Crushing debt can sink the economies of a few nations, but it can't throw the entire world into anarchy. Debt is just a way to quantify an agreement between two parties. In a global financial collapse, the nation or nations with the largest military will default on all debt and issue a new currency. It may even provide the opportunity to unite most of the world under a single global currency.
Unfortunately it's very unlikely that currency will be bitcoin.
Given several major nations have a giant bubble within, a chain reaction could very well throw the world into chaos. The economy can handle failures if they happen separably in a way they can be contained, we're talking about universal downfall in a domino effect across 20 major nations like a fuse. The fall of China will set it off, commodities will bust and take out all those jobs and industry with it, those employees can no longer afford homes all bought in the bubble, housing markets will collapse across the world as a rash of defaults hit an already weakened state. It will also hit the US when Canada's artificial output to China stops as our number one trading country, crashing their massive housing bubble (140% of what the US had to lose), and then systematically crashing ours along with the student bubble and medical bubbles. That little decline in 2008 is going to seem like nothing if this happens all at the same time. Supply lines will be disrupted, banks will fail, mass rioting when food runs out, there will be blood. We've all be riding high on the back of China's bubble, when it goes, it all goes with it. WW3 and civil war will likely follow. Someday someone has to pay the check for the world's debt, and that is effectively impossible as fiat's continue hyperinflation to keep the economy alive. You can't solve the problem with the problem, as in paying for debt with more debt. It's bound to fail, not a question of if, but when now. A lot of economists would agree with me I think.
Not that I want any of that because I don't, but we all need to be realistic now and not pass it off as some stuff you don't care about in the news as usual. This will effect each and every one of us, and soon. Those who are prepared will survive, those who don't may find themselves have a really shitty day.
The Yuan is about one shake away from total failure as a currency as more and more of it has been printed and injected into the economy, which is essentially all debt based, and the check is coming due. Once their giant debt and housing bubbles explode, it will likely set off a chain reaction off the burst of all other economies as China's import needs are slashed as this megaconstruction will cease to exist in an instant, putting their global suppliers out of business. Those laid off employees will be unable to afford their homes, the mortgage bubbles around the world will implode, sending several industries spiraling out of control under loads of debt. This would fuel the Healthcare, student debt, and housing crisis brewing in the US until it has no choice but to default, rendering the USD worthless instantly. The Euro has already been teetering on edge, and a full collapse would spell the doom of Euro also. We'll all watch the entire world tear itself apart, setting the stage for possible martial law across the globe, maybe the first step to the New World Order or something similar occurring (Joe Biden used the exact words New World Order a couple days ago, as have many other Presidents and VPs over the years, what do you think they meant?), under the guise of benevolence. Hope for the best, but DO prepare for the worst, as many leading economists as well as the super wealthy elite are running for the hills, and that is not a good sign.
I've never been much of a Doomsayer, but all of that above is happening right now and can be checked factually, and a lot of smart people see it coming,
http://www.thebubblebubble.com (predicted the 2008 crash with accuracy)
Get some BTC, as it might be the only currency left on Earth actually worth something soon. As the technology is robust enough to be rapidly deployed on computers and smartphones, it may well be our financial Jesus as it vacuums up the damage and converts it to a debt free economy. Once all other currencies vanish in the fire, so will the debt of those currencies. We would all be free on a cash based society again where we are our own banks and the Governments and banks lose control of the money supply. Back in our hands where it belongs.
Other countries are getting away from the Dollar as it's value is inflating and probably will more rapidly as time goes on now with USD debt spiraling out of control.
So no, it's not looking good...2013 could very well bring literal financial doom to our doorsteps around the world, unless something is quickly done about it 5 minutes ago. I have no faith that it will be fixed because at this point statistically and by the numbers, we as a global society cannot repay our debts in full, ever. The only choice is to start over and admit failure.
There is a coming currency war, and Bitcoin is our big gun. Bring it on
I completely agree, this post was also for finding out if anyone else around here have the feeling that the gauge have changed from; "world economy going for another squash the next two years" to "total disaster within two weeks"?
After everything I have seen in the last few days, as I moved from learning everything I could about Bitcoin to everything about current world economics to gauge Bitcoin's future, I almost wish I didn't know what was coming. We are headed for the end of days, enjoy your life right now, literal and philosophical war is on the horizon. I've never been one of the End of the World guys, until now. It will only take one small conflict or bank failure to send it all out the window now.
I am absolutely starting my own bug-out bag with my next paycheck and starting to shift assets into Bitcoin along with my own mining op. That is how real I think this is, and I hope to whatever God would hear me I am wrong and just waste my money.
Depressing and exciting all at the same, strange feeling isn't it?
Indeed, the future will be wonderful, terrible, and strange all at the same time it seems lol
