Between today and 2025, the world will be a very different place. We can learn nothing about the next 4 to 7 years from government, central bank or media propaganda as they neither understand what will happen nor tell the truth. But we can learn a lot from history. Most people rely on the internet for information or news but most of it is either indigestible, misleading, fake or just too overwhelming to comprehend.

For many years I have warned people about the coming risks and changes that the world will experience. Very few people are aware of these risks and even fewer understand them. In this piece, I will make an attempt to summarise what I see coming.

1. DEBTS AND DERIVATIVES

Total debts and derivatives in the world amount to $2.5 to $3.5 Quadrillion. This is 35-50x global GDP. The majority of this enormous amount is off-balance sheet derivatives. These derivatives are backed by nothing and when counterparty fails, they will implode and become worthless. And that is guaranteed to happen. Also, most of global debt of $250 trillion will default as asset prices implode and interest rates explode.

2. STOCKS

Global market capitalisation of stocks is around $80 Trillion, a 3x increase since 2009. As the debt bubble implodes, so will stocks. In real terms, against gold, stocks will decline by at least 95%. In 1929-32 the nominal decline was 90% and this time the circumstances are dramatically worse.

3. BONDS AND INTEREST RATES

The 35 year bull market in bonds and bear market in interest rates ended in 2015-6. Money printing and interest manipulation by central banks has created a false market in bonds. Bond issuers, both state and private, will default and interest rates will rise rapidly. Rates will at least reach the levels of the 1970s and early 80s of around 20%. Central banks will lose control of rates as long rates go up first. A systemic debt default will lead to rates much above the 20% level.

4. CURRENCIES

In the last 100 years, all major currencies are down 97-99% in purchasing power terms and against gold. They are now entering the final leg of their race to the bottom. With only 1-3% to go, it is guaranteed that the currencies will reach their intrinsic value of ZERO. But remember that the 1-3% is 100% from here. Thus in the next few years, we will see the most momentous decline in the value of paper money led by the US dollar.