Financial Armageddon? It’s not inevitable, but…

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Financial Armageddon? It’s not inevitable, but…

Risks in the international financial system have been rising for a while.

In recent months bank valuations and some credit default swaps (CDSs – the rates at which banks insure each other) for European banks have reached levels not even seen during the Credit Crunch of 2008.

Brexit has created a climate of uncertainty – not just for the UK, but for Europe as a whole.

But there is another malign force at work – the relentless rise in debt in a zero-interest world. Even cash-generative China is awash with debt.

A crunch of some kind is coming – though what form it will take is arguable. Financial Armageddon over the next two years is not inevitable, but it is beginning to look likelier than not.

Don’t despair. I’ve got some ideas on how to survive a possible banking collapse…

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Comments (2)

  • adam jukes says:

    i agree unreservedly
    have thought this since 2008
    have bought real gold and plat as insurance
    terrified of leaving my pension fund untouched
    but what to do with so much money?

  • Steve says:

    This debt ‘problem’ puzzles me – after all someones debt is also somebody else’s asset. For instance, in 2011 according to the BBC (these things don’t change very much):
    UK owed £210bn to France – France had bought UK debt
    France owed £227bn to the UK – UK had bought French debt
    (This is gross debt owed to foreign banks)

    So, surely the UK debt here is not the headline £210bn but actually -£17bn?

    If my reasoning here is correct, is there really a debt problem?

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