GoldSwitzerland: The clock is ticking for the collapse of everything - 100% fall in assets, bankruptcies and civil wars

As the world moves ever closer to nuclear war, we must ask, WHO RULES THE WORLD?

Dominoes that will begin to fall and will not stop - at first gradually and then suddenly - sees the Swiss investment company Gold Switzerland, adding that some of the most important collapses that the world will see concern Politics, Geopolitics, Currencies, Debt and Assets.

The consequences will be unimaginable: Social unrest, war, hyperinflation, deflationary asset collapse, debt defaults and more. But, when things settle down, there will be countervailing forces, such as the BRICS group.

GOLD

Gold will play an important role during this process. Central banks, sovereign wealth funds and investors will turn to gold as the most stable part of a collapsing system. This will lead to a fundamental appreciation of it.

As no more gold can be produced, the increased demand can only be met by higher prices. The likely result will be an upward revaluation of it.

Political situation

Incompetent leaders and a lack of competent politicians are the typical prerequisites for falling dominoes. As we come to the end of one of the worst periods in history, both economically and morally, there is a leadership deficit in most major Western economies.

Let's examine the motley crew of world leaders and their popularity. Political leaders will not only be wiped out, they will also be ousted prematurely.

The recent European elections are a typical example of the current failed system. Most of the ruling parties are rejected, while in many cases the parties of the Right are gaining popularity", points out the Gold Switzerland analyst.

With the exception of Italy's Prime Minister Georgia Meloni, the rest of the G7 leaders receive disapproval, with their respective percentages ranging from 57% to 72%.

In the UK and France, the ruling parties are certain to lose the elections.

In France, of course, presidential elections are not expected until 2027, so Macron, after the elections for the National Assembly, will remain politically lame for about three years. However, the French people are unlikely to accept this and may force it prematurely. In addition to the above, whoever is elected in the country, powerful trade unions are likely to bring the country to a standstill.

Meanwhile, UK Prime Minister Sunak has been singled out as one of the most ineffective leaders in British history. The next Labor Prime Minister, Kier Starmer, didn't even seem to have a chance 2-3 years ago. He won't get voted in, but Sunak will. In any case, the years ahead will be the darkest period in UK history, with high taxes, high debt, bad leadership, political instability and hard times.

The situation in the US today is even worse, with a president who seems incapable of making any decisions. Instead, Americans are led by an unelected and unaccountable group of neocons who tell the president what to say and what to do. But even that is difficult for Biden to execute. And only his recent appearance in Italy at the G7 meeting confirms this. Obviously he can't be blamed for being old. But he shouldn't have absolute power.

The US election is likely to be a disaster. His ill health will not allow Biden to run again. Kamala Harris will not replace him, and Hillary Clinton will probably make the surprise. Note, as Gold Switzerland says, any repeat of a Clinton-Trump election race could easily cause trouble or rebellion in the US, whoever wins.

Germany's Scholz coalition may not make it to the 2025 elections due to its unpopularity and the decline of the German economy.

In summary, the political stage will be an absolute mess in the coming years, and the lack of strong leadership will not only bring political unrest, but also social unrest.

Monetary dominoes and debt

The currency situation has been problematic since former US President Richard Nixon closed the gold window in 1971.

With high spending, deficits and debt to GDP over 100% in many nations, the West faces a very dark time, with galloping debt growth and collapsing currencies. This situation will lead to bankruptcies, looser monetary policy, higher interest rates and even higher deficits.

All currencies will be devalued. In such a scenario, there will be no winner. It is possible that the dollar due to demand will be slightly stronger than other Western currencies - at least for a period. But a temporary relative strength of the dollar should be completely ignored. There is no prize for 2nd or 3rd from the bottom.

"The value of all currencies will decline dramatically in real terms, i.e. against gold," Gold Switzerland points out, adding: "We must remember that we will soon experience the final collapse of the current monetary system. Since 1971 all currencies have lost 97-99% in real terms."

The final decline of 1-3% (100% from now) will happen over the next 3-8 years. Thus, yet another monetary system will rest in peace. His demise was predestined the day he was born. It was only a matter of time. As always in history, the consequences will be far more far-reaching than the death of Money.

Debt and currency collapses happen hand in hand. They are partners in crime and an inevitable consequence of sustained government deficit spending. After a period of unlimited money printing, the financial system will fail in part or in full.

Political and social unrest

Political and social unrest will follow, possibly civil war.

Governments under economic pressure usually start a war or escalate an existing one to divert attention from domestic problems. A war is also a good excuse to print more money.

Initially there will be high inflation, possibly hyperinflation, and high interest rates. Then, as the system collapses, inflated asset prices (stocks, bonds, real estate, etc.) will collapse by 50-100% in real terms. Most government bonds (if printed) will serve better as wallpaper.

This chain of events is highly likely to occur in the West, where economic, political and social collapses of this kind are nothing new.

Will we have nuclear war?

Obviously we don't have to worry about this option, since if we have a global nuclear war, there will be very few - if any - people left on earth. However, as the world moves ever closer to nuclear war, we must ask ourselves: WHO RULES THE WORLD?

Certainly no person of course. Admittedly, US leadership is probably the main contender for global dominance. This could mean new wars in a country that is not a threat to the US, control of the global financial system through the dollar, regulation of the banking system through decrees such as FATCA that require the world to report any transaction in dollars to US authorities , coups in countries that the US leadership considers unacceptable or even exterminating enemies - the list is endless...

What's interesting is that the US people never have a say in any of these decisions. All of the above actions and many more are done by the US president and his advisers. None of this would be possible for example in Switzerland where popular power rules through direct democracy.

On the other hand, Putin has recently made it clear that what Russia wants is to keep the Russian-speaking regions of Eastern Ukraine and is sounding a resounding NO to Ukraine joining NATO. But no one is interested in investigating her proposal. On the contrary, there was just a peace conference in Switzerland where neither Russia nor China was present.

Clearly such a conference is a complete waste of time and money. Without two of the most powerful military and economic powers on earth, one of which is Russia directly involved in the war, this conference could achieve absolutely nothing.

So instead of these useless conferences, the leaders of China, Russia and the US should come together to end the war in Ukraine and then deal with the real problems facing the world like poverty, hunger, crime , drugs, debt, etc.

Imagine what the combined brain power and resources of these countries could achieve with the help of many more nations.

"But unfortunately, this is a dream that is unlikely to come true," concludes Gold Switzerland.

At 315 trillion dollars the world debt and rising – The West owes 2/3

No ceiling on global debt - The root causes behind this new jump

Global debt rose for the second consecutive quarter, reaching 315 trillion. dollars, according to data from the International Finance Institute (IIF) with 2 out of 3 dollars coming from the so-called developed countries of the West.

This increase represents the largest and fastest rise since World War II.

The key factor behind this jump is emerging markets, where debt has reached unprecedented levels of more than 105 trillion. of dollars, i.e. 55 trillion more than a decade ago.

2/3 of the world's debt comes from developed economies, with Japan and the US occupying the top positions.

Despite the increase in overall debt, the debt-to-GDP ratio of advanced economies has declined, offering some encouraging indicators for the future.

In contrast, the debt-to-GDP ratio in emerging markets soared to a new high of 257%.

This is the first time that a rise in this index has been observed in the last three years, which indicates the increasing difficulty of servicing the debt in these countries.

The IIF warns that factors such as persistent inflation, rising trade frictions and geopolitical tensions could pose significant risks to debt dynamics, putting upward pressure on global funding costs.

Already, rising debt in major Western nations has Central Banks sounding the alarm as the US and Europe become increasingly vulnerable at a time when heavy investment in industry is the only way to boost competitiveness.

The global economy is more fragile than ever - The coming months will bring shocks and crises for five reasons...

Bertrand Badré, former managing director of the World Bank, CEO and founder of Blue like an Orange Sustainable Capital, and Yves Tiberghien, Professor of Political Science and Emeritus Director of the Institute, warn us of a crisis in the coming months or years in their article in Project Syndicate of Asian Research at the University of British Columbia.

In fact, five factors stand out as catalysts. In particular, according to the researchers, "the current economic outlook is strangely contradictory.

"While global markets, led by technology and energy, raised expectations on the back of high near-term earnings, the mood at the spring meetings of the World Bank and International Monetary Fund last month was decidedly gloomy."

Two global institutions that usually speak in platitudes have issued stark warnings about the growing risks of economic fragmentation. The idea that an interdependent global economy could function within a geopolitical system based on the national sovereignty of almost 200 states reflected a certain idealism.

Or maybe it was more like hubris.

This strange marriage finally fell apart in the 1930s, with the rift lasting until the end of World War II.

But the idealism was not dead, and the world system was subsequently rebuilt on the basis of agreed rules, common international institutions, mutual tolerance and the ability to manage crises.

From the beginning, security issues were not mixed with the economy," the analysts point out. Today, however, the foundations of this system are rapidly eroding and global economic integration appears to have been reversed.

As Gita Gopinath, first deputy managing director of the IMF, recently explained, financial fragmentation could have far-reaching effects on trade, such as reduced efficiency gains, and increase the risk of macroeconomic instability. Fragmentation could also reduce capital flows to the Global South and undermine the provision of global public goods, including climate action.

Four key factors are driving this trend towards fragmentation.

First, rising geopolitical risks have fueled mistrust and reduced the will to cooperate among systemically important countries.Although policymakers rarely acknowledge it, a crisis over Taiwan could well overwhelm the global financial system.

Second, countries are increasingly allowing security concerns to shape economic policy, with some taking extensive measures to secure access to inputs, infrastructure and technologies.

While this is understandable, states must exercise restraint.

While globalization has occurred gradually, a deglobalization process driven by security-motivated measures would likely be rapid, posing serious systemic risks.

The third factor behind economic fragmentation is a deepening rift between the Global North and the Global South.

Public and private support for developing economies has collapsed at a time when many are struggling with the legacy of the COVID-19 pandemic and confronting climate change.

The decades-long trend towards convergence with developed economies appears to have stalled and discontent is growing in the Global South. Net financial flows to developing countries turned negative in 2023 and the trend worsens in 2024. This partly explains the reluctance or refusal of many countries in the Global South to support the West on key geopolitical issues.

Fragmentation also reflects the rapid escalation of climate risks and disasters. With floods, large fires and droughts on the rise, many countries are at risk of destabilization in the coming years and there is no global "safety net".

Meanwhile, as Harvard's Dani Rodrik has pointed out, countries are competing for dominance in green technologies, rather than working together to accelerate progress.

Behind the economic malaise in a diet rift between the global north and the global south.

Fourth, the exponential growth of artificial intelligence is fueling national competition rather than global cooperation as needed.

As Daron Acemoglu and Simon Johnson of MIT have noted, regulations, policies and institutions are important to ensure that AI creates jobs, rather than destroys them.

Global South countries need a voice in efforts to regulate artificial intelligence. As the recent G20 presidencies of Indonesia and Brazil have shown, much of the Global South remains committed to both interdependence and global governance.

Moreover, the private sector is still characterized by interdependence. We still have dedicated international organizations, global educational networks and a global civil society. But we should not underestimate the risks they run. There is reason to believe that the coming months and years will bring a series of shocks and crises.

Leaders are so preoccupied with wars, power struggles, social tensions and political polarization that they seem largely unwilling to invest in saving the global economy, let alone strengthening its capacity to deal with the existential risks we face. . But history, economic theory, and current empirical trends show this to be a mistake.

Even a partial collapse of our interdependent global economic and financial systems would be catastrophic, not least because it would undermine investment in global public goods.

For politicians concerned about the impact of migration on their own countries, it is worth noting that, without massive investment to combat climate change, reverse desertification and reduce poverty, millions could attempt to cross the Mediterranean to 2050.

National security must be a priority for policymakers. But measures to "secure" the economy must be combined with efforts to improve communication with competitors and investment in global public goods.

"To this end, world leaders should use the G20 and other multilateral bodies to elevate working groups and institutions that support collective governance, with a focus on managing the risks of artificial intelligence, addressing climate change and preventing of the collapse of the global economic system on which we depend" concluded Bertrand Badré and Yves Tiberghien.