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Opinion - by Bruno COLMANT, Ph.D., CFA, FRM, Member of the Royal Academy of Belgium
The next financial crisis is looming, insidious, and silent, making it even more dramatic. When it erupts, its clamor will surprise those who failed to heed its precursor whispers.
I fear this crisis will be systemic, meaning it is inevitable and impossible to diversify. Two main factors underpin it, and their confluence makes the situation particularly explosive.
The first lies in the global explosion of public debt, a burden that weighs heavily on the world’s economies. In the United States, massive fiscal stimulus policies have inflated debt to unprecedented levels, while in Europe, financing the welfare state continues to deepen deficits...
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