Fiat Madness, Looming Banking Crisis & Bitcoin
Yesterday the British Pound has crashed 6.1%, it's largest drop since the Brexit. Aren't the Forex markets supposed to be crash proof? How is this possible? Where is the liquidity? There is an article about this on Bloomberg:
I am not going to speculate here on what caused it, nor do I care, I view the Forex markets way to rigged to even think about this. When you have all Central Banks printing money day-in-day-out and fighting with eachother, speculating about this becomes irrelevant. It doesn't matter if the Forex market has trillions of liquidity, if only the Central Banks are playing the game.
What is more important is the potential incoming Deutsche Bank collapse, we already know that they are in big trouble, and Merkel won't bail them out, but the ECB might by printing up more EURO.
http://www.zerohedge.com/news/2016-10-07/deutsche-bank-shocked-disorderly-dramatic-pound-flash-crash
It's just a way too rigged game, with all this moneyprinting ,and you ain't gettin' nuthin' from it, only the big banks do! This is why I stopped trading Forex a couple years ago, it just made no sense to me, because the market is way to rigged to be able to trade it successfully based on rumors.
It doesn't matter how many trillions of liquidity it has if a handful of parties are the only big players, one of them withdraws, and the whole market collapses. This is one possibility with the GBP, if Deutsche Bank caused it by withdrawing from the market, then similar crashes can happen in any other market that is controlled by few people. So liquidity by itself is an illusion, you need another thing too to make it work:
DECENTRALIZATION
So a market is as good as the mood of their oligarchs, that is why I am focusing on investing in markets that are more decentralized: Bitcoin, Gold, Cryptocurrencies, Land and others...
Now what is happening with this Deutsche Bank fiasco?
It seems like Quatar, one of it's largest shareholders is close to Margin Call, as they have all bought shares with Leverage.
And DB's share price looks pretty identical to Lehman Brothers's before their demise. Lehman caused the 2008 financial crisis, and DB is very likely to cause the next financial crisis, and we are very near to it!
Recently @dollarvigilante had made a video that he could not withdraw money from an ATM which is likely a result of this fiasco. Seems like all banks, globally, are in danger!
So yes, banks could collapse, ATM might be closed, accounts frozen and confiscated, bail-ins, bail-outs, and massive poverty & unemployment could come! Prepare yourself, this is not a joke, we are witnessing another financial crisis developing!
What about Bitcoin?
Despite all these fiascos unfolding, Bitcoin is stable and rising like a boss! Bitcoin had increased from 550€ to 560€, and still staying strong. So you can see, you can ignore all the crap in the fiat world if you have the right investments, and with a glass of champagne celebrate that you are making money, while the fools who invest in fiat scams are losing money.
It's not pretty, but we have to ridicule idiots who invest in negative interest bonds, and financial stocks, because if they had half a brain, they should know what to expect. We should only incentivize smart investors, because the dumb ones are losing money.
You can perhaps look at my portfolio and see how a smart person manages his money (hint I am making 300% yearly profits):
https://steemit.com/money/@profitgenerator/my-portfolio-composition
Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.
Image Credits:
[1] Tyler Durden / Zerohedge.com
[2] https://bitcoinwisdom.com