“Sic Transit Gloria Mundi” (Thus passes the glory of the world). This phrase was used at the papal coronations between the early 1400s and 1963. It was meant to indicate the transitory or ephemeral nature of life and cycles.
As we are now facing the end of a major economic, political and cultural cycle, the world is likely to experience a dramatic change which very few are prepared for. Interestingly, the peak of economic cycles often coincide with the peaks in climate cycles. At the height of the Roman Empire, which was when Christ was born, the climate in Rome was tropical. Then the earth got cooler until the Viking era which coincided with the dark ages.
THE PROBLEM IS “THE ECONOMY STUPID” AND NOT THE CLIMATE
Yes, of course global warming has taken place recently as the effect of climate cycles. But the cycle has just peaked again which means that all the global warming activists will gradually cool down with the falling temperatures in the next few decades. The sun and the planets determine climate cycles and temperatures, like they have for many millions of years, and not human beings.
The climate activists are spending their efforts on the wrong issue. The big disaster looming for the world is not climate change but “the economy stupid” (phrase coined by Clinton).
So let’s instead look at the real coming disaster that the world needs to focus on and a number of facts that are self-evident even though very few are aware of them. The Real Crash: Americ... Best Price: null Buy New $23.95 (as of 05:55 EST - Details)
Instead of worrying about global warming, which we humans cannot effect, we should instead issue a GLOBAL WARNING about the coming economic cataclysm so that the world can be prepared for the extremely serious problems that will hit us all in the next few years.
Below I outline a potential scenario for the next 5-10 years:
- BIGGEST ECONOMIC DISASTER IN HISTORY
The world is heading for an economic disaster of a magnitude that is much greater than the 1930s depression. There is really nothing to compare with in history since the world has never been in a similar situation before when every single major economy is at risk.
- GLOBAL DEBT WILL KILL THE WORLD ECONOMY
Never before in history have all major countries lived above their means for such an extended period. And never before has global debt been almost 4X global GDP.
- $2 QUADRILLION DEBT AND LIABILITIES
In addition, unfunded liabilities, like medical care and pensions, are at least $300 trillion globally. If we add gross derivatives of $1.5 quadrillion, which are likely to turn into real debt as counterparties fail, the total debt and liabilities are above $2 quadrillion.
- DEBT AT 30X GLOBAL GDP CAN NEVER BE REPAID
$2 quadrillion is almost 30X global GDP. Who is going to repay this debt? Certainly not the current generation which has incurred most of it. And certainly not future generations which will neither have the means, nor the inclination to pay for the sins of the previous generation.
- DEBT IS GROWING AT AN EVER FASTER RATE
Most major economies are continuing to spend money they haven’t got and thus to print money and expand credit at an ever faster rate. The US for example has increased debt by $800 billion since June. As the US economy falters, annual deficits of $1-2 trillion will increase manifold in the coming years. And when the banking system comes under pressure, which is happening right now, money printing will accelerate at an ever faster pace. As the global economy falters, most major countries will see deficits and debts rising quickly.