2.24 Global Insolvency

The problem of insolvency, forestalled only by overheating government printing presses, does not just belong to America.

All around the world, the central banks, banks, pension funds, healthcare funds, insurance companies, municipalities, retirees and so many others have been buying bonds during the 40 year bull run, believing they are the safest way to get their money back in the future.

All these assets now must drop in value.

The world is over-leveraged, holding 10s or hundreds of competing claims to the same set of underlying assets on Earth as a result of the multiplier effect and derivative financial instruments.

If we all showed up to the counter of reality and asked for what is "ours" - we would discover that it doesn't all exist in reality.

Every asset we think we hold is in reality a claim on some piece of Reality that we value. A title to a home or a car, a stock certificate, a unit of currency, a financial instrument, a share in an exchange traded fund, etc.

But if we were to try to sort out all the claims, we would discover that there are way more claims on Reality than there is Reality.

The system, in aggregate, is broke, which means that all those perceived assets must realign towards their real value.

The amazing thing about this particular ponzi scheme is that because trillions of dollars have been printed, there are trillions of claims and counter claims distributed across billions of parties, so The Game could never actually accounted for and settled from within.

If the Whole world was thrown into a bankruptcy court, it would take the next 1,000 years to attempt to sort out the facts.

I have a different proposal for how we spend the next 1,000 years. Let's transcend the corrupt and failing Old Game, and play a New Game. Starting today.

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