Global recession

Every credit-fuelled boom ends in a bust. Since 2007, there has been massive money printing on a global scale, something that has never happened before in history. As the Austrian business cycle theory predicts, this causes artificial booms. The day of reckoning is near when the excesses have to be purged. 

Will it start in Japan? China? Europe? US? I have no idea. But the asians are in a much better position to deal with a crisis. The worlds' creditor nations and manufacturing hubs are in Asia. The debtors are in the West.

This time round, it will be weird to see people rush into the perceived safety of US bonds again. This was what happened about 6 years ago. When the US bonds were downgraded, everyone rush into the safety of..... US bonds. How long will the bubble last? It is certainly coming to an end. It'll be weird if this party lasts beyond 2013 or 2014.