Simon Hunt: global financial collapse by 2025, BRICS+ to launch new currency

TL;DR

Simon Hunt, an economist and copper industry expert, shares his views on the global economy, the unserviceable levels of debt, and the potential for a financial collapse by 2025.

Transcript

foreign welcome back to small caps ladies and gentlemen My Name is Kerry Stevenson and today I have the great pleasure of talking with Simon hunt now Simon Hunt is an economist he's also one of the foremost experts in the copper industry he's been over 50 years in the copper industry currently residing in Dubai he is a yorkshireman by background so... Read More

Key Insights

• 🌍 The global economy is facing a significant amount of unserviceable debt, which could potentially lead to default and economic crises by 2025.
• 💰 Negative interest rates have fueled speculation and greed, but as central banks raise interest rates to real levels, highly leveraged systems may face issues and potential bank failures.
• 📉 Rising interest rates, negative real money supply, and a potential recession indicate a downturn in global business. The US is at risk of a recession despite strong employment data.
• 🌍 Geopolitical risks, such as the intensifying war in Ukraine and tension between Israel and Iran, could have significant implications for global markets if conflicts escalate.
• 💲 The US dollar's relevance as a reserve currency is diminishing, as BRICS nations and other countries move away from the dollar and establish trade agreements using their own currencies or gold.
• 🔒 The global financial system is projected to collapse by 2025 due to the highly leveraged nature of the system and the impact of rising interest rates, potentially leading to depression.
• 🥇 Gold is seen as a safe haven asset during times of turmoil and inflation. Investing in gold is recommended as a hedge against potential economic downturns and volatility.
• 🌽 The food industry may experience supply disruptions and rising prices due to various factors, including weather patterns, which could lead to social unrest as the cost of living increases.

Questions & Answers

Q: What are the factors contributing to the potential default of the global economy?

According to Simon Hunt, the unserviceable levels of debt, the shift from negative to higher interest rates, and the vulnerability of the highly leveraged financial system all contribute to the potential default of the global economy. The accumulation of debt, paired with speculation and greed, has created an unstable environment.

Q: How are interest rates expected to fluctuate in the near future?

Hunt predicts that interest rates will initially rise but will likely fall again in the fourth quarter of this year due to the recession. However, by early 2025 or the end of 2024, interest rates on 10-year treasuries could skyrocket to over 10 percent, leading to a collapse of the financial system.

Q: What role does the BRICS (Brazil, Russia, India, China, South Africa) group play in the global economy?

Hunt believes that the BRICS nations, along with other countries shifting away from the US dollar, are actively working towards reducing the dollar's dominance as the reserve currency. They are exploring the possibility of a new gold-backed currency, giving them more control over their own finances and commodity markets.

Q: How can individuals prepare for the potential global financial collapse?

Hunt advises individuals to start contingency planning and take certain steps to be more prepared. These steps include saving more, stockpiling food, and investing in physical gold rather than paper gold, as the paper gold market is expected to collapse. Additionally, individuals should be aware of rising inflation and its impact on the cost of living.

Summary & Key Takeaways

• Simon Hunt predicts that the global economy is facing a high risk of default due to unserviceable levels of debt, with a potential financial collapse by 2025.

• Hunt explains that the negative interest rates of the past decade have led to speculation and greed, and raising interest rates now will cause significant issues in a highly leveraged system.

• He also highlights the potential triggers for crises, such as rising interest rates, conflicts in Ukraine and the Middle East, and the shift away from the US dollar as a reserve currency.