People continually ask “when” will it happen? For the last 6 months we have responded “it is happening right before your very eyes”! In fact, as of this morning 52% of global markets are now down over 20% from their highs and qualifying as bear markets. Please understand the financial backdrop these weakening markets are falling into.
Bluntly, the world is facing a giant margin call that cannot be met.
Liquidity had become extremely tight even as markets made their high water marks. It is this lack of liquidity which threatens to become a self reinforcing flash crash to hell via margin calls. “Don’t worry” they say, central banks will come to the rescue. There is one fundamental problem with this line of thought, the value of the issued currencies themselves.
There is zero mathematical way to service and pay off current debt with current currency values … currencies must be massively printed and thus devalued if they are to pay off the mountains of debt! Central banks created the problem, they will not be the solution. Rather, their demise will be part of the solution.
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Replies
Yes indeed, and the entire world will be in for a very rough ride!
Byron wilkins said:
NO kidding, I have been watching the X22 report for a couple years and all I heard was financial collapse coming from all the economists.
Cheryl Nelson said:
This has been coming in slow motion.
It does look as if the end is nigh.
Byron wilkins said:
Maybe this will be the end of the central banks and debt forgiveness will save the world financial systems.