Topic: Global Wave of Debt Is Largest, Fastest in 50 Years - page 2. (Read 527 times)

That is in fact true not only because financial institutions from the US have holdings directly in markets of other countries it also spreads a massive FUD for investors that is why it has a cascading effect on the global markets. Just observe how the NASDAQ moves daily you will see that other markets are also affected especially when they move on a significant quantity. The US being the most powerful country affects everything especially the economy of other countries.

Man do you need articles to know this?  Just look around you. 50 years ago you go to bank to take a loan if you build house. Today when you go buy car they dont even want to sell you unless you take it on debt. Economy we have is totally degenerated. Use now to pay tomorrow.

But why would Iran export their gold as well? It isn't something that can benefit them as well since the oil they have are much needed outside their country.


In a form of WAR is probably to most possibility. Its like a person with deep neck debt, his patience are gong to be very shallow that an ant bite can cause a brawling to anyone. With a growing population that needs to be fed while political instability forces a president to take sides just to please the party.

I have learned through study that accumulated debt will reflect harshly in the economy sooner or later, in a form or another. Especially the United States debt is at crazy high historical rates nowadays and once the debt bubble bursts in my opinion we're going to see a massive cascade effect not on the US economy but on a global level as well.

There is a big big difference in gold and whats about to happen with the whole Iran versus USA thing tho, I mean I know debt is a lot and inflation is caused due to debt and other stuff so in any normal day you are right, gold is a great thing to invest into against inflation and against anything bad, hell betting on gold in case Trump gets reelected is also awesome as well, at the very least makes sure you won't be at disadvantage in that case.

However, and even tho I doubt this, USA goes to war with Iran, Iran is one of the few nations in the whole world that has a gold backed currency and they have insane amount of golds, it is actually illegal for them to take it out of nation for the regular people so not only national bank has a lot of gold but people do have a lot of gold as well, so if all of that gold actually goes out of nation due to a war, we will see gold price dropping a lot.

That's a good idea but it's old, and that's the idea of the old people who didn't have bitcoin before. Now that things are different, we have a different kind of non-physical assets with limited supply. So buying Bitcoin will be quite reasonable when you live in a world of technology, gold will not make us as much profit as bitcoin. that's what I'm sure of because the price of bitcoin is more powerful now than Gold, like the Iranian rocket launch on the US base.

It is true that the global wave of debt is the largest, and this is not a good thing for the world economy. Many countries
are experiencing a crisis economy and one of them because it has a debt that is so large. And even sadder now most
people have think of debt as a lifestyle and also have a debt is considered normal. Whereas the right life, a life that is free
from debt. According to me we should avoid debt, because if we are accustomed to debt it will make us poor.

This reminds of the climate change topic and the corporate shamers that try to make it look like its the perfumes that we use that somehow changes the world, hell there was even a thesis regarding how "farts" are actually much worse to our climate than it people imagine it is considering there is close to 8 billion people in the world right now compared to less back in the day so even that should be considered.

However, reality is 100 companies create 70% of the problems in the climate change, if those 100 companies suddenly vanished we would have 70% better climate in our hands. Same with debt, it looks like individuals have a lot of debt but this trillions of dollars are not because of individuals, its the companies that do not pay their debt on time and live with debt on their sheet.

We cannot escape debt. A country with debt is normal. It only becomes so bad when the country have so much debt that their economy is falling. How come a country becomes free from debt when almost all people who lives in there have debts? Whether you are poor or rich, you still have debt. The richer you are, the higher debts you have. The difference is that, poor can't pay their debts because they don't have sufficient money. While rich people have debts yet they still have a lot of money.

Although it's hard to return with gold standard, gold will always be good because it will never depreciate. The demand of gold will never lose because its value will never lose also. Gold will remain stronger in any situation.

I think the cause of economic problems in Spain and Greece is because of the debt crisis not because of adopting the euro. Although the Euro adoption effect means to generalize the economic standardization of all member countries which in fact the economic conditions differ from one another. This can be seen from the differences in policies taken by the European Union towards the debt crisis of Spain and Greece.

Although the process of transition from the fiat system into a gold currency (money with intrinsic value) takes a long time at least by starting to use the gold currency will stop the depravity of our economy and initiate improvements in the global economic system.

   The population of the world in 1950 was 2,556,000,000! Today 7,500,000,000! Nobody could predict that, like nobody could
predict that debt will rise so fast, same like inflation, and all other things. This system is can't be apply on global level, it's why
we need digitalization, why we need Blockchain!
    Blockchain provides an immutable record, consider how helpful that can be for all of us who are fair and honest! In public sector
Blockchain can be used for voting, all kind of records, paper documents can become history! Insurance, healthcare, gaming, supply
chain, imagine revolution that Blockchain can make!

The increase in the amount of Debt are expected if the GDP increases as well, whats alarming is the Debt to GDP ratio.
If it continues to increase significantly or constantly in a triple digit until it reaches the amount of GDP level, then that would be critical
for it comes along a great debt cost. And it shows also that investors turns into creditors coz they have low confidence in the economy.

Every economy has this metrics and its the role of the government and also the central banks to put some measures in this new trends in order
to control any risk that could adversely affect their economy.

The gap between the rich and poor keeps getting wider as the wealthy control the political establishment.  The poor are faced with high medical costs, student loan debt, high interest rates on credit cards, and low wages.

The system is designed to fail.

Just an FYI if a great recession comes that will trigger an inflation similar to Venezuela even "deflationary" assets are not safe from inflation simply because these assets are still have an equal value to its fiat counterparts. During these times we will also see a lot of people liquidating their assets for cash so definitely it will drag down the prices of these assets just like what happened to the stock market and other markets during 2008 the crypto market will still be vulnerable from this basically you won't really expect any kind of asset to become a safe haven when the demand for money is greater than investments. So the only ones who will really prevail are the ones who still have a lot of extra cash lying around in their pockets where they can buy of these cheap assets when the time comes.

 

I too agree that returning back to gold standard is highly unlikely! But we also need to understand that, it doesn't stop banks and institutions from buying more and more gold to stack up their underground lockers! So the demand of gold is not going to decrease! Rather, in current situation, this trend of buying gold is likely to increase and we have already started seeing a surge in Gold's price.

So it really doesn't matter if gold standard is coming back or not, but it still remains the best hedge instrument during uncertain times!

 The debt situation world has will eventually be solved one way or another, there is no possibility that debt of this size can go unnoticed and just continues to grow. What will happen in the future, the world will have 100 trillion? 200? 500? There must be an end to it eventually and I don't know how it will happen or when it will happen but I am %100 certain it will happen. My money is on the fact that people will start to live in a more crypto currency way of life, earn the money you have and spend the money you earn type of way without debt and without needing any mortgages or debts. Thats on individual side, there is also the wall street companies that get billions of dollars in debt all the time and never pay it off and just keep postponing the payments of the debts until they can't be paid and than they just get bailed out, eventually it will reach to a level where they can't be bailed out anymore and even if that means hurting the economy badly, someone will punish them for their greed and let them go bankrupt with thousands of people who had money there but at least stop similar things happening again in the future.

EU had proven, that in some cases resigning from own currency could have been harmful in case of crisis. Spain or Greece suffer damages from the last (a decade ago!) financial crisis, and as they could not manipulate its own currency and are unwilling to make really hard reforms.
Yet as long as Bretton Woods agreement is still in force, it is hard to believe that going back to the gold standard or switching to BTC as the worlds currency (instead of USD) will happen in the next several decades.

Unfortunately, the politicians who borrow them are the people who pay the bills.
Many of these politicians are corrupt and no one is emulating them for their punishment, but rather impunity, especially in developing countries.

Therefore, the return to gold is highly unlikely, especially with the inflation of these countries ’spending and exchange. The least solution is to erode the value of the currency and thus print more money.

Discussing the exodus from the fiat system to the gold system or the adoption of full bitcoin we must discuss the impact of increasing global debt accumulation on the global economy and the economy of a country.

Significantly increased debt accumulation will pose a risk of increasing financial stability in the short term, namely economic tightening by developed countries to reduce debt from fiscal policy to increase interest rates, which in turn is an increase in the exchange rate of its currency. In the end, developing countries and poor countries that absorb debt in the form of dollars from rich countries will experience debt swelling.

Will the swelling of debt and all its problems bring the awareness of many state governments that the fiat system is very vulnerable and is a failure especially when the US starts printing dollars without gold collateral, and then moves on to bitcoin?

In my opinion, the answer is no. Because one of the symbols of a country's sovereignty is its national currency. It is impossible for a government to surrender its authority to a decentralized system. Unless it is because of TINA (there is no alternative) as happened in Venezuela because it received a total embargo from the United States.

Switching to a gold-based system is more likely to be done by some countries in the long run. Some Islamic countries have started to initiate currencies with gold guarantees. But preparing the network transition infrastructure from a fiat system with a new system will take a long time.

Well, it may tank the value of gold but ultimately, it would survive the crash. Unlike the major cause of the crash, which is the debt of Gold itself. Gold may not be a soft fiat, but it is backed by something. A hard asset so to speak, unlike fiat which is backed by only the government itself, which was the one who caused the debt to grow by so much. Fiat can simply be called as a "medium" at this point. So that both the consumer and the seller would have a middle ground, where they both earn and profit equally without bias.