The Great Global Death Spiral has now been unleashed and it won’t be taking any prisoners.
The Great Death Spiral
April 10 (King World News) – Gregory Mannarino, writing for the Trends Journal: Let’s cut to the chase.
The current skyrocketing global debt crisis is worsening rapidly. With that, the ensuing fallout which will undoubtedly occur because of this crisis, is going to send shockwaves around the world.
According to a recent publication by the International Monetary Fund, the inevitable defaults which will eventually occur because of the current worldwide debt crisis “will cause panic in the financial markets.”
Today global debt has ballooned to over 336 percent of the World’s Gross Domestic Product. Global debt is today surging higher at a pace which has never been seen before in history. Moreover, as a percentage of GDP, the world economy is contracting at its fastest pace on record.
What we can be certain of is this. Global debt will surge exponentially higher from here…
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A Paradox.
Understanding that the world today appears to be debt saturated, the reality is this: there is not enough debt to allow the system to function!
And it’s this fact which is precisely why we are witnessing global debt surge higher at a record pace.
The current system is debt-based. This means that simply to function, more and more debt MUST be created. For a debt-based system to function at its current level, exponentially more debt must be created. Debt creation CANNOT BE LINEAR or FLAT, it MUST expand. This mechanism of constant, relentless debt creation is solely responsible for allowing the current system to function. Without this mechanism in place, or should I say the moment it stops, the entire financial system locks up- which is also known as a credit freeze or liquidity crisis.
The fact of the matter is this. The current debt crisis IS a liquidity crisis, as ANY lack of expanding debt will cause the complete system to shut down due to a lack of liquidity.
With a credit freeze/liquidity crisis, ALL TRANSACTIONS STOP, NO ACCESS TO CASH IN BANK ACCOUNTS OR BROKERAGES. Credit cards, debit cards, credit of any kind, ALL STOPS. The result will not just be “panic in the financial markets” as per the IMF, but absolute pandemonium in the streets.
The immediate side effect of perpetually expanding debt is of course currency devaluation/a loss of purchasing power—a phenomenon currently sweeping the globe.
Central bank issued currency is owned by, and owed back to, the issuing central bank PLUS interest which they themselves create out of thin air. This process alone is currency purchasing power negative. Moreover, it allows the issuing central bank to create more debt.
Debt creation is how ANY central bank keeps its power. The more debt they create, the stronger they become.
The fact of the matter is this… we are in a DELIBERATE central bank induced debt, death, spiral of which ONLY one thing is a guarantee… We The People who are forced to participate in THEIR SLAVE DEBT-BASED SYSTEM will continue to lose.
Do you want to know who YOUR REAL enemy is? It’s central banks.
King World News note: Central banks around the world and their citizens are seeking refuge buying physical gold. The price of gold futures is currently trading $2,350 and continues to have a strong bid. Silver has also perked up, and King World News has repeatedly warned its global readers that they need to move quickly to buy silver because the time to purchase physical silver on the cheap is about to end. Now the silver train has started to leave the station. Enjoy the ride.
RELEASED: To listen to James Turk discuss gold closing the week at an all-time high as well as silver hitting new recent highs along with the HUI Gold Mining Index CLICK HERE OR ON THE IMAGE BELOW.
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