As the debate rages on about whether the U.S. economy is headed for a douple-dip, one expert says another recession is all but guaranteed, and there's nothing that can be done to prevent it.
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Paul Gambles, Managing Director of financial advisory and asset management firm MBMG Group said the bond market, which is the most reliable indicator, has been pointing to a slowdown since at least April or May. According to Gambles, the deleveraging process facing the U.S. is so severe that a recession is inevitable.
"If you've got a $14.5 trillion debt burden, it's going to be a pretty severe recession," he said. "Recession is usually linked to the size of the debt (a country) has to clear up." Click here for full interview.
In fact, Gambles believes the U.S. economy has been in trouble far longer than most people appreciate and has been merely using debt to prop up growth.
"The U.S. was borrowing somewhere north of $500 billion a year to create GDP growth of a little less than $500 billion a year," he said. "The U.S. has been at stall-speed for the past 10 years." Read more
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