Quote:
Originally Posted by xelasnave
Hi Bobby
I have noticed lately a few articles that predict a financial collapse.
Such is possible.
But why do folk predict such?
What is the benefit to them?
Maybe a journalist gains readership.
But others...I wonder why...to save folk from ruin? to show they are clever?...you know what I suspect...and I present a question ... Could any of these stories or predictions of doom be efforts to manipulate markets.
I expect the main reason gold and silver moves to a higher price lays in a fear the buyers develop of financial collapse.
The last week on YouTube there seems many new videos suggesting doom and gloom.
I guess the main question is will the herd panic and stampede...
Negative interest rates...what does that reflect?..too much money being printed? too many folk investing in super? Too few projects requiring investment?
Looking at gold production world wide it seems it's price is way too high, same with silver, yet both seem to ignore the supply and demand rule and expectation of profit from production.
That suggests manipulation.
Who is doing the manipulation and how is it done...that is the key question...who controls the market ..the sheep or the herdsman? Is it time to clip the long fleece of the herd.
Alex
|
Alex ' the problem is
DEBT
I lifted Egon van Greyerz potential scenaro's from his recent article :
BIGGEST ECONOMIC DISASTER IN HISTORY
The world is heading for an economic disaster of a magnitude that is much greater than the 1930s depression. There is really nothing to compare with in history since the world has never been in a similar situation before when every single major economy is at risk.
GLOBAL DEBT WILL KILL THE WORLD ECONOMY
Never before in history have all major countries lived above their means for such an extended period. And never before has global debt been almost 4X global GDP.
$2 QUADRILLION DEBT AND LIABILITIES
In addition, unfunded liabilities, like medical care and pensions, are at least $300 trillion globally. If we add gross derivatives of $1.5 quadrillion, which are likely to turn into real debt as counterparties fail, the total debt and liabilities are above $2 quadrillion.
DEBT AT 30X GLOBAL GDP CAN NEVER BE REPAID
$2 quadrillion is almost 30X global GDP. Who is going to repay this debt? Certainly not the current generation which has incurred most of it. And certainly not future generations which will neither have the means, nor the inclination to pay for the sins of the previous generation.
DEBT IS GROWING AT AN EVER FASTER RATE
Most major economies are continuing to spend money they haven’t got and thus to print money and expand credit at an ever faster rate. The US for example has increased debt by $800 billion since June. As the US economy falters, annual deficits of $1-2 trillion will increase manifold in the coming years. And when the banking system comes under pressure, which is happening right now, money printing will accelerate at an ever faster pace. As the global economy falters, most major countries will see deficits and debts rising quickly.
NEGATIVE RATES – A RECIPE FOR DISASTER
Negative rates are a disaster for the world. Over $17 trillion debt now carries negative interest. Firstly, it kills the incentive to save. A fundamental economic principle is that savings equal investments. The world cannot grow soundly with investments financed solely by debt or printed money. With no savings, most banks do not have funds to lend to businesses. Thus investments will slow down dramatically. Negative rates also lead to investors chasing ever riskier investments to get a higher return. Also, pension funds will not achieve adequate returns to cover outstanding liabilities.
DEBT AND ALL BUBBLE ASSETS LIKE STOCKS AND PROPERTY WILL IMPLODE
Like the climate virtually all asset classes are overheated. The bubbles that the credit expansion has created will implode in the next few years together with the debt that created the bubbles. Central banks around the world will make a desperate attempt to save the world economy by printing unlimited amounts of money.
ALL CURRENCIES WILL GO TO ZERO – DEFLATION WILL FOLLOW HYPERINFLATION
As money printing accelerates, paper money will become worthless and a depressionary hyperinflation will hit the world. Hyperinflationary periods on average last for around 1-3 years and are followed by a deflationary implosion of all asset values in real terms. At that point substantial parts of the financial system will cease to function properly or go bankrupt.
GOVERNMENTS WILL LOSE CONTROL
Before new financial and political systems emerge, there will be social upheaval and unrest. Criminality will be widespread as desperate and hungry people will do what they can to feed themselves and their children. In many countries, immigrants will be blamed for the misery of the people. Right and left wing radicals will fight immigrants. There are likely to be periods of anarchy as governments lose control. I do not believe that an elite will control the world at that point. The disorderly unwinding of asset bubbles and the world economy will be uncontrollable.
Bobby
