Société Générale has advised clients to be ready for a possible "global economic collapse"

In a report entitled "Worst-case debt scenario", the bank's asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems.

Overall debt is still far too high in almost all rich economies as a share of GDP, whether public or private. It must be reduced by the hard slog of "deleveraging", for years.

"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report

Here are some bullet points:
Public debt it getting set to explode within two years
UK -105% GDP
USA and EU - 125% GDP
Japan - 270% GDP !!
Worldwide state debt would reach $45 trillion, up two-and-a-half times in a decade.
The underlying debt burden is greater than it was after the Second World War.
Ageing populations will make it harder to erode debt through growth.
Gold will go "up, and up, and up" as the only safe haven from fiat paper money

Looks to me like the wheels are about to fall off this train. I want to get off before it happens. The question is where do you put your money to protect it? Is gold over priced right now? Gold has had a huge run up lately and I feel that it will fall back to earth a bit but who knows.

www.telegraph.co.uk...

Edit - To add link..





[edit on 11/19/2009 by Erasurehead]

reply to post by Erasurehead


Ok so the article says:

"As yet, nobody can say with any certainty whether we have in fact escaped the prospect of a global economic collapse," said the 68-page report, headed by asset chief Daniel Fermon. It is an exploration of the dangers, not a forecast.

(em)

So it seems to just be simple due diligence more than anything else ... prudent but not really alarming imho.

And after several months of failed predictions of market collapse, bank holidays, and general doomsday economic forecasts, I have to admit that my "cry wolf" meter is all but busted.

[edit on 19 Nov 2009 by schrodingers dog]

reply to post by schrodingers dog


I hear what you are saying and to an extent I do agree with you. There have been so many predictions of economic collapse that have come and gone. However I do think the only reason this has not happened yet is because the government intervention. At some point there will be a time when the governments of the world have done all they can and it will be time to pay the piper.

I mean other then governments injecting cash into the world economy to keep it propped up what has changed in the broken system that created the mess in the first place?

reply to post by schrodingers dog


There might have been some things that didn't happen in the time frame that it was thought would happen, but the fact is that we are still deep in a global economic crisis which has gotten from bad to worse.

If you were living in Iceland, you would have known the really bad effects of the economic crisis.

Other countries around the world are also experiencing more hardship than ever. Even in countries like Cuba things are really bad. I know because I have family there and they tell me what is happening. It is becoming harder, and harder to find food for my family in Cuba, and since the economic crisis is affecting many people, including families who live outside Cuba, they can't send as much money to their families living in the island, so they have less money to buy food, and other necessities.

Things are really bad around the world, some countries have not yet received the worse of the economic crisis, but if this keeps going we ALL will experience hardship, and unfortunately it doesn't seem to be stopping.

Heard about it (and actually made an unsuccessful thread about it a few hours ago :lol.
Well, this is bound to happen : sooner or later, the debts will soon have to be paid !