Topic: Economist Caution: Prepare For 'Massive Wealth Destruction' (Read 5132 times)
When you put all these growing problems into even an optimistic math model - the result is collapse of the dollar in a few years as the post 15 quoted source stated. This is not an "economic disagreement" with the above facts - it is simple math, but not all economist are willing publish that, especially those that are paid by the government or Wall Street firms.
"scary parallel"
I'm almost sure it is just a joke article xD
I'm almost sure it is just a joke article xD
If fiat paper money were to go away tomorrow then how would you determine the value of a Bitcoin?
Fiat is just the common denominator. If fiat is gone, something else will be the common denominator, don't worry. Same would be true for PMs, how would you determine their value without fiat? How much would you pay for a loaf of bread in silver? I'll give you a hint. First you'd use the last available price of silver in fiat and last available price of loaf of bread in fiat, and calculate their ratio, at later stages the market would decide that ratio according to supply and demand of both items without looking at the fiat-world last available price.
But rest assured, these are all fantasies as fiat is not going to go away any time soon or ever. They will inflate it, then hyperinflate, then just chop off a few zeros from denominations, call it the new dollar, euro, yen, etc. and the new cycle begins. That's the history of hundred+ recorded episodes of fiat cycles when fiat died and was reborn, no reason to believe it will be different this time, doesn't matter it's at the global scale this time.
Everyone should read "When Money Dies" by Adam Fergusson. This is about the Weimer inflation period.
Hyperinflation doesn't just happen overnight. It happens over a period of a few years. The rate of inflation slowly increases over a period of months.
There is another good book about a period of great inflation in France. I can't seem to find it anymore though and I forgot the title. While Adam did a good report about the technical aspects of hyperinflation, this other author did a really good job of describing the breakdown of morality that occurs during high inflation.
Hyperinflation doesn't just happen overnight. It happens over a period of a few years. The rate of inflation slowly increases over a period of months.
There is another good book about a period of great inflation in France. I can't seem to find it anymore though and I forgot the title. While Adam did a good report about the technical aspects of hyperinflation, this other author did a really good job of describing the breakdown of morality that occurs during high inflation.
Wealth is never destroyed, only transferred.
No attacking from my side, +1 instead.
All the people who say otherwise whether don't know much about financial markets, holding bags since December or have other existential interests bound to Bitcoin while knowing better.
All the people who say otherwise whether don't know much about financial markets, holding bags since December or have other existential interests bound to Bitcoin while knowing better.
Silver and gold are a solid investment, Bitcoin is cool magical internet money but that's all it is, It's value is speculative, If fiat paper money were to go away tomorrow then how would you determine the value of a Bitcoin?
Unless the exchanges started accepting and storing deposits of physical gold and silver then the Bitcoin would be worthless.
I know it's sort of blasphemy to point out this fact on this forum and i will most likely get attacked for doing so but that is the truth.
From an investment stand point Bitcoin is a great short term investment, It's a roller coaster, You buy when it's low and sell when it's high, Anyone just keeping money in Bitcoin for long term storage is not playing the game right.
Unless the exchanges started accepting and storing deposits of physical gold and silver then the Bitcoin would be worthless.
I know it's sort of blasphemy to point out this fact on this forum and i will most likely get attacked for doing so but that is the truth.
From an investment stand point Bitcoin is a great short term investment, It's a roller coaster, You buy when it's low and sell when it's high, Anyone just keeping money in Bitcoin for long term storage is not playing the game right.
Let's hope so...
Sure. If you are talking years there might be a 1% chance for that scenario, but we should be talking month or even a few weeks!
I don't think so. If you observed what some non-mainstream economists were saying over the past few years, they all had been saying since 2008 (some even earlier) - it's all over in the next few weeks, months at most, but somehow it's all been kicked down the road for a few years now, which makes me think they can kick it down the road another few years. At some point it'll be over, but not as fast as initially predicted.
Sure. If you are talking years there might be a 1% chance for that scenario, but we should be talking month or even a few weeks!
Come on... I hear so many people saying a huge crisis would push BTC/USD to new highs, but I need to completely disagree. NOBODY will buy Bitcoin during a crisis. NOBODY! Why? Simply because you won't be able to buy crap with it.
It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.
And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...
Good luck and stay safe
It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.
And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...
Good luck and stay safe
You're only partly correct. The thing is, the huge crisis doesn't happen instantaneously. It takes time to evolve - it takes years. Actually it's been going for a few years now, and look at what happened to Bitcoin. The crisis will continue on the same path, although maybe at an accelerating rate. In the next few years it develops (look to 2020), more and more businesses will be accepting crypto currencies and other forms of private money and even barter to replace the fiat losing value, that's why down the road you'll be able to buy more everyday items with non-fiat money. Fiat will be used mainly to pay taxes and other payments to government. Private businesses will be looking to keep only as much fiat as they need to pay those mandatory payments, but to save the rest in something that doesn't lose value.
Come on... I hear so many people saying a huge crisis would push BTC/USD to new highs, but I need to completely disagree. NOBODY will buy Bitcoin during a crisis. NOBODY! Why? Simply because you won't be able to buy crap with it.
It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.
And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...
Good luck and stay safe
It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.
And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...
Good luck and stay safe
Take immediate steps to protect your wealth . . . NOW!
...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/
Good news for BTC, but sorry to see so much suffering ahead.
...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/
Good news for BTC, but sorry to see so much suffering ahead.
Supposedly he had a video interview where he discusses good financial investment alternatives, would you happen to know where I can find it? I've found interviews with him but not one that summarizes his aftershock investment book
Not right now no.
I have a really good memory so I'll eventually (probably) come up with it.
Take immediate steps to protect your wealth . . . NOW!
...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/
Good news for BTC, but sorry to see so much suffering ahead.
...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”
When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”
http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/
Good news for BTC, but sorry to see so much suffering ahead.
Lucky I'm not from the US xD
Good news for BTC, but sorry to see so much suffering ahead.
Is it really? Presumably if there's less wealth, then the value of each Bitcoin would be less as well.unless that less wealth transfer to bitcoin and it's scarcity takes the value upwards
That's a transfer of wealth, not a destruction of wealth.
Well the people holding US stocks/bonds or dollars may have their wealth destroyed. Completely separate from that, bitcoin could increase in price, which would create wealth with people that own bitcoins.
Rise is price relative to what? Dollars? You just said people holding dollars will have their wealth destroyed. If that's the case, Bitcoin rising against dollars isn't really wealth creation.
Don't be obtuse. A lambo is a rather poor medium of exchange. Currency is a medium of exchange not a "mental translator." Maybe in the distant future your idea might come to fruition but right now Bitcoin is tied to fiat, I don't know how you can even deny that. No one is going to sell you a $1,000 item for 1BTC today but they would have back when BTC=$1,000. So what has changed in that timespan? Nothing.
...
I like GigaCoin´s idea of diversification, and I practice that in all of my asset holdings. Physical gold is very important to me as a Store of Wealth, I am not worried about having to "spend it", my preference will be to give it away... Platinum ("value dense"!) is worth a look as well. And, of course I own a little (2.2 or so BTC) and have some CA$H FIAT$ lying around the house "just in case."
***
Lyth0s brought up a point or two I would like to consider. All things considered, gold bullion coins are hard to counterfeit. Lead weighs much less than Au, and does not "hold a strike". And, if you buy fractional Gold Eagles, for example (in 1/10 oz or 1/4 oz sizes), it is VERY hard to fake them with tungsten (whose density is within 1% of gold´s). Tungsten is hard to work with, it is very hard and has a high melting point.
Also, a scale and calipers (total cost of both, cheapie units OK) would run, say $35 tops. Once you are familiar with your gold coins, you will feel more secure that each is real.
And if/when you get really RICH, then there are ultrasound thickness gauges ($500 and up) that would deal with the tungsten problem, say in kilo bars, sound travels much faster through tungsten than gold.
I like GigaCoin´s idea of diversification, and I practice that in all of my asset holdings. Physical gold is very important to me as a Store of Wealth, I am not worried about having to "spend it", my preference will be to give it away... Platinum ("value dense"!) is worth a look as well. And, of course I own a little (2.2 or so BTC) and have some CA$H FIAT$ lying around the house "just in case."
***
Lyth0s brought up a point or two I would like to consider. All things considered, gold bullion coins are hard to counterfeit. Lead weighs much less than Au, and does not "hold a strike". And, if you buy fractional Gold Eagles, for example (in 1/10 oz or 1/4 oz sizes), it is VERY hard to fake them with tungsten (whose density is within 1% of gold´s). Tungsten is hard to work with, it is very hard and has a high melting point.
Also, a scale and calipers (total cost of both, cheapie units OK) would run, say $35 tops. Once you are familiar with your gold coins, you will feel more secure that each is real.
And if/when you get really RICH, then there are ultrasound thickness gauges ($500 and up) that would deal with the tungsten problem, say in kilo bars, sound travels much faster through tungsten than gold.
A lot of panic around nothing important.
Good news for BTC, but sorry to see so much suffering ahead.
Is it really? Presumably if there's less wealth, then the value of each Bitcoin would be less as well.unless that less wealth transfer to bitcoin and it's scarcity takes the value upwards
That's a transfer of wealth, not a destruction of wealth.
Well the people holding US stocks/bonds or dollars may have their wealth destroyed. Completely separate from that, bitcoin could increase in price, which would create wealth with people that own bitcoins.
Rise is price relative to what? Dollars? You just said people holding dollars will have their wealth destroyed. If that's the case, Bitcoin rising against dollars isn't really wealth creation.
Good news for BTC, but sorry to see so much suffering ahead.
Is it really? Presumably if there's less wealth, then the value of each Bitcoin would be less as well.unless that less wealth transfer to bitcoin and it's scarcity takes the value upwards
That's a transfer of wealth, not a destruction of wealth.
Well the people holding US stocks/bonds or dollars may have their wealth destroyed. Completely separate from that, bitcoin could increase in price, which would create wealth with people that own bitcoins.
Rise is price relative to what? Dollars? You just said people holding dollars will have their wealth destroyed. If that's the case, Bitcoin rising against dollars isn't really wealth creation.
Good news for BTC, but sorry to see so much suffering ahead.
You will be sorry when you discover that a global recession is fkn terrible for Bitcoin and your crocodile tears turn into real ones as the value of your Bitcoins turn to dust and you realise that ridiculous paradigm of how the financial world operates and Bitcoins relation to it, was pulled straight out your arse.
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