by Egon Von Greyerz, Gold Switzerland:

We are on the inevitable road to perdition for the world economy & financial system, ending in a potential global conflict of uncontrollable proportions. 

Evil begets evil as The Cycle of Evil hits countries at the end of an uncontrollable debt expansion.

The pattern throughout history has always been the same – countries and empires, without fail, become victims of their own success -failure, whether it was the Mongols, Ottomans or the British


As real growth ceases, a country starts to finance expansion with debt until it cannot even afford the interest on the debt, never mind the capital which it has no intention to repay.

At some point, the people, fearing a war or terrorist attack will approve of the leader’s fear mongering by supporting unlimited debt issuance. This is now happening in the US with regard to Ukraine and Israel.

Neither the US nor Europe is taking a single step to remedy the situation. Both are now in the Cycle of Evil of more deficits, more debt, higher interest costs, leading to more deficits, more debt higher interest costs, leading to ……………..

The Cycle of Evil is also accompanied by decadence and moral decline where leaders invent problems that are not real such as climate change, ESG (environmental, social and governance), forced vaccines and incarcerations, 25 new genders and other woke issues etc. 

Few Americans understand that the next stage of the Cycle of Evil is about to hit them. 

And even fewer Europeans have a clue that they will be dragged down into the same debt collapse quagmire.

The next stage will involve many banks failing, more than the FDIC or government can afford to save without destroying both the Currency and the Bond Market,

A collapsing currency and sovereign debt paper that no investor wants to touch with a bargepole is hardly the right climate for massive debt issuance. 

Most sovereign investors have already realised that they don’t want US debt at any interest rate. 

So that means even higher interest rates, more debt issuance as the Cycle of Evil eventually turns to a “Final Collapse” as von Mises described: 


Let us summarise where the world is:


We have two wars both capable of leading to a major global conflict plus high risk of terrorism and jihads in the West. Just as with most global/world wars, there is no attempt at finding peace solutions.

To make things worse, there is not a single Statesman in the West capable of taking a lead in solving the conflicts.


We have a global debt burden of $330 trillion plus derivatives totalling $1.5-3 quadrillion with debt growing exponentially, especially in the US.  This will very soon develop into a debt crisis and collapse of a heavily leveraged Western world plus Japan and China and also emerging markets.


The downturn and eventual collapse in the global economy will lead to poverty, famine and misery for a great number of people in the West and Emerging Markets.


This war started as a local conflict but with a US backed putsch in 2014, throwing out the democratically elected Russian friendly leader, this was the beginning of a war between Russia and the US and not a local war.

The Minsk agreement brokered by Germany and France was supposed to settle the matter but as Merkel recently admitted, the intent was never to create peace but to give enough time for Ukraine to arm with the help of the US.

The US forced Europe to take sides, in spite of Europe’s (especially Germany’s) dependence on Russian energy.

We can blame Russia for invading or we can blame the US for provoking Russia.

Rather than to go into all the arguments who is right and who is wrong, best to accept that we now have a global conflict stemming from the Ukraine situation. The US has a reluctant Europe on its side – a Europe which is militarily and economically weak. Russia has China, Iran, North Korea and a few others, most probably a militarily superior group.

A bankrupt USA just sends more money and weapons but has zero intent to send peacekeepers.

Thus there is no end in sight but the independent reporting tells us that Ukraine is unlikely to have a chance against the superior Russian war machine.

In the meantime an estimated 500,000 troops in total have died plus many more wounded and civilian casualties.

And still no peace attempt.

If the warring country’s leaders led from the front, which has been common in history, they would probably be less inclined to sacrifice more lives including their own.


This region has had ongoing conflicts throughout history.  It was insoluble before 1948 and has become even more complex since 1948 when Israel was created.

Again, we have major powers involved with primarily the US and Europe supporting Israel and Iran, Turkey and major parts of the Arab-Muslim world supporting Palestine and also Russia.

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