FINANCIAL bubbles across the globe are imploding and the problem is only set to get worse, an academic from one America's top universities has warned.
Prices are falling around the world thanks to the collapse of China's debt fuelled economic growth and this has triggered a succession of disastrous events that are starting to be realised, according to Vikram Mansharamani, an author and, lecturer at Yale University.
Fears are growing that the world could face a financial crash of unprecedented levels and could even be just six months away.
Bubbles created by the mountain of cheap money made available by low interest rates since the last financial crisis are now starting to burst, said Mr Mansharamani.
He told CNBC: "[The bubbles]Are in the process of deflating It all started with the China investment bubble that has burst and that brought with it commodities and that pushed deflation around the world and those ripples are landing on the shores of countries literally everywhere ".
Falling oil prices and a collapse in other commodity prices, in part thanks to China's slowing economy, have kept prices low globally over the past year.
Economies heavily dependent upon commodity profits have suffered enormously, and the knock-on affects are now being felt.
Mr Mansharamani added: "We've got a bubble bursting, I would argue, in Australian housing markets - that is beginning to crack; South Africa - the whole economy; Canada - housing and the economy; Brazil. We can keep going on and on. "
The Bank of England and centra bankers in other developed countries are now battling against the toxic deflationary forces that push prices down and threaten to condemn economies to years of stagnation.
Inflation in Britain has barely risen above zero over the past year, and for the first time since the 1960s the country last year dipped into deflation.
There are now signs that economic growth in the UK is starting to slow and London's huge property bubble could be about to burst.