Why California, Illinois and Other States Will Rush To Cryptos in 2018 & 2019
California, Illinois, New Jersey, Connecticut and more States are bankrupt. Many States are billions in debt and in the rears of State obligation of payments. Why is this? Go figure, mismanagement, over spending, promising too much, fraud, the list goes on. Another fact that has not helped States in over a decade, is the low, if not zero percent, interest rate policies of the Federal Reserve (private Central Bank).
Since 2008, the Federal Reserve has had extremely low, artificial and suppressed interest rates. The low interest rates were introduced to help keep the major zombie "too big to fail" banks alive. For the past 10 years, Trillions of Dollars have been digitally printed and given to these banks at a near zero interest rate. The artificially low interest rate, however, has come with a price. What is that price? The price being paid is, that it is causing the collapse of the insurance industry and State Government pensions.
You see, for insurance companies and pensions to survive (as a business model) a return interest rate of 5.5% to 8% is needed. This range of interest has been the traditional norm for over 100 years. The problem is that 5.5% to 8% has not been seen since 2008. What insurance companies and pensions have had to do, to get even 4% to 5% return on their investment, is to go to high risk B rated investments. Not a good idea. As a result, pensions all over the U.S.A., are BILLIONS of dollars in the rear. They can not catch up. Pensions are failing on a daily basis.
What is the answer? Every State Government pension will have to rush into crypto currencies and tokens to try and catch up. These pensions have a decade of lost earnings to make up. Billions of dollars need to be caught up and the only way to do so is to invest in cryptos and the Fin Tech blockchain technology. This is the only financial institution that has the potential to realize hundreds of percentage gains. After all, the industry has averaged up to 1300% returns in the past three years alone. No where on Earth can you find such potential returns.
Out of severe desperation and fear of complete collapse will State Government pensions run towards crypto currencies and token entities. This fact also addresses the trillion dollar global insurance industry as well. Do not think this is just a U.S.A problem either. Most of the world Governments and insurance companies face the same issues. This is why cryptos will see massive trends upward in value for the next two decades. Trillions of dollars have no choice but to head into the blockchain crypto market. Just be patient and build your crypto portfolio. The tsunami is coming, be prepared to ride the tide to ever highs coming soon (as in this summer through 2022).
image from: cryptodaily.co.uk
I always liked crypto as a small investment. But if you tell me my 20-30 yrs of labor in my pension will now be paid crypto makes a me unhappy camper. I will feel a lot better with gold, silver and crypto in equal parts.
I think at first your pension will be paid in U.S. Dollars. Pensions will just invest in the crypto industry to get much better returns than Wall Street has given them. As far as when we all start to get paid with crypto currencies is hard to tell. Perhaps 5 to 7 years from now. Even then, we may have an option to receive payments in U.S. Dollars or in crypto such as Bitcoin or Litecoin.
Are these pension fund managers smart enough to realize this fast enough?
Most likely not. I am afraid it is too late for most pensions. The suffering and anger will be great when the people realize their pensions are not there. The corruption and mismanagement of pensions is great. I think the only way to prevent total loss is to have assets outside the established financial system like gold, silver and cryptos
I wonder what type of currency we will use after universal reset? Sorry, I know it is from the other article you wrote...but, I feel this crypto is part of reset, and it might be as well as used after the reset, or maybe "money" is no longer needed.
Money will no longer be needed after the reset. A completely new economic system will be used. Blockchain technology however, is great. It is honest and based on true mathematics. It will be used for a long time for good purposes.