The current economic crisis may evolve into a global catastrophe, financial analyst Bill Bonner believes. 

According to the analyst, the financial system could take a surprising and catastrophic twist that almost nobody imagines, Pravda.Ru reports.  

If you look at M2 money supply - which measures coins and notes in circulation as well as bank deposits and money market accounts - America's money stock amounted to $11.7 trillion as of last month.

But there was just $1.3 trillion of physical currency in circulation - about only half of which is in the US.

What we use as money today is mostly credit. It exists as zeros and ones in electronic bank accounts. Banks profit - handsomely - by creating this credit. And as long as banks have sufficient capital, they are happy to create as much credit as we are willing to pay for.

After all, it costs the banks almost nothing to create new credit. That's why we have so much of it.

A monetary system like this has never before existed. And this one has existed only during a time when credit was undergoing an epic expansion.

In the last crisis, every major bank and investment firm on Wall Street would have gone broke had the feds not intervened. Next time it may not be so easy to save them.

The next crisis is likely to be across ALL asset classes. And with $57 trillion more in global debt