$2 Trillion Debt Wave To Crush Markets, Economy, Here's When | Michael Howell

Global liquidity is currently contracting as robust real-economy growth, fueled by massive AI capital expenditure, diverts capital away from financial markets. This cyclical shift, rather than fiscal mismanagement, explains the recent rise in bond yields, which now offer attractive long-term income potential. While central banks are currently attempting to manage liquidity to avoid systemic shocks, the looming "debt maturity wall" and the necessity of refinancing trillions in government and corporate debt will eventually force a return to money printing. Consequently, assets like gold and Bitcoin remain critical hedges against the inevitable long-term monetary inflation. Michael Howell, founder of GL Indexes and author of *Capital Wars*, emphasizes that financial markets are leading indicators of future economic health, suggesting that the current liquidity-driven volatility is a precursor to broader economic cooling in the coming years.