Author: TYLER DURDEN

One of the most terrifying works of art is Bruegel's Triumph of Death from 1562, which depicts the end of life on Earth.

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(The Triumph of Death by Bruegel in 1562)

The Black Death plague of the 14th century, which killed as much as half the world's population, clearly had a major impact on painters.

The moral message is that when chaos strikes, the devastation will affect everyone, rich and poor, young and old, and no one will escape through power or devotion.

The financial, economic and moral disaster that is about to sweep the world, more than 99.5% of people will suddenly appear like a bolt of lightning in a clear sky.

For most, the upcoming events are like the definition of the word CHAOS: "a state of complete chaos and disorder".

Chaos 1: COVID

Speaking of chaos, like the Black Death that inspired Bruegel's paintings, the world is now facing a global pandemic. However, instead of the nearly 50% of the global population that died in the mid-1300s, what we are looking at today is the total death toll from the current pandemic, which is 0.06% of the world's population! Even this number may be overestimated due to the classification rules applied.

For that paltry percentage, the world is now paralyzed for the third year in a row.There are lockdowns, quarantines, mandatory vaccines with unlined boosters, covid passports, closed schools, closed offices, leisure hemorrhaging major industries, airline bankruptcies, labor, components, product shortages, border closures, and a few Who dares to do so and can do so across borders, with far more bureaucracy, paperwork and testing than in a police state. At the same time, money printing and credit creation increased exponentially.

Politicians apparently blame scientists for all the rules imposed on the people.Interestingly, there are nearly 200 countries in the world, and each country has different rules to deal with the new crown virus. If all these rules were based on science, you would think that all 200 countries would have the same rules.

Or it could be that many observers believe politicians are using the pandemic for their own gain. Or, more likely, neither scientists nor politicians know how to respond to a disease that kills hardly more than normal?

In Sweden, for example, there are no lockdowns, no quarantines, no closures of shops, no mask requirements, industry is functioning normally. Covid cases and deaths are in the lower range of the European average. Well - that's about it for all these punitive rules in most countries.

We were told the vaccine would fix the problem, but the two shots didn't do what we were promised. So now everyone needs a booster every few months. With Big Pharma being both judge and jury, and benefiting tens of billions of dollars from their own recommendations, how do we know the real truth?

For example, I have a 19-year-old granddaughter who was vaccinated and she contracted Covid in August. Now she is infected with the new crown virus for the second time, luckily it is a common cold. The government/scientist solution is obviously to do more vaccines at more frequent intervals. Still no one has properly tested the long-term effects of vaccines on our bodies, there just hasn't been time to do so! ?

The fallout from these changing rules and shutdowns will clearly have a devastating impact on an already fragile world economic and financial system.

Chaos 2: Global Debt

So if scientists and governments don't know how to deal with Covid, we can at least assume that central bankers and governments have taken control of the economy and the financial system.

How wrong can we be?Since the creation of the Federal Reserve in 1913, central banks and commercial bankers have been successfully running the financial system for their own benefit. But what really gave them carte blanche to print unlimited amounts of money came in August 1971, when Nixon closed the gold window. From then on, President Thomas Jefferson's cynical view of bankers really came true.

How prescient the above statement is. We must remember that the Federal Reserve is a private bank that completely controls the US financial system. As long as the dollar remains the world's reserve currency, the Fed controls a major part of the global financial system.

Jefferson was also right about inflation and deflation. The current financial system is entering an inflationary phase, which is likely to lead toHyperinflation, as I have discussed several times in my articles.

But before this financial system ends, the utterly worthless debt must be destroyed through a deflationary implosion, not just the debt, but the bubble assets financed by the printing of money created out of thin air.

So a deflationary depression may very well be the end of yet another failed experiment in a fiat currency system doomed the day it was created 111 years ago on Jekyll Island, which Jefferson of course tells us will happen over 200 years ago.

If history has taught us anything, it is that no one learns from history, everyone thinks today is different because we are here.

P read  ç change,more this is the mê me something - the more it changes, the more it stays the same.

So back to Bruegel. The collapse of the financial system and the collapse of the global economy will obviously have a major impact on life on Earth.

We must remember that never before in history has there been a global debt crisis of this magnitude. Debt bubbles in Europe, North and South America, Asia, Africa and Oceania never reached the levels we are experiencing now.

Look at the scale of debt incurred since 1971.

It took thousands of years for global debt to reach $1.5 trillion in 1971. Twenty-nine years later the debt had grown 66-fold to $100 trillion, and since then it has tripled to $300 trillion.

So when the gold window was closed in 1971 to get rid of the shackles, bankers and governments were free to create unlimited amounts of money.

Omg they did it! Global debt has increased 200 times since Nixon took away the gold backing of the dollar and all other currencies.

I will comment later in this article on the $3 trillion in debt in 2030. The final phase of this monetary era began with the Great Financial Crisis of 2006. The trillions of dollars printed, lent and guaranteed have managed to patch up Humpty Dumpty for now.

But it's clear to me, and some other watchers, that patches won't last long. As a result, as early as September 2019, the financial system was under enormous pressure, with central banks panicking and trying to bail out the bankrupt banking system with massive liquidity. Conveniently for the banks, since Covid started a few weeks later, they have had an excuse to print money.

Usually governments need to go to war to have an excuse to print money. But epidemics created in the lab work even better.The world is in completely uncharted and very unstable waters right now. All it takes is a minor storm for a ship in such peril to suffer irreparable damage.

No one can predict what will happen because we have nothing to compare it to. But in all likelihood, this creature (from Jekyll Island) created by bankers and governments will meet a dire fate -- a fate that only future historians will be able to tell the world.

Mayhem 3: Derivatives

Global derivatives reported by the Bank for International Settlements in Basel (Bank for International Settlements) was $1.4 trillion in the mid-2000s. By the end of the 2000s, the BIS conveniently brought this figure down to around $600 trillion through net positions.

Banks such as Deutsche Bank or JP Morgan report total derivatives outstanding of $40-50 trillion. butAll banks netted down the total amount of derivatives to insignificant amounts, arguing that these low and utterly misleading amounts were their real exposure.

Well, bankers can fool some people sometimes, but in the end we know who the real fools are!The problem with netting is that when the counterparty fails, the total risk remains the total risk.

Derivatives have been the most incredible money-making tools for banks and other financial entities. Today, there are so many opaque ways that derivatives can be created and hidden in official reporting that no one knows the actual amount outstanding, but it can easily run into trillions of dollars.

Remember that almost every financial instrument created today contains derivatives, whether it is ETF stock or bond funds, interest rate swaps, foreign exchange swaps, mortgages, etc., the list is endless.

Derivatives work well in rigged orderly systems when there is ongoing demand. However, we will only know the actual outstanding amount when the music stops and the liquidity dries up.

A very good contact of mine is an excellent explanation of systemic risk and he created these inverted pyramids with the current financial system at the bottom on a small amount of gold and a huge amount of debt at the top. On top of this, we see the $600 trillion in known derivatives reported by the BIS, in addition to an opaque financial system that could run into the trillions.

No one knows the exact amount, but it could easily be $2 trillion or more.

Mayhem 4: Time Bomb

So if we look 5-10 years into the future and paint a picture of what might happen to the financial system, the risks to the world are dire.

Global debt is sure to increase from 300 tons to at least 500 tons. This number is seriously underestimated. We add global unfunded liabilities (pensions, health insurance, etc.) and these liabilities can easily reach $500 trillion.

In the end, we added $2 trillion in derivatives—probably too conservative, too. When the counterparty fails, the central bank will need to print all the money to prevent the bank from failing.

So, if my assumptions are correct, global debt will grow from $300 trillion to $3 trillion in the next 5 to 10 years.

But I could be wrong in many ways, like it won't take 10 years. We know from history that hyperinflation can happen very quickly. Also, most estimates for debt and derivatives are probably too low.

Still, let's say the world is now facing a $3 trillion time bomb, a pretty dire prospect indeed.

Warren Buffett knew he was right when he called derivative financial instruments massive disruption in 2002. Sadly, we will soon see the evidence.

Since all monetary systems in history have come to an end, we have to assume that the largest global bubble ever will also end.

As this sick system touches every corner of our lives and leads to a decadent world where moral and ethical values ​​have all but disappeared, the world needs a cleansing in the form of forest fires so that new shoots can start anew.

Prepare and achieve the victory of survival

As I point out in this article, no one knows for sure how things will play out. But what we do know is that the stakes may be greater than at any point in history. Therefore, prudence tells us to get rid of frothy assets such as stocks, bonds and speculative assets. Once the decline begins, the real value of these assets may drop by 90% or more, which means for gold.

Most stock investors are likely to buy the dips when the market is falling, not realizing that they are going all the way down to the bottom. And this time, the market won't recover for years or even decades.

In addition to normal mortgages for residential properties, it is also important to get out of debt. Own physical gold and some silver (more volatile). This will be your insurance against a rotten financial system.

We have owned and recommended physical gold for 20 years and we have never worried about the price. History tells us that governments and central banks are bound to destroy the value of currencies.

at last

at last, we will have a hard time in the world. So helping family and friends is very important.

It is everyone's responsibility to resist the victory of death and to achieve the victory of existence—whether financial or spiritual—for everyone we can help.

please remember, many of the good things in life are free - friendship, music, books, nature and many hobbies.

Although we are entering turbulent times, I wish all our readers a merry Christmas, happy holidays, and a healthy and harmonious 2022.