Economist Caution: Prepare For 'Massive Wealth Destruction'

[pandalion98]

Take immediate steps to protect your wealth . . . NOW!

...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”

When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”

http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/

Good news for BTC, but sorry to see so much suffering ahead.

Lucky I'm not from the US xD

[Bit_Happy]

Take immediate steps to protect your wealth . . . NOW!

...Marc Faber, the noted Swiss economist and investor, has voiced his concerns for the U.S. economy numerous times during recent media appearances, stating, “I think somewhere down the line we will have a massive wealth destruction. I would say that well-to-do people may lose up to 50 percent of their total wealth.”

When he was asked what sort of odds he put on a global recession happening, the economist famous for his ominous predictions quickly answered . . . “100 percent.”

http://www.moneynews.com/MKTNews/Massive-wealth-destruction-economy/2013/06/20/id/511043/

Good news for BTC, but sorry to see so much suffering ahead.

Supposedly he had a video interview where he discusses good financial investment alternatives, would you happen to know where I can find it? I've found interviews with him but not one that summarizes his aftershock investment book

Not right now no.
I have a really good memory so I'll eventually (probably) come up with it.

[BTCalexxx2.0]

Come on... I hear so many people saying a huge crisis would push BTC/USD to new highs, but I need to completely disagree. NOBODY will buy Bitcoin during a crisis. NOBODY! Why? Simply because you won't be able to buy crap with it.

It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.

And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...

Good luck and stay safe

[devphp]

Come on... I hear so many people saying a huge crisis would push BTC/USD to new highs, but I need to completely disagree. NOBODY will buy Bitcoin during a crisis. NOBODY! Why? Simply because you won't be able to buy crap with it.

It's very sad, but I do agree that a major economic collapse within the next 1-3 month is faaaaaar more than just likely.

And when it goes down it doesn't matter where you live, the US and EU will drag us ALL to hell...

Good luck and stay safe

You're only partly correct. The thing is, the huge crisis doesn't happen instantaneously. It takes time to evolve - it takes years. Actually it's been going for a few years now, and look at what happened to Bitcoin. The crisis will continue on the same path, although maybe at an accelerating rate. In the next few years it develops (look to 2020), more and more businesses will be accepting crypto currencies and other forms of private money and even barter to replace the fiat losing value, that's why down the road you'll be able to buy more everyday items with non-fiat money. Fiat will be used mainly to pay taxes and other payments to government. Private businesses will be looking to keep only as much fiat as they need to pay those mandatory payments, but to save the rest in something that doesn't lose value.

[BTCalexxx2.0]

Sure. If you are talking years there might be a 1% chance for that scenario, but we should be talking month or even a few weeks!

[devphp]

Sure. If you are talking years there might be a 1% chance for that scenario, but we should be talking month or even a few weeks!

I don't think so. If you observed what some non-mainstream economists were saying over the past few years, they all had been saying since 2008 (some even earlier) - it's all over in the next few weeks, months at most, but somehow it's all been kicked down the road for a few years now, which makes me think they can kick it down the road another few years. At some point it'll be over, but not as fast as initially predicted.

[BTCalexxx2.0]

Let's hope so...

[skilo]

Silver and gold are a solid investment, Bitcoin is cool magical internet money but that's all it is, It's value is speculative, If fiat paper money were to go away tomorrow then how would you determine the value of a Bitcoin?

Unless the exchanges started accepting and storing deposits of physical gold and silver then the Bitcoin would be worthless.

I know it's sort of blasphemy to point out this fact on this forum and i will most likely get attacked for doing so but that is the truth.

From an investment stand point Bitcoin is a great short term investment, It's a roller coaster, You buy when it's low and sell when it's high, Anyone just keeping money in Bitcoin for long term storage is not playing the game right.

[BTCalexxx2.0]

No attacking from my side, +1 instead.

All the people who say otherwise whether don't know much about financial markets, holding bags since December or have other existential interests bound to Bitcoin while knowing better.

[zimmah]

Wealth is never destroyed, only transferred.

[Pente]

Everyone should read "When Money Dies" by Adam Fergusson. This is about the Weimer inflation period.

Hyperinflation doesn't just happen overnight. It happens over a period of a few years. The rate of inflation slowly increases over a period of months.

There is another good book about a period of great inflation in France. I can't seem to find it anymore though and I forgot the title. While Adam did a good report about the technical aspects of hyperinflation, this other author did a really good job of describing the breakdown of morality that occurs during high inflation.

[devphp]

If fiat paper money were to go away tomorrow then how would you determine the value of a Bitcoin?

Fiat is just the common denominator. If fiat is gone, something else will be the common denominator, don't worry. Same would be true for PMs, how would you determine their value without fiat? How much would you pay for a loaf of bread in silver? I'll give you a hint. First you'd use the last available price of silver in fiat and last available price of loaf of bread in fiat, and calculate their ratio, at later stages the market would decide that ratio according to supply and demand of both items without looking at the fiat-world last available price.

But rest assured, these are all fantasies as fiat is not going to go away any time soon or ever. They will inflate it, then hyperinflate, then just chop off a few zeros from denominations, call it the new dollar, euro, yen, etc. and the new cycle begins. That's the history of hundred+ recorded episodes of fiat cycles when fiat died and was reborn, no reason to believe it will be different this time, doesn't matter it's at the global scale this time.

[BitOnyx]

"scary parallel"

I'm almost sure it is just a joke article xD

[zolace]

When you put all these growing problems into even an optimistic math model - the result is collapse of the dollar in a few years as the post 15 quoted source stated. This is not an "economic disagreement" with the above facts - it is simple math, but not all economist are willing publish that, especially those that are paid by the government or Wall Street firms.