Is A global Financial Crash Looming?

[Deeje]

How did the world get to this point?

 

[sandy whitelinger]

We create too much money through deficit spending. To keep from flooding our economy and cause inflation we export money through trade deficits. We are saved because oil is sold with American money. Other countries need greenbacks to buy it, especially China who has little oil reserves. As long as dollar hegemony rules, we think we are safe. I see a one world currency as the only salvation.

 

[PureX]

How did the world get to this point?

Greed.

 

[wizanda]

How did the world get to this point?

Judaism charges usury to everyone other than Jews (Deuteronomy 23:19-20)... So they've been money lenders throughout history...

Islam challenged this point, and said not to charge usury, therefore they are the enemy to the banking system (Quran 2:275-280).

JFK and Abraham Lincoln both tried to make it the government printed their own money, and were assassinated for it.

In my opinion.

 

[Revoltingest]

We create too much money through deficit spending. To keep from flooding our economy and cause inflation we export money through trade deficits. We are saved because oil is sold with American money. Other countries need greenbacks to buy it, especially China who has little oil reserves. As long as dollar hegemony rules, we think we are safe. I see a one world currency as the only salvation.

And the same policies which led to the +/-2007 crash have returned....
- Heavily subsidized home loans
- Immobile work force (high real estate transfer costs)
- Fed regulation of loans which prevents troubled loan renegotiation.

But exporting money doesn't really hurt us.
Consider.....
Money goes down in value ever year due to inflation (currency devaluation).
Anyone holding dollars overseas will see the value drop over time, so there's
incentive to either invest them or buy something.
If we buy something from overseas, we're getting something of value, but
giving nothing of inherent value....just printed (or electronic now) paper with
pix of dead Presidents.
Any money which continues circulating overseas, is essentially Americastan
getting something tangible for nothing.
Any money which returns here has a lower value than when it left years earlier,
so this is a net gain for us.

 

[idav]

How did the world get to this point?

Because every nation except Hong Kong lives beyond their means. So the whole world keeps fixing their books with inflation against interest rates on the massive debt all countries have. US is about normal compared to other countries when looking at their income and GDP. This does not seem sustainable by any means long term. When huge cooperations were in trouble about to bring down the system the government declared them "too big to fail" and passed the debt to future generations.
The coming economic crash caused by world debt

 

[Revoltingest]

Because every nation except Hong Kong lives beyond their means. So the whole world keeps fixing their books with inflation against interest rates on the massive debt all countries have. US is about normal compared to other countries when looking at their income and GDP. This does not seem sustainable by any means long term. When huge cooperations were in trouble about to bring down the system the government declared them "too big to fail" and passed the debt to future generations.
The coming economic crash caused by world debt

The "too big to fail" claim is oft made by government officials, but not supported.
A few companies are critical, eg, AIG, which is an insurer. But lenders are not.
If a lender fails, their assets (loans receivable) don't lose value, & are purchased
at near actual value by other investors.
If politicians really had the interest of the populace at heart, they'd have bailed out
the borrowers instead of the lenders. But donations & crony capitalism, you know.

 

[idav]

The "too big to fail" claim is oft made by government officials, but not supported.
A few companies are critical, eg, AIG, which is an insurer. But lenders are not.
If a lender fails, their assets (loans receivable) don't lose value, & are purchased
at near actual value by other investors.
If politicians really had the interest of the populace at heart, they'd have bailed out
the borrowers instead of the lenders. But donations & crony capitalism, you know.

Yup i remember the borrowers getting the shaft with all that too big to fail travesty.

 

[Brickjectivity]

If there were a global financial crash there would be a lot of political denials. No one would admit to faults personally, and international courts would be relatively weak. Each country would handle things on its own possibly seizing assets of various kinds, and there would be I think a knockback against international trade for a while. Trade would be damaged, but it would continue. You cannot really have a global financial crash if nobody is willing to recognize it, but you can have trade barriers thrown up which will affect individual economies and strain international relations.

 

[Brickjectivity]

@wizanda modern banking comes from the Dutch East India Company, not the Bank of England which did not issue paper money until 1695. The Dutch issued stocks long before that. Dutch East India Company - Wikipedia The modern bank is based on the principles in this Dutch East Trading Company, the first trans-national corporation. Banking with usury has also arisen independently in multiple regions of the world and is not a Jewish plot. History of banking - Wikipedia

 

[Stevicus]

How did the world get to this point?

Short-sightedness, fiscal irresponsibility, and misguided beliefs that we'll always be the land of plenty.

I remember back in the 1980s, when a few were warning about budget deficits, trade deficits, outsourcing, deregulation, free trade, and other irresponsible policies, the GOP took on as their theme song "Don't Worry, Be Happy."

That sentiment sums up where we went wrong. Even though we knew that such policies were irresponsible and our government was taking the wrong path, too many people stuck their heads in the sand and didn't care.

The sad part of it all is that there's really no excuse for any of this. In the decades following WW2, the US was in a much better position economically and geopolitically. We were experiencing a great economic boom, along with a tremendous boost in our standard of living compared to what previous generations went through. It was just plain mismanagement and irresponsibility which got us to this point, coupled with unrestrained greed and geopolitical megalomania on the part of our leadership.

It's like someone winning a huge lottery jackpot, but instead of being happy with their good fortune, they decide they want to gamble it away to get even bigger payout. They want it all.

That's kind of what happened with our own economy. We had a good thing going, but then we decided to gamble it away.

 

[sun rise]

If politicians really had the interest of the populace at heart, they'd have bailed out
the borrowers instead of the lenders. But donations & crony capitalism, you know.

You are channeling Bernie Sanders here.

 

[sun rise]

Democrats tend to tax and spend resulting in lower deficits especially when a fiscal conservative liberal is the Governor or President (see California's surplus). Republicans tend to borrow and spend resulting in ballooning deficits such as the last bunch of Republican Presidents.

Sooner or later the party will end the hangover is going to be fierce.

 

[Revoltingest]

You are channeling Bernie Sanders here.

Bernie can agree upon some things.
Always remember that libertarians are the the left of Kennedy & to the right of Reagan.

 

[Phantasman]

How did the world get to this point?

Everyone is living on IOU's. The US debt is backed by nothing tangible, just promises. This happened when the US went from the dollar (being a silver certificate) went to a Federal Reserve note (promissory or IOU). This gave Congress basically a blank check. If you could just write a check for everything you owed even without money to back it up, it would be fraud. The government can just print the money to back up their checks. When that happens, more printed money placed into society makes whatever money that had been out there worth less. It now takes an adjustment to allow for the added money. If a dollar bought a Big Mac, now it takes two dollars to buy one, because the dollar now represents 50 cents instead of a dollar.

Other countries do the same thing. Some not as much, others more (printing money). Silver coins don't lose their value, but gain in value due to the precious metals they are. Gold and Silver. Zinc coins are useless. Same with copper as it is not precious (to anyone).

The only way a collapse occurs is when someone asks for the debt(s) to be paid in full. At this point, no one has the balls to ask. Saudi Arabia backs their money with oil. It's what made them a wealthy country. America could have been "wealthier" with oil production as well. But acts from people like Obama, thwarted oil production in favor of the global warming enthusiasts. This thwarting made our production on the world stage weaker, which is we our debt increased 10 trillion dollars during his 8 year term.

This is the reason Trump signed in the held up pipelines, re energized coal, and have started ANWR to produce more oil. It's a double edged sword, but Trump is defying the GW ideology in favor of an economic turn around.

Our promises have more value now than a year ago. Military might is another promise that can be charged for to aid our economy. Obama gave Iran 150 billion dollars to back an agreement. Military might can do the same thing. Clinton gave NK 6 billion dollars to stop them from becoming nuclear. Trump used the military (threat).

It's six of one, half a dozen other. Obama took money from military to pay countries to be peaceful. Trump gave money to military to force countries to be peaceful. The market (which regulates our economy) is effected by both ways. But unless the investment garners a return, it puts us further into debt of promises.

We know the last 16 years didn't work to reduce debt. But what Trump is doing seems to be working for a foreseeable future. It's all about return on investments. Insurance companies know this better than anyone. Yet when the government took that role, they threw even more debt into the mix. Which is why all the insurance companies bailed to survive the ACA.

I see Trump on the better path. But only time will tell. It always looks good on paper.

 

[Revoltingest]

In the news.....
Steve Eisman, who called the 'Big Short' during last financial crisis, says he's sleeping easy now

 

[sandy whitelinger]

And the same policies which led to the +/-2007 crash have returned....
- Heavily subsidized home loans
- Immobile work force (high real estate transfer costs)
- Fed regulation of loans which prevents troubled loan renegotiation.

But exporting money doesn't really hurt us.
Consider.....
Money goes down in value ever year due to inflation (currency devaluation).
Anyone holding dollars overseas will see the value drop over time, so there's
incentive to either invest them or buy something.
If we buy something from overseas, we're getting something of value, but
giving nothing of inherent value....just printed (or electronic now) paper with
pix of dead Presidents.
Any money which continues circulating overseas, is essentially Americastan
getting something tangible for nothing.
Any money which returns here has a lower value than when it left years earlier,
so this is a net gain for us.

All this works as long as the money does not return here. That would increase our domestic money supply which would either lead to inflation or very strict Fed intervention. Markets would **** their satin shorts.

Also, it works as long as there is dollar hegemony. Once oil switches to another currency for purchase the US is screwed.

This is percieved by some as worth going to war over. Some speculate that Hussein's rumblings to only sell oil for rubles led to our going to war against him.

 

[Revoltingest]

All this works as long as the money does not return here. That would increase our domestic money supply which would either lead to inflation or very strict Fed intervention. Markets would **** their satin shorts.

If there's a multi-year delay in the money returning,
it loses quite a bit of value.

 

[Deeje]

Everyone is living on IOU's. The US debt is backed by nothing tangible, just promises. This happened when the US went from the dollar (being a silver certificate) went to a Federal Reserve note (promissory or IOU). This gave Congress basically a blank check. If you could just write a check for everything you owed even without money to back it up, it would be fraud. The government can just print the money to back up their checks. When that happens, more printed money placed into society makes whatever money that had been out there worth less. It now takes an adjustment to allow for the added money. If a dollar bought a Big Mac, now it takes two dollars to buy one, because the dollar now represents 50 cents instead of a dollar.

Other countries do the same thing. Some not as much, others more (printing money). Silver coins don't lose their value, but gain in value due to the precious metals they are. Gold and Silver. Zinc coins are useless. Same with copper as it is not precious (to anyone).

The only way a collapse occurs is when someone asks for the debt(s) to be paid in full. At this point, no one has the balls to ask. Saudi Arabia backs their money with oil. It's what made them a wealthy country. America could have been "wealthier" with oil production as well. But acts from people like Obama, thwarted oil production in favor of the global warming enthusiasts. This thwarting made our production on the world stage weaker, which is we our debt increased 10 trillion dollars during his 8 year term.

This is the reason Trump signed in the held up pipelines, re energized coal, and have started ANWR to produce more oil. It's a double edged sword, but Trump is defying the GW ideology in favor of an economic turn around.

Our promises have more value now than a year ago. Military might is another promise that can be charged for to aid our economy. Obama gave Iran 150 billion dollars to back an agreement. Military might can do the same thing. Clinton gave NK 6 billion dollars to stop them from becoming nuclear. Trump used the military (threat).

It's six of one, half a dozen other. Obama took money from military to pay countries to be peaceful. Trump gave money to military to force countries to be peaceful. The market (which regulates our economy) is effected by both ways. But unless the investment garners a return, it puts us further into debt of promises.

We know the last 16 years didn't work to reduce debt. But what Trump is doing seems to be working for a foreseeable future. It's all about return on investments. Insurance companies know this better than anyone. Yet when the government took that role, they threw even more debt into the mix. Which is why all the insurance companies bailed to survive the ACA.

I see Trump on the better path. But only time will tell. It always looks good on paper.

Thank you for putting something so economically complex into simple and understandable terms.
That explains a lot.

So if America is to survive economically, the whole global warming issue has to go out the window? What is the point of economic benefit if the planet itself is the real victim? This is our only home and we are not treating it with respect. Mother Earth is already groaning under the strain of man's mismanagement.

I saw last night on the news that there are moves afoot to tackle the problem of an enormous amount of space junk threatening to impede any further excursions into space. Why do we treat this planet and even its atmosphere as a dumping ground for our waste?

Do you link the world's severe weather events to global warming? Or do you see these events as the result of something else? The cost of repairing the damage caused by these disasters, which seem to occur in this century in rapid succession, just materially, is staggering...let alone the human cost. What country, deeply in debt, can afford to rebuild vast areas wiped out by hurricanes, tornadoes, floods or other natural disasters? Many insurance companies are redefining their policies to get out of paying. Some people have lost everything and there is no compensation to help them start again. Broke governments can't really help.

Why have earthquakes increased so much in this time period? Could it be that the oil that was in the earth was there to lubricate the tectonic plates and now it is gone because humans saw an opportunity to make money at the planet's expense? Earthquakes increased as more oil was extracted. Is that a coincidence?

Pollution is now killing all of us as we are constantly exposed to toxic chemicals manufactured by man, much of which has petroleum as its base. Everything that sustains life on this planet is polluted....air, water, soil, food. Health costs continue to soar as we succumb to these problems. Its all tied in together.
We as a race are reaping what we have sown.....so how can it be fixed? Do we see any real effort by the polluters to stop the rot? Is the ostrich approach working for anyone?

Do these monumental problems really have a solution when all you have are man's broken promises and worthless IOU's?
It seems that only a truly different approach will extract mankind from this dilemma.
I guess we wait for what has to be 'a global solution to a global problem'....."one world government" perhaps? They have been talking about this for decades.....so is it time? If that is implemented, what do you see for the future as a result, given man's track record to date?

As you said...it all looks good on paper. Time will tell...indeed.

 

[Phantasman]

Thank you for putting something so economically complex into simple and understandable terms.
That explains a lot.

So if America is to survive economically, the whole global warming issue has to go out the window? What is the point of economic benefit if the planet itself is the real victim? This is our only home and we are not treating it with respect. Mother Earth is already groaning under the strain of man's mismanagement.

I saw last night on the news that there are moves afoot to tackle the problem of an enormous amount of space junk threatening to impede any further excursions into space. Why do we treat this planet and even its atmosphere as a dumping ground for our waste?

Do you link the world's severe weather events to global warming? Or do you see these events as the result of something else? The cost of repairing the damage caused by these disasters, which seem to occur in this century in rapid succession, just materially, is staggering...let alone the human cost. What country, deeply in debt, can afford to rebuild vast areas wiped out by hurricanes, tornadoes, floods or other natural disasters? Many insurance companies are redefining their policies to get out of paying. Some people have lost everything and there is no compensation to help them start again. Broke governments can't really help.

Why have earthquakes increased so much in this time period? Could it be that the oil that was in the earth was there to lubricate the tectonic plates and now it is gone because humans saw an opportunity to make money at the planet's expense? Earthquakes increased as more oil was extracted. Is that a coincidence?

Pollution is now killing all of us as we are constantly exposed to toxic chemicals manufactured by man, much of which has petroleum as its base. Everything that sustains life on this planet is polluted....air, water, soil, food. Health costs continue to soar as we succumb to these problems. Its all tied in together.
We as a race are reaping what we have sown.....so how can it be fixed? Do we see any real effort by the polluters to stop the rot? Is the ostrich approach working for anyone?

Do these monumental problems really have a solution when all you have are man's broken promises and worthless IOU's?
It seems that only a truly different approach will extract mankind from this dilemma.
I guess we wait for what has to be 'a global solution to a global problem'....."one world government" perhaps? They have been talking about this for decades.....so is it time? If that is implemented, what do you see for the future as a result, given man's track record to date?

As you said...it all looks good on paper. Time will tell...indeed.

I don't see it as you do. Pet Coke is a coal that burns hotter and clean. It is a technological marvel. As we use technology to counter the effects of carbon, it is quite possible to produce clean(er) energy. Choking industry the way the EPA did, almost brought us to a halt, economically. Yet China was able to pollute for years to come. So why would we join a coalition of countries that targeted the US while other actors increased their economic stability?

The EPA still works. Just not to the degree the special interests want. Some spotted owl stopping ANWR from producing energy isn't enough for most Americans. Especially when technology is proven to produce a cleaner product and the owls relocated.

There has to be a balance, a give and take, if you will. Obama tried to escalate electric cars and solar power and wound up costing billions in a lost endeavor. There are people who will complain about any progress in energy, including nuclear. Event Horizon made us smarter. Understanding pollution makes us smarter. Understanding "global" warming makes us smarter. Throwing us into the stone age is a step backwards. I fully believe that the technology is there, it's just that it hasn't caught up to the demands of an energy reliant world. Obama wanted to "put on the brakes". Trump wanted to allow the US to move forward in (carbon) energy with a watchful eye while pushing the technological envelope to keep it clean(er).

There is always a price to be paid with progress. The Hindenburg taught us to use helium instead of hydrogen. The disaster was bad, but lesson learned made us smarter, safer. We need to tread carefully rather than not at all. The world demands it.