HI Menta
Like some others I have essentially been waiting for a further collapse for the last 10 years. As posted I ticked the cash box on my super prior to the GFC on news that Bear Sterns had collapsed and I raised a few formal alarms before Lehman went.
Gradually rising interest rates gradually makes cash a more attractive option in comparison to most other asset classes BUT all the debt tagged money that was printed over the last 10 years has to go somewhere in addition to the vaults of the zombie banks.
Money is just a social construct. There is nothing tangible about most of it ( the exception being a small number of emerging blockchain tokens which are pegged to actual assets). We can create new money forever if we wish and inflate the prices of certain asset classes indefinitely as a consequence. Steve Keen missed that tiny part of the puzzle a few years back.
Cutting to the chase, any event that significantly inhibits intra bank lending will trigger a global economic collapse.
(As a relevant aside, I note the shameful manner in which both China and the US disrespected PNG at APEC. That's a bad omen. So is a picture of Xi without the usually indelible smile or grin on his face. Another relevant aside is Trump's comment that he can simply print USDs, Despite economists telling Trump he can't print away the debt he most certainly can. He has the plates so he can. Will this happen should demand for Treasuries at currently low interest rates continue to decline? I haven't thought through the knock on impacts of a wilder USD printing press but ...)
Cheers
