world financial system has been in a euphoric state since 2009. It
seems that the Keynesians, like Krugman or the Modern Money Theorists
(MMT), are right after all. All asset markets are near the highs and
show little signs of changing direction. As Treasury Secretary, Mellon,
said in September 1929:
“There is no cause to worry. The high tide of prosperity will continue.”
All that is required is more of the same medicine — more credit, more money printing — to make a virtuous circle of eternal prosperity.
We are certain that the theories based on spending and borrowing to rescue the biggest debt bubble in history are totally fallacious. We know that a debt problem cannot be solved by more debt. No one defined it more succinctly than Albert Einstein:
“We cannot solve our problems with the same level of thinking that created them.”… The ‘Time Bomb’ below says it all. Contained in the red bomb are all the explosive elements that will change the history of the world. Any single one of these risks is sufficient to trigger a collapse of the world economy. The combined explosive nature of all the risks will not only disprove MMT, but create a world which will be a lot less pleasant to live in.
In the final stages of a major super cycle, there is a normally total lack of clarity in the thinking of world leaders. But not only that, there is also a total lack of leadership. Right now this is exactly what we have. Countries normally get the leaders they deserve. The world is in desperate need of statesmen who can make uncomfortable decisions to get the world out of the mess it is in. But looking around the world, there is no statesman in any country. There are countries with strong leaders like Putin in Russia and Orban in Hungary, but real statesmanship does not exist anywhere.
Look at France, where Macron becomes more unpopular by the day. Soon every Frenchman will wear a yellow vest, and it is already spreading to other countries. The French economy and financial system are weakening and the inequality between the rich and the poor has the seeds of yet another French Revolution.
When Deutsche Bank (DB) collapses, which is probable, that will have repercussions not only for German banks but for the global banking system. DB’s derivative book of EUR 50 trillion is 15x German GDP.
Meanwhile, the US is bankrupt with a currency which is living on borrowed time. Trump had good intentions but has been shackled by the Deep State. When the biggest economy in the world collapses, it will have major repercussions on the world. Already, every major country or continent in the world has problems of a magnitude that will bring each country down. In addition to the above nations, this carnage will engulf Japan, China, South American countries, and many more.
People must understand that the world has never faced risk of this magnitude. We are now in the final seconds of the global mega bubble, the likes of which the world has never seen before. What will happen next will be worse than the fall of the Roman Empire, much worse than the South Sea and Mississippi Bubbles, and will create a disaster that will dwarf the Great Depression of the 1930s. The problem is simple to define and is all based around debts and liabilities. At the beginning of this century, global debt was $80 trillion. When the Great Financial Crisis started in 2006, global debt had gone up by 56% to $125 trillion. Today it is $250 trillion. – http://prophecyupdate.blogspot.com/