Financial Crisis Will Come

[cyberkuto]

Establishment commentators tend to blame every financial crisis on the "bad luck" of a whole host of factors coming together to create a "perfect storm."  What they "forget" is that the incentives of the modern system always drive the elites themselves to destabilize their own system.  Not sometimes.  Not most of the time.  Always.

They will say that the 2007-8 crisis was a combination of the US banking deregulation of the 90s, the US political agenda of moving poor people into home ownership, the poor financial oversight by the George W. Bush administration, the 'global savings glut,' the existence of a shadow banking system in the US, the loose monetary policy in the aftermath of the dot com bust, etc. etc.  All true.  What they forget to mention is that, if it were not these factors, there would be others (stock buybacks anyone?)  If it hadn't happened in 2007-8, it would have been later.

Only looking at the top of the world system, ie Britain in the 19th century and the US later, we can see that:

- There was a financial crisis in Britain roughly every 10 years from 1810 to the 1860s.

- The British Empire bought itself a couple decades by making gold the only money, and not silver.  (Thereby making itself rich at the expense of silver countries -- not unlike what the US might be doing with crypto-currencies today.)  But in 1890 a financial crisis in London made it necessary for the Bank of England to be bailed out by gold from other central banks, the first time in history.

- Soon after world-leader status was moved to the US, in 1929-31, the Great Depression started with a series of financial crises.

- Though the bloodshed of World War II bought a few decades of stability under the US, it was forced to renounce its promise to allow foreign governments to redeem every $35 for an ounce of gold, in 1971.

- The 1970s global crisis of confidence in the dollar forced the US to pay 20% interest on 30-year Treasuries by about 1980.

- The US stock market crashed in 2000.  By 2002, the NASDAQ had lost 78% of its value at the peak.

- The entire world system teetered on the brink of collapse in 2008.

Remember that, we're only talking about the top of the world system, which is the most stable, by design.  (Paper pound sterling in the 19th century and dollars in the 20th were the world's top reserve currencies of their day.  Every effort is made to make other countries fail first -- e.g. the emerging markets crisis of today helps protect the value of US money and debt.)  Further down the ladder, there were many more crises, plus conflicts and wars.

So the long view reveals the truth.  And the truth is that you can't escape the perverse incentives that make individual members of the elites want to profit or prop up the system today by storing up even more trouble for future elites.  These incentives come directly from the system's core nature of theft and deception.

If we listen to mainstream economists, the reason for recurring crises is that, for some reason, people just want to keep losing money.  They keep chasing risky assets whose high values have nothing to do with being propped up by state-bank-elites.  Right.

This system also punishes prudent people who put the most trust in its promises and its official narratives.  But we have a long-term defense: buy gold, silver, and Bitcoin!

No one knows when it will come,  but it definitely comes, especially when the time where no resources could get anymore around the globe. But it might happen hundreds of years from now.  When the time comes,  it would be a huge sign of end of the world.

[eroejoe]

What do you think, how financial crisis will affect cryptocurrencies market when it come? Is financial crisis good or bad for cryptocurrencies?

[ynclksnr321]

I think the economic crisis will affect the bad side. Because people investing abstain due to the crisis is quite a normal situation. In the crisis period, there will be no hot introduction in the big sense to the markets.

[privedvelosiped]

Establishment commentators tend to blame every financial crisis on the "bad luck" of a whole host of factors coming together to create a "perfect storm."  What they "forget" is that the incentives of the modern system always drive the elites themselves to destabilize their own system.  Not sometimes.  Not most of the time.  Always.

They will say that the 2007-8 crisis was a combination of the US banking deregulation of the 90s, the US political agenda of moving poor people into home ownership, the poor financial oversight by the George W. Bush administration, the 'global savings glut,' the existence of a shadow banking system in the US, the loose monetary policy in the aftermath of the dot com bust, etc. etc.  All true.  What they forget to mention is that, if it were not these factors, there would be others (stock buybacks anyone?)  If it hadn't happened in 2007-8, it would have been later.

Only looking at the top of the world system, ie Britain in the 19th century and the US later, we can see that:

- There was a financial crisis in Britain roughly every 10 years from 1810 to the 1860s.

- The British Empire bought itself a couple decades by making gold the only money, and not silver.  (Thereby making itself rich at the expense of silver countries -- not unlike what the US might be doing with crypto-currencies today.)  But in 1890 a financial crisis in London made it necessary for the Bank of England to be bailed out by gold from other central banks, the first time in history.

- Soon after world-leader status was moved to the US, in 1929-31, the Great Depression started with a series of financial crises.

- Though the bloodshed of World War II bought a few decades of stability under the US, it was forced to renounce its promise to allow foreign governments to redeem every $35 for an ounce of gold, in 1971.

- The 1970s global crisis of confidence in the dollar forced the US to pay 20% interest on 30-year Treasuries by about 1980.

- The US stock market crashed in 2000.  By 2002, the NASDAQ had lost 78% of its value at the peak.

- The entire world system teetered on the brink of collapse in 2008.

Remember that, we're only talking about the top of the world system, which is the most stable, by design.  (Paper pound sterling in the 19th century and dollars in the 20th were the world's top reserve currencies of their day.  Every effort is made to make other countries fail first -- e.g. the emerging markets crisis of today helps protect the value of US money and debt.)  Further down the ladder, there were many more crises, plus conflicts and wars.

So the long view reveals the truth.  And the truth is that you can't escape the perverse incentives that make individual members of the elites want to profit or prop up the system today by storing up even more trouble for future elites.  These incentives come directly from the system's core nature of theft and deception.

If we listen to mainstream economists, the reason for recurring crises is that, for some reason, people just want to keep losing money.  They keep chasing risky assets whose high values have nothing to do with being propped up by state-bank-elites.  Right.

This system also punishes prudent people who put the most trust in its promises and its official narratives.  But we have a long-term defense: buy gold, silver, and Bitcoin!

For some reason it seems to me that bitcoin can replace the us dollar as a whole. The crisis in 2008 happened because the American system is not perfect and it has the shape of a bubble. In 2008, it almost burst, saved the system that printed money Fiat yet. Bitcoin has a limit of 21 million, which is an important difference from all Fiat money. Its price may rise, but the quantity will be the same.

[Theb]

This system also punishes prudent people who put the most trust in its promises and its official narratives.  But we have a long-term defense: buy gold, silver, and Bitcoin!

I like how your post ended up by convincing us to invest our money on assets and you are right to do so. If you are right that another recession is coming then the best way to battle it is with assets outside of our fiat currency and that is including stocks. And if you really want to take advantage of the situation be like Warren Buffet where he bought most of his assets during the recession. Buying assets when the prices are down are like buying things at a discount, although the main problem here is do you have enough money for your daily expenses and for you your investments? That is why you always need to have Fiat currency savings as you never know when you will need it.

[Twentyonepaylots]

Merited for good observance of what is happening with the world.  
Love the last part.
Mutual funds, insurances and retirement funds. All of this had a larger risk even before.
We do not see it on news. That had been a question for me for a long time.
I have seen a lot of old people and their stories about how they went down just because of this.

First they say bitcoin is not real because it doesnt have a physical attribute. Why not go with gold then? They say it is too expensive?
So where will you go? Investment scams? HYIP? Pyramids?
All of those got no physical appearances also. It is just the owner who will profit from all the work of inviting more people.

Stop it. Go for the real one. Bitcoin is. Just look at how much it rise after a year. Then you can go withdraw if you want.

PS: Please. Not the banks. 

A lot of issues now coming about Bitcoin, the issue on Banned,Scammer, and the principality of Bitcoin in the market. A decentralized system in the Digital transaction is no relation on the possible financial crisis, One economy can suffered crisis due to other reason, like inflation, over supply of FIAT money, problem on the supply and demands of the prime commodities such Oil products, utilities, foods, industrial materials, devaluation of FIAT money, like USD,YUAN,YEN...etc,etc, which may result to drops in the market trading or stocks trading.

[pey]

I think 21th century is very different than 20th century, economy is anymore much more important for governments as a weapon. I don't think there will be a financial crisis for bitcoin adoption.

[pellor mas]

The financial crisis is about to happen, the government has anticipated all the possibilities that could cause the financial crisis to happen again. So far, the government has strengthened a number of factors.

[cryptocurrencyguru]

once the 10 years cycle is completed we can see financial crises on rising due to banking system failure and lack of jobs we may see new financial crises hereafter if we hit for financial crises this time the market downtrend will be huge

[aso118]

A lot of people in the establishment believe that cryptocurrencies will be the cause of the next crisis. Common Joes rushed in when the price of Bitcoin was increasing, dreaming of doubling their money in a few days. Now, their portfolios are deeply in the red and if they have borrowed money to buy cryptocurrencies, it is no different from the housing crisis.

[buternasek]

This is detailed and intelligent analysis of cyclical nature of the world economy. I'm lucky to be among the frontiers in cryptocurrency and would not need to bother about another global recession. The annoying thing is some of the rich knows and are silently preparing for it. This year 2018 makes it a decade since the last recession, another might be on the horizon. Only the observant would know and be prepared.

[BitHodler]

A lot of people in the establishment believe that cryptocurrencies will be the cause of the next crisis. Common Joes rushed in when the price of Bitcoin was increasing, dreaming of doubling their money in a few days. Now, their portfolios are deeply in the red and if they have borrowed money to buy cryptocurrencies, it is no different from the housing crisis.

The tool isn't the problem, but people are as always. The average joes are horrible when it comes to being productive and have that work for them in the way that it helps them increase their wealth gradually.

Crypto is for them a way to compensate for how they never managed to reach a state in their life that would allow them to become successful and wealthy. It's like a poor man's way of trying to become wealthy.

It perfectly explains why the average joes are going nuts on crypto, and then mainly the lower tier coins. These coins pump or dump hard, which is why they go for it. 5% of them hit the jackpot, and 95% loses everything.

[SearchingforS]

Yes, it seems so. Soros said this as well. Biggest governments know that something big and really complicated in economics is coming...

[pantheraio]

It seems that the cycle of economic and financial crisis once every 10 years is worth worrying about and can have a big effect on bitcoin. But let's hope that when it happens bitcoin already prepare themselves in the face.

[timerland]

It's almost too good to be a coincident that as soon as the world started using fiat based currency, or currency that was able to be issued on fractional reserves, financial crises around the world started happening at a much faster pace.

This system also punishes prudent people who put the most trust in its promises and its official narratives.  But we have a long-term defense: buy gold, silver, and Bitcoin!

Exactly.

This is why I'm personally invested in bitcoin a lot. I believe that it is able to provide everybody with a hedge against any financial crisis events that results in the bubble of the fiat system bursting. It may seem too distant right now to prepare for, but who expected Zimbabwe, Venezuela, Argentina, Greece etc. to have such huge financial crises, until it actually happened or it was very close to happening?

[jhonjhon]

What do you think, how financial crisis will affect cryptocurrencies market when it come? Is financial crisis good or bad for cryptocurrencies?

I may think that we should never put all our assets into crypto alone, though I'm not on the negative side nor getting hated with crypto but it could be the reason to survive and never loss to much. Crypto isn't stabilize yet, and still more years to come to make it fully accepted by the people and consider to be another form of currency accepted by all establishments.

[weiweianll]

The large amount of dollars circulating in the world has already begun to flow from countries with poor economic conditions, leading to the collapse of many countries!
The United States is trying to escape the economic crisis through trade war!

[tee-rex]

It's almost too good to be a coincident that as soon as the world started using fiat based currency, or currency that was able to be issued on fractional reserves, financial crises around the world started happening at a much faster pace.

That's simply not true. Before WWI there was a never ending succession of economic crises in industrial countries like US, Germany, England, etc which were all on gold standard then. It can be said that the war itself was an inevitable outcome of this economic dead end. What we consider as economic crisis today has little in common with what happened in that day and age, with thousands of people literally starving to death in the streets.

This is why I'm personally invested in bitcoin a lot. I believe that it is able to provide everybody with a hedge against any financial crisis events that results in the bubble of the fiat system bursting. It may seem too distant right now to prepare for, but who expected Zimbabwe, Venezuela, Argentina, Greece etc. to have such huge financial crises, until it actually happened or it was very close to happening?

If the shit hits the fan in earnest throughout the world, cryptocurrencies will be worth next to nothing. People simply don't know what real crisis and economic meltdown means in practice as they never saw the one (in developed countries, at least).

[alex.ac.ab]

экoнoмикa в нaшeй cтpaнe пoкa нe cтaбильнaя, нaдeюcь вce нopмaлизиpyeтcя.

[bintangkejoraku]

today the economy becomes second only to technology or weapons, nowadays western countries compete to increase their weapons sophistication.