The collapse of the 2008 housing bubble will have nothing on the coming world debt implosion. No one, except unknown isolated tribes in a South American rainforest, will escape the reverberations of this economic tsunami.
Governments and central banks have been whistling pass the graveyard for far too long. The ferryman has been keeping a ledger and charging compound interest; soon, he’ll demand all debts be paid.
Charon is watching the Grecian debt dance and askance at over 24 other countries in similar circumstances with another 14 more on the verge. Who’s going to pay their ferry? Certainly not the United States, China or Japan; they’re got their own insurmountable debt mountain.
The Economic Collapse blog has outlined the coming debt storm:
Of course the same thing could be said about the entire planet. Yes, national governments and central banks have been attempting to kick the can down the road for as long as possible, but everyone knows that this is not going to end well.
And when things do really start falling apart, it will be unlike anything that we have ever seen before. Just consider what Egon von Greyerz recently told King World News…
Eric, there are now more problem areas in the world, rather than stable situations. No major nation in the West can repay its debts. The same is true for Japan and most of the emerging markets. Europe is a failed experiment for socialism and deficit spending. China is a massive bubble, in terms of its stock markets, property markets and shadow banking system. Japan is also a basket case and the U.S. is the most indebted country in the world and has lived above its means for over 50 years.
So we will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions. That will lead to the most historic wealth destruction ever in global stock, with bond and property markets declining at least 75 – 95 percent. World trade will also contract dramatically and we will see massive hardship across the globe