$315 trillion of debt. Who owns it all? What happens if folks quit paying on trillions of it? How can the Fed “buy” Treasury Bonds when they don’t have any money? Do they really just take the bonds into their inventory and declare the outstanding debt as “real money”? Could a global shock close the financial markets only to wake up one day to an announcement that CBDC’s are the new currency and you better swap your dollars for it sooner than later?
Financial disaster is coming. We just don’t know when. Folks want to know what they can do to protect their savings/money/wealth? Nothing. It won’t matter if you have $100 or $10 million…it will all be worthless. Maybe that’s why Jesus exhorts us to “lay up your treasures in heaven where moths, rust and thieves can’t touch it”.
One final comment; remember the word “derivatives” from the last financial crisis? They will be back on the next collapse…confusing everyone because no one understands exactly who holds the risk.
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Household debt is at a level we have never seen before, business debt is at a level we have never seen before, and government debt is at a level we have never seen before…
Of the $315 trillion debt stock, household debt, which includes mortgages, credit cards and student debt, among others, amounted to $59.1 trillion.
Business debt, which corporations use to finance their operations and growth, stood at $164.5 trillion, with the financial sector alone making up $70.4 trillion of that amount. Public debt made up the rest at $91.4 trillion.
For the moment, conditions are at least somewhat relatively stable, and so everything seems fine.
But it won’t take much to push us over the edge.
For example, during a recent interview with Greg Hunter, Chris Martenson suggested that a Chinese invasion of Taiwan could trigger a sudden meltdown of the bond market…
In a new market meltdown, Dr. Martenson sees chaos and gives a hypothetical example: “China attacks Taiwan, and there is a 10 sigma move in the bond market. Oh no, all these derivatives have blown up. These people are supposed to be winners, and these people are supposed to be all losers. No, no, they don’t have any money for that stuff. It’s too complicated. I don’t think anybody understands how this works anymore. I could not find anybody who could tell me the whole thing. I could find people who knew bits and pieces, but they knew their slice. . . . I am trying to stitch this thing all together. I get uncomfortable when I can’t answer the most basic questions, and that is how much risk is there in the system and where is it?”
In short, Dr. Martenson is worried about the whole financial system going down. Dr. Martenson says, “Yes, I am worried about the whole system going down, and that leads to all sorts of speculation. . . . Imagine this, we wake up one day, and the markets are not open on Monday. Oh no, glitch. Problem. Then, it’s two days and not open, three days not open. People are getting worried. Friday, and the markets are still not open. Monday comes, and they say it’s a super big problem, and we don’t know how to resolve it. . . . They offer you 100% value today in a Central Bank Digital Currency (CBDC) account or you can wait it out and hope it gets resolved, and it might take a decade.”
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