Topic: Financial Crisis Will Come - page 22. (Read 19892 times)
Financial crisis are inevitable, it will come. But I think it won’t be in the near future
Financial crisis will always be here, though not in all parts of the world but at some point, you will still see poor and struggling countries, as long there is a corrupt system this will never change, I am not against any religion or thpe of government, but if you take a look at the golds of vatican, buddhists, once they sell it all, you can help a dying nation, if we check on Venezuela, the country used to be rich back then, but now it is falling apart, however its neighboring countries aren't, I think this is what will happen once every nation experience financial crisis at the same time, thos who are in power, politically, socially and religiously will be the one that will survive financil crisis, and the rest will be left out, fortunately for us, we already know crypto currency and it will save us once things like it happens.
We have been through so many economical difficulties, that people should have had a wake up call years ago already....
I'm convinced that the reason people don't wake up to the reality of elite-inflated bubbles is that the media is part of the story-telling machine that numbs the public.
See this thought-provoking piece about this basic reality. Ben Hunt argues that we as a species are genetically programmed to respond to simplifying models (that he calls 'memes' and 'narratives') much more positively than we realize consciously. And the powerful people who run this world understand this better than we do.
I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....
Also I think there's a lot of wisdom in the HODL strategy. Most of the time, the authorities will want to suppress demand for non-state-issued money.
Historically, whether a country's money is pegged against gold or the dollar, any devaluation is denied vigorously the night before, done overnight by a large enough degree to keep the currency stable, and be stable for at least a while afterwards. If you didn't own gold or dollars the night before, you lost the opportunity.
The world today is not essentially different, even if we don't live under an official gold or Bitcoin standard.
I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....
Establishment commentators tend to blame every financial crisis on the "bad luck" of a whole host of factors coming together to create a "perfect storm." What they "forget" is that the incentives of the modern system always drive the elites themselves to destabilize their own system. Not sometimes. Not most of the time. Always.
They will say that the 2007-8 crisis was a combination of the US banking deregulation of the 90s, the US political agenda of moving poor people into home ownership, the poor financial oversight by the George W. Bush administration, the 'global savings glut,' the existence of a shadow banking system in the US, the loose monetary policy in the aftermath of the dot com bust, etc. etc. All true. What they forget to mention is that, if it were not these factors, there would be others (stock buybacks anyone?) If it hadn't happened in 2007-8, it would have been later.
Only looking at the top of the world system, ie Britain in the 19th century and the US later, we can see that:
- There was a financial crisis in Britain roughly every 10 years from 1810 to the 1860s.
- The British Empire bought itself a couple decades by making gold the only money, and not silver. (Thereby making itself rich at the expense of silver countries -- not unlike what the US might be doing with crypto-currencies today.) But in 1890 a financial crisis in London made it necessary for the Bank of England to be bailed out by gold from other central banks, the first time in history.
- Soon after world-leader status was moved to the US, in 1929-31, the Great Depression started with a series of financial crises.
- Though the bloodshed of World War II bought a few decades of stability under the US, it was forced to renounce its promise to allow foreign governments to redeem every $35 for an ounce of gold, in 1971.
- The 1970s global crisis of confidence in the dollar forced the US to pay 20% interest on 30-year Treasuries by about 1980.
- The US stock market crashed in 2000. By 2002, the NASDAQ had lost 78% of its value at the peak.
- The entire world system teetered on the brink of collapse in 2008.
Remember that, we're only talking about the top of the world system, which is the most stable, by design. (Paper pound sterling in the 19th century and dollars in the 20th were the world's top reserve currencies of their day. Every effort is made to make other countries fail first -- e.g. the emerging markets crisis of today helps protect the value of US money and debt.) Further down the ladder, there were many more crises, plus conflicts and wars.
So the long view reveals the truth. And the truth is that you can't escape the perverse incentives that make individual members of the elites want to profit or prop up the system today by storing up even more trouble for future elites. These incentives come directly from the system's core nature of theft and deception.
If we listen to mainstream economists, the reason for recurring crises is that, for some reason, people just want to keep losing money. They keep chasing risky assets whose high values have nothing to do with being propped up by state-bank-elites. Right.
This system also punishes prudent people who put the most trust in its promises and its official narratives. But we have a long-term defense: buy gold, silver, and Bitcoin!
They will say that the 2007-8 crisis was a combination of the US banking deregulation of the 90s, the US political agenda of moving poor people into home ownership, the poor financial oversight by the George W. Bush administration, the 'global savings glut,' the existence of a shadow banking system in the US, the loose monetary policy in the aftermath of the dot com bust, etc. etc. All true. What they forget to mention is that, if it were not these factors, there would be others (stock buybacks anyone?) If it hadn't happened in 2007-8, it would have been later.
Only looking at the top of the world system, ie Britain in the 19th century and the US later, we can see that:
- There was a financial crisis in Britain roughly every 10 years from 1810 to the 1860s.
- The British Empire bought itself a couple decades by making gold the only money, and not silver. (Thereby making itself rich at the expense of silver countries -- not unlike what the US might be doing with crypto-currencies today.) But in 1890 a financial crisis in London made it necessary for the Bank of England to be bailed out by gold from other central banks, the first time in history.
- Soon after world-leader status was moved to the US, in 1929-31, the Great Depression started with a series of financial crises.
- Though the bloodshed of World War II bought a few decades of stability under the US, it was forced to renounce its promise to allow foreign governments to redeem every $35 for an ounce of gold, in 1971.
- The 1970s global crisis of confidence in the dollar forced the US to pay 20% interest on 30-year Treasuries by about 1980.
- The US stock market crashed in 2000. By 2002, the NASDAQ had lost 78% of its value at the peak.
- The entire world system teetered on the brink of collapse in 2008.
Remember that, we're only talking about the top of the world system, which is the most stable, by design. (Paper pound sterling in the 19th century and dollars in the 20th were the world's top reserve currencies of their day. Every effort is made to make other countries fail first -- e.g. the emerging markets crisis of today helps protect the value of US money and debt.) Further down the ladder, there were many more crises, plus conflicts and wars.
So the long view reveals the truth. And the truth is that you can't escape the perverse incentives that make individual members of the elites want to profit or prop up the system today by storing up even more trouble for future elites. These incentives come directly from the system's core nature of theft and deception.
If we listen to mainstream economists, the reason for recurring crises is that, for some reason, people just want to keep losing money. They keep chasing risky assets whose high values have nothing to do with being propped up by state-bank-elites. Right.
This system also punishes prudent people who put the most trust in its promises and its official narratives. But we have a long-term defense: buy gold, silver, and Bitcoin!
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