I’ve been stressing several different triggers that could cause the next great crash and depression, after over six years of non-stop stimulus and bubble denial. They are: the faults in southern Europe starting with Greece; the faults in the U.S. fracking and Canadian tar sands industries; rising long-term government debt rates despite continued QE; and municipal defaults including Illinois and Puerto Rico.

But the ultimate trigger would be the bursting of the greatest bubble in modern history – China!

QE works to some degree but less and less overtime, like any drug. I have been looking for something to go wrong that further QE in developed countries like the U.S., Europe, and Japan could not counter. That would be the bubble bursting in China, as it is now the second largest economy in the world and has been the fastest growing by far over the last three decades.

That’s because China has urbanized too fast and overbuilt every facet of its economy 12 to 15 years out to keep the rural migrant workers employed at all cost. As a result, its real estate bubble dwarfs all others. Its debt for an emerging country is off the charts – closer to developed countries that are far more credit worthy.

But the “Big Bang” is that the Chinese save massively and invest their cash disproportionately in real estate. Its stock bubble is finally starting to burst, but the key event is when the already struggling real estate market crashes as well. That will cause an unprecedented implosion of wealth in China and a global real estate bust that reverberates around the world.

Refer to our latest infographic. It explains the situation in China in more detail. Once you understand, you’ll see how it could be the trigger that causes bubbles to pop all over the world.

Get ready.

Harry Dent

Harry

Follow me on Twitter @harrydentjr

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Harry Dent
Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance where identifying and studying demographic, technological, consumer and many, many other trends empowered him to forecast economic changes. Since then, he’s spoken to executives, financial advisors and investors around the world. He’s appeared on “Good Morning America,” PBS, CNBC and CNN/Fox News. He’s been featured in Barron’s, Investor’s Business Daily, Entrepreneur, Fortune, Success, U.S. News and World Report, Business Week, The Wall Street Journal, American Demographics and Omni. He is a regular guest on Fox Business’s “America’s Nightly Scorecard.” In his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage, Harry Dent reveals why the greatest social, economic, and political upheaval since the American Revolution is on our doorstep. Discover how its combined effects could cause stocks to crash as much as 80% beginning just weeks from now…crippling your wealth now and for the rest of your life. Harry arms you with the tools you need to financially prepare and survive as the world we know is turned upside down! Today, he uses the research he developed from years of hands-on business experience to offer readers a positive, easy-to-understand view of the economic future by heading up Dent Research, in his flagship newsletter, Boom & Bust.