The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral for $700 trillion in derivatives…
Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations
Pretty scant on detail. Ok so there is a collapse going on, so everyone is going to stop printing money? We all know that derivatives feed a lot of our expectations of the future, have been unrealistically projected and reality (mainly in the form of expensive oil) is now a swarming mass of white pointers shredding a bloated corpse of a whale. The social contract(s) are going to have to be completely re-written; we can already see the unrest this is beginning to cause. So far since peak we have essentially seen a world in denial of the fundamental constraints provided, with an MSM projection that this is all a numbers game failure. Peakers have known that the vast majority of projected social contract will be forced to void, a central tenet of peak oil theory.
"They" will keep printing money and doing business with 'Somebody'. There is no option. Tough luck if you happen to be depending on a government (or even private) pension. Tough luck if you are a mainstream investor. However, my bet is the 'new system' Paul alludes to in this article, is not fundamentally different from what is on the news most nights/ State powers under threat from various forms of civil uprisings, struggling for legitimacy, pushing crowds off the street with batons and water cannon/ a few smoke grenades and rubber bullets/ some selective arrests: interrogations. More of the same.
More broken social contracts leading to more civil resistance leading to movement towards totalitarian methodology of social control.
More bogus excuses to keep printing whatever amount of currency is required to keep the game going to the satisfaction of the 1%.
As far as collapse goes, it's still early days, very interesting times.