The global financial system appears to be reaching a breaking point, raising concerns of a crisis potentially larger than 2008. The U.S., once the engine of global growth, now faces unprecedented challenges.
American debt has ballooned phenomenally in the past five years, while interest rates have climbed sharply.
Inflation continues to burn through the U.S. economy, and unlike during the COVID era, the Federal Reserve cannot endlessly print dollars to mask structural imbalances.
Warning signs are flashing everywhere; collapsing currencies, mounting global debt and speculation of a possible reset of the global monetary system.
Experts fear that America’s spending habits, consistently outpacing earnings, are unsustainable. The U.S. has moved from millions to billions and now trillions in debt, creating a vicious cycle of deficits.
Some ask whether Donald Trump, could steer the nation out of crisis, but skepticism remains high. Fundamentally, overspending without revenue is a recipe for downfall.
America is going to face touch time by all means, and though India also tastes the bitterness of it, it can withstand with its muscle.
For the rest of the world, particularly India, the situation presents both risks and opportunities. India cannot be the only oasis on the planet, but its economy shows resilience compared to other nations.
For retail investors, the key is balancing greed and fear, carefully managing asset allocation and avoiding the temptation to chase short term returns.
The dip ahead may be painful, but India’s long-term outlook remains promising. Still, with unprecedented global debt and slowing revenue generation, investors must prioritize protecting capital over chasing aggressive gains.
