An Australian economist is warning the recent turmoil on global stock markets is just a sign of things to come, and a massive crisis is on the cards.

John Adams sees the massive sell-off of global stocks in early February, which saw American markets plunge 10 percent from recent highs, as the harbinger of an economic death spiral, eventually bringing about soaring interest rates, a collapse in share and house prices, higher unemployment and widespread bankruptcies.

"I think that he points out a number of factors that suggest we are in for some economic troubles, particularly debt levels," New Zealand company director Simon Botherway said.

By Patrick O'Meara

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