Financial Crisis Will Come

[BobK71]

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!

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[richardsNY]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....

[BobK71]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....

Also I think there's a lot of wisdom in the HODL strategy.  Most of the time, the authorities will want to suppress demand for non-state-issued money.

Historically, whether a country's money is pegged against gold or the dollar, any devaluation is denied vigorously the night before, done overnight by a large enough degree to keep the currency stable, and be stable for at least a while afterwards.  If you didn't own gold or dollars the night before, you lost the opportunity.

The world today is not essentially different, even if we don't live under an official gold or Bitcoin standard.

[BobK71]

We have been through so many economical difficulties, that people should have had a wake up call years ago already....

I'm convinced that the reason people don't wake up to the reality of elite-inflated bubbles is that the media is part of the story-telling machine that numbs the public.

See this thought-provoking piece about this basic reality.  Ben Hunt argues that we as a species are genetically programmed to respond to simplifying models (that he calls 'memes' and 'narratives') much more positively than we realize consciously.  And the powerful people who run this world understand this better than we do.

[ivrynx]

Financial crisis will always be here, though not in all parts of the world but at some point, you will still see poor and struggling countries, as long there is a corrupt system this will never change, I am not against any religion or thpe of government, but if you take a look at the golds of vatican, buddhists, once they sell it all, you can help a dying nation, if we check on Venezuela, the country used to be rich back then, but now it is falling apart, however its neighboring countries aren't,  I think this is what will happen once every nation experience financial crisis at the same time, thos who are in power, politically, socially and religiously will be the one that will survive financil crisis, and the rest will be left out, fortunately for us, we already know crypto currency and it will save us once things like it happens.

[Idaujotaite]

Financial crisis are inevitable, it will come. But I think it won’t be in the near future

[dev9t9ok]

Surely, it will be. The crucial question, who will earn using the future crisis. Do not forget that any crisis is time of opportunities. Look around and try to figure out where you will be able to earn.
I am not afraid of crisis but I am afraid of war.
Let us together to figure out what kind type of assets will be more stable and strong in crisis time. I consider that crypto coins looks excellent and metals (gold, silver)

[sepeda karat]

the financial crisis, 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.

[palle11]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....

Truely this kind of investments are good for financial crisis time because things like internet businesses soar very high in price and value. This is because again, people try to run to the internet for succour. On the other hand, if such crisis leads to war, hmm... it becomes a problem because you will need to covert whatever asset to fiat and the banks too will be chaos.

[breathlessz]

I am glad that I don't have to hedge anything since a large chunk of my wealth is parked in Bitcoin already. I do hold a relatively small amount of gold as well, but I am not planning to add more in the coming years, unless the gold price tanks deep, but that's highly unlikely. In other words, I'm good. In most cases people will only act when it's too late already, which makes me feel sorry for them, but on the other hand it's their ignorance and unjustified trust in the regular economy making them lose out. We have been through so many economical difficulties, that people should have had a wake up call years ago already....

Truely this kind of investments are good for financial crisis time because things like internet businesses soar very high in price and value. This is because again, people try to run to the internet for succour. On the other hand, if such crisis leads to war, hmm... it becomes a problem because you will need to covert whatever asset to fiat and the banks too will be chaos.

i think this is only because of the transitional situation, which needs adaptation to make it normal again. but in case of war i do not think it's a gold investment, but food is gold to get on with life

[alizalela7]

I have not heard any warning about the financial crisis of 2008 as the year of the global economic crisis that characterized the economy as a sinusoidal urban form at growth and vice versa.

[Cynooza]

Indeed, another financial crisis is inevitable. And most likely it will be more devastating that in 2008. The 2008 situation wasn't really fixed. Bailouts only froze it for a while so real consequences of it are on the way.

[shulio]

In 2 to 3 years time another crisis will come and at that time the crypto currency will flourish again with new all time high prices.

[vv181]

The system has failed and broken. Soon collapse will happen. as you said, In the end, only an asset that has a real value will survive, like gold, silver, Bitcoin, and etc. The more people realize how awful the system is, and able to thinking clearly about it. The soon the collapse will happen.

[Kamarah]

I do understand it. But I believe that this crisis wont affect bitcoin as well as the cryptocurrency. From my perspective, people will convert their fiat into cryptocurrency in order to save their money. This might increase the price of bitcoin and other cryptos.
However, the chance for the financial crisis happening is not quite high. Our world is becoming better everyday so the government knows how to stop this event from happening

[makolz26]

Well, I am not good in terms of the economic system  but I can see that a financial crisis would definitely come in the future, and that government will need the help of crypto world until such time that it will finally adapt my most people and by most country in the world.

[tee-rex]

...

There are always people who sing the same chorus of eternal doom and gloom like the guys behind ZeroHedge, though the latter are likely just riding the wave and capitalizing on people like you. People have been playing the same tune for ages. The US dollar has been announced dead dozens of times every other year. So, could you name a date or at least a year when our investments in gold, silver, etc are going to really pay back handsomely? Without being specific, it is all empty, irrelevant talk like "such is life, then we die".

[TianaStam]

The nature of every crisis is cyclic and we should expect a new crisis in coming years, but don't you think that exactly crypto currencies may become a reason for new global financial crisis?

[cynical]

In 2 to 3 years time another crisis will come and at that time the crypto currency will flourish again with new all time high prices.

Yes i agree the coming financial crisis will play right into the hands of bitcoin.
If we revert bact to the fundamentals of bitcoin and why we should not put our trust in banks a financial crisis will prove once again these points and why Satoshi invented bitcoin.

There was news today that the first sign has shown that the Japanese economy has slowed, Japan has thr 3rd largest economy
http://www.the-japan-news.com/news/article/0004498475

[Reid]

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.