Next Major Economic Collapse (Inflation vs Deflation), Simpsons TV show predicted this Major Event.

in #economics7 years ago

Simpson Predict Marekt Crash.jpg

I remember as a kid watching this episode, when Bart Simpson whet into the future and foresaw a financial melt down that occurred under Trump presidency. Now that Trump is the president, and Simpson prediction has came true once again, like Obama vs McCain, 9-11, Ebola Virus, and the iPhone predication. Before the election of Hillary vs Trump I have been telling people that trump would win because of the his episode as silly as it sounds. Now that Trump has won, he has inherited the worst economic debt bubble. The central banks and federal reserve have the perfect escape goat to blame Donald Trump for implosion of the Debt Bubble that will happen in the near future. This post will discuss the two types of economic collapse (Inflationary vs Deflationary) that we may face in the next collapse.

Federal Reserve 1913.JPG

Those who are awake and understand what the federal reserve has done since they established themselves in the 1913 (Federal Reserve Act), realize what is happening to the US dollar. Since the 1913 the US dollar has continued to lose its purchasing power. 10 USD in the 1914 had the same buying power as 241.43 USD in 2017 (with annual inflation at 3.14). Since 1971 when President Nixon announced the end of the Gold standard (Bretton Wood System), 10 USD had the same buying power as 60.66 USD in 2017 (with annual inflation at 4.00%).

Check out Link to compare other dates: http://www.dollartimes.com/inflation/inflation.php?amount=10&year=1950

The US government with the backing Feds has continued to destroy our currency with adopting the policy of currency creation through fractional reserve lending and quantitative easing programs.

Now If you bought gold at ($260) or silver ($4) in 2008 during in the recession, not only would you have protected yourself from the inflation in 2011 (from QE3 Program under Obama administration), but would have profited significantly considering silver jumped to nearly ($50) and gold reaching near ($1900).

Silver (Monthly Chart) :
silver.JPG

Gold (Monthly Chart):
goldforeal.JPG

This bring me to my next point, it is all about timing investment and adapting our investment to the economic life cycle (inflation vs deflation). This time central banks around the world have adopted their own quantitative easing programs and keeping interest rates so low for so long has created another major debt bubble around the world. This time the Debt Bubble is even greater than it was back in 2007, prior to the burst of the housing bubble. Currently stocks and real estate prices in the around the world are at all time highs and countries national debt is continually increasing at an exponential rate.

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Check out Link to see each Live countries national: http://www.usdebtclock.org/world-debt-clock.html

The Main Question: Are we going to see hyper Inflation or Deflation when the greatest Debt Bubble around the world implodes. Two famous economist Peter Schiff and Harry Dent have polar opposite views on the type of crash the world will face in the upcoming event. They also share their views on the best way to protect your wealth and how to profit from it.

Check out Link to the epic debate between these two economist:

My take: We are naturally in a deflationary state, no amount of stimulus has been able increase the productivity in our economy. Job's are being outsourced, manufacturing companies are leaving the US, Feds has been keeping interest rates low to encourage more borrowing and spending which is causing another subprime mortgage lending bubble, increase in student loan debt, increase in auto loans, credit card, etc. (charts and graphs will be provided in future posts.) The current low unemployment at (4.3%) is complete scam and does not justify why the feds aren't able to increase real interest rates. I believe that we may face the greatest wealth transfer in the history when this bubble implodes. Goal is to protect our assets so we don't get burned in the end. Chart shows how Gold could look when the next Major Debt bubble implodes:

How Gold could look in the crash:
goldchart.HvsP.JPG

Everyone uses their own respective national currency to make transaction to buy goods and services (not cyptocurrecy and not precious metals.) Cryto currencies like Bitcoin and Steem need to converted into Dollars for business to accept them as a form of payment. Even though I am in full support of cryptocurrency and precious metals because they have potential to be accepted as form of payment outside of government control in today's fraud financial system, I realize that they alone will never be used as form of money as long as the Federal Reserve will stay in place. What ever the government says is money even its fiat, will be money because. My investment strategy is not hold assets long term, but to make timing investment to be able to hedge myself against economic life cycle (Inflation and Deflation).

Stay tuned to my next post: Top 10 Reason to invest into Silver to hedge against Hyper Inflation. Will also discuss how to protect your cash, hint: Not placing into the bank, but into a broker account that since it not allowed to be touched by the broker. Moving forward my goal is to share my thoughts and inputs on how we can better manage our own finances to combat the devaluation of the government federal reserve note (USD).

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