Imminent Global Economic Collapse

[CaseyHeinzism]

Tin Foil hats are cool ~ .. But I think BTC folks would prefer the gold plates ones 

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[Wizard-Ninja]

Eh, I think to truly resolve any issues like these you kinda have to look at how humans behave in general. Solve the problem at the source, instead of just fixing the bugs cropping up in the higher level processes, so to speak.

And that, is a super massive pain. So I'm gonna go watch game of thrones instead.

-Wizard-Ninja-

[Stardust]

Anyone remember the revolutions in 1848? What was different then? There was no internet, and governments intervened to squash revolutions in other countries.
What would happen if something similar where to happen in this century, lets say the same people or Zeitgeist/VP. Now there is an internet to help spread the revolution and governments don't intervene on the side of their peers anymore.  In the ensuing chaos, Pecunix and similar services will be looted, at least this how it used to happen during revolutions. Since there is no fork, all that will remain is Bitcoin. The new elite won't bother to fork, nor will they mind guys like knightmb having so much.

[drsaul]

why would the managers of a currency design it to fail?  if it were me i'd rather keep it going and rake in a bit of profit on it in the meantime. 

[TECSHARE]

why would the managers of a currency design it to fail?  if it were me i'd rather keep it going and rake in a bit of profit on it in the meantime. 

I'll give you a quick example.

Benny banker wants to make enough money so that his children, and his children's children never have to work. There aren't many capital goods available, and they are not profitable. Benny banker then makes a local currency called Benny Bucks. At first it is backed by gold and silver, but over time that backing wanes and is eventually removed completely. At this point nothing is stopping Benny from printing as many Benny Bucks as he wants, so he does. Benny then prints up money and gives it out as fast as he can in the form of loans. He prints and he prints and he prints as everyone holding a Benny Buck loses buying power.

 Sooner or later people start to notice the system is rigged. By that point Benny already got everyone to sign over all of their capital goods to him for loans of Benny Bucks. He then collects all of the real capital, while driving the value of the Benny Buck to the center of the earth. As this happens over a period of years more and more people are forced to get loans from Benny in order to survive. When people finally refuse to use Benny Bucks because he destroyed them, he now sits on all of his newly collected capitol, while everyone else has worthless scraps of paper.

There is not a single case in history where a fiat currency didn't end in horrible failure. Also by creating this fictitious money, people were persuaded to go to work and create real capital when they would otherwise have not have incentive to do so. The owners of the currency then scoop it all up, and start over with another fiat currency to begin the cycle all over again.

[SeW900]

Tin Foil hats are cool ~ ..

Yeah, I just love these panic spreading, doomsday yelling people around the net! Wonder if they also believe that the world will end in 2012 (like it already did many times this decade)...

In fact if we look at history, the only thing that usually happens after a collapse / major problem / war, etc., is an overall long-term boost in technology and production. You got to understand that people are problem solvers and work best only if a problem is present, otherwise they mostly hang on to what they already have with little motivation to go forward.

[TECSHARE]

The difference between 2012 apocalypse, and economic collapse is that it has happened over and over an over again since the beginning of society. Associating it with crazy theories doesn't change history. Also you conveniently left out all of the famine and suffering that came before the innovation....

[Aristotle]

Why are so many people worried about hyper-inflation?  It seems obvious that deflation, like what happened during the Great Depression, is the biggest concern right now.  Furthermore, inflation hurts creditors (banks).  With inflation, it's easier to pay loans back, and if inflation is higher than interest rates, then banks take a loss.  With deflation, the money they lent out, and the money they have, is worth even more in the future.  So, to sum it up, inflation hurts creditors and helps debtors, and deflation helps creditors and hurts debtors.  If one is to assume that the banks have absolute control over money, you'd have to assume they'd want deflation.

[SeW900]

Why are so many people worried about hyper-inflation?  It seems obvious that deflation, like what happened during the Great Depression, is the biggest concern right now.  Furthermore, inflation hurts creditors (banks).  With inflation, it's easier to pay loans back, and if inflation is higher than interest rates, then banks take a loss.  With deflation, the money they lent out, and the money they have, is worth even more in the future.  So, to sum it up, inflation hurts creditors and helps debtors, and deflation helps creditors and hurts debtors.  If one is to assume that the banks have absolute control over money, you'd have to assume they'd want deflation.

Yes, but if a person would start to save money heavily, perhaps even invest a portion in stocks or bonds and real estate, deflation would actually greatly benefit this persion as well as the banks. And the best part, saving is not even that hard, just eliminate all previous debts, don't get any more new loans, and deduct 20% or more from your monthly wage/allowance (in the beginning, use a savings account / CD).