Goldman Sachs Warns “Too Much Debt” Threatens World Economy

The debt burden – particularly in “developed” countries – along with ageing populations pose a risk to the economies of those countries, Goldman Sachs has warned.

Andrew Wilson, Goldman Sachs Asset Management’s chief executive in Europe said, “There is too much debt and this represents a risk to economies.

Consequently, there is a clear need to generate growth to work that debt off but, as demographics change, new ways of thinking at a policy level are required to do this.”

Japan, as an example of a major economy, now has a government debt-to-GDP ratio of over 200%, which Wilson says is “not sustainable over the long term.” Other countries with very high debt loads include the U.S., most of Europe and Brazil.

Among those countries on the other end of the scale are Russia, other central Asian countries and most of the Gulf states demonstrating the latent and as yet widely unacknowledged strength of the emerging Eurasian Economic Union and its ties to the Chinese New Silk Road project.

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These Are The 5 Stages Of Collapse. We Are In Stage 

“For the most part, Americans are completely oblivious of just how close the country is to a total disintegration of its fiat monetary system…the United States financial system died in 2008.

It has been kept alive by policy deregulation, monetary printing, and market manipulation (including derivative manufacturing such as interest rate swaps).

These collaborative short term machinations have a lifespan that is diminishing every passing day, while investors who have made the wise decision to exchange fiat money for gold and silver keep wondering how long this manipulation can continue.

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Jim Willie: There Are Plans On The Books For The Replacement Of The Dollar  

In an interview on May 21, 2015 with Turd Ferguson of TF Metals, Jim Willie says,”We are not just in the end time. We’re rounding the bend.

There are plans on the books for the replacement of the dollar. Soon, the American public is going to conclude that something is wrong.

The claim that the Treasuries are the biggest and the most liquid in the world is going away. The Fed owns about ½ of the bonds.

The central bankers and Wall Street are realizing that everything’s falling apart.

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George Soros Warns “No Exaggeration” That China-US On “Threshold Of World War 3″ 

While admitting that reaching agreement between the two countries will be difficult to achieve, George Soros – speaking at The World Bank’s Bretton Woods conference this week – warned that unless the U.S. makes ‘major concessions’ and allows China’s currency to join the IMF’s basket of currencies, “there is a real danger China will align itself with Russia politically and militarily, and then the threat of world war becomes real.”

Much in global geopolitics depends on the health and trajectory of the Chinese economy, was the undertone of George Soros’ comments as he spoke this week, but as MarketWatch reports,

Billionaire investor George Soros said flatly that he’s concerned about the possibility of another world war.

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European Bank Bail-Ins? Banks ‘As Vulnerable Today’ As Before 2008 Crisis 

New research shows that European banks are as likely to fail today as they were preceding the global economic crash seven years ago.

Leading economists say that the European banking system is still highly vulnerable to financial and economic shocks despite the various policies which have been put in place to protect against such events since the collapse in 2008.

According to research by the University of Portsmouth Business School which was published in the Journal of Banking and Finance European banks are as vulnerable today as they were in the run up to the crisis of 2008.

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The Economy Almost Crashed Last Week

Without a fully functioning credit market, distribution will break down, real estate markets will cease to exist except for cash purchases or barters.  Companies will cease to exist because their access to money to run their companies will be nonexistent.

Amongst many other “effects”, cash or currencies themselves will also be affected.  All currencies everywhere on the planet are a function of, backed or supported by, and actually exist solely as a result of functioning credit markets.  The saying goes, “money makes the world go ’round”, this is not true today.  Today, “credit makes the world go ’round”!

With the above as an understanding, what happened last Wednesday night/Thursday morning in the wee hours was terrifying.  Globally the credit markets began to melt down! This was a global event and almost all credits were being sold.

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Gold Bullion Buying In Germany Surges As Risks Increase 

Global gold demand remains robust as seen in the latest quarterly figures from the World Gold Council released yesterday.  Q1, 2015 gold demand was just 1% lower year on year but was 3% higher quarter on quarter due to a surge in investment demand which was 4% higher year on year and a whopping 63% surge in investment demand quarter on quarter.

European investors increased their purchases gold during the first quarter according to the report. Increase in demand was highest in Germany while investors in France, Switzerland and Austria also showed strong interest in acquiring the precious metal, with “double digit” increases in demand.

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