In an interview for Geopolitics & Empire, Prof. Tuomas Malinen, CEO of GnSEconomics.com discussed why he believes the coming economic difficulties will represent the first-ever truly global economic crisis. Malinen believes that much of the blame for this lies with central banks and their “capital market twisting” quantitative easing programmes, in result of which, bubbles have been appearing all across the financial system.

The heart of the crisis is most likely going to be in Europe, which hosts of lot of these systematically important global banks.

Prof. Malinen expects the European banking sector to start to fail in the present or the coming quarter. European countries have mostly made no preparations for the eventuality of leaving the eurozone, and according to research conducted by EuroThinkTank, one of the biggest obstacles comes where countries have relinquished their domestic payments system.

In the coming crisis, because it will be a banking crisis too, and it will most likely hit the hardest in Europe. If you think that we have a banking sector that is failing, and the biggest cost of leaving the euro is the banking sector itself, so while it’s failing, the extra cost of leaving will actually be minuscule. So, when the crisis starts it will create a long-term positive opportunity cost to leave the eurozone.

You can watch the full interview below: