propertygandhi

The Coming Global Economic Collapse – Are You Prepared?

“No man is an island” means “No one is self-sufficient; everyone relies on others”

This saying comes from a sermon by the seventeenth-century English author John Donne. 

In this article I propose to apply the expression “No man is an island” to the Economic Fortune of Malaysia viz-a-viz the Coming Global Economic Collapse by rephrasing it to read “No Country is an Island”

Many Malaysians, either through ignorance or through indifference, do not pay much attention to “Economic News” that happens in other Countries around the world, in particular Economic News that happens in Western Countries, Japan and China.

When applied to the Economic Fortune of Malaysia, this saying “No Country is an Island” means “Malaysia is not self-sufficient. Malaysia relies on other Countries for our economic survival”

In my article titled “Residential Property Supply Overhang – Causes and Solution” published in this column in February, 2019, I recommended that to solve their respective Residential Property Supply Overhang problems, developers should stop building houses priced above RM250,000.00 each and to sell their existing unsold properties at prices 50% or below 50% of their original prices.

Even without pressures from external economic forces, Malaysia already has to coup with our own “Residential Property Supply Overhang Crisis” that would likely impact the Malaysian Economy and Malaysian Banking Sector.

Global Debt – Cause for Global Economic Collapse

An individual person or family, when they borrow large sums of money from Banks, Credit Card Companies are heavily indebted and will likely face economic hardships and economic collapse that would ultimately lead them into Personal Bankruptcies.

Similarly, when a Sovereign Country Country borrows large sums of money from Banks or from other Countries and are heavily indebted, the Citizens of that Country will face economic hardships that would ultimately lead to that Country’s Economic Collapse like what happened to Venezuela, Zimbabwe and Greece.

The International Debt Clock

Major Countries’ Indebtedness, as at 15-03-2019, based on information extracted from the website “US Debt Clock.org” are as follows:-

Country                National Debt                GDP                             Public Debt/GDP 

                             US Dollar                        US Dollar   

USA                     22,123,064,265,718         20,939,506,232,315       105.65 %

China                      9,159,547,726,521         15,327,209,801,705         59.76 %

Japan                    11,852,422,350,999           4,590,990,659,776       258.16 %

                             Australian Dollar              Australian Dollar

Australia                     908,703,379,815          1,323,000,000,000         68.68 %

                             Ringgit Malaysia              Ringgit Malaysia

Malaysia                     724,396,407,130          1,386,128,287,594          52.26 %

Economies likely to affect Malaysia’s Economy

Due to their proximity to Malaysia being located in East Asia, the economies of China, Japan and Australia would adversely affect the economy of Malaysia when they fall into recession.

As for the effect of a recession in the USA, it is said that “When America sneezes, Malaysia will catch cold”.

Economic Crisis in China  

In September 2018, Bloomberg reported that:

“Its been called a mountain, a horror movie, a bomb and a treadmill to hell. To doomsayers, China’s 34 Trillion Yuan pile of public and private debt is an explosive threat to the global economy”

“Since China is a key driver of global growth, China’s 34 Trillion Yuan pile of public and private debt is a matter of concern for everybody”.

In December 2018, Bloomberg also headlined that:

“68% Chinese Factories Cut Prices, 23% Chinese Factories Lay Off Workers in Trade War”

In January 2019, the World Bank in a Global Economic Report state that:

“A sharper than expected deceleration in China would significantly increase the probability of an abrupt global slowdown”

Property Market Crash in Australia  

Visit the You Tube Channel and type in the words “Australia Property Crash”, we will be confronted with these headlines:

“Australia – A Coming Financial Crisis?”

“What is the future of Australia’s housing market?

“Australian Property Market – How Bad Is It Going To Get?

“The Story Behind Australia’s House Price Crash”

“Economic Collapse News – Massive Housing Crisis in Sydney and Melbourne Accelerates

“Bricks and Slaughter – Exposing Australia’s Housing Crisis”

Global Economic Collapse?

In March 2019, Bloomberg headlined that:

“Global Economy Hits Its Weakest Spell since (2008) Financial Crisis”

In March 2019, Bloomberg went on to advise:

“The global economy’s sharp loss of speed through 2018 has left the pace of expansion the weakest since the global financial crisis a decade ago”

In February 2019, US Authorities reported that:

“US job cut announcements surge 117% in February 2019”

Will the feared global economic collapse and the Next Great Depression happen in the near future?

To answer that question, I will quote from International Financial Expert Egon von Greyerz, who said:

“People must understand that the world has never faced risk of this magnitude. We are now in the final seconds of the global economic collapse, the likes of which the world has never seen before. What will happen next will be worse than the fall of the Roman Empire, much worse than the South Sea and Mississippi stock market crash, and will create a disaster that will dwarf the Great Depression of the 1930s”

“The problem is simple to define and is all based around debts and liabilities. At the beginning of this century, global debt was 80 trillion dollar. When the great Financial Crisis started in 2006, global debt had gone up by 56% to 125 trillion dollar”.

“Today it is 250 trillion dollar. Essentially we are looking at the sort of apocalyptic economic collapse that I have been warning about for a long time, and most people have no idea that it is coming”.

“Nobody is going to ring a bell when the next economic crisis and major stock market crash starts. It is just going to happen, and just like the last time, most people in America and the rest of the World are going to be caught unprepared by the Economic Collapse”

Malaysians get prepared

The Global Economic Collapse and the Next Great Depression will happen! When will it happen? I do not know. All the economic signs both in Malaysia and globally indicate the Global Economic Collapse will happen.

Reduce your debt level as much as you can. If you are not able to comfortably pay your monthly Housing Loan Instalments, sell you house at the best possible price, pay the Bank what you can and negotiate to pay the balance by manageable monthly instalments.

After your house is sold, go rent a house to live with your family. There is no shame in renting a house.

BETTER BE SAFE THAN BE SORRY!

Contact Dr. Ernest Cheong

You may want to contact Dr. Ernest Cheong at ecptlco@gmail.com or gandhiproperty@gmail.com if you need personal advice or assistance.