserve explodes.

“Investment banking a decade ago only promoted the development of small business, but it is now being dominated by leveraged speculation,” Gross said.

The world is caught in a mega-bubble that has no name and analysts warned the Federal Reserve that the bubble “is about to explode, as did the Asian financial crisis years ago.”

The paper, which focuses on data, research, and tips from financial advisors, warned that millions of investors have no idea what will happen. Sooner or later there will be “another ugly battle” related to debt and the markets will be “crippled”.

Gary Shilling, columnist for Forbes, warned of an expanding bubble. He calculated a very slow real GDP growth for the next eight years of only 2%, and promised an even more serious global slowdown over the next generation.

“I am 100% sure that the crises that we are moving towards will be much worse than 2008,” he said.