Bitcoin Forum

 Reason of next economic crisis can be here

 US officials say they will investigate the risky $1.6 trillion 'leveraged loan' market
 Looks like deja vu from 2008 but much more bigger
 
Bank of England Governor Mark Carney compared it to the subprime mortgage crisis of 2007.
 https://www.businessinsider.com/leveraged-loans-fsb-inquiry-into-16-trillion-market-2019-3?r=US&IR=T

The $1.6 trillion market has recently seen lending to companies with lower credit ratings occur at much greater levels than previously, leading to a proposed review later this year, FSB Chairman Randal Quarles told the Financial Time


The FT wrote: "Regulators could act if their findings point to actual hazards in the market for leveraged loans
I am curious what way regulators will deal with that.
But if that will happen bitcoin can be alternative

Before, speculation says that the next financial crisis will happen because of the increasing debt of the world, and now another reason for us to enter into the world financial crisis again. Well, its really going to happen but I think more years for this one.

When you have a non stopable money printing machine like the federal reserve system all those money eventually create some type of bubble(stock,real estate,currency or even crypto).When the bubble bursts(this will happen sooner or later),we have a new crisis.
All financial crisis have one reason.It's called "US Federal Reserve System".

Too harsh for this one, but you have your point. I don’t even understand why financial crisis is happen where they can actually print money all night and pay all the debts. So many reasons for a financial crisis to happen, but for sure cryptocurrency will be a safe place for everyone and because of this expect a higher demand.

The world economy moves in a cycle.
We have left a huge huge period of economic growth where interests are getting lower and lower and Bonds and stocks more credible. Because people are too greedy, when they are into this situation they overdo it and eventually, we have an increase in the debt around the world. This is the most crucial reason for the next financial crisis in my opinion.

It's very subjective at the end of the day. I have been reading about a looming crisis for over 5 years now, but it's still not happening, nor do I expect a major crisis to happen any time soon.

I think it's more so that people badly want a crisis to happen because they assume it will pump Bitcoin to the moon and far beyond. I don't think that's necessarily going to happen if I'm completely honest.

Bitcoin is still a speculative asset people and investors allocate only a tiny percentage of their portfolio to. I'm sure that a crisis would affect Bitcoin negatively, and may even affect gold negatively.

I can see a scenario where even that what we expect will do well during bad economical times, will end up being sold off just as easily.

I feel like it's a matter of when rather than if at this point. It's not soon though, and with all the attention and analyses going into it, it might even be prevented.


Alternative to what? It has to be noted that we haven't seen how Bitcoin reacts to an economic crisis on a macro level yet.

The economic cycle gets back at certain time interval. The previous financial crisis took place by the year 2007-2008. The next crisis too will happen in the similar way as the previous one. The crisis began with a housing bubble, real estate bubble. As a part of housing bubble, mortgage backed securities increased leading to the increase of the housing prices in US. Lot of investment flow happened towards the US housing market. When the decline of the housing market started, major financial institutions that had invested borrowing faced heavy loss. Such a scenario has begun to strike the economic market at present.

It will not be the best for the economy. It will lead to inflation. Inflation is as a result of too much money available in the economy and so used to purchase few goods which will make the price higher than necessary even if the quality is inferior.

Thus, printing money is not a remedy to financial crisis but good economic policies.


I also do believe that if crypto bull and very outrageous price will cause inflation too because it will mean too much cash in the economy.

absolutely right and in addition the declining price of the world economy will make the financial crisis impact because the weak economy is added to by the growing debt of the world

The US economy is about $21+ trillion dollars in debt as of the end of 2018 and that is a really huge amount of money.
The amount is so huge that when the debt crisis occurs, U.S. won't be able to repay the whole amount and will probably drown in it.
This will severely affect the world economy and bitcoin has pretty good chances to be adopted at that time.
This is definite to happen but it will take years for it to happen and we can't say what the amount of debt will the U.S. economy hold at that time.

Oh, come on! Do they really think that if the previous crisis was resolved very professionally by the US, it's okay to make the same mistake again? It's good that people started looking into this thing before it's too late. Hopefully, this can prevent the crisis. Anyway, I think that what will lead to the next global financial crisis is dollar hyperinflation when the US finally starts printing too much fiat because of a huge debt to other countries. Since dollar is kind of a standard of money, most of currencies will probably collapse shortly after. Maybe Euro ha sa chance of survival, but I am not sure. What could really save the situation then is cryptocurrencies with limited supply and decentralization.

No doubt, the next crisis will happen due to increasing global debt but the truth is still debt of world is not at the financial crises level as it was before in 2007-2008.
I am wondering why people are cheering for it to happen, a financial crisis will never boost the bitcoin market/price as people are expecting, rather it will more destabilize the market.

I think that policies and should be in place for banks in the loan that they give out. I do understand that their could be existing rules to that but maybe it should be reviewed.

This, bubbles are inevitable and even in a system where the amount of money is limited we will see bubbles form from time to time but when you have basically the ability to print as much money as you want and you are abusing that power then bubbles will have a tendency to form even faster and to be even bigger as everyone is trying to find some way to avoid the effects of the ever increasing money supply and the damaging effects it has on your wealth.

There are predictions by most of the top financial analyst like JP Morgan said that there is likely for a financial crisis every ten years time and the next crisis will hit the financial market in 2020 and that will bring a  huge down turn in the financial market. Only Bitcoins has the capacity to up hold the economy in such a situation, bitcoins will not get affected with the financial crisis and infact it has the capability to boost the economy from the downturn of the financial crisis. One of the major reasons for the financial crisis is due to bad debts as people are lending money at a highest record and has no chance to pay back causing for increased bad debts.

It might not favour the price of bitcoin directly as every investment and currency will mostly be affected by the crash but It'll lead to people losing faith in the fait currency resulting to them, looking for alternatives and what other option will they have than (bitcoin) cryptocurrency. Sometimes people need to learn the hard way therefore, if another crash of the system will open their eyes so be it.

It looks like EBC and Mario Draghi see the problems are coming
EBC will pump €720bn  in banking industry starting from September
In central banks  we trust
EBC has just finished his QE now they want to start new one
We will have flood of empty money and more debt
Rates will remain on current level or will be even  lower

But analysts said downturns across the eurozone had threatened to turn into recessions without action from individual governments and the ECB.

The central bank for the 19 euro nations said it would launch a series of targeted, long-term refinancing operations (TLTROs) in September. These are to run until March 2021 to help banks roll over €720bn (£617bn) of ECB loans and to ward off a credit squeeze that could deepen the economic slowdown


https://www.theguardian.com/business/2019/mar/07/ecb-to-keep-interest-rates-low-recession-fears-eurozone-banks

My question is who will pay for it becouse people will pay in the form of taxes

If the global market are going down then for sure bitcoin can never be an alternative because Bitcoin will surely fall as well.

Unless bitcoin will no longer be USD dependent and is already sustainable(which is for now not that possible)

   Every debt is paid by tax payers, debt made by governments and banks. In recent history we have many bail outs:
-President Bush signed the $700 billion bank bailout bill on October 3, 2008. The official name was the Emergency Economic Stabilization Act of 2008.
-British taxpayers face 27 billion pound loss from bank bailout.
-French government in 10.5 billion euro bank bailout.
   This is not whole list, I just found couple to make it more clear. Who wants to see more can use any search engine for that.
   Debt is one problem, inflation other. Two big problems that are getting bigger with time, until we have explosion and new financial crisis. Crypto-currencies
can be a safe haven when that comes.

I think this debt cannot be paid immediately. These are just rumors and regulators will not be able to prosecute and punish immediately. because it will greatly affect the US economy.
And this is considered the rule of moving cash flow and it has been formed for a long time. there will be no big changes happening.

debt for something productive, certainly requires time for recovery. and it is not possible to be paid immediately, like investment, which requires time to make a profit. but with the right calculations and assumptions of course the debt will be repaid in accordance with the specified time

The money has to go somewhere, always, and that same money has to be paid by someone too, always. Though the course of every economic crashes and downturns hasn't been mapped fully yet, we all know that it will always occur from time to time. Analysts and financial experts had been predicting that by 2020, another global economic catastrophe is to happen, and to what cause, we don't know. It's like people are just rehashing the same events and scenarios prior to the subprime mortgage crisis of 2007-2008, though somewhat focused on a different asset and aspect of the economy.

(response)

The cause of the next financial crisis is a default in the credit market, look at the leverage rates in the corporate bond market, its utterly toxic, if you look at the car loans also highly toxic. The collateralization is also weaker on cars given the flooded market and substitution ease between newer and older models etc, compared to say houses when we had the 2007 crash.

China is a key risk factor with its hyperinflated asset prices based on their culture of property ownership (there are stories of men competing for women by talking about the number of properties they own, given the imbalance of men to women from the one-child policy, this sometimes requires 3 or 4 houses anecdotally)

On top of that read Thomas Picketty's analysis of the failures of the Euro given the ECB sets policy rate yet does not control individual governments debt issuance or government budgets, then the surplus recycing of the germans into higher return markets in the eurozone at low rates pumping leverage in these nations before rising rates, taking the default, refusing to bail them out and then taking ownership of their collateral.
Wait until the Italians spanish and greeks leave the EU to prevent this frankly fiendish economic-empirialism of the hun.

Also on the list:

-American-Chinese war possibility (venezuelan intervention by US leads to Chinese dumping US treasuries as retaliation and dumping the petrodollar system buying oil in Renminbi over dollars to shaft the US economy, American false flag attack on Ships testing the south china sea expanded naval territory and their built islands, US then engage in a naval and aerial war with the chinese, large naval losses an aerial losses on both sides with the chinese not doing too well, russians intervene after a week, threaten nuclear war, trade freezes and commercial shipping is targeted. world is fucked.)
-Russian energy monopoly in europe manipulating prices and basically fucking the germans with that nordstream pipeline, germany shafted.
-Failed Commerzbank Deutsche bank merger leads to a collapsed german banking system,  as we all know, the eurozone is just a set of german satilite states, if germany flops theyre all fucked, euro collapses, its just fucked.

It's certainly possible that irresponsible lending could trigger another financial crisis. It seems like that credit in a lot of countries have been trending towards the easier end of the credit availability spectrum since the GFC, which could have influenced rising stock and real estate prices in certain countries again.

The thing with fiat is that, since it is so entangled with debt, if one thing goes wrong the whole chain of things could spiral out of control.

We can't say for certain what type of financial crisis the next one will be or who or what causes it, but for certain it's only a matter of time before it happens. It could be inflationary, recessionary, market failure... Just be prepared by hedging against the traditional economy. Holding an independent and decentralised crypto like bitcoin is a wise decision imo.

I don't think so, it seems that you're mad with the US but can't blame you either. bitcoin is a digital currency and limited not like Fiats.

There are a lot of thoughts that Bitcoin will boom if there would be the next global financial crisis and I'm so excited that it will happen sooner as it's inevitable.

After 2008 crisis, we know central banks like BoE, ECB and The Fed always printing more money and they called as QE but we know the truth its just not touching real bussiness. Economic crisis is just a matter of time

I remember when the government is trying to push people to spend their money.
Looks like the circulating fiat is getting lower and that is why they need people to spend. Too much savings makes this happen.
Now, they want to print out another batch of money which makes a bigger problem.

They really need a new kind of currency that will circulate for that not to happen again. What could it be that they will use?
Is it really bitcoin or just another centralized crypto currency. Looks like XRP is ready for that. ;D

Our economic managers are unholy professionals who are good at nothing but deliberately creating poverty and enslaving many generations unborn in the name of regulation. The rich keeps getting richer, while the middle class is at the verge of been displaced. If they really mean business, while giving loans to companies with low Credit wordiness? Is this not daylight robbery? Same guys keep enriching themselves in other to maintain the old empire of the nobles. I hope people switch to Bitcoin soon.

Looks like holes are found again.
Who will bet against it? I guess that is the question out there. Remember that movie where a group of people have found that hole and tried to warn everybody but nobody believes them.
They bet all that they can and won it but in exchange for a sorrowful country.

I guess nobody will believe this too since they still think they are all strong countries.
Better stay with crypto. The bubble is not popping for so many years.

What I really don't get is why people keep getting surprised by these cyclical economic crises. It's happening every 10-15 years, and it's been happening for every 100 years, with varying degrees of severity.

If the system is broke, then of course we're going to keep seeing these signs. We have to keep expecting it, because this is symptomatic of the disease.

Every time something like this happens, states and central banks move but only to put band aids. They're not willing to fix a system that's enriching them. Hopefully people wise up and seek alternatives. Bitcoin I won't say is the saviour, I'm not that idealist, but it's a great start.

I think the clear choice is the shareholder trouble all companies have. Shareholders want to make more and more money every single year, all companies with shares open to public is forced to bring in more and more profits every single quarter.

It means a company that is not making profit will be getting their stocks and shares sold so the investors go buy the company that made profit instead, which means the company who was already having trouble profiting now also doesn't worth too much as well because of sudden sales on their shares.

Basically, you have to keep on making profits forever if you want to and that is just not sustainable. Things that are financially not sustainable is the reason why we have economic crisis and eventually this shareholder drama will create a big chaos like the 2008 one as well.

We cannot stop the economic crisis in the future, needs always increase and inevitably have to borrow. Yes, it is true that bitcoin can be an alternative but do not let bitcoin become the cause of the economic crisis.

A larger focus here is how and why are these banks letting it happen if there are certain standards set in place for loans? Are they intentionally letting this happen or is this just a mismanagement happening at the lower end? If these lenders are found purposely cornering these debt companies to default then we might see a really big turn of events here concerning the economy. The way I see it is if the greater portion of these troubled companies are unable to pay then we might see a lot of people losing their jobs, stock prices falling, and of course the US dollar losing its value, it will just simply be a chain reaction that will trigger another recession.

Its going to happen in every century for sure, but bitcoin is not the reason of that since many countries are dealing with their own problems financially. This market can be an alternative for sure, and hopefully the government will make good regulations on this when financial crisis happen.

If that's because of that $1.6 trillion can cause conomic crisis then maybe those loans that are much bigger than $1.6trillion could also trigger a crisis? If I were to ask about , I don't think it can cause economic crisis. The ones that cause it is the corruptions happened in the government and not because of those loans.

Most people do not think that far ahead, they are only worried about what happens in their lives and nothing more, this is why they keep getting blindsided whenever a new crisis emerges and then begin to ask for answers for as long as the crisis lasts, but as soon as it is over everything returns to normal, bankers know this and they try to disguise the effects of the crisis so people stop thinking about what could be done to solve the issues that caused the crisis in the first place, but it seems to me they no longer have the means to solve the next crisis.

for some governments in some countries, cryptocurrencies may be a big problem for their economy.

in the presence of a new currency, the cryptocurrency which is currently being sought by many people. some countries began to act in regulation and did not even allow cryptocurrencies to be used in their countries for several reasons, including the financial crisis and disrupting their country's financial stability.

Today's markets have become so unstable that the next financial crisis can happen in a moment of our lives without any reason. In particular, we can easily understand how risky a period we are having to take into account the markets, bad economic conditions and other factors that react, even with the words written or said by a few states. On the other hand, when we think of bad world conditions such as the shrinking world economy, growing trade wars and the poor people, we can feel how bad the days are waiting in the coming years or in the near future. Our future will no doubt be worse than today.

The reason that we are currently at risk is the fact that so many transactions happen daily and many of them are on behalf of debt.
When this debt is accumulated on certain entities then the financial crisis appear and all the people in the economic system that are involved are in danger. Hopefully, by acquiring and hodling bitcoin this risk is minimized.

I think that the main reason for another financial crysis would be the one that people haven't learned anything from the last ones. Excessive lending and debt are rising, main world banks are still playing their games. Debts will accumulate to the level that no one couldn't handle them anymore and that might be the trigger.

The leverage loans market is just another credit crunch that will cripple the economies of the world. They will need to switch to something else for protection - that of course is the bitcoin

Credit buble will happen again. We know that central banks always printing more than $75billion every months and they call it QE. More money supply in market will increase inflation risk and economic crisis is just a matter of time

the most frequent reason for the world economic crisis is usually due to war, especially trade wars, so the crisis will always occur so we must be able to anticipate the worst possibility of the economic crisis by preparing all available resources.

Agreed, People mostly are blinded by centralized financial institutions. Somehow they have a deluded trust toward it, while here in cryptocurrencies, the underlying technologies offer us a decentralized trustless system. Which if we actually compare it to any centralized entities, the differences would be significant.

Leveraged loans, when the private company takes these initiatives, is because it knows something, we must remember as a basic principle that in an economy where we know that the value of money may fall, due to inflation or any other cause, it is best to borrow the currency, because at the time you can cancel easier.

Many publications in networks, talk about possible crash of the world economy, of course, are only speculations, we can not lose sight of the interests that this type of loans entails must be very high, and somehow the bank can be profitable .

Compared with a Bitcoin deflationary economy, a totally decentralized economy is always shown, where in some operations there is also leverage, but with limits, if limits are exceeded, there is a risk of losing everything.

Economists do not recommend leverage, they only do it if and only if, the economy can fall, and if it has enough capacity to pay. An important economist, José Toro Hardy, states in one of his books, that the best business is to have debts in a currency that will suffer drops in inflation.

there is another reason, namely China which gives interest on every loan from another country, it will make the debtor country will experience a crisis if they cannot pay. and if many countries do the same thing with China, it is not impossible that the global crisis will occur, but it is likely only 7% because China still offers another way to pay, which is controlling the country's land.

It is not that they do not learn, they know very well what they are doing which makes this even more perverse, everyone knows that you cannot solve a debt crisis by getting more loans, in a smaller scale this is similar to the person that is trying to solve his credit card debt by passing his debt from one card to the other, this is the same as that and the same results will follow with the difference that the results will be global and everyone will feel the effects of the irresponsibility of banks.

Yet another article about leveraged loans problem
There early birds warnings in 2007 about household and mortgage debt  problems
Now we have something much bigger
Companies and even big corporation loans what can trigger next really big crisis
Who will pay that.Will ordinary people pay from his taxes i think in that scenario we can see huge social rebel and nationalism and populism popularity grow

https://www.businessinsider.com/what-are-leveraged-loans-what-are-clos-and-should-you-be-worried-2019-3?r=US&IR=T


A vast swathe of companies, including Space X, Uber, and Tesla, have taken advantage of beneficial lending conditions of late to pile up large amounts of debt which has often come with loose legal requirements, known as covenant-lite, which provide lenders with limited protections.


banker William D. Cohan likened the repackaging of these loans to the debt instruments that helped trigger the financial crisis of 2008. He wrote:

"A decade ago, the high-yield investment du jour pushed by Wall Street was mortgage-backed securities— home mortgages that had been packaged up and sold as "safe" investments all over the world. Nowadays bankers and traders are pushing another form of supposedly "safe" investment, the "collateralized loan obligation," or C.L.O."


So who are the investors in CLOs? Think hedge funds, mutual funds and pension funds. In other words, as Cohan writes, "you and me."

Dont bet on to many years.



Value of Bitcoin will decrease like value of any asset but it will recover quickly and most important people will take more interest in economy and understanding of what Bitcoin is.

That is great this lending market have really affected most economy of many nations most especially when the is no enough return's bank to the capital market. A good review of the market will be a very good moves in the side of the government in other to avart future financial crises.

When the crises in a country is so bad that it begins to affect its currency you will see that anything that can be used as a form of money goes up in value instead of going down and that is because people begin to try to find ways to store their wealth, so if the next economic crisis is so bad that it affects the whole world it is reasonable to assume that the value of bitcoin will go up and not down as people begin to appreciate a currency that cannot be confiscated by the government or inflated away.

Because of Trump's bad decisions, this crisis may come sooner. Although Americans think that his decisions are good for American Economy, they will see that it is a devastating strategy in a long term.

But also people try to save some of their investments and sell others. Bitcoin is money and can be easily exchanged. Price of it will fro sure drastically decrease when crisis hits us.   

Yesterday I just saw one nice info graphic about all bull runs after WW2. Longest was 114 months and our current is already 112 months. We are already in record holding longest bull run. So should end any month now.

 https://www.visualcapitalist.com/visualizing-longest-bull-markets-modern-era/

Bitcoin loans could save us from the next financial crisis as it doesn't have any impact on the stats of the economy. They could also be used to secure fiat loans by some loan sharks

Bitcoin will not save us. We will have to make a switch in our brain. Right now half world works on debt.  You go buy car and they dont want to sell to you fro cash but want you to take debt. The society is demanding that from people. Kids are getting taught this is normal. That is the biggest problem we have. People old 70 years and more have little problems with that. They will also way take debt as last option. Young work on debt. They get enslaved from young age and dot even know how freedom feels like.

Last time i follow all that Brexit drama or last time kind of parody
What politicians are able to do is above imagination
It looks like politicians and greedy bankers will be always source of crisis
Now GB is on the edge and Brexit can affect not only GB but all Europe citizens
Other one also caused by politicians are tariffs war
Prices of various goods can jump a lot
Even now Boeing lost 30 bln$ contract with China
China used last Boeing crashes like a excuse to ban Boeing and buy Airbus
But tariffs wars will affect all world not only USA
Both Brexit danger and tariffs wars are caused by  politicians and his private ambitions

Is the world owing too? And if the world is owing,who then are we owning. We know about nations owing. And presently its like many nations are having financial crisis but I don't know the extent at which it has affected the world economy. Solution to crises is what we should work on.

That will increase the velocity of bitcoin as money and that is not bad at all if we take into account that the greatest use of bitcoin at the moment is as a speculative investment in which most people are holding their coins, so this is not going to necessarily going to make the price of bitcoin to go down as long as the demand goes up which is something possible during an economic crisis but I will admit that there is the possibility that the price will go down but I just do not find it that likely.

I think debt is an economic cycle, where it is like a chain of cycles. to overcome this, I think at this time the country needs to ratify cryptocurrency, moreover there are still few countries that legalize it, so that the people will prosper later

In central banks we trust.We have learned from history that there is only one way to heal financial crisis.That way is next flood of free created money .Banks stocks will cry and scream that we are  going down we who are lifeblood of economy.So central banks will print and transfer next free money to them.EBC already will do that  from Autom.I am sure FED will follow.Fiat money will lost more of his purchase power and part of that free money will go to crypto. Same was in 2009  same will be now.All that next printing will  not solve root of problem but who care good make up can cover all

In a collapse, don't forget to steal the investment bank's money! ;)

If we do enter a serious market fall, like 2008, remember that is time to start looking at stocks to buy. Those holding cash when the market bottoms out are in a position to buy up stocks and ride the growth when the economy recovers. This of course assumes the economy will experience future growth.

The main reason is the mismanagement of US Dollar and one country control over it. US Dollar is not being properly backed up by the gold as per tha standard and this has resulted in inflation. Since the whole world is dependent on dollar, a collapse will be bigger than 2008. I think here is when bitcoin will come into play and people will sell the fiat to buy the crypto.

Yeah, they print money nonstop and they know upcoming results but don't care, personally I think they want to cause crisis, a lot of country's economy hugely depends on US dollar.
To my mind the deal is following: Money must be taken out of trump and others' pockets, don't tell me they earned it and deserve, no, money has to be in circulation and in people, not in one man's pocket who doesn't even need that much money. Also banking system is shit, governments know it. Hope crypto world will become more known, centralyzed system works fatally wrong.

This has always been the case in the past (though it may take time)

The alternative is a new world war, as simple as it gets. But then the stocks and their quotes will be your least concern. So any way you look at it, your only viable alternative is assume that everything will be back to normal after the dust finally settles. As an aside, you are basically repeating what Warren Buffett has been saying all these years, i.e. in the days of crisis you can buy valuable stock really cheap and then make a fortune when the sun shines again

Most people also dont have Gold but price of Gold decreased in 2008 when financial crisis hit.   Price of Gold went up until 2008 to almost $1000. Then was stable at around $900 and when crysis hit drooped to $700. After dust settled it slowly started to grow again. By slowly I mean way faster then anything else. But still slowly and it reach $1000 only a year after crash happened.  I believe Bitcoin will react similar as gold. But of course I cant be sure. And this the biggest Bitcoin price mystery that exist for me.

It will. I don't believe we'll end up in a total collapse scenario that will later lead to barter trading and protesters looting shops all around the world.
A crisis will cause people to rethink their strategies. As old markets die with nobody willing to invest in things that were booming in the 20th century, like oil, new markets (cryptocurrencies, smart contracts, new energy solutions, electric car industry) will have their moment. Changes usually are volatile. They rarely happen gradually without any bubbles and sudden bankruptcies.

This could be a tricky thing to do on a financial crisis and can only be handled by people who have some extra cash lying around for investment. Remember when a financial crises strikes all the basic goods are also affected by price increase and that is why spending will also increase. People know that there is an opportunity to buy cheap assets but only a few can even afford it as most people won't even have the ability to afford it. Not unless people are smart enough to save some money for the event we cannot say everybody can grab that opportunity.

Fractional reserve banking, and the belief the economy grows on credit instead of savings, the cycles of bubble and pops won't stop until people understand these concepts. Read Mises (https://mises.org/) to find the answer. Austrian economics (https://en.wikipedia.org/wiki/Austrian_School).

https://i.ytimg.com/vi/4K8a2sGzk0k/hqdefault.jpg
Austrian Economics and Keynesianism (Keynesian Economics) Explained in One Minute (https://www.youtube.com/watch?v=4K8a2sGzk0k)

Some say we are still in the 2008 crisis, the central banks have printed unlimited money to keep the biggest lenders out of bankruptcy, and the biggest lenders have never been in so much dept that they are in now.
 The inflations on food and other expenses have been massive for the last 10 years, but the salary for ordinary people has not gone up at the same speed.

Could you elaborate on why it is so?

More specifically, I refer to the part where you say that there is a belief that the economy grows on credit. Personally, I think there is some misunderstanding here. As far as I see it, the economy doesn't grow on credit but credit is still required for the economy to grow (this is not the same thing). if you come to disagree with this, I would like to hear your reason why you disagree (in your own words)

Borrowing money may be needed to grow an economy and it's a valid argument if the money really exists. But that's not the case.
A clearer example would be between you and me, how can you lend me $1,000 if you don't have?. It's logic, isn't it? But with a scriptural money system, they invent money and charge interests, whether it is a state, a company, or a private individual.
Why some states are not even able to pay the interests. Why are our taxes increasing all the time? The real issue is debt and there is no solution to the current debt.

At this pint most of us are consumers, i don't like to develop products (except the hitech assets).

The main reason of next financial crisis could be United States debt. If you did not see how these numbers goes up, minute by minute you can check that information here -> http://www.usdebtclock.org/ (http://www.usdebtclock.org/) . This bubble will suddenly burst, the longer we wait, it will be worse.