Uh Oh: "Prepare For A Global Economic Collapse"

According to this Telegraph story (h/t Drudge), Societe Generale is advising its clients:

"to be ready for a possible 'global economic collapse' over the next two years, mapping a strategy of defensive investments to avoid wealth destruction.  In a report entitled "Worst-case debt scenario," the bank's asset team said state rescue packages over the last year have merely transferred private liabilities onto sagging sovereign shoulders, creating a fresh set of problems."

"The underlying debt burden is greater than it was after the Second World War, when nominal levels looked similar. Aging populations will make it harder to erode debt through growth. "High public debt looks entirely unsustainable in the long run. We have almost reached a point of no return for government debt," it said.

Inflating debt away might be seen by some governments as a lesser of evils."

There's no doubt that substantial inflationary pressures are inevitable given the ever-increasing debt burdens.  Healthcare "reform," cap and trade, and more and more government borrowing for "stimulus" purposes will only increase that pressure beyond anything we have seen in many years.  But a "global economic collapse"?  While I wouldn't dismiss the possibility, I'd very much doubt the probability of anything remotely like that happening.  I hope that I'm right!