The World Financial System Faces a Dire Crisis

Source: The World Financial System Is In A Death SpiralThe World Financial System Faces a Dire Crisis

In a harrowing analysis by Gregory Mannarino for the Trends Journal, the world finds itself entangled in a severe and unprecedented liquidity crisis. Despite the ever-mounting global debt, the world is rapidly running out of cash, and it's hurtling toward an abyss of financial instability. The world economy is ensnared in a deliberate freefall perpetuated by central banks with no foreseeable end. As a grim consequence, crude oil prices have been thrust into a precarious predicament.

To address the vexing dilemmas of system illiquidity and plummeting oil prices, a disconcerting solution emerges - initiating new conflicts. The world teeters on the brink of system-wide insolvency due to the prevailing zero-reserve, debt-based monetary system. As liquidity evaporates at an alarming rate, investment banks, burdened with low-yielding debt, witness the vanishing value of their portfolios amidst rising yields.

In a holistic view, the withering liquidity threatens the very core of the financial system. In a full-fledged liquidity crisis, all forms of credit grind to a halt, causing a system-wide lockdown. Every facet of the system - bank accounts, debit and credit cards, inter-business lending - freezes.

The sole means of preventing the financial system from collapsing is an incessant inflow of debt, a lifeline that can never be severed. Debt must be perpetually injected, and new rationales must emerge to sustain this precarious mechanism. WAR, more than any other endeavour, channels borrowed dollars into the system. The initiation and escalation of wars, such as in the Middle East, serve as a temporary conduit to bolster liquidity by keeping crude oil prices elevated.

Mannarino has persistently warned that the system will resort to anything to ensure the flow of new debt and advocated being prepared for any contingency. The unsettling truth is that as the world grapples with financial turmoil, the unsettling cycle of war and conflict is poised to escalate, casting an ominous shadow on global stability.

For full details, you can read the following article here: The World Financial System Is In A Death SpiralThe World Financial System Faces a Dire Crisis.

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