Deflationary tides are lapping the shores of countries across the world and financial bubbles are set to burst everywhere, Vikram Mansharamani, a lecturer at Yale University, told CNBC on Thursday.Late summer, early fall at the latest. That's when we see the globalization scheme becomes known for the fraud it is...or at the very least conversations like this move from the back to the front page and it becomes conventional wisdom.
"I think it all started with the China investment bubble that has burst and that brought with it commodities and that pushed deflation around the world and those ripples are landing on the shore of countries literally everywhere," the high-profile author and academic said at the Global Financial Markets Forum in Abu Dhabi.
Price levels are already falling in parts of Europe. Inflation declined by an annualized 0.2 percent in the euro zone in February, according to an estimate from the European Union's statistical body.
Annualized inflation was flat in Japan in January (the latest month for which there is official data), but rose by a narrow 0.3 percent in the U.K.
On Thusday, Mansharamani said that financial bubbles had been fueled by "cheap money" created by highly accommodative monetary policy across developed economies.
"I mean, we've got a bubble bursting, I would argue, in Australian housing markets — that is beginning to crack; South Africa — the whole economy; Canada — housing and the economy; Brazil. We can keep going on and on," the academic told CNBC.
Thursday, March 03, 2016
Academic warns of global economic bubbles bursting.