ECB’s Lagarde: A Cancellation Of Debts From The Crisis Seems Totally Unthinkable To Me

I’m actually sure that in this decade it will happen - initially the resistance will be high, but debt can’t be amounted uncontrollably over the shoulders of the next generations without major consequences.

The world bank lobby will have to swallow some non-delicious pills.

Some governments will “froze” and later completely “write-off” debts...the economy just needs the perfect storm and this could be the COVID-19 induced depression...

... and another possibility is that the much-anticipated inflation forecast after 2008 will finally arrive.

I guess you imply that it will come and explode wildly into hyper-inflation? :-)

The whole globe economic system is based upon Debt growth.
It is not based upon Savings and Wealth creation any longer.
Money is created out of thin air by the Banking system when Loans originate. That is what fuels money supply and demand.
If there are no more qualified borrowers as they choke upon being Debt Maxed out either Loan qualifications need get reduced or Debt will get forgiven so as to usher in ability for more Debt to be issued.
Either Debt gets forgiven so as to renew Borrowers ability to assume it or have a good old Fashioned asset Liquidation to reset the whole system from a new point in time.

First will come the pain as economy tracks towards Liquidation which is attempting to be staved off by the current CB action to backstop the whole economy which I believe is going to fail.
Defaults and Liquidation comes next. Then will come the debt forgiveness via Bankruptcy and subsequent Economic Reset.
CBs may get Lucky and end up with a Long period of stagnation which will defer Social unrest.
This is a Mess that is not going away for a Loooong Time.

PS; Savings and Wealth are the only things able to backstop an economy. Just as Canned goods on the shelf with Frozen food in the Freezer provides sustenance when crops are not abundant.
The Masters of the Universe have decided that was no longer True and they could do it better. So here we all are waiting on the next Oracle to utter.
Trade it as it comes.

No I was not implying that. I am not sure what will cause the inflation, the unemployment rates of some countries became very low and still that did not cause inflation .. so who knows.

Hyper-inflation is very painful so I hope that does not happen. The UK had something like 25% for one year in the 70s and ordinary people found difficulty in feeding their families. One effect of inflation is to increase GDP, so a few years in the 5% ~ 15% range would see some countries bring their Debt:GDP ratio back to something quite acceptable. Probably not Greece...

Debt free world, how come no one thought of that?

Well , this wont be the first time :https://www.zerohedge.com/economics/...nia-takes-over
The question is : Who will be the first ? NWO financial departement or some strong leader ( I won't give a name ) refusing to pay , and all the others will follow, no matter what IMF says

As I've posted many times debt is between consenting parties who are intelligent and understand the contract between them. Collateral is extremely important obvious yes but not mentioned here.

The world is worth about 1,000 trillion in assets - about half of that being people and the other half being stuff (potential collateral). So don't be scared by big numbers like 5 trillion loss which is half of1%.

Surprises like CV come along and the issue is debt management, an institutional problem but not a systemic threat as suggested. 1,000 trillion in assets is a strong base to build with confidence strategies to get us back on track. Panic strategies will fail.

You do realise that the numbers you state (like how much something is worth) are quite arbitrary and somewhat artificial.

Something “worth” some price if there is a market and a buyer.

The only real “need” the human has is 500grams food per day and some clothes - everything else can “worth” nothing at a certain point.

The real economy power is not how much “numbers” you put into a bank database server...

The power of the finances is a derivate of real power - thus the only way a world bank cartel can survive is to squeeze balls of politicians in some powerful countries - but being in a quantum universe (where sudden and unexpected events could happen) - this “strategy” is not guaranteed to survive for decades, right? ;-)