The number 1 problem facing the world today is DEBT!!!
So where does this leave us, if the entire population is drowning in debt who is going to borrow the money to keep the debt expanding, which it must so the debtors can continue to service their loans? If the lending slows because of market saturation there is less money for people to service their debts, and continue to spend to support a 70% CONSUMER based economy. Once this cycle starts to turn down the pool of available money will shrink, the shrinking pool will go more towards paying down the debt instead of consuming. Less consuming will cause job losses that increases unemployment, which will shrink the pool of new borrowers even further. This is the precise reason that all governments have massively increased their debt loads to step in and fill the void of less people borrowing.
I can’t see any way out of this situation and the eventual outcome will be a devastating deflationary spiral that will make the great depression look like a picnic. This problem cannot be fixed; it can only be postponed, which is exactly what central banks are doing. This is why we have had record low interest rates globally for an entire decade, which has never happened in the history of mankind. By lowering the rates globally they are tempting the remaining pool of borrowers to dive in and help postpone the inevitable as well as printing money like there is no tomorrow, because this is what they fear no tomorrow. But to finish off with a happier story, you don’t have to suffer like the majority. Just get at least some of your money out of this collapsing casino and buy some precious metal life preservers for your family.
Thanks for the visit to my post.
By the @silverbug
While I agree that debt is a major problem, I think another significant problem, perhaps just as significant, is the lack of savings, or more specifically, the lack of interest bearing savings options. This is a side-effect of low interest rates that is almost never talked about. The average person used to have access to savings vehicles like money markets and CDs which paid decent interest rates. But with the continual suppression of interest rates by the Fed, those options are useless. The average person has no low-risk options to save money. Instead, they have little choice but to turn to the stock market, or real estate market, and put their savings at great risk. It seems every few years there is a major crash, which wipes away those savings. This leads to less savings, and less savings balance. When you combine toxic levels of debt with non-existent savings levels, you have a recipe for disaster.
What you say is all true my friend, But the debt burden is the reason for the low interest rate. Without these ridiculously low interest rates all governments of the world would be bankrupt, they cant even pay the principle on this debt, that's why it's zero. Thanks for your comment. Cheers
Debt is the gasoline of the current financial system.
The debt is the current financial system my friend.
@silverbug thankyou for your post. Yes, it is going to be devastating, the biggest wealth transfer in history is about to take place. Crypto is an additional component. Before we had worthless unbacked paper money. Now we additionally have people going into debt to buy crypto - worthless non-edible digital nothings. A line in a digital ledger can be "worth" millions. All blockchains are full of errors requiring teams of "developers" who debug them. No way! No way! If crypto is so valuable, then why is it so available? And anybody can make it. Just the other day I made 1million of my own tokens on the Ethereum platform, totally worthless crap that I can fabricate out of thin air, nobody can eat it, build a house with it or fuel iron production with it. And the next thing: Crypto backed gold. You wait and see. It's coming. We already have forms of it. So many people are going to lose so much... STAY AWAY FROM THESE SCAMS!!!
![]What else can I say you summed up my opinion in a few short sentences my friend. If you don't hold it you don't own it. Cheers
Deflation, or Stagflation, that is until the inevitable central bank response of printing us into hyperinflation. Think, helicopter money. It's a global Ponzi scheme.
That's it my friend, the markets need deflation to heal, but banks and governments are fighting with inflation. So who will win in the short term I have no idea, but in the long term deflation will win, IMHO. Cheers my friend.
Yes my friend, as with all Ponzi schemes the end result is collapse. The inflation/deflation is transitory. Who wins is determined by who leaves the scheme and gets their wealth out of the system and into hard assets. Cheers.
Spot on mate, cant lose if your not in the casino. Cheers
"The entire industrialized world is drowning in debt at all levels private, business and public"
That's by design. Just as local bank milk you over time, if you take on debt, central bankers milk whole the nations same way. It is a huge criminal operation that is slowly enslaving the whole world. And if some country is not part of this mafia extortion, then that same country is in war somehow inflicted upon it. Central bankers are enslaving the world by any means.
That's Fascism at it's core my friend, government and corporations working together to screw us all. Thanks for the comment my friend cheers.
Back at the turn of the 20th Century, a man named William S. Crowdy said, "Do not put your money in the banks, for they will fail." It has proven to be true more than once, as the owners use them as a tool simply to manipulate and control the populace.
It's all true, the power is not in the money, it's those that control the money so, If you don't hold it you don't own it. Cheers
Silver and gold is a very great opportunity right now
The prices of them both a very cheap but won't last very much longer!!!!
I don't know how long they can tie down the metals, but I cant see it being to much longer my friend. Cheers
Resteemed fellow member of teamaustralia. Cheers. Great Article by the way. I love the precious metals posts.
Thanks for that I appreciate it. Cheers
Thanks for the post @silverbug
like many others I carry a fair amount of debt on my credit card. I am now looking at reducing this but I took a gamble and decided to buy silver (up until June of last year). I'm hoping that it turns out to be a wise decision!
Thanks my friend, all I can suggest is try to tighten the belt to the bone and reduce this debt as fast as you can. Cheers
Yes most definitely! number one priority now!
Make sure you keep those silver life preservers for the family my friend. Cheers
Yep my plan is to sell my investments in the following order
Stocks > Cryptos > Silver.
My thoughts are to just hold onto the silver as its physical and therefore easier to hide from inheritance tax
What silver, I don't now what your talking about. Lol
Spot on! Great post @silverbug!
The world has never seen so much debt in history. It is not going to end well.
Your right my friend, I don't know how long they can drag this crap out, but the longer they do the worse it will be. Cheers
Absolutely, I'm surprised at how long they have been able to keep it together. That just shows how much control they truly have over the banking system and financial markets.