Why the "Global Debt Cloud 1.0" App Will Crash

I've been involved with software businesses for most of my career.  Software is a great illustration of the aphorism about History not repeating, rather rhyming.

Many legendary software applications have covered the same covers album:

1) Feels Like The First Time
inspired concept with singularity of purpose brought to market by a small, passionate team
2) I'm So Glad
adoring adoption by a growing community of users; team grows to give them love
3) Getting Better
expansion of the mission in response to clamoring of the adoring users, further expansion of team and probable move to beautiful new headquarters
4) We Are the Champions
forecasts of rule-the-universe possibly concurrent with IPO win
5) Hotel California
difficulty getting the next release nailed down, and decelerating innovation as layered complexity begins to snarl every move
6) Clubbed to Death
Proliferating competitors/enemies, and they're winning; everything seems crazy.
7) My Heart Will Go On
spectacular epic FAIL new version/upgrade release and earnings disaster/s
8) Is That All There Is?
dispirited company acquired by a grasping conglomerate that preys on the less imaginative remaining users
9) The End
another footnote in history

The Global Financial System is a lot like a big software application, in fact resting on countless interconnected software systems.  The unprecedented expansion of private and public debt and chaotic blow-ups and near misses squarely locates us at step 6 on our software timeline.  First just Japan, then the USA was ZIRPing and QEing, now everyone's in the act.  Rogue actors regularly hijack the geopolitical scene.

It's not hard to anticipate Step #7, the Epic Fail of the Global Financial System aka Global Debt Cloud 1.0.  It could come from anywhere.  Implosions in the near-$quadrillion notional pile of derivatives worldwide.  A misstep in any of the world financial citadels.  A melt-down in the world of High-Frequency-Trading - the bastard child of Moore's Law and the always-seductive GIGO. Or just an awakening and realization by the little people.

Time to be thinking about Step 1.