Sovereign Debt Crisis Unfolding

COVID pushed most governments off the edge. You have the World Economic Forum pushing for lockdowns as wonderful because they were really about keeping people home and stopping their commuting to work to stop climate change. In the process, they undermined commercial real estate and sent debt levels soaring all for the planet.

Then you have the Greens in Europe cheering World War III to destroy Russia because they are the biggest producer of fossil fuels. So, we now risk nuclear war to save the planet? This is like someone punching you in the face first and calling it self-defense because they knew you wanted to hit them first.

They had two idiots listening to their nonsense: Biden, who would have asked if we get enough of the bastards to save the planet, and King Charles, who seems to be thoroughly brainwashed into the green movement.

While central banks are cutting interest rates, borrowing costs remain much higher than before 2022’s rate hikes because the ECM, in particular, went to negative interest rates in 2014, which only encouraged governments to issue more debt. This all comes at a time when the EU wants to fund an army and prepare for war as a distraction from their inevitable collapse by 2029.

Mertz has abandoned the debt restraint of Germany to retain power. Germany is heading into a very serious debt crisis for 20-26, and this does not bode well for Europe or the Euro.

Nearly HALF of ALL outstanding government debt among OECD countries and emerging markets and around ONE THIRD of corporate debt will mature by 2027. Our computer is showing PANIC Cycles in 2026 around the globe. The defaults come when you cannot sell the NEW debt to pay off the old.

There are people who are repeating our forecast, pretending they are theirs. Nobody on a human level can possibly account for all the variables around the world. That cannot be done except by the only fully functioning AI system that has discovered the secret of time. No individual has the track record to back up their statements. This is not about “I think” nonsense. It is not my personal dream to have to live through my own computer’s forecasts. They think they can be in the limelight pretending these are their forecasts, but they are ill-equipped to actually see how and when this unfolds.

On top of all of these, many emerging markets, including China and now even Canada, are issuing debt denominated in US dollars. The older issues have also lost on the foreign exchange. Carney in Canada has just demonstrated his true lack of understanding of financial markets. He dumped US Treasuries but then issued Canadian debt denominated in dollars. As the C$ declines, he will lose on the return of the foreign exchange as well. Even the OECD report found that the costs of borrowing through dollar-denominated bonds had risen from around 4% in 2020 to more than 6% in 2024, rising to more than 8% for riskier, junk-rated economies nations.

The funding of NET-ZERO projects has been a huge loss. The OECD said funding the net-zero emissions would face a $10 trillion shortfall to meet Paris climate agreement goals by 2050. There is no way they can fund this, plus World War III and they never consider that everything is coming to the point of a major Sovereign Debt default that the government will not survive. Add the trade wars and what our model shows a major recession globally into 2028; it is hard to see how many countries can even make it to 2029.