The world economy has two options, ONLY TWO i.e.
- Hyperinflation or
- Default on debt.
Hyperinflation: World banks will keep dropping interest rates. In many coutries, interest rates will be near zero. Inflation will be high. People will spend currency as soon as possible, because the value of currency will fall fast. People holding cash, bonds, fixed deposits, etc will lose. Wealth will be transferred to people invested in real estate, stocks, gold, silver and other physical assets.
Default on Debt: Interest will rise dramatically. There will a worldwide depresstion. Stocks will fall. Currency invested in bods, fixed deposits, etc will be lost. Real estate will fall. People holding their wealth in stocks, real estate, fixed deposits, etc will lose. Wealth will be transferred to people holding cash in their hands, gold, silver, etc.
US, Canada, China India, etc and most countries, are currently on the path of hyperinflation; because interest rates have been falling. Should any country start raising interest rates, then it is on the path of Default of debt.
