2008 part deux: Global financial system rushing headlong towards a combined debt and liquidity crisis

2008 part deux: Global financial system rushing headlong towards a combined debt and liquidity crisis

For all intents and purposes the global financial system died in October of 2008 following a liquidity crisis that was only stemmed through the interventions of governments and central banks. But in the aftermath of that crisis, these same entities would need to continuously fuel the system with ever increasing amounts of debt and liquidity just to prop up the dead financial corpse.

10 years later the world once again appears to be standing on that same liquidity precipice, only this time it is much, much worse since it is being coupled with a global debt crisis that is exponentially spiraling out of control. And sadly because central banks themselves are virtually insolvent by having so much debt on their balance sheets, it is not only the banks that stand to lose when the whole scheme starts to collapse.

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