Germany is the largest economy in Europe and it has been very pivotal to the success of the European Union. However, the German economic situation is taking a new shape as data being released is showing slowdown. The economy has been flopping for months and the manufacturing sector has been declining steadily and a big recession might be around the corner. According to the economists, the German economy has been faltering and the current instability in the global markets is just adding more owes to the economy.
Sometimes back, taking a vacation to Venezuela was one of the best things one could do. It is a surprise that such a thriving nation which everyone desired to be associated with has been brought down to its knees within a very short span of time. The truth is if the wrong combination of economic events line up, even the greatest nation on earth can be brought down overnight leading to an economic collapse and chaos among the people.
By looking at the cascade of events that lead to the collapse of the once thriving Venezuelan government and economy, we can see the events that lead to the collapse and rectify our course before the same happens to our nation. Lessons from the collapse of Venezuela can make things easier for us when it comes to understanding the prevailing economic situation and how much time we have before we experience a similar disaster in the United States.
This week a lot has happened in the global financial markets and the global stock markets have dropped significantly within a few days and the question that most people are asking is whether this drop will culminate in a global stock market collapse.
The Federal Reserve has been targeting the stock market as a way of boosting economic growth. They have been pumping billions of dollars into the stock market for many years and now, the prices are inflated. The current global panic as a result of the outbreak has triggered stock selling and this is what is causing the stocks prices to tumble every single day and in the process wealth worth billions of dollars is being lost.
Will Gold And Silver Replace The Dollar After The Economic Collapse?
The dollar based system had dominated the global trade for decades but with the current economic condition and the instability in the global financial system, questions are arising on whether the dollar will support this very changing monetary system. Many people feel insecure with the current system and in this video, we will look at some of the reasons why the dollar will collapse and a gold based system will take over the global trade and the whole monetary system. Before diving into this, lets first understand what is the collapse of the dollar means.
The collapse of the dollar will happen if the value of the US dollar plummets and those who will be holding dollar-based assets will have to sell them at a very low price. This includes foreign government and investors who own the U.S treasuries. Such a crash can happen if everyone is simultaneously selling dollar based assets and when no one is willing to buy, the price will fall further causing the whole market to panic. If such a crash occurs, the world will shift to assets that are dominated by anything else other than the dollar. Most likely, gold and silver will be the best alternative and this will usher in a new payment system that will be based on gold. This might not happen any time soon but based on the current trend, at one moment it will have to take place.
The great fathers who founded our nation always referred to debt dependence as a way of stealing from our future generations. For several years, the United States has depended on debt and in 2020; the US is on its way to hit a new record of about $2 trillion dollar in deficit. This reliance on debt is almost getting out of control not to mention that we will have great trouble if the price of oil hikes. We are in trouble because the stock market rise is almost becoming unsustainable since the rise has been fueled by continuous pumping of cash into the markets by the Federal Reserve. If a war erupts with Iran, the Federal Reserve will not be able to finance a war and pump money to the stock market at the same time. Too many things are at stake at this point a major stock market crash will have to happen.
America is certainly not in an economic collapse now and most likely, the nation may not avoid big economic meltdown for long since the indicators that the nation might find itself in economic collapse are rising exponentially. The global investors in the bond market are sending a clear message; since the end of July, the long term interest rates have plunged and history has proven that this often precedes decline in economic growth, interest rates reduction by the Federal Reserve. If key policies are not enacted at this stage, things may get out of hands resulting in a financial collapse and stock market crash.
The Federal Reserve has already pumped $3 trillion dollar into the markets and they are planning to pump more $2.8 trillion dollar. They are also buying treasuries worth about $60 billion every month. This indicates that the economic depression has already begun biting and any time, the bubble will burst and it will be obvious that an economic collapse has begun. However, any time a collapse is about to occur, the elites in the federal reserve always use existing crisis events or even intentionally trigger some events to distract the public attention. Usually, collapse is a process that is difficult for people to notice until it is too late. Everyone will realize that things are out of control the day we will wake up and realize that the dollar has already lost 50% of its value or if we find out that major exporting countries have rejected the dollar as global payment currency.
There is no limit in the amount of dollars that can be printed and this time around, it will become almost impossible to avoid the dollar collapse. It is not a surprise that most central banks prefer gold over the dollar.
In conclusion, we have a rigged economic model made up of fiat money, poor growth and inefficient policies. In this condition, it will not take long to find ourselves in a biting economic collapse than what we had back in 2008. It is clear that a major economic collapse is on the way and we have to be prepared and remain vigilant for any signs of extreme imbalance either in the stock market or the housing market since the things discussed can easily trigger a financial collapse in America. The system is already broken in many ways and it is crumbling under its weight. The world is driven by nature’s law and only humans think that they can defy the force of gravity. From history, we have learned the hard way multiple times that greed always leads to a disastrous ending. There is a very high chance that the worst economic collapse might happen in 2020. However, even if it does not happen, we should not feel safe because all signs signify that it will happen very soon. We may not know the exact date but we have all the signs so it is wise that we prepare for the worst.
The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger an economic collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … The global currency reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!
The Devaluation of the dollar has been happening for the last 70 years or so, especially after 1971. The devaluation of the dollar is a monetary phenomenon and typically driven by lowering interest rates by the federal reserve to increase credit and liquidity. From the moment of the launch of quantitative easing (QE), worried investors have asked, will the U.S. dollar collapse? There are some probable scenarios that might cause a precipitous crisis for the dollar. The most authentic is the dual-threat of high inflation and high debt, a scenario in which increasing consumer prices force the Fed to raise interest rates sharply. Much of the national debt is made up of relatively short-term instruments, so a spike in rates would act like an adjustable-rate mortgage after the teaser period ends. If the U.S. government struggled to afford its interest payments, foreign creditors could dump the dollar and trigger a collapse. A reset means the banksters will have to increase the price of the gold. They own tons of it so that they can cover their derivative positions … This reset is needed to hinder the most significant and fastest increase in global debt in half a century from exploding … But for the average middle-class family or pensioner on Social Security, it will mean “huge inflation”… As the reset will imply “an exponential increase in the quantity of money” by the Fed (meaning high inflation in the prices of everything) … Excluding for maybe “some food items” that are subsidized by the government to impede people “with pensions linked to the chained CPI” from literally starving!!
If you were worried about the debt of U.S.A then hold on to your heart because the figure for global debt is even more alarming. In a report issued by the Institute of International Finance in November last year the global debt hit a new high of over $250 trillion for the first half of 2019! According to the report, China and the US were two of the biggest contributors to global debt. The IIF said the overall number hit $250.9 trillion at the end of this period, and will exceed $255 trillion by the end of 2019.
The report stated,
“China and the U.S. accounted for over 60% of the increase.With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF said in the report.
The graph shown above shows the accumulation of global debt, it was around $100 trillion in 1999 and 2 decades later it is close to $300 trillion. Rising debt across the world has been a big concern for investors and has also been flagged as the next breaking point by a number of economists. Record-low interest rates make it extremely easy for corporates and sovereigns to borrow more money.
The IMF also warned at the end of 2019 that almost 40%, or around $19 trillion, of the corporate debt in major economies such as the U.S., China, Japan, Germany, Britain, France, Italy and Spain was at risk of default in the event of another global economic downturn.
The IIF cites the deepening of global bond markets as the reason for the rise in debt levels. The global bond markets increased from $87 trillion in 2009 to over $115 trillion in mid-2019.
The coming economic collapse will be caused by rising debt levels. As the U.S debt tops $23 trillion dollar, the overheated economy is indicating the upcoming stock market crash that will make the 2008 financial crisis look small in comparison.
In this video, we will look at how the debt of United States has reached $23 trillion dollar in less than a century and how the rapidly rising debt levels have all the potential to be the trigger for the next big economic collapse. In order to understand the next dollar collapse, we need to understand the reasons that have caused economic collapse in the past, most importantly the stock market crash of 2008 because it is the closest example we have got of a financial crisis caused by modern day economic principles and financial products.
One of the major causes of the 2008 stock market crash was the default of sub prime mortgages, the housing sector collapsed and that triggered a chain reaction that quickly took down major financial institutions. It has been almost a decade since 2008 and global debt levels have sky rocketed, the debt of U.S has grown at the rate of almost $1 trillion dollar in the last few years and this no longer seems like a sustainable model to run the economy.
However in order to try and make some preventive and corrective actions to save the U.S economy, we need to understand the cause of the problem first and this video explains exactly how and why the U.S debt has risen so much that it has become the monster that will take this whole system down with it with a dollar collapse.
The economic collapse is already here. It’s already here; they’re just not televising it. There are not telling you about it.
If you look at central bankers, they’ve never been right about any stock market crash, any depression, any recessions ever. Bank failures are happening all over America. The bank collapse has started, for weeks now the Fed is bailing out the rotten bankers left and right. The Fed is easing restrictions, easing laws to eliminate what bankers need to do risky investing with your money. Your money, the money you put into savings or checking accounts that they’re holding, their gambling with it on derivatives. So what’s happening is that bankers are in trouble; they’re not liquid they don’t have cash. Bank to bank lending called the repo hit up to almost 10%, which is crazy when interest rates at all-time low almost at 0%. In America, we never had interest rates this low before. What I want you to pay attention to is what happened in 2006; in 2006, there were zero bank failures, and then in 2007, there were three bank failures. And then it went to 25 bank collapses in 2008 and we experienced a huge stock market crash and global financial collapse.