Another mixed week with the Dow Jones up 356 points (+1.40%) and the Nasdaq down 23 points (-0.29%).
You can very much argue that recent oscillations in the stock market are driving both bulls and bears up the wall. What the market gives is then very quickly taken away. A flood of articles throughout the week were discussing which case was holding more water. Most were highly supportive of the bullish side, but it is not as easy as they make it out to be. On the contrary, the juncture we find ourselves at today is incredibly complicated.
If you would like to find out what the stock market will do next, both in price and time, based on our mathematical and timing work, please Click Here.
Just think for a second how staggering this number is, $250 Trillion in Global Debt. By comparison Global GDP is just north of $80 Trillion while the total global stock market capitalization is just about $100 Trillion. Let’s explore this further……
The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis
As governments raise taxes to cope with their unending spending habits, people are increasingly being forced to supplement their own income with loans. And according to most financial experts, this debt problem is so big that it will usher in a global economic collapse of epic proportions.
According to the Institute of International Finance’s latest Global Debt Monitor, the amount of debt held in the world rose by the biggest amount in two years during the first quarter of 2018. It grew by $8 trillion to hit a new all-time high of $247 trillion, up from $238 trillion as of December 31, 2017. And that’s up by $30 trillion from the end of 2016.
Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak. There is more than enough economic data out there to show there could be an economic collapse and stock market crash in 2018. Bill Gross stated in 2017 that “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road”. One wrong move and the whole thing could blow sky high, wrote the Epic Economist. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen.
Here is what everyone is missing about this staggering amount. It can never be repaid, that is a mathematical certainty.
As result, world governments only have only a few options at their disposal. First, they can attempt to inflate away their currencies in a controlled fashion. That is what everyone is trying to do today, more or less unsuccessful, as everyone is playing the same game.
Second, they can default on the debt. Such drastic actions typically lead to economic collapse and subsequent depressions for the underlying countries. Very few would even consider such a step as very few countries can survive such a drastic measure. Although, Iceland did show us that it is possible.
The final option is some sort of a global debt or economic collapse/reset. The argument goes the Governments can’t control such an occurrence and the market will do it for them. As accurate as that description might be, such a collapse will lead to an all out global war.
We are already seeing early stages of this war developing. For instance, tariffs, Trump’s trade war, massive military budget, NATO, multiple proxy wars, etc….all point to the same conclusion.
Yes, the world has reached peak debt and there is no easy way out. Unfortunately, any sort of an economic collapse should be the least of your worries. An all out war, yes, nuclear war between the world superpowers will be the only possible outcome.
Luckily for you, we know exactly when this nuclear world war will start. If you would like to learn more, please Click Here.
