Last week I talked about how we are setting on a powder keg right now and the economic situation in this country and much of the world could get set off and domino out of control rather quickly. We could be facing a full out economic crash very quickly.

Today, I’ll talk a little about how this could all get started. The first thing to know is that no one knows the future and it is almost impossible to say how a crash could start and exactly how it will play out.

One big trigger could be a stock market crash like we had in 1987 or any of the other crashes we have gone through. Sometimes it is very hard to say what starts these crashes, they just catch everyone off guard.

If we had a major crash, it could spook investors enough to start withdrawing money from the markets and if bonds start dropping as well, interest rates could rise. With the amount of debt in the world today, rising interest rates could be very hard on a lot of businesses and private individuals.

Another possible trigger to an economic crash, would be if debt defaults rise too much. As we covered last week, we have far too much debt in our country. If a percentage of those debts start to go bad, it could soon snowball into a crisis.

Banks could have some major problems and depositors may find their deposits in jeopardy of disappearing. Also, interest rates could rise because of the risk. This might trigger more defaults and continue to grow the crisis.

A third possible trigger could be a major bank failure. Deutsche bank in Germany is very close to collapsing now. If a bank that large goes down, it could bring down other banks with it.

We had something similar to it when Lehman Brothers went out in the 2008 crisis. This time, the powers that be may not be able to stop the bleeding. It could spread like a cancer.

A fourth possible trigger to an economic collapse is if a war starts that the world does not anticipate. Relations between the US and Russia have been declining for a while. Now Russia is asking it’s officials to came back home. Do they know something we don’t?

If a severe event like war breaks out, it could send economies into a major tailspin that they may not be able to recover from. Economic collapse could be triggered by many things or a combination of things. I believe it is likely that we will see a trigger within the next five to ten years, maybe sooner.