Tag Archives: debt crisis

Earlier this year, I wrote a series of articles, dubbed "the Great Reset", predicting a debt “train wreck” and eventual liquidation. I estimated we had another year or two before the crisis becomes evident. Now, I’m having second thoughts. Recent events tell me the reckoning could be closer than I thought just a few months ago. Words: 375

The question is not whether there will be a crisis, but when. In the past fifty years, we have seen more than eight global crises and many more local ones, so the likelihood of another one is quite high because the factors that drive a global crisis are all lining up.

A second demographic cliff is developing in spades, and globally, and it is going to cause a serious stock market crash in the year to follow.

An unprecedented global debt bomb threatens to explode at any moment. 24 nations are currently facing a full-blown debt crisis, and there are 14 more that are rapidly heading toward one. The only “solution” under our current system is to kick the can down the road for as long as we can until this colossal debt pyramid finally collapses in upon itself and when it does it will be unlike anything that we have ever seen before.

It’s been exactly two years since Standard & Poor’s did the unthinkable and downgraded the U.S. government’s debt rating...and yet, it’s as if it never happened…

Never before has the world faced such a serious debt crisis. Yes, in the past there have certainly been nations that have gotten into trouble with debt, but we have never had a situation where virtually all of the major powers around the globe were all drowning in debt at the same time. Right now, confidence is being shaken as debt levels skyrocket to extremely dangerous levels. Many are openly wondering how much longer this can possibly go on. [Here's my take on the situation.]

Given the hectic lives we lead you may well have missed some excellent articles on the financial plight of the U.S. and recent developments in the economy. Not to worry. Below are introductory paragraphs and links to 5 of the “best-of-the-best” articles on the subject.

I have a sinking suspicion - a feeling I just can’t shake - based on multiple fundamental, technical, and timing indicators....[that] the end is near. I’m not talking about some Mayan calendar apocalypse kind of thing....[but] a catastrophic, painful, epic meltdown-type endgame for this European sovereign debt crisis...[[Let me explain why I see that to be the eventual outcome.] Words: 810

The deficits aren't going to stop anytime soon. The debt mountain will keep growing...Obviously, the debt can't keep growing faster than the economy forever, but the people in charge do seem determined to find out just how far they can push things....The only way for the politicians to buy time will be through price inflation, to reduce the real burden of the debt, and whether they admit it or not, inflation is what they will be praying for....[and] the Federal Reserve will hear their prayer. When will the economy reach the wall toward which it is headed? Not soon, I believe, but in the meantime there will be plenty of excitement. [Let me explain what I expect to unfold.] Words: 1833

Regardless of what certain pundits and investors say, I believe gold will have a great run into the end of 2011. [Why?] Because I think a currency crisis is brewing worldwide, and gold will be a safe place to store value. The Euro and USD are fundamentally weak, and inflation is nearly out of control due to huge stimulus packages and low interest rates that aren't helping struggling economies. Gold should be the crutch to lean on for a while. [Let me expand on the aforementioned reasons.] Words: 675