Arthur Hayes Predicts a Major Financial Depression in the Next Five Years

In a YouTube video titled ‘A Great Depression Worse Than 2008 – Survive & Thrive During The New Economic Reset’, Arthur Hayes, co-founder and former CEO of the crypto exchange BitMEX, presented his grim vision for the future of the global economy.

Hayes believes that a major financial crisis worse than the Great Depression and that of 2008 is approaching by the end of the decade. The Great Depression was a severe economic crisis that began in the U.S. in 1929 and lasted for most of the 1930s. Causes included bank collapses, stock market crashes, high unemployment, and failed international trade.

Hayes argues that this could happen again due to the global adoption of Keynesian economics, which advocates for active government fiscal policy, leading to massive amounts of debt and a lack of innovation in alternative energy sources.

Hayes also explained the challenges facing the U.S., including rising healthcare costs and defense budgets. There are difficulties in reforming these areas without losing the support of the baby boomer generation.

Moreover, high levels of debt and the potential for defaults will result in currency depreciation. The U.S. national debt stands at a record $33.5 trillion, with billions being added daily.

Hayes also spoke about the relationship between money printing, inflation, and resource nationalism, and how these factors could contribute to rising prices.

All of this has already been occurring in the U.S. in recent years, accelerated by the pandemic, lockdowns, stimulus measures, and rampant money printing. Banks appear increasingly shaky, deposits are dwindling, and lending standards are tightening to recession levels.

Volatility in the crypto market has returned, sending everything back into the ‘red’. Total capitalization has fallen 1.6% in the last 24 hours, equivalent to about $24 billion.

Bitcoin failed to break $28,000, and at the time of writing this article, it has dropped to $27,597. Meanwhile, Ethereum has lost even more and is currently trading around $1,500.