Global Economy Escaped Unscathed In 2019. How Long Can It Last?

Global Economy Escaped Unscathed In 2019. How Long Can It Last?

The global economy is in a delicate position right now. Most economists expected a recession last year, but that never came. The biggest fear is the ticking timebomb of global debt. It is at an all-time high above $250 Trillion, and there are no signs of it slowing down.

Countries are taking more debt than ever. Some times, it is more than the GDP of their respective countries. Clearly, there is no way that some of these debts can be paid back. Its effect could be catastrophic to the global economy. In fact, it questions the very existence of fiat currencies and the governments that were supposed to protect it.

Some have even gone so far to predict that we would tumble into an anarchic society. However, that is very far fetched. At the very least, we would see a revolution in money. Governments would try to replace their currency at a time when there is little trust in the system. This is where gold and cryptocurrencies would come in.

For now, regulators have just been pushing the timebomb. The Federal Reserve Bank in the US has been pumping in billions of dollars overnights to save the banks. All of this is money has come out of thin air. People still control the system, and mistakes have been made for very long. There is no way of correcting them, and we can only face the consequences.

2019 was not a great year for the global finance. Trade war and other geopolitical events caused great stress to the economy. Things are not going to change anytime soon, and they are only expected to get worse. Cryptocurrencies could be our only way out.

Published at Wed, 01 Jan 2020 09:22:12 +0000

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