(The Economic Collapse Blog)—I suppose that congratulations are in order. It is no small feat to pile up a debt of $315,000,000,000,000, and we will never see a mountain of debt of this magnitude ever again after it comes crashing down. Even though delinquency rates are rising all over the world, as long as conditions remain at least somewhat relatively stable the game will be able to continue.
Unfortunately, conditions won’t be relatively stable for long. Global events have started to accelerate significantly, and that is really going to shake things up in the months ahead.
According to a report that was just released by the Institute of International Finance, the total amount of debt in the world has reached a grand total of 315 trillion dollars…
The world is mired in $315 trillion of debt, according to a report from the Institute of International Finance.
This global debt wave has been the biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic.
“This increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, where debt surged to an unprecedented high of over $105 trillion—$55 trillion more than a decade ago,” the IIF said in its quarterly Global Debt Monitor report released in May.
We are in the midst of the greatest global debt binge in the history of the world.
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.”
The moment that the Chinese invade Taiwan, the U.S. and China will be at war.
This is one of the three major wars that I have been warning about for a long time.
Unfortunately, the Chinese continue to become more aggressive toward Taiwan. In fact, late last week they conducted the biggest practice run that we have seen so far…
China wrapped up a two-day, large-scale military exercise Friday after its forces deployed 111 aircraft and 46 naval vessels to areas around Taiwan.
Taiwan’s National Defense Ministry said 82 Chinese military aircraft crossed the median line of the Taiwan Strait and some got very close to the 24-nautical-mile line that Taiwan uses to define its contiguous zone.
The military drills, branded as a “punishment” for Taiwan’s new president, Lai Ching-te, who China views as separatist, focused on conducting joint sea-air combat-readiness patrol, joint seizure of comprehensive battlefield control and joint precision strikes on key targets involving China’s army, navy, air force and rocket force.
Meanwhile, both sides just continue to escalate matters in Ukraine.
It is being reported that French forces will soon be heading to Ukraine to help “train” Ukrainian troops, and that is a very ominous development…
Ukraine’s military says it is ‘welcoming’ French trainers in Ukraine, in new remarks which strongly suggest that for the first time France is deploying its troops to Ukraine soil. This marks the beginning of major ‘boots on the ground’ escalation in a formal, public capacity by a NATO state.
“Ukraine’s top commander said on Monday he had signed paperwork allowing French military instructors to visit Ukrainian training centers soon,” Reuters reported Monday, referencing head of the armed forces Col. Gen. Oleksandr Syrskyi.
“I am pleased to welcome France’s initiative to send instructors to Ukraine to train Ukrainian servicemen,” Syrskyi said following video link talks with French defense minister Sebastien Lecornu.
We are getting closer and closer to the day when western forces will be in direct conflict with Russian forces, and this is something that I have been warning about for many years.
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The third major war that will greatly shake the entire planet is the war that has erupted in the Middle East. Israeli forces keep going even deeper into Rafah, and the IDF and Hezbollah continue to exchange fire along the northern front.
Eventually this war is going to escalate to an extremely dangerous level, and we could potentially see that happen by the end of this calendar year. In addition to military conflict, major pestilences are also a factor that could turn the global financial system upside down.
Earlier today, we learned that over 4 million chickens at just one farm in Iowa will have to be destroyed because of a bird flu outbreak there…
More than 4 million chickens in Iowa will have to be killed after a case of the highly pathogenic bird flu was detected at a large egg farm, the state announced Tuesday.
Crews are in the process of killing 4.2 million chickens after the disease was found at a farm in Sioux County, Iowa, making it the latest in a yearslong outbreak that now is affecting dairy cattle as well. Last week, the virus was confirmed at an egg farm west of Minneapolis, Minnesota, leading to the slaughter of nearly 1.4 million chickens.
Overall, 92.34 million birds have been killed since the outbreak began in 2022, according to the U.S. Department of Agriculture.
Please keep in mind that the figure that the U.S. Department of Agriculture is quoting is just for the United States.
Overall, hundreds of millions of birds have been killed around the globe since the beginning of this pandemic.
Let’s just hope that H5N1 does not mutate into a form that can spread easily from human to human, because if that happens our planet will be paralyzed by fear on a much higher level than we experienced during the last pandemic.
It is also being reported that a hemorrhagic fever that can cause “Ebola-like bleeding” is rapidly spreading among rodents in northern Europe…
A potentially deadly virus that can jump from animals to humans is already sweeping through northern Europe, putting the UK highly at risk.
The horrifying virus can be transmitted from rodents to humans and cause Ebola-like bleeding, according to new research.
Bank voles in Sweden carrying the pathogen have already infected two people, causing them to come down with a Viral Hemorrhagic Fever (VHF) – the same type of illness as Ebola.
I will be closely watching for any human cases of that disease, because any type of hemorrhagic fever that starts spreading widely among humans would cause a tremendous amount of panic.
On top of everything else, I believe that we should brace ourselves for unexpected natural disasters in the months ahead.
For example, our sun has been exceedingly active lately, and we are being warned that more coronal mass ejections may soon be heading our way…
Earth could be hit by another powerful solar storm this week that is predicted to trigger radio blackouts and incredible northern light displays.
Earlier this month, the sun unleashed the most powerful streams of plasma, known as coronal mass ejections (CMEs), in 20 years, causing communication disruptions worldwide.
The sunspot that caused the chaos has swung back around and released a powerful flare toward Earth’s region on Monday.
The National Oceanic and Atmospheric Administration (NOAA) a 60 percent chance of radio blackouts on Tuesday and throughout the rest of the week.
Before this current solar cycle is over, I believe that solar activity will make a lot more headlines.
So much is happening right now, but what we have experienced so far is just the tip of the iceberg compared to what is coming.
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The Importance of Prayer: How a Christian Gold Company Stands Out by Defending Americans’ Retirement
It won’t be too long before we are being hit by one catastrophic event after another, and that is going to cause tremendous chaos for the global financial system.
So take advantage of this period of relative stability while you still can, because we are moving into a time when everything that can be shaken will be shaken.
Sound off about this article on the Economic Collapse Substack.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Coffee the Christian way: Promised Grounds
