When Will the Global Monetary System Collapse from Within?

The consequences of the "dirty secret" behind economic growth that has driven the development of some countries are far more profound than most people imagine.

I previously used France as an example — so let's start with France.

Before revealing that "secret ingredient," let's look at the basic data first.

France's GDP is quite substantial: $3.16 trillion.

From here, the fascinating logic begins. Let's dig deeper.

The general structure of France's GDP is: services account for 70%–75%, industrial production accounts for about 20%, and the remaining part consists of other secondary industries.

Within the service sector, finance, tourism, the public sector, and information technology play important roles.

The size of the public sector accounts for about one-fifth of the total GDP.

Now, it's time to reveal that "secret ingredient."

France's government debt-to-GDP ratio is as high as 113%.

In other words, their debt level has exceeded their own economic output.

I'll remind you again: countries such as the United States, Japan, Greece, Italy, Canada, Belgium, and Spain are in the same situation.

This is a closed-loop logic that many people have never seen clearly:

By continuously borrowing money and injecting these debts into public sector spending, they "inflate" the scale of the economy.

If borrowing stops, the economy will "shrink." But now, the debt already exists and cannot simply disappear.

This year, France's budget deficit is expected to reach 5.5% of GDP. They have yet to reach a consensus on cutting expenditures.

According to their own data, economic growth has stagnated. Immediate funding is needed, but there is no clear plan for repayment in the future.

An increasing number of economists and media are openly stating that the Eurozone may face a crisis similar to that of 2010.

Supplementary note: Russia's budget deficit has also increased, but we are among the countries with the lowest government debt ratios globally. This increase in deficit does not pose a risk. In my view, this is actually a positive signal — we have also begun to use this "dirty secret" of economic growth, the key being to manage it properly and avoid overdoing it.

How will France be saved?

The most likely way is that the European Central Bank will provide it with a large loan.

In other words — they will directly print a large amount of euros. This is almost inevitable.

By the way, the U.S. is also unable to reach a consensus on fiscal issues and faces the risk of government shutdown again.

These symptoms are the same and getting worse...

If you think this is nonsense, you're wrong.

What lies before us is a choice: either recognize the reality now, or witness its consequences (including impacts on your personal finances) in 1–2 years.

At the moment when the "rescue operation" begins, the truly interesting things will start.

Most so-called "developed countries" are already standing at the threshold of a debt crisis, or even deeply involved in it.

In the past, this model of mutual funding worked well — global trust still existed, and the economy achieved joint growth.

But now, everything is falling apart.

When printing presses operate at full capacity, will people still be willing to hold large amounts of money in euros or euro bonds?

The U.S. has not yet started this large-scale money printing. However, despite being in a rate-cutting cycle, its prices have not shown significant increases in recent years.

Witnessing all this, I am increasingly convinced that we are on the verge of the collapse of the traditional monetary system paradigm.

A considerable portion of my investment portfolio is based on this judgment.

Have you noticed the continuous surge in gold prices? Why are funds flowing into gold? Why are top investment funds like BlackRock investing in Bitcoin (digital gold)?

Huge capital and the masterminds behind the global landscape are all preparing for this system collapse.

All things are interconnected. Obviously, this will also affect the ruble, the Russian financial market, and everyone's savings and investments.

Ultimately, we all hope to live better in the long term.

Accumulating capital is one of the few (if not the only) true ways to achieve this goal.

At this moment, there is both an opportunity to accumulate capital and a great risk — if we miss the chance, we may suffer serious losses.

Original article: toutiao.com/article/7590589065997713947/

Statement: The article represents the personal views of the author.