Although various investors and finance experts have been warning of a major recession to arrive soon, David Hunter, a macroeconomic strategist with 50 years of experience in markets, has stated that a full-on depression is going to unfold in the 2030s, based on the observed economic cycles.
Indeed, Hunter believes that there is going to be a depression in the 2030s “because we’re reaching the end of the ability to keep pushing us down the road. You can’t kick this can forever, so we’re laid in this supercycle,” as he explained in an interview with Rosanna Prestia for an episode of her The Ro Show streamed on July 19.
“Depressions tend to happen, they skip generations because you have to get long past the last depression to make the same mistakes they made. It takes a long time to build up those excesses, particularly with all the financial engineering we have today,” he stressed.
Supercycle starts again
Specifically, in the macro guru’s view, a supercycle is “the big cycle between two depressions,” and according to him, at this moment, the world is currently “in this supercycle, which builds up excesses, cycle on cycle.” As he explained:
“Coming out of a depression, people have no debt, they lost their homes, (…) they lost their businesses because of depression, there’s a total collapse of things, and you start over. You’re starting kind of fresh with not many assets but also not many debts.”
However, Hunter further highlighted, “then that builds slowly the first couple of cycles and then faster, as you move along in the supercycle, and then you get to the end where we’re at a depth that nobody can wrap their head around.”
Generational debt building
On top of that, the macroeconomist touched upon the rapidly increasing debt of countries, not just the United States, but also around the world, including China and Japan, which have been struggling with the national debt as well:
“We used to talk about how our kids are going to be saddled with our debt. That’s not even what we’re talking about now. One hundred generations now couldn’t pay for this. It’s just so far out, it’s just going to collapse at some point. That’s going to bring us all down and bring the system down.”
In the meantime, one of the most prominent people warning of an unfolding economic crash is Robert Kiyosaki, the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ who earlier in May said that the US was “sitting on the edge of a great depression.”
At the same time, Bloomberg’s senior commodities specialist Mike McGlone has shared his concerns that the upcoming financial crisis could be the “worst in our lifetime,” rivaling the decade-long Great Depression that started in 1929, as the leading economic indicators continue to contract.
Watch the entire video below: