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
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