Posted on 01/30/2025 9:33:44 AM PST by delta7
Total global debt has peaked to 326% of global GDP, adding an additional $12 trillion of debt in the last three quarters of 2024, according to the Institute of International Finance. This figure surpasses what we saw amid the pandemic and is expected to continually rise and governments continue to borrow with no intention of repayment.
The Big Bang of the sovereign debt crisis began in 2015.75, as indicated by the computers, around the introduction of negative rates and Quantitative Easing, which shifted the risk from the free market to the central banks. The 2015.75 date was also 26 years from the first break in Marxism in 1989. The bottom of the ECM from 2015.75 to 2020.05 was also 31.4 years from the start of the fall of communism that culminated in the final stages of the collapse of socialism. I repeatedly warned that our models indicated the central banks would become trapped by these policies and now we have a completely unsustainable situation.
If interest rates rise, their portfolios crash in value (price). Such an outcome would raise the question of will the private sector return to the government bond markets when they see there is a rising risk factor? Our model showed that this would not be the case. In other words, the Sovereign Debt Crisis has taken place and to prevent the PRICE crash, the central banks became the buyer to hold interest rates down and bond prices up. We have seen governments and institutions offload bonds and government debt since the Big Bang.
Emerging Market Debt
Emerging markets have reached 245% of GDP in debt, totaling $105 trillion. Poor nations are now spending more on their debt than infrastructure, health care, or education. These nations cannot afford to simply not repay and multilateral development banks have turned into lenders of last resort.
ALL government debt is in serious trouble because they just never fund a damn thing. The solution is to always borrow and there is no plan to ever pay anything back. The behind the curtain reasoning is they are burning money for fuel because they are always reducing the value of prior debt that is never indexed to inflation.
We have seen larger economies begin the snowball effect of borrowing after World War II and the repercussions are now arising. Now we have a serious crisis that has shifted from the free trading bond markets exclusively to the central banks. This is part of the crisis unfolding in the repo market. There does not appear to be any recovery on the horizon. Politicians are undermining the confidence in government, to begin with, and that will influence bond buyers.
The astounding debt crisis has fanned the flames of war as initiating a global conflict is a way, politicians believe, to continue delaying debt payments. The majority of nations are simply too far gone in debt to ever properly repay. Who would buy if there is no guaranteed return?
Total global government debt is now $98,000,000,000,000 ($98 trillion) and is forecast to reach $130 trillion by 2028, which is also when the computer has predicted that the world will feel the aftershocks of a global recession.
I believe President Trump can insulate the US from the coming global financial crisis. That said, do remember trade and commerce has marched on throughout time.
Choosing wisely will enable some to make it to the other side.
TxGator, Moneyback, I have pushed the ignore button…..carry on.
The Big Bang of the sovereign debt crisis began in 2015.75, as indicated by the computersMartin Armstrong, the scammer and convicted felon hindsight forecaster, changed his prediction:
I’m doing my part.
Annnnnnnd .... just like clockwork the PesoBackGaytor ego troll posts on an Armstrong thread 😂
“I believe President Trump can insulate the US from the coming global financial crisis.”
How?
A re-set is coming.
The only question is: when?
War too!
How?
—————
President Trump has already stated we may be heading into a Depression bigger than the 30’s. He made the remark during the debt ceiling debate.
Basically:
1) The entire world’s currencies are losing purchasing power fast, war in many regions, Armstrong tracks ALL the world’s capital movements, the money is being moved into a perceived ( the best of the worst) safe haven- the US, equites, real estate, stocks, gold, commodities, but NOT US debt instruments.
2) As world finances get worse, ( war, immigration, inflation, etc) more of the world’s wealth moves INTO the US.
3) The trick, “ Capture” it, keep it in the US. We will have a U.S. debt crisis, BUT sitting on piles of wealth that moves here ( in Private, not government instruments) insulates our economy and citizens.
Brilliant. Go President Trump.
You and your buddy TxGator are on Ignore. Posting from an Armstrong hit blog does nothing for your position. You would do well in learning how to read Socrates detailed forecasts.
I have messages thanking me for Armstrong’s work, many, many more readers …..and to you, a big thanks for making it possible!
Carry on.
This is the REAL reason for the Global Warming scare.
The ruling class has ran out of $$$ and they need to create a global tax so they can save their power.
Good post.
President Trump will, or should, do whatever is necessary not to be distracted from his MAGA agenda. Part of that agenda entails insulating the USA from much of what you mention.
In more ways than one, I believe DJT is going to be proven as “the right man at the right time”.
He cannot be distracted from the MAGA agenda.
True then and true now.
“The Big Bang of the sovereign debt crisis began in 2015.75”
Will this come before the US civil war that you predicted would start last week?
Can we hold off on the crash until I get my house sold? I’m working to have it done before Memorial Day.
“by 2028, which is also when the computer has predicted that the world will feel the aftershocks of a global recession.”
What happened to the 2015 great collapse?
“after World War II “ which was also approximately 10-15 years after devaluation of currency against the gold standard.
“President Trump has already stated we may be heading into a Depression bigger than the 30’s.”
Absolutely false. You know it because I successfully refuted your same statement a few days ago.
“
You would do well in learning how to read Socrates detailed forecasts.”
His predictions:
Last July he predicted US cIvil unrest/WAR to happen just before the 2024 elections.
Last November you predicted a US civil war would happen the week of Trump’s inauguration with the US breaking up into four new countries in 2026.
Last December he said via Socrates that the 2024 elections would be the last in the US.
This January he predicted US civil unrest on May 7.
This week he has predicted WWIII happening in 2028
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