Banking crisis, inflation, credit crunch, cognitive collapse – 2025: Towards a new economic and digital system
Never let a crisis go to waste! As inflation and central bank rate hikes seem to be long-lasting challenges, their consequences are being felt. The first victim is the US regional banking system. After three bankruptcies in a matter of weeks, our team considers this is just the beginning. A slow but sure collapse awaits this financial ecosystem. The risks of contagion to the European banking system are real and the outcomes will be all the more dramatic as these banks account for a large share of the European Union’s GDP.
The result of this erosion of part of our economic system will be the obsolescence of banks as intermediaries, a situation that will become a reality as early as 2025. The only ones to survive this new situation will be the too-big-to-fail banks, which will have to reinvent their role, and new non-bank players will emerge, mostly from the technology sector. The tool which will enable this reinvention of the economic system will be the adoption of central bank digital currencies (CBDCs) by the major economies, a lever that will allow central banks to maintain or even extend their control over the economy (from the financial markets to the real world of finance).
Anyone who is critical of such a tool and believes that its introduction will be disrupted by a struggle, at least in terms of ideas, led by an enlightened opposition, is overlooking the cognitive collapse of the Internet, which is also accelerating and reinforcing attempts at censorship and propaganda.
Finally, in the non-Western world, the opportunities offered by the crisis should not be wasted. This month we look at South America, with the help of Francesco Magistra’s knowledge of the continent, which he sees as a privileged destination for Europeans tempted to migrate. We also analyse the emergence of new sectoral organisations as a trend in this changing world. And of course, as always, you will find our investment recommendations.
A detailed summary of the GEAB 175: