What is happening worldwide is that the world’s central bankers (the Fed in the U.S.) are trying to fight a global excess of debt by stimulating more debt.  The are creating a bigger and larger debt bubble.  This debt bubble like the previous two will burst.  The previous two bubbles were the stock market bubble which burst in 2001 and the housing bubble which burst in 2007.

When the debt bubble burst (not if), the result will be a serious global economic contraction.   This contraction will be deflationary.  Those individuals and businesses that are over leveraged will get wiped-out.   When governments try to use their  printing presses to inflate themselves out of economic quagmires,  deflation and hard times always win out in the end.  And why not? There is no such thing as a free lunch.  A price has to be paid for bad policy.  The price can be delayed but then the downside is larger.