The debt bomb is cascading debt defaults. Look at the US stock market for example. Before it started tanking, the only reason it was going up was because the federal reserve was lowering interest rates and printing money to "save us" from the 2008 collapse. It's just a lot of credit, cheap money (debt), pushing the market up to new highs. Businesses used all the fresh money to expand and increase profits, to do stock buybacks and keep investors happy. Well, now interest rates are close to 0%. The beginning of the current collapse was when the federal reserved tried raising interest rates by 0.25%. That's all it took, and anyone who watches the stock market will tell you that if they raise it by another 0.25% all hell will break loose. So, interest rates will probably not go up, and will possibly go negative soon.

See when the stock market falls, money which businesses thought they had is suddenly gone, same for investors. Same for average people with 401ks. So, people are watching their perceived wealth disappear, meanwhile, they have debt. Mortgage debt, student loan debt (!), auto loan debt, credit card debt. People are starting to feel some real pressure, so, they need to spend less money on things they don't need (!). Younger generations are NOTHING like their parents at their age because of this situation. Businesses rely on people spending money, now that consumer spending has peaked, earning reports are going to get worse, which means the stock market is going to get worse. Please read above to understand the cycle.

Oh, another thing happens when the stock market falls and businesses fail, people lose jobs. Making it even harder to service debt, cue increasing defaults. If people can't pay debt, banks fall into the same cycle, stocks fall, less people borrow, etc. Read up on 2008 to know what happens when banks fail. Also many banks (Deutsche for example) are exposed to bad investments, various derivative investments which are failing, the energy sector (take a look at oil prices over the past few years(!)). Last time this happened the government had to bail banks like this out by printing money. I hope you realize that when money is printed it does not go to you, you will get poorer, prices will go up over time, it's called inflation. Nothing is fundamentally solved by bailing out these banks.

Obviously it's a very complicated issue, and there's more to it, I hope you see how events can unfold though. It truly is my belief that there is no way out of it, not like we are used to, so I believe there will be an end to the traditional financial system. What comes after is of course unknown. But for now, I like Bitcoin, but I'm ready to jump to whatever is ideal for my future freedom and wealth.