Those who have been reading my work for any length of time know I have been adamant we would someday face a "global margin call". I believe this call was issued last week! No matter how you look at the world, whether financially, geopolitically, macro, micro or whatever ...what underlies everything in our world today is "credit". Credit is used to build, wage war, to produce and deliver, to consume or to trade, EVERYTHING runs on credit. As a side note, in order for credit to be extended, the borrower must have some sort of "collateral". This collateral can be physical, financial, or simply "faith", meaning a good credit rating or at least trust by the lender.
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