by Peter Reagan at Citizen Watch Report
The world’s richest nations are out of fiscal options. Even The Economist now admits debt can’t be repaid and growth won’t fix it. When governments inevitably inflate away currencies, where does that leave their citizens?
For years, we’ve said the global financial system was running out of exits. Now even The Economist – pretty much the definition of globalist’s daily financial reading – is saying it out loud.
On October 18, the world’s most respected financial newspaper published a special report with the stark title Governments going broke. That week’s regular issue ran with the headline The coming debt emergency. Both are well worth reading if you’re fortunate enough to have a subscription.
I’m assuming you don’t. So, today I’ll briefly explain the three most important points from the key articles in both issues.
In brief, The Economist quietly admitted that what sound-money advocates have been warning for decades has come true:
- The world’s richest governments are heading toward a slow-motion debt disaster.
- Sovereign debt rarely gets repaid honestly – it’s inflated away, or quietly defaulted.
- And no, economic growth can’t save us this time.
That’s a stunning confession. And it changes how we think about risk, trust, and gold.
“Across the rich world, fiscal crises loom”
In The Economist’s words, rich countries are sliding into “third-world financial situations.”
Average government debt now exceeds 110% of GDP, and the supposed “safe” borrowers – America, Japan, France, Britain – are adding debt faster than ever.
Long-term lenders have noticed. Debt costs remain…
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