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5 Signs We’re in a Global Depression · The Slippery Slope

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OK, my name is Jay Fallon, obviously, and this is the
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slippery slope. So I just want to talk about the
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current financial situation, global financial situation.
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Obviously we've had all the issues with, well, the the
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latest, the latest thing is what Trump's doing.
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However, the globe has been in a dire financial situation for a
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long time. I don't think, I don't think for
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a second, I don't believe that the current crisis that we're
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facing really has anything to do with Trump or he's done
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something which might be the just brought it all to a head in
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a way. However, we've something has to
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change. Something had to be brought up.
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Some changes needed to be made in order to fix the dire
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financial catastrophe that was coming anyway.
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So we really have no choice. Someone was going to bring the
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pain one day and it happens to be Trump and Trump and this and
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his government at the moment. But I want to go through what's
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Britt, Britt Gillette. Britt Gillette, he I think is
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probably one of the one of the best people when it comes to
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explaining financial, the current financial situation.
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Let's let's check it out. So this is his, his sub stack.
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I'm not going to read the whole lot.
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It's very, very long. Anyway, it says 5 signs we are
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in a global depression. I would I would encourage you to
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check out Britt Gillette. Britt Gillette OK, so the
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world's now facing the worst economic environment since the
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Great Depression and before the dust settles, the world will
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also witness the greatest financial crisis in human
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history. A debt based monetary system
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such as the one the world runs on today is much like a Ponzi
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scheme. It requires ever increasing
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amounts of debt to avoid implosion, just as a Ponzi
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scheme implodes once it runs out of new investor cash.
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It's funny, you know Ponzi schemes.
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Obviously they're very bad. Highly illegal however, and
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offset this for a long time. About the Australian housing
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market. The Australian housing market is
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just a Ponzi scheme that the government is running.
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It's fun for them to do it, but hey, you and I don't you get on
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it. In a system such as ours, once
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debt reaches its pinnacle, the system starts to collapse.
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It's all built on debt, this one that we have, this monetary
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system. This is because bankruptcies and
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defaults result in a shrinking currency supply, and that
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shrinking currency supply makes it more difficult for other
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borrowers to meet their debt obligations.
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This in turn leads to more default slash bankruptcies and
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further shrinking of the currency supply.
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This vicious cycle continues until it reaches a free mark
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with market equilibrium and then growth can begin anew.
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This process is known as a deflationary spiral.
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So the the Great Depression was a deflationary spiral spurred on
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by massive central bank credit creation.
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And we've seen many of the same policy mistakes that led to the
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Great Depression repeated our day and time, most notably
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massive central bank credit creation in the aftermath of
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both the Great Financial Crisis and the Covad pandemic.
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Now the consequences of those poor policy decisions threaten
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to plunge the world into a new economic depression.
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So below. So we're going to read the five
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signs we're already in a global depression and one set to get
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much worse before it gets better.
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I just before we go on and I'll read all these these 5 signs.
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You remember what happened. He, he's saying the consequences
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of poor policy decisions. So we had the, the massive
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central bank credit creation in the aftermath of both the great
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financial crisis and the COVID pandemic.
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So here in Australia, obviously we were just printing cash.
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We're doing massive handouts. I think which one was it there
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where Kevin Rudd was in charge, the financial crisis, the GFC in
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2008. So, you know, they decide, hey,
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we're just going to give out money to everyone so that
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they'll go out and buy TV's and keep the economy, keep the
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economy going. And at the time I'm sitting
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there, we were in a quite, quite a good way financially.
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Australia was, I think off the top of my head, I'm going to say
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something like 30 billion in the black.
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We were. So we were, we were quite going
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quite well and we had that money, in my opinion, I believe
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it was and you know, I'll stand corrected, but I believe it was
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because we come out of the Howard, Howard Costello era of,
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of government and they put us on a good, a good footing
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financially. Australia.
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Now I don't think everything they did was great.
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I think they sold off assets and they did things I think we would
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have been better off not doing. However, we weren't a trillion
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dollars in debt like at the moment.
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So that's what they've done. You have the GFC old K Rod.
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K Rod 7 says, hey, let's just go and give money away, which
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didn't seem to make sense, which at the time you'd think, well,
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why don't we go and spend the money on doing works around the
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country that would, you know, like, for instance, you could
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have built a massive double lane highway from Brisbane to Cairns,
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you know, spent the billions of dollars doing that up.
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You would have kept people working and we would have got
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something out of it. But instead these nafties say,
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oh, no, let's just give the money away to all the, all the
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people in the, you know, the lower echelon of society and all
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the school go out and buy TV's. And then obviously the other one
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is we had the COVID and governments decided, hey, let's
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just go and let's just go and support everyone.
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We're going to lock them all down, keep everyone locked down.
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But don't worry, we'll give you heaps of extra money so you can
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go because we're not going to lock down bottle shops.
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We're not going to lock down bottle shops and and sex shops,
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but we'll lock down churches and other shops.
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But we won't lock down bottle shops and sex shops.
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So and we'll give you extra money.
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Go figure. Anyway, so that's what they did.
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So that would basically just printing money.
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So this is what part of what they're talking about anyway.
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So first on a global trade war. Following the Trump
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administration's tariff announcements on April 2nd, the
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world is now engaged in a trade war.
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In addition, the deflationary problems, it's already dealing
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with war. So President Trump on the
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Wednesday unveiled expansive new tariffs in a major escalation of
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his trade war, referring to the historic move as a declaration
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of economic independence using national emergency powers, Trump
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announced 10% tariffs on all imports into the United States
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and the even higher tariffs on goods from other sixty countries
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or trading blocks that have a high trade deficit with the US.
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That includes China and the the European Union, which will be
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levied new duties of 34% and 20%, respectively.
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So in response, China's finance ministry said it will impose a
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34% tariff on all goods imported from the US starting on April
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10. Now, things have changed with
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this slightly, but I'll get into that afterwards.
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So I'm not going to read all of these articles, all these points
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all the way through because they're very, very long.
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So I'll go down to the second sign is there.
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He says a broken U.S. economy. So goes on to say the Federal
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Reserve Bank of Atlanta now expects first quarter GB GDP to
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be -2.8%. Wow.
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Got a graph if you're watching some video where it's just gone
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straight down. This is despite American working
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Americans working more than ever.
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The number of Americans holding more than one job hit an all
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time high in February of 8.86 million people, which is 5.4% of
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total employment, the highest share in 16 years.
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Meanwhile, the number of Americans holding a primary full
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time as well as a secondary part time job increase for by 395,000
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in February to a record 5.37 million people, which is 3.3% of
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total employment, the highest proportion since 1999.
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What's going on? Plummeting consumer sentiment,
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inflation concerns, tariffs and increasing likelihood of
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recession. Market volatility, political
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uncertainty. Faced with a cloudy future and
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rising costs, Americans are working more and harder.
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OK, so that was the first one. So you got the the American
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economy starting to tank, Obviously the Third Point, keep
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scrolling down here. The the second largest economy
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trapped in deflation. So as the world's number 2
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economy, this is China. China is already trapped in a
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deflationary spiral. I spoke about China's economic
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woes, I think probably a couple of years ago, two years ago now.
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How obviously you saw the the collapse of its real estate.
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What's a massive company that was just losing 10s of billions
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of dollars and you could see the writing on the wall years ago.
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And but yet in classic China, China ways, you know, they don't
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come clean with anything. They don't turn around and give
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give everyone a heads up and say, hey, there's a bit of
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trouble brewing here. No, no, that's right.
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They they like everyone to think or everyone to be scared and
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everyone to just think. I know China has got all under
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control, but they are in big they are experiencing major
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problems. So it's trapped in a
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deflationary spiral having lost over 18 trillion.
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I said trillion with a T That's T for T18 trillion in its
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property sector alone since 2021, according to Barclays.
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And as of yet, we see no indication the situation will
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change any time soon. As reported, when Xi Jinping
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became president in 2013, there was watch widespread optimism
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across China. At that time, many Chinese
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economists held a linear viewpoint, believing that the
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country's development would progress continuously.
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However, today China finds itself trapped in a deflationary
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cycle. It was Evergreen, sorry, that
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was that company. Evergreen has collapsed.
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Deflation occurs when weak demand leads to falling prices
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for goods and services, especially industrial products.
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Food staples are typically less affected.
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This price decline results in consumers and businesses
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refraining from purchases, as they expect even low prices in
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the future, which can trigger drops in wages and set the stage
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for a recession. China has been experiencing
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continuous deflation, with prices falling for six
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consecutive quarters. 6 Traditionally, Beijing has
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responded to deflation with aggressive monetary easing and
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fiscal stimulus. However, since the COVID-19
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plan, the the government has taken a more cautious approach
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to prevent a rise in debt. So if you, if you know anything
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about China, they have got Yeah. So the housing market has just
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collapsed. It says here China needs more
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significant stimulus to crush deflation fears economists.
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But I don't think there's anything they can really do.
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Restaurant, Chinese restaurants race to the bottom in deflation
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hits economy. So anyway, so that was the the
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third one #4 German deindustrialization.
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So if you don't know German, Germany is the third largest
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economy. It used to be America, then
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Japan. Anyway, so you know, Japan lost
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the plot ages ago and we'll get on to that.
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But #4 the 4th sign as the world's third largest economy,
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Germany is undergoing a period of deindustrialization following
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the launch of the Russia Ukraine war.
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German, simply German, simply Germany simply hasn't had the
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access to cheap, reliable energy it had before the war broke out.
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And why is that you might ask? Well, combined with a series of
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green policy initiatives, you know, when the government makes
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decisions that you know are going to go wry and just this is
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exactly what they've done. Reliable energy so it had hasn't
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had the access. German simply hasn't had the
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access to cheap reliable energy it had before the war broke out.
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Combined with a series of green policy initiatives that have
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shut down German coal and nuclear power plants, many
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German companies face the choice of bankruptcy or relocating
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their operations abroad. In February 2025, industrial
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production declined 1.3% month over month and 4% year over
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year. Is it any wonder economists are
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slashing the growth forecasts? Absolutely ridiculous.
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So the German government on Wednesday slashes gross domestic
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product forecast to just .30 point 3% growth in 2025.
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The diagnosis is serious. Robert Hapcock.
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Sorry, havoc, economy and climate minister.
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That's the problem there. Mixing climate minister and
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economy said during a press conference, according to a CNBC
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translation. He noted that while there are
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some positive developments, such as rising demand for credit,
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Germany is stuck in stagnation anyway.
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So obviously the car industry is like some of these headlines.
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Volkswagen looks to restructure across passenger car group
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components and commercial vehicle divisions.
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Germany in crisis. Intel and Volkswagen Mull a
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multi billion dollar withdrawal from the country.
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Another nail and coffin. Germany's current St faces up to
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Trump's tariffs. So these are all the things that
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are going on at the moment over there.
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And then the 5th, the 5th sign Japan locked in the currency
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crisis. Japan is in, they are in major,
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major troubles, major troubles. And it's very important because
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it's really just telegraphing where where we're all heading.
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So as bad as things are in the United States, China and
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Germany, they're even worse than the world's fourth largest
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economy. Japan in May 20.
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Well, he says in his May of 2024 article, this is Brit Gillette's
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Article 6 potential triggers for the next global financial
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crisis. He listed the second trigger as
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a Japanese currency crisis. So it goes on.
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Meanwhile, the 4th largest, the world's fourth largest economy
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is on the verge of a major currency crisis.
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The Japanese yen currently sits at the slowest level relative to
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the US dollar since 1990. To prevent the situation from
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getting worse will likely require the Bank of Japan to
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raise interest rates or the US Federal Reserve to lower
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interest rates. Given the recent persistence of
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inflation, it's unlikely we'll see the US lower rates in the
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short term absent a major financial crisis.
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This means the Bank of Japan may be forced to raise rates and
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take other measures to defend its currency.
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But this will cause a number of problems.
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First, the Japanese currency is in recession, so raising the
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rates, raising rates will only make the problem worse.
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Second, Japanese government debt stands at over 260% of GDP,
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260%. Believe it or not, that's twice
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as bad as the United States. Wow.
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Raising rates means more interest on the national debt,
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potentially sparking a debt spiral that could destroy the
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country. Furthermore, if the Bank of
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Japan starts hiking rates, this could cause a reversal of the
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yen carry trade. Succinctly explained that, which
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could quickly lead to a disorderly unravelling of
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financial positions all over the world.
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Along the way, we could see margin calls and exploding
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derivatives positions that crash global financial markets.
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OK. But like I said, a few things or
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something has changed. So Trump has just made another
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announcement about tariffs, and this is regarding China.
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So let's go and watch this video.
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So he's raised the tariffs, I believe with China again raised
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them and he's put a pause on tariffs with other countries
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that haven't been reciprocating tariffs against the UF US, I
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believe that's the way it goes. So let's just check out what
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exactly what he's done here. Now, we are just going to
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briefly return to our main story here tonight, tariffs and the
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global turmoil that we've been telling you about.
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Because just literally in the last couple of minutes, we're
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hearing that President Trump has announced that there will be a
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90 day pause on reciprocal tariffs for all countries except
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China. He's saying let's find out more
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from Simon Jack. What do we know, Simon?
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It looks like the US has blinked because in the last few minutes,
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I'm just looking at the markets now, they've rocketed up this,
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the US stock market up 6% on that news that they will pause
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for 90 days or for countries that have not retaliated.
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He is putting the tariffs up on China.
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But for countries like the UK, which have not retaliated, there
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will be a 90 day pause. And as I say, the markets are
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taking a huge sigh of relief from that.
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They think there's time in that time to do some deals.
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So it won't be so punitive. But just a real example of just
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how turbulent this is that it literally since we've been on
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air, a massive U turn from the government, from the US
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government. But as I say, only on those
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countries haven't retaliated. That, by the way, includes the
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UK. And now as I said there too, and
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I've seen it on the stock market, see here in Australia,
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there's been a massive change. Everything's bounced back up the
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the share market. However, as Britt Gillette was
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saying, this is what you're going to see.
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He believes and I do agree that we are, we're in a global
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depression. We're in this some maybe every
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country isn't in a glow, isn't in a deflationary spiral, but I
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believe we're heading into a global depression.
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And as was what happened in the Great Depression in was in 1929,
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things don't just happen within a day or two.
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Things take it. It reaches, it might start on
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this day, but it reaches the the pinnacle reaches the the actual
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depths. Of the depression, I think, you
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know, two or three years later, it doesn't just happen.
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So we're going to see spikes like we what we are today.
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But my opinion concurring with what Britt Gillette saying is
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that we're going to see this debt crisis and this financial
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crisis continue to spiral down. Now I think this because the
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Bible describes the, the financial situation in the
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world, it's going to be in a dire A dire state and we're
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going to see a financial collapse.
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So this is what the Bible's described.
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And I think this is where we're headed, which is, you know, it's
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not good news if you're a investor, But at the end of the
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day, we are going to end up in a with a some kind of one world
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currency, one world government, This one will government taking
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control of the economic system. And I think we're going to end
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up with the one will government taking control of the economic
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system because we're going to see a major, major financial
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crisis play out. And this could very well be the
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start of it. Very well.
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You know, this is all my opinion.
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I would encourage you go and check out Britt Gillette on
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Substack and YouTube. He's got some really good
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things. He's been talking about this
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stuff coming for a couple of years.
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So so shouldn't be any surprise if you've been watching him.
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Hey, this is all my opinion. My name is Jay Fallon.
21:46
Thank you for listening to The Slippery Slope.
21:48
Please like and share and check out my music if you can.
21:52
Jay Fallon. I'm Jay Fallon.
21:54
Thanks for listening to The Slippery.