Were you surprised by these headlines last week?
On this occasion, we want to share the opinion of Andrey Syrchin (if you also find his thoughts interesting, like we do, give a like immediately!).
‘The biggest problem in the world today is the national debts of the USA, Japan, Italy, Greece, China. All these countries have a tax burden that is clearly difficult to cover with the current economic capabilities, and sooner or later there will be a “breakthrough” somewhere!
Such titans as Ray Dalio and the late Charlie Munger also agreed with this, noting the risk. So far, the governments of these countries have managed to balance, but what can happen if it breaks:
1). The default of one of these countries will trigger a spiral of bankruptcies among companies, banks, and investors around the world.
2). It will be necessary to use the printing press, and this means inflation.
3). If the default occurs in a European country, the likelihood of leaving the EU will be high!’
Andrey, like the entire Cresco Capital team, will be closely monitoring the triggers of the global debt crisis, and if it happens, a window of opportunity will open, but turbulence is inevitable!
High stakes – the biggest danger for these countries today. Andrey has already noted in our videos that in the USA, the main part of the budget expenditure is debt service.
What else to expect in 2024? We’ll see!