Total Reset of World Economy & Financial & Political Systems Unfolding – Here’s Why (4K Views)

The Great Financial Crisis of 2007-9 is now transcending into the Great Financial Catastrophe which could very well involve a total reset – or more likely a collapse – of the world economy, financial system and world political system. Here’s why.

The above comments, and those below, have been edited by Lorimer Wilson, editor of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here) for the sake of clarity ([ ]) and brevity (…) to provide a fast and easy read. The contents of this post have been excerpted from an article* by Egon von Greyerz (goldswitzerland.com) originally entitled  The Great Financial Catastrophe ‏ and which can be read in its unabridged format HERE. (This paragraph must be included in any article re-posting to avoid copyright infringement.)

The total reset – collapse – won’t be orderly. It is likely to take a very long time and will involve bankruptcies of  major parts of the financial system as well as many major nations. It will also lead to:

• social unrest,
• escalation of wars,
• major poverty,
• famine and
• the world population going down significantly.

I realise that this forecast sounds very alarmist and like an impossible doomsday scenario. I sincerely hope I will be totally wrong. Sadly, though, the risk that I will be right, or at least partly right, is major after 100 years of excesses in the world built on no solid foundation but an ocean of debt and printed money. Nobel Prize winners in economics, central bankers and ordinary people will learn the hard way that worthless pieces of paper that they call money cannot create real lasting wealth.

Most people are blissfully ignorant of the fact that 2007-8 was just a mild rehearsal of what we soon are going to experience. The additional $60 trillion in credit and printed money since then and the lowering of interest rates to zero have given the world the impression that all is now well again but let me be very clear, nothing is well.

In the 8 years since the start of the Great Financial Crisis the bubble economy has…spread to the world’s second largest economy – China.  China has had exponential growth in debt from $2 trillion to $28T this century. A major part of this debt has financed white elephant projects and ghost cities. It would be surprising if the total Chinese bad debts were below $10 trillion before all of this is finished.

The bubble contagion has also totally infected most emerging markets. With massive growth in debts, a stronger dollar and collapsing commodity prices, almost every emerging economy is now starring into the abyss. As Michael Snyder of the Economic Collapse Blog recently pointed out, 23 stock markets around the world are now crashing. Of the 23, there are 22 emerging economies and the 23rd is Greece which definitively is not emerging but sinking into the Mediterranean.

The contagion will not just affect EMs. It is already spreading to the West and this autumn we will see stock market falls that will shock the world, spreading massive fear throughout the world economy.

I expect this autumn to be the beginning of the end of the 100 year old failed experiment of manipulation and repression of the financial system by bankers and central banks.

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*https://goldswitzerland.com/the-great-financial-catastrophe/

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