The governments have made a trap for themselves by bailing out the banks, the banks have them over a barrel and they have no way out now. If they stop QE and bank bailouts then the banks pull the rug out from under the economy and it collapses. If they don't stop QE and bailouts then the population become so impoverished, desperate and angry that the result will eventually be a huge angry mob turning up at Parliament to lynch the lot of them.
What the governments should have done was to seize all the assets of the failing banks, jail those responsible and then compensate the people who had money in the banks. That of course would have been quite a blow to the economy but at least the total cost would have been finite, and possible to pay off and recover from eventually. Instead because the government and the banks are the same thing they chose the route of bailing out the banks, now they're desperately scrabbling for money to fill this bottomless money pit, a task that is impossible. The way that they've responded to this situation means that whatever they do the economy is now doomed.
What the governments should have done was to seize all the assets of the failing banks, jail those responsible and then compensate the people who had money in the banks. That of course would have been quite a blow to the economy but at least the total cost would have been finite, and possible to pay off and recover from eventually. Instead because the government and the banks are the same thing they chose the route of bailing out the banks, now they're desperately scrabbling for money to fill this bottomless money pit, a task that is impossible. The way that they've responded to this situation means that whatever they do the economy is now doomed.
I have a feeling that will still happen...
Regarding getting out of fiat. We are not going to collapse real soon (relatively speaking). Silver and Gold at these prices is insurance as is BTC. But having some food and water for you and your family AND neighbors is going to be the smart move if the Shit hits the fan. I just hope these evil leaders don't lead us into another war...
We still have time to let BTC correct for a few months and then move fiat into it... (I hope).
The problem is that this does nothing to address the huge debts that the governments have accumulated and continue to accumulate. We will more than likely see bail-in's in future, and banks being shutdown, but the Gov's (and by extension citizens) are still left holding the overflowing bag they have been forced into carrying thus far. And in the crisis scenario you are talking about, we will end up with economic stagnation. Growth will collapse, The Greatest Depression will be finally revealed to all.
Have you seen the TV series 'Continuum' ? Set partly in a future in which corporations rule the world directly after bailing out countries when their govs collapsed. It is not entirely impossible - pull back the curtain and that is what is already going on. The upcoming cirsis could well provide them with the opportunity to just get rid of the middlemen and appear as saviours. Bringing back all those triliions of offshore dollars and DIRECTLY buying countries, by bailing out the bankrupt govs, rather than just buying political influence. All the while being viewed as 'saviours' by the sheeple.
It is *possible*. The corporate endgame ...
And the first thing they would probably do ... issue a new (digital ?) currency
Like you, I agree that none of this is going to happen overnight (until it does!), but we are not getting out of this without a whole world of pain disproportionately doled out to those who least deserve it.
I should probably have said that I don't have much money and live minimally. If I did have 100's of thousands I would not have all of it in Ferns (fiat).
I wasn't offering a suggestion to correct the problem though. I don't see there being one. We are past the point of no return.
Short term (say 6 months), what is more that likely to lose more value, the USD or BTC? I'd say BTC and it isn't close. So, I'm just hoping and playing that. Before the USD collapses you will see symptoms all over the world of other monies collapsing first. We are not quite there yet, though when it happens I think it will be quite sudden. We are seeing the early symptoms though and I imagine in the next 6 months there might be an escalation with more EU countries needing money and perhaps another bail in. When that next bail in happens, that will be a tipping point (depending on the country of course.)
Anyway, my idea is to get in BTC and then mostly stay there, maybe use 20% to trade in and out and build a bit.
What you said though is a good warning to take heed. We are all talking about a coming collapse but really don't understand how messy (and needed) it will be. By needed I mean getting those in power out of power.
Thx for the series recommendation, I'll look it up.
IAS
