"Having borrowed to finance expensive development projects, the commodities-rich countries in Latin America and Africa and some of the worldâ€™s leading mining companies were suddenly the focus of a new debt crisis.".
The report describes that the new commodity debt crisis--in a sub-prime-like fashion--would hit banks and insurers via direct or indirect exposure, causing many to finally default. Without the emerging growth engine, the world would once again fall into recession. New World Order By 2015? This new commodity debt crisis would then bring the judgment day to sovereigns in the US, UK and Europe with "debt mountains emerge as the ultimate source of global systemic risk." And 2013 to 2015 would become "the single biggest rebalancing of economic and political power since World War II." (See Chart Below)
Dian Chu - Feb. 2nd