A Catastrophic Debt Implosion Can Be Incredibly Quick
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
Will the world experience a catastrophic debt implosion?
Just like the Titan submersible that recently imploded, the global debt bubble can implode “within just a fraction of a millisecond.”
Are we now in the third circle in Dante’s Inferno? The third circle is gluttony, which is fitting for a self-indulgent Western world with excessive consumption of both material and financial resources.
Financial markets have been dominated by gluttony for quite some time. This has led to the biggest asset bubble in history.
But despite unprecedented risks in investment markets, for the few investors making the right choice, now is a period of great opportunity not just to preserve wealth but also to enhance it.
Here we are in the 21st century with the current Western Empire in the final stages of a secular decline that looks very similar to the fall of the Western Roman Empire in the 5th century. Wars, debts, deficits, collapsing currencies, decadence, corruption and socialism—the more things change, the more they stay the same.
Up for discussion: War drums and NATO; US debt up by the same amount in the last five years as the first 221 years; a coming inferno; the world has reached peak cheap energy; panicking governments take irrational measures; the revaluation of gold; asset and debt explosion-implosion; a major opportunity; and the world at a crossroads.