$3 trillion corporate credit crunch looms as debtors face day of reckoning, says IMF – Telegraph

This boom / bust pattern has been going on for decades.
Be prepared for another round of deflation such as the Japan “lost decade.” Recession / Deflation may global and longer lasting this time.

Protect yourself with valuable fiat money hidden in a secret place underground. Coins do not earn negative interest such as in banks.

Sacagawea dollars weigh only 8.1 grams = 0.0178574 pounds so $10,000 weighs only 178 pounds.
A Ton of coins is worth $112,000 irregardless of Obama, Yellen, the fed, or any bank bankruptcy.

Coins don’t get eaten by termites and hard for criminals to haul away.
US$ is legal tender so can always be used for transactions (even in most foreign countries).

Time to get out of the financial system and put your money underground. ASAP.

If SHTF and electronics fail you will have the only money in town. If no SHTF then deflation will increase the value of your cash hoard.

Lots of cheap land for coin burial near Elko Nevada that has functioning gold mines doing well. Upscale community visible from freeway for decades.
Make sure you have reliable access to clean water.
Solar power is easy with all the sunshine.

> On Oct 9, 2015, at 1:26 AM, Lothar wrote:
>
> http://www.telegraph.co.uk/finance/economics/11916485/3-trillion-corporate-credit-crunch-looms-as-debtors-face-day-of-reckoning.html

> trillion corporate credit crunch looms as debtors face day of reckoning, says IMF
> A poisonous “triad” of global risks is pushing the world to the brink of a new financial crisis, says stark IMF report >
> “Risk premia could decompress in a disorderly way causing a vicious cycle of firesales, redemptions, and more volatility” say IMF
> Governments and central banks risk tipping the world into a fresh financial crisis, the International Monetary Fund has warned, as it called time on a corporate debt binge in the developing world.
> Emerging market companies have “over-borrowed” by $3 trillion in the last decade, reflecting a quadrupling of private sector debt between 2004 and 2014, found the IMF’s Global Financial Stability Report.
> This dangerous over-leveraging now threatens to unleash a wave of defaults that will imperil an already weak global economy, said stark findings from the IMF’s twice yearly report. >
> The slightest miscalculation, they said, could collapse into a “failed normalisation” of interest rates and market conditions, wiping 3pc from the world’s economic output over the next two years. >
> How debt levels compare in the emerging and developed world
> But indebted corporate balance sheets were just one element of a poisonous “triad” of challenges facing the financial system.
> Seven years after the financial crisis, a combination of lingering debt burdens in advanced economies, and vanishing market liquidity could result in a new credit crunch when conditions tighten. >
> “Policy missteps and adverse shocks could result in prolonged global market turmoil that would ultimately stall the economic recovery,” said Jose Viñals, financial counsellor at the IMF.
> The report called on the Federal Reserve to hold off on its first interest rate hike in nine years and for the authorities in the eurozone and Japan to continue with unprecedented stimulus measures.
> “Managing any outbreaks in financial contagion will require nimble and judicious use of available policy buffers,” added the report.
> The IMF painted a picture of a brittle financial system that was coming to the end of a period of cheap liquidity propped up by low rates. >
> Flashing red: emerging markets are at the tail-end of the credit cycle
> The summer’s stock market volatility and record capital flows from emerging markets hint at the disruption that awaits, said the report.
> “Some markets show clear signs that liquidity conditions have worsened and that accommodative monetary policy is masking underlying risks,”

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