DID OUR "WORLD LEADERS" JUST PUSH GLOBAL RECESSION AWAY from our doorsteps?steemCreated with Sketch.

in economy •  3 months ago  (edited)

111.jpg

INTRODUCTION

line2.png

A while ago I opened my eyes wildly in shock reading today’s news. It seems that the US government will enjoy their debt ceiling being raised (link at the end of this post). Which would allow them to increase their spending for next 2 years. Isn’t it amazing (I’m being sarcastic here)?

Another stimulation plan, more spending’s, more debts created and in effect – more newly created and printed money. If I remember well, just this year alone, China decided to stimulate their own economy by pumping it with a record high amount of new easy money. How did they manage to do that? Obviously by creating more debt, that will make it harder for those paying debts in the future but right now we will all be enjoying more of that wealth.

WHAT’S NEXT?

line2.png

How will it all end?

I think we all know.

It can only end very badly.

After all (based on my understanding) pumping more printed money into economies will mostly allow stock market to grow even higher, since a large chunk of this wealth will end up as investments on Wall Street.

So perhaps with all those new easy money entering markets and economies, we will experience another 2-3 years of prosperity and growth? That’s how it does look like to me. So China is printing money like there is no tomorrow. US and FED will do the same. I wonder what will other central banks do.

My current knowledge about economy (still quite limited) is telling me, that all we are doing is delaying another recession and we’re doing it simply by creating more debts, which allows to print new money. These money enters and boost current economy. The way I see it is that we’re using wealth from “the future” (our future time, energy, effort etc) within current days. We’re basically sucking all of our resources from the future and using them today.

And that’s what is exactly happening right now. After all, those debts will have to be paid back. With interests rates. Isn’t that just terrific?

DO I UNDERSTAND IT RIGHT? SHARE YOUR VIEW

line2.png

My important question is:

Do you, dear readers, believe that this kind of solutions (printing more money, creating more debts) will be enough?

Can it really allow goverments to avoid global economic recession by another few years? Or perhaps it’s a little bit too late or simply not enough?

I’m far from being an expert when it comes to economy and every day I’m trying to put some pieces of the puzzle together. In hopes that I will slowly start understanding some relations and that I will eventually see the bigger picture.

Am I wrong or am I right by saying, that all those extra spendings will help current administrations to avoid recession within a short-term timeline. It does seem obvious to me, that our governments’ learned that by creating more debts (which allows to print more money, since each $$$ need to be connected to some debt) is the easiest way of keeping a stable economy growth.

However the question is: how long can we all carry on this way. How long before countries, goverments, societies, companies, house owners and just regular people around the world will not be capable of increasing their debts and large chunk of their profits will be simply used to pay growing interest rates. What will happen then?

After all in every economy it's all about money flow. And once access to new cheap money will finish (or be greatly reduced) and debts pile up – then money flow will slow down bringing one day our entire world to its knees.

Yours,
Piotr
(I read and reply to all comments)

line2.png

Link to article "House approves two-year deal to raise debt ceiling and increase government spending":
https://www.latimes.com/politics/story/2019-07-25/house-approves-two-year-deal-to-raise-debt-ceiling-set-government-spending

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

The printing press won't stop until "the market" decides that the debt burden is too high. When that time comes (months or years) all wealth in the stocks/bonds/housing market will be destroyed.
After a short deflationary period, we will see hyperinflation like in Venezuela, but it will all happen within a few weeks. Not enough time to get your wealth in Gold/Silver/BTC.
That will be called the great global reset and the elites will use the chaos to push for one world currency and another 50 years of money printing (new debt cycle).
States will default, banks will go bankrupt and believe me it will be nearly as ugly as a war in your country would be.
People will lose their pensions, their homes... it will be one big mess worldwide, but especially in developed countries, because they are not used to living a low life standard.

Late thank you for this excellent comment @ew-and-patterns

Yours, Piotr

@crypto.piotr has set 3.000 STEEM bounty on this post!
logo_for-light-bg_1000.png

Bounties let you earn rewards without the need for Steem Power. Go here to learn how bounties work.

Earn the bounty by commenting what you think the bounty creator wants to know from you.

Find more bounties here and become a bounty hunter.

Happy Rewards Hunting!

Congratulations to the following winner(s) of the bounty!

Hello dear @crypto.piotr.

After all in every economy it's all about money flow. And once access to new cheap money will finish (or be greatly reduced) and debts pile up - then money flow will slow down bringing one day our entire world to its knees.

It is a very realistic opinion, I think that is what has happened with the populist governments of some Latin American countries (including Venezuela), it seems that the most important thing for them is to create a scenario where everything seems to be fine and in the future we will see how it is fixed , and who fixes it. It's living life today and we'll see what happens in the future.

Thanks for sharing friend!

Something to think about; what are they printing? What are they not printing? The debt can never be repaid because they are printing principal, but they aren't printing the interest. Zero sum game? There is more debt than money in many cases, and every time they print a Euro, Dollar or what have you, the one in your wallet is worth just that little bit less and the price of a Liter of Milk magically goes up.

We saw this before in 1920's Germany, and you couldn't put enough money in a wheelbarrow to buy another Wheelbarrow. This has also been repeated in other countries throughout history, yet somehow few seem to catch on and keep using this easy money from nothing. I have a few million Intis from Banco Central de Peru in 1990. They are worth less than the paper it's printed on.

Sobering thought I hope. Greetings.

Dear @onnovocks

I'm glad to see that you're still around. I remember you mentioned that you've been targeted and flagged a lot. Did this problem go away?

Yours
Piotr

Unfortunately the answer is no.

we’re using wealth from “the future” (our future time, energy, effort etc) within current days. We’re basically sucking all of our resources from the future and using them today.

Interesting way of looking at it. Like any debt, we're using future wealth now, assuming we'll have it later. Like taking out a student loan, with the assurance that the completed "education" will be so valuable in the future, money will be no problem, even at outrageous interest rates.

It's also theft through inflation - our wealth is being plundered by less buying dollar power. We need to teach our children these concepts, that's why I read the "Tuttle Twin" books to my children - so perhaps the next generation will know better. 40% off right now with coupon code FORTY


I am an affiliate and receive compensation from your purchase.

Dear @ironshield

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Yours
Piotr

I think that very bad and will create another bubble that will blow in 5 years

Posted using Partiko Android

Well, the EU is going to explode. The currency union aspect of it was never a good idea in the first place. It's a matter of when not if that happens.

By contrast, in the US I think it is a matter of if not when we will ever see a return to historic "normal" interest rates (about 5%). The Modern Keynesians are really about to break through into the mainstream. And they maybe onto something about the old monetary indicators being inappropriate for the modern economy. After all, if we're looking for price inflation to be the tail that wags the dog, there are a lot of good reasons that have cropped up in the 21st century for that to have stopped being a reliable indicator, among them globalization and the digital sharing economy.

In China, it's a race between rising debt and sovereign investments. There's a chance that all the infrastructure building that the Chinese have engaged in will grab them a share of that seignorage that allows the US to print money so freely without consequence. For now, China is relying on its planned economy to hold things together and they are hoping that will hold until everything that is the One Belt One Road matures and can contribute significantly to their economy. That's a big bet. But they probably have the best leadership out of the 3 regions mentioned here.

That's my view @crypto.piotr, thanks for asking!

Dear @shanghaipreneur

Thank you for your great comment.

The currency union aspect of it was never a good idea in the first place. It's a matter of when not if that happens.

Is that really how do you see it? I wonder how US in the past managed to unite all states and introduce USD to all of them. I wonder why same couldn't happen in europe.

ps.
Recently I've bumped into this site: https://www.usdebtclock.org/world-debt-clock.html

It does shows debts of all major countries and I noticed that with few exceptions everywhere debt is increasing. However 4 countries (including Poland and Germany) seem to have their debt going down.

And I was wondering how could that be possible? Also I realized that Poland has very good ratio between debt to GDP (around 50%), which is great comparing to countries like France (107%) or Italy (147%). Not to mention JApan (261%).

I found it so confusing. It would suggest that Poland have more stable economy than majority countries out there. Looking at those numbers could even suggest that Japan is serious financial trouble.

Mind sharing your thoughts?

Yours
Piotr

What I don't think people even slightly understand is how devastating this increasing debt will be in the future. Right now governments around the world are struggling to pay for their massive debt loads with the lowest interest rates in modern history.

When rates normalize the cost of servicing these debts will skyrocket.

Short term added spending may keep the economy moving along, but long term this kicking of the can (yet again) is devastating.

You're very right @thedarkhorse

Generally people do not understand much about idea of printing money and debt based economy. I can only hope that we won't witness all of it crushing down within our lifetimes.

ps. I've heard that in Switzerland they already introduced negative interest rates. That must be insane.

Yours
Piotr

Honestly I don't see how we wouldn't see the house of cards crash down. There are very few governments that are in a position to handle the debt loads they have amassed. I'd rather it happen sooner then later and give my children a chance at a future that isn't strapped with what has to happen. It shouldn't be their burden...heck it shouldn't be mine, but I'd rather bear it then it being their problem.

Hi @thedarkhorse

Difficult times ahead of us.

Thank you for your kind comment. I appreciate it a lot.

Yours
Piotr

  ·  3 months ago (edited)

Oh, my friend. I know this terrible and crazy dynamic very well!

Maybe you know that this mad releasing of money is exactly what the Venezuelan government has done all this years, in a proportion, maybe, infinitely higher than every other country. And look at us now, eating shit.

The first time I got this comprehension in a strong manner was when I saw the documentary series Zeitgeist. Do you know it? There the author explains very well the mechanisms by which corporations, banks and governments hold the control of society by simply creating debt.

I recommend you to look at least this excerpt:
Money creation and fractional reserve banking

I'm not a fan of conspiracy theories, but these dynamics show themselves clearly as sick forms of mass control.

!tip

Thank you again @spirajn for resteeming my latest post and your amazing comment.

Seriously one of the best i've read in this topic. Appreciate your time buddy.

I will watch this video right away. It's from 2012 so it's not the newest ...

ps. God bless Venezuela
Yours, Piotr

Hi Piotr,
Thanks for this interesting topic. I think you get the concept quite well. The more money in the economy the more goods should be produced to compensate it. All countries are using the same economical concept which means growth can be created by increasing the money supply. Countries all over the world are doing it at least since 2008.

In Switzerland for example we have a negative interest rate. This means that you are actually being paid for making depts! How crazy is that.

Growth and cheap money a very short term solution

Politicians worldwide believe that a good economy depends on growth and that this growth can be optained by increasing the money supply. This works and we see the results everywhere. Products are getting cheaper and cheaper. We buy to throw away which results for example in huge plastic waste in the oceans all over the world. We also have a bad alocation of funds as you point out quite well. Instead to use this money to invest we have bubbles in the real estate market and the share market.

Countries and individuals can buy with the money of tomorrow by using dept but there is a point where the charge of the dept doesn't allow it anymore. In a way this point is already reached in many places(Greece, Italy, Argentina, South Africa,...). Once the point is reached where the dept can't be served anymore there is no solution. Everybody seems to put their head into the sand and ignore this. What will come then? I can only think of quite negative outcomes, like Venezuelian like hyperinflation.

These "growth with cheap money" policies have the result that we not only rob the future generations of their economical development but we also produce all the waste of the future today and ruin the planet.

We have to come up with another set of policies

Protecting the climate and the environment, protecting the interests of future generations, in short sustainable developments starts with having a new set of societal values that are different from purely economical values.

hello @ achim03

Protecting the climate and the environment, protecting the interests of future generations, in short sustainable developments starts with having a new set of societal values that are different from purely economical values.

In order to achieve a stable economy, social principles must be evaluated; A consumerist consciousness has been created that states that we should eat the hen of the golden eggs, that we should consume the seeds. If we sacrifice the chicken we will not have more eggs; if we consume the seeds we will not have to sow. Consumption awareness should be generated, which will lower the debt.

You are quite right. We live in world of greed where we want to make money of the chicken, the eggs, the seeds and even the nutriments for the earth. One generation uses it all. We should learn that we dont need consumption and growth to live a happy life...

Posted using Partiko Android

Thanks for sharing your thoughts @tramelibre

Yours, Piotr

Dear @achim03

Thank you for your great comment.

In Switzerland for example we have a negative interest rate. This means that you are actually being paid for making depts! How crazy is that.

That's very unique. I wonder what is advantage and disadvantage of that solution. In a long term (probably longer than our life) this system sounds like a economical suicide.

ps.
Recently I've bumped into this site: https://www.usdebtclock.org/world-debt-clock.html

It does shows debts of all major countries and I noticed that with few exceptions everywhere debt is increasing. However 4 countries (including Poland and Germany) seem to have their debt going down.

And I was wondering how could that be possible? Also I realized that Poland has very good ratio between debt to GDP (around 50%), which is great comparing to countries like France (107%) or Italy (147%). Not to mention JApan (261%).

I found it so confusing. It would suggest that Poland have more stable economy than majority countries out there. Looking at those numbers could even suggest that Japan is serious financial trouble.

Mind sharing your thoughts?

Yours
Piotr

Hi @crypto.piotr,

I found the link quite interesting. It's amazing to see how much dept there is around and how fast it developps. I share your feeling about confusion... It's difficult to interpret these numbers correctly. One thing we should keep in mind is that all these dept is compared to the GDP. So this means that to make these numbers look better governments can either reduce the dept by reducing spending, or they can try to increase GDP by spending even more. Politically speaking it seems always easier to spend more to "encourage" the economy.

Probably the whole castle of cards would come crumbling down if we had a new economical crisis with lower GDP's.

What can we expect of this? I don't know but I doesn't seem a healthy tendency ...

Cheers
Achim

Cheap money is a temporary solution. Then, it becomes a problem. Repeat as necessary.

Cheap money is Indeed a temporary solution but a solution that used makes the problem worse in the long term. We will come to the point where we need another medicine to solve this problem...

Right, the problem is exacerbating. And there's no new medicine available yet. Hope someone comes up with a solution.

Yes @ majes.tytyty....u r right. This temporary solution will only lead to Permanent problem!

Perhaps we should all buy a printing machine Piotr.
Oh wait isn't it illegal for a person to print money its call counterfeiting.
Which is just about what every government in the world is doing.
Printing their own wealth.
The ultimate end will, as others have said will be hyper inflation.
Let's invest in crypto whilst the President of the US and others around the world still don't understand it.
By the time they realise what is happening it will be to late.
Tech coins have value way beyond paper.
And of course you can't burn them😎

Posted using Partiko Android

Good point. The first thing we people of the world is work our way around all the counterfeit money sloshing around the globe. And cryptocurrencies are that first step.

Onwards.

I can see it now. Your 40 dollars steem turning into 4 million. lol. You will be so old by the time it reaches even $500.00 that you wont know what you have. xx If it can even get out of the starting gate and reach 50 dollars. lol

Ha ha watch this space 😁

Posted using Partiko Android

Dear @andyjem

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Yours
Piotr

Thanks Piotr.
I do like to look at the obvious.
I am always hearing how expensive and the amount of electricity it costs to produce crypto. But no one ever looks at the huge cost of mining oil coal diamonds and gold.
Plus most involve digging bloody great holes in our precious planet 😁

Posted using Partiko Android

Dear Piotr, i was in USA this month begin and i see how this economy do not care about others countries...
China and USA can do whatever they want, who can say something to them?
The problem is here in Europe!
Too many different country are not finding a solution of economy trouble, so the main word is saving and put people on poverty...
I believe USA and China will not put their people on poverty, so thats why they are pumping economy and this is good thing compare with EU thats is unable to do it and just ask always to pay more tax and get less money!
The economy is a chain, if the consumers have no money, they will not buy anything, so company will have nothing to sell and recesion happen!
My friend, both of us need to move to USA to get what we deserve...

If you move to the USSA, you will get what you deserve. I call it "hell." :-)

@intellihandling

I live in France, am not rich, so I believe I can comment fairly confident of what I say. Inflating the economy is NOT good. Yes, the word is to keep the national spendings under 3% because that is the level where the nation can't catch up with its debt, and finally end up like Greece has ended up. China won't put its people to poverty? I think you seriously need to take a trip there. As for the USA, is the size of a super nation gives them flexibility... however, don't believe that it's an almighty shield when badly handled, the economy will explode.

It's because we're aware of the debt inflation, and the state's debt that in Europe, our economy is relatively more stable than it was when we were different states.

@intellihandling @dennyfloro

I am an American and would not encourage either of you to think somehow the USA is going to escape the consequences of what @crypto.piotr is writing about here in his post.

The financial challenge we face is (IMHO) greater than understood by most Americans. And I further believe that it does not matter whether there is a Republican (today) or Democrat (tomorrow?) in power. Politically speaking, the honest solution to our financial woes is greater than anyone is prepared to even acknowledge, let alone address ...

As with much of the world, if “we the people” were told the truth of what it would take to get out of this mess, we (collectively) would say, ”What?! That can’t be the answer! I’m not doing that …”

@roleerob I believe you must have mistaken my post's meaning.

I don't believe Americans will get out of this crisis anytime soon. It's not some finger-snapping kind of problem. Plus, from what I've heard, a certain someone could be reelected. If that happens, before the economy is a problem, democracy in and per itself will be a bigger issue, I think.

Okay @djennyfloro, perhaps, but ...

"... a certain someone could be reelected. If that happens, before the economy is a problem, democracy in and per itself will be a bigger issue, I think."

... my primary point remains the same. It does not matter who is elected. The financial problem we face is greater than either party or any elected official ...

Thank you for your amazing comment @roleerob

Dear @djennyfloro, thank you for your answer, but this matter of 3% Is the warm of poverty...
I was in China in january and i can tell you they have Better economic Life, but they pay for It with limited Freedom, no facebook, Google, WhatsApp, only WeChat which gave to chinese goverment the pass to check users.
I was in Usa 3 weeks ago and they live in another world, their president gave them guns and limitations of immigrants, this Is what they Need, living in their Happy world with no caring that much what Is going on in other countries....

Posted using Partiko Android

Many US citizens are not only blind to the outside world, they're also oblivious to what's happening in their own country.

Dear @djennyfloro

Yes, the word is to keep the national spendings under 3% because that is the level where the nation can't catch up with its debt, and finally end up like Greece has ended up

Thank you for your great comment.

Is this problem with not being capable of paying debt really related to those 3% national spendings? Isn't more related to ratio between debt and GDP? Just wondering.

Recently I've bumped into this site: https://www.usdebtclock.org/world-debt-clock.html

It does shows debts of all major countries and I noticed that with few exceptions everywhere debt is increasing. However 4 countries (including Poland and Germany) seem to have their debt going down.

And I was wondering how could that be possible? Also I realized that Poland has very good ratio between debt to GDP (around 50%), which is great comparing to countries like France (107%) or Italy (147%). Not to mention JApan (261%).

I found it so confusing. It would suggest that Poland have more stable economy than majority countries out there. Looking at those numbers could even suggest that Japan is serious financial trouble.

Mind sharing your thoughts?

Yours
Piotr

Hi @crypto.piotr

I'd rather not step into deeper depth, this is not my field of expertise, and rather than to spurt nonsense, I'd rather simply say that I was explained about the 3% by someone who is great in Finance & analytics.

I was not able to retain the entirety of his explanation, but it made total sense. I'm much too unfamiliar with English acronyms overall to fully understand your answer too, so I'll look into it too.

Friendly,
DF.

Dear @djennyfloro

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Perhaps you could also visit my latest post and share your own view on discussed topic. I would love to hear your opinion.

Yours
Piotr

Move to the USA im sure you were joking here Piotr. Lol. The most dangerous county in the world at the moment. 😁

Posted using Partiko Android

Do you consider USA to be the most dangerous country in the world @andyjem?

In what sense?
Yours, Piotr

Manly due to its foreign policy and intervention in the business of other sovereign countries over the last70 years
It has caused more unrest in the world by use of it military might than any other country.
It has set its self up as the worlds police without invitation.
Apart from its invasions of country across the middle east. Its latest withdrawal from the nuclear deal with Iran has put the world in real danger of a global war.
All this has been based on its greed for world dominance on oil. NOT on its compassion for the people of the countries. Every county it has invaded has been left much worse off.
It has become no more than a bully. Forcing its will on people that dont want it.
In the 21st century we should be looking to build closer ties and better dialogue.
Bombs and bullets are not the answer.
From a very young age we are told at school that fighting will solve nothing and are punished for doing so.
Then our leaders do the exact opposite.
Double standards don't you think.
In every religion the words 'thou shall not kill' come up.
Why is it ok when it is state sponsored?

Posted using Partiko Android

Hi @andyjem

Thx for your comment buddy.

ps.
Please use some "enter" from time to time to separate sentences :) Please make it easier to read.

Yours
Piotr

Ha ha yes sorry for not using space very much.
I use my phone and do forget.
I will do better next time lol 😁

Posted using Partiko Android

I will do better next time lol

You made me laugh so bad just now hahaha

Coach @crypto.piotr to the rescue 😎😎

Posted using Partiko Android

Hi @crypto.piotr
No, it will be not enough.
Recession should be here two year back and for sure somewhere is rising really big economic nightmare. But from media it is look like everything is OK.
But maybe new technology save them, but I do not believe in it.

Thank you for your kind comment @petrvl

Enjoy your monday :)
Yours, Piotr

My dear friend @crypto.piotr

Definitely within your explanation you are absolutely right to generate more public spending and additional print more money without backup generate future economic uncertainty.
But its results can be seen once that this in full development, Now it can be dismantled but it would also imply to be able to have much more entrepreneurship that can counteract that and another serious way to try to get involved in more debt, I know it is difficult because advertising and consumption in this case also tend to increase so we fall into that vicious circle and the government move.

Venezuela is a living example of this and we're going for the second time that the government changes the currency and so far in these 20 years of this bad government has removed eight zeros from the currency and have changed the name.

But there is a big difference between my country Venezuela and the United States, there are private companies that counteract this public spending and that way that the printed money are not so badly used either in terms of growth.

on the other hand in Venezuela every day as long as government criminals are there will continue to foment that public expenditure bringing the consequence of more hyperinflation.

Each country has its own experiences, however I hope you don't shoot me but Trump is a lynx in business for something to the U.S. economy this year grew, compared to other governments. It should be noted that this opinion is only by information from economic news emanating from that country.

Dear @lanzjoseg

Is actually Venezuelan currency backed by anything? Usually you can print new money when you create new debt. But Venezuela doesn't seem to follow that rule.

Thank you for your amazing comment

Yours
Piotr

It's great to see that you got so much discussing going about this topic. I think the U.S. is trying to prevent a rough crash. It's going to be an interesting year

Hi @schubes

I'm also glad to see that so many people decided to share their opinion :) Thx for dropping by buddy

Yours
Piotr

World wars erase all the debts. It already happened twice.

Hi,

It was a thing of the past. If a World War happens once again, not only will it erase the debts, but also will erase the entire humanity!

Perhaps not the entire humanity. Just most of us will die. However hundreds of thousands may survive in underground facilities spread all over the world. Wouldn't you agree @marvyinnovation?

Cheers
Piotr

Yes @crypto.piotr, u r right. Thanks to the advancement of S&T, which made this possible.

Posted using Partiko Android

Hi @oldtimer

I presume that you mean war war 1 and 2? Do you think both wars wouldn't happened if debt wouldn't pile up and push economies into dark-hole?

Yours
Piotr

I'm sure that was one of the cases why II ww. German mark was having so big inflation in 1920s and 1930s, you can not even imagine. Second reason why war happened was because of German (Nazi) greed. They knew that in centuries before, Europe has robbed the world, specially Africa and Asia. All the diamonds, gold, silver,..from the world was kept in Europe. And Nazis wanted it for them self. Because they wanted to have power.

It's always economy.

Hi @crypto.piotr,

Firstly, let me thank you for sending me the link of your Wonderful Article.

To be more appropriate, your article is the need of the hour. All the points that are listed in the blog post are perfectly listed and briefed.

"Can it really allow goverments to avoid global economic recession by another few years?"

Yes obviously. By doing so, we are postponing the recession...for some more years!

"...or perhaps it’s a little bit too late or simply not enough?"

My answer is.....Just continue the current trend. Get more debts. Investment the same in the construction of factories, lots & lots of factories in all fields in a BROAD ASPECT. The benefit is of two fold. Firstly, it will solve the unemployment problem and the productivity will increase as a result of it. Revenue will be generated. The sale of goods will bring in more profit and the profit can be used to settle down the old debts.

If all the countries follow suit, imagine what a Positive Wave of TsunaMoney it will send across the entire world.

This is my humble opinion @crypto.piotr.

"I’m far from being an expert...."

But the way you presented this blogpost proves beyond doubt that you have become an expert @crypto.piotr

your article is the need of the hour. All the points that are listed in the blog post are perfectly listed and briefed.

I'm blushing now @marvyinnovation :)

Have a great monday ahead :)

the way you presented this blogpost proves beyond doubt that you have become an expert

blushing again! stop it! :)

Yours
Piotr

They can’t possibly lower the interest rates forever.

When it blows, it will be spectacular. Better start stockpiling resources (cash, crypto, precious metals, etc) along with everyday necessities.

Hi @enforcer48

did you start stockpilling already? :)

Totally.

You gotta get every bit you can before the masses fight you over them.

Euro is printed too, the USA and China are no exception. Years ago the USA was bankrupt, like more countries, but this seem to work. 💕

Posted using Partiko Android

Yep. The US is bankrupt. Its debt is close to $23 trillion! That's insane. Nobody will ever be able to repay that.

Greece is bankrupt too... quess more countries are but they are all still there. I assume a country can not go bankrupt since it is still there, no bank or country will claim it 🤔.

Posted using Partiko Android

You have a point. A bankrupt company will just disappear, but a bankrupt country ....

It won't disappear, but certainly, the situation will get bad. Worse than most people expect.

Printing money had been tried by FED from 2008 to 2015 with buying dead bonds to boost USA's and world ecenomy. I think USA should be in debt for global economic development. Imagine, USA have foreign trading surplus which means USA sold more goods than buying from other countries. This would bring dollars to homeland and not be good for global economy.

Posted using Partiko Android

Thanks for sharing your thoughts @videoaddiction

Yours, Piotr

When I was very young, I thought to myself—if a country is poor, why don't they just print more money?...

Hello my dear friend

I am not an expert in finance (as I have always told you) but from my own experience, printing more currency is not the solution and as an example the situation in which I live every day. Printing more coins causes inflation and devaluates the currency, so much so that they had to create a new currency (El bolívar fuerte, BsF) that also devalued over time and again created another currency (El bolívar soberano, BsS) that lately has fallen quite low. And they continue creating more denomination, now they printed bills of 10 thousand, 20 thousand and 50 thousand of the last currency as a means to solve the economic crisis. Aren't we going back to the same thing? It seems that they expect to obtain new results executing the same solution as always (printing more coins).

Stay in touch 😊

Agree with you my friend @jadams2k18.

Printing more coins causes inflation and devaluates the currency, so much so that they had to create a new currency (El bolívar fuerte, BsF) that also devalued over time and again created another currency (El bolívar soberano, BsS) that lately has fallen quite low. And they continue creating more denomination, now they printed bills of 10 thousand, 20 thousand and 50 thousand of the last currency as a means to solve the economic crisis. Aren't we going back to the same thing? It seems that they expect to obtain new results executing the same solution as always (printing more coins).

Same thing repeating over and over even after looking into what happened to Zimbabwe.

When Zimbabwe was hit by hyperinflation, in 2008, prices rose as much as 231,000,000% in a single year. Imagine, a sweet which cost one Zimbabwe dollar before the inflation would have cost 231m Zimbabwean dollars a year later.

Hello, again @flash07!

The same thing was happening as in Germany after World War I. Where children played with packages of bills whose value was negligible. Those of us who do not keep an eye on the past tend to repeat it. That's why today I'm interested in learning universal history. 😉

Thanks for passing by 😄

Great. Hope we will get great topic on universal history soon from you 😉

By the how's situation there in your country. Any improvements ? Hope Cryptocurrency helping you little.

Posted using Partiko Android

Crypto is a blessing for all of us! Dollar keeps rising so our currency is devaluating over and over 😕

@jadams2k18 Hope situation will be better for you guys soon.

Good to know that crypto is helping you guys.

Posted using Partiko Android

Thanks for sharing your thoughts @jadams2k18

Yours, Piotr

It's a pleasure :D

At this point, they really have no choice but to keep inflating the debt to keep this system going hoping by some miracle that there will be some new value creation tool created from this money that could replay the debt and eat into the principle which is not going to happen. All we've done is safely tie debts to another 3-5 generation of citizens who will have to work that off and be taxed for their labour, that's if there are still enough labour producing jobs to tax for it.

The system is broken and eventually, it will hit the impact no matter how much you print, it has to come crashing down.

Dear @chekohler

The system is broken and eventually, it will hit the impact no matter how much you print, it has to come crashing down.

Indeed.

Let's hope that we won't witness collapse of this debt based economy during our lifetime.

Thanks for sharing your thoughts.
Piotr

Dear @crypto.piotr. Your question is
"Do you, dear readers, believe that this kind of solutions (printing more money, creating more debts) will be enough?"
But what can be another solution for government.

Thank you for this valuable post

Posted using Partiko Android

And I thank you for dropping by @huseyinunozkan16 :)

Loading...

@crypto.piotr
MORE GOVERNMENT SPENDING = MORE TAXES
Today, July 31, 2019, for the very first time in U.S. History, the 10-year Treasury Bond is returning a NEGATIVE YIELD! It costs $1,028.60 to buy one, and you will be paid back $1,000 in 10 years. Thanks for your Patriotism!!! :D Just keep on going to work to earn those DOLLARS and you should be just fine, right?!?!

IDK about you, but I went out and bought some more silver bullion today - to add it to my stack!!! Screw that paper $#!t !!!

Dear @bi5h0p

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Perhaps you could also visit my latest post and share your own view on discussed topic. I would love to hear your opinion.

Yours
Piotr

Yes, "WORLD LEADERS" PUSHING GLOBAL RECESSION AWAY from our doorsteps!
Because the pie is fixed, he wants to increase his amount, which is bound to reduce the amount of outside.

They are just delaying the inevitable. Probably planned, I don't know. They are choosing short term solutions to long term problems

ECB will follow in September, meanwhile there are thousands of people being fired at several big european based multinationals.

If you read in about what is actually going on with DB, you realize that this could and probably will turn out as a new lehmann

Economy & recession goes in cycles, and even if past results are not a guarantee, we are long overdue since the crash of 2008.

According to many the world as a whole has been bankrupt since 2008 crash, and we are now living inna fake simulated economy, which has also huge consequences, and the crash will be harder then before. All the western economies, IMF & CB’s & governments are trying to do now is to buy time

After the big crash, the solution will be some kind of (blockchain based) electronic payment system, which will result in more control and a bigger noose around the neck of the regular civilian

1984

Dear @elektropunkz

Thank you for your great comment.

If you read in about what is actually going on with DB, you realize that this could and probably will turn out as a new lehmann

I've been just wondering ... Lehmann has been bailed out by goverments. Do you think DB can be bailed out as well? Will public allow it again?

Economy & recession goes in cycles, and even if past results are not a guarantee, we are long overdue since the crash of 2008.

That's very true. However those cycles seem to be already "stretched" by financial engineering and I wonder if we just bought ourself another few years of "peace and prosperity".

ps.
Recently I've bumped into this site: https://www.usdebtclock.org/world-debt-clock.html

It does shows debts of all major countries and I noticed that with few exceptions everywhere debt is increasing. However 4 countries (including Poland and Germany) seem to have their debt going down.

And I was wondering how could that be possible? Also I realized that Poland has very good ratio between debt to GDP (around 50%), which is great comparing to countries like France (107%) or Italy (147%). Not to mention JApan (261%).

I found it so confusing. It would suggest that Poland have more stable economy than majority countries out there. Looking at those numbers could even suggest that Japan is serious financial trouble.

Mind sharing your thoughts?

Yours
Piotr

If you look at the measurements they placed with the greek crisis, if there’s going to be a bailout, the mormal db customers will be the ones financing the bailout. Japan has been in trouble for many years now, Poland (as other eastern european countries that became EU member) have a good thing going on at the moment, they get more out of the EU then what they have to pay to the EU. And also income is rising, and taxes not so high as in the West of eu. In NL we have an median of 80% tax pressure on the income. Which is crazy

Let´s be honest, the crisis and recessions are what makes the rich getting, even more, richer, because they are not caught on the downside of it.

But, it is what it is, and this solution seems a bit desperate in my opinion.

Indeed it does look like a very desperate solution.

Thank you for sharing your thought with me @diogosantos. Appreciate.

Yours, Piotr

Printing more money it definitely not the answer just makes money worthless we need to be better than money really in my opinion capitalism isn't working more isn't better not enough resources.

Posted using Partiko Android

Hi @crypto.piotr

In the past, some countries had a gold reserve and, as far as I understood, no more money was to be printed up in value than we had in gold values. Then there was a substance a balance between money and gold reserves.
It was a sensible business plan to manage our money
The block was lifted and part of the gold sale was sold to Russia.

With pushing up more money there must be a good substance behind it that has a balance of values ​​behind it, otherwise it will just be a bubble that just cracks and people will lose houses and homes on such borrowed money

This means that those with capital can buy property and houses cheaply and they will only strengthen their wealth, while others will only become poorer.

It creates chaos as we see more and more of the world today

"An Old saying goes that poverty is the root of all evil"
That's probably not right, that's what we do to poverty

Dear @xpilar

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Perhaps you could also visit my latest post and share your own view on discussed topic. I would love to hear your opinion.

Yours
Piotr

thank you for your answer @crypto.piotr

I will read your next post

I'm from Russia. I tried to google the answer to your question "how about the other countries." but it is complicated and confusing...

Russia's economy is in a recession (in other words: we are falling in the Huge Black Hole), investments into economy is out of the question, the key tasks of the Central Bank of Russia are to contain inflation, to contain growth of the dollar exchange rate, to freeze the growth rate of consumer prices, and so on. I can say for sure, they do not print money to invest in the economy and to revive it.

Late thank you for this excellent comment @qwerrie

Yours, Piotr

Loading...

The quantitative easing that the governments are doing is a time bomb, which when it explode, will make the 29's crisis becoming a small little problem.

Create more debt or print more money (to different ways to intervene in the economy) always will create problems at the long short. If you print a lot of money, you have inflation. If you have a lot of debt, you have default problems. There is no free lunch.

Late thank you for this excellent comment @robertoueti

Yours, Piotr

Economically speaking the amount of global debt means we are in uncharted territory, Beware Here be Dragons. Personally I agree that this smoke and mirrors global economy and currency game will end up hurting a lot of people. So yes Crypto.Piotr I think you've got a good grip on the situation, the next question should be what are you doing to protect yourself?

I got a memo in my steem wallet inviting me to this post discussion. Thank you.

Many of you may remember an author awhile back who talked about an upcoming recession. He was on a lot of radio talk shows and other media promoting his book about biblical revelation and signs such as supermoons foreshadowing an upcoming global recession worse than the one a decade ago. The global recession didn't happen in the time frame the author claimed it would and the author said that meant the recession would be put off by heavenly forces for another seven years.

Since then I've had this thought experiment in my head I've been toying around with. What if due to technologies such as 3D printing, private space exploration and nanotechnology we knew for a fact beforehand that the next recession (or depression) was the last one; at least for several centuries? What if some Ray Bradbury Toynbee Convector time traveler showed up with proof that after the next large economic crisis there would be post-scarcity? A future within most people's lifetimes where energy is abundant, asteroids are mined for more precious metals than humans could ever figure out what to do with and tiny robots mine landfills for materials that other tiny robots use to assemble tools and supplies.

The next economic crisis would be a fixed point in time that can't be changed. All one has to do is get through the next economic crisis and you are guaranteed never to experience economic loss again.

Would there be less depression knowing it's the last economic downturn? Would people chose not to work knowing the concept of a salary soon won't exist as it does. Would governments still pretend to care about their economies? The list of questions goes on.

Dear @holovision

Thank you for accepting my memo and for such an amazing reply.

I've think never actually thanked you for your previous comment. So let me do that now: BIG THX buddy :)

after the next large economic crisis there would be post-scarcity

I'm not sure what does it mean?

The next economic crisis would be a fixed point in time that can't be changed.

Hope we will not live long enough to witness such a crisis.

Yours
Piotr

Hi again!

A few comments on this acute post:

So perhaps with all those new easy money entering markets and economies, we will experience another 2-3 years of prosperity and growth?

I think that 'main street' will not at all benefit from this money pumping (as has been the case since 2008). But rather, it will continue to inflate the stock market, as that is where this money goes, nowhere else (apart from being accumulated as debt with future interest due).

The way I see it is that we’re using wealth from “the future” (our future time, energy, effort etc) within current days. We’re basically sucking all of our resources from the future and using them today.

Bingo! That is exactly what this (money printing) is; namely, borrowing "wealth" from the future to have it today (but at a huge cost to future generations). This will be absolutely devastating to them.

Technical question:

How the heck did you make those cool tables? (the ones with the images in the left column and the questions in the right column). I'd really like to know how to do this but don't know the relevant Steemit tags to do so. Thanks!

Hi @libertyacademy

Another yet valuable comment. Im impressed that you've read some of the other replies.

it will continue to inflate the stock market, as that is where this money goes, nowhere else (apart from being accumulated as debt with future interest due).

Very sad and very true.

That is exactly what this (money printing) is; namely, borrowing "wealth" from the future to have it today (but at a huge cost to future generations).

And the best part is that most of that wealth is ending up (as you mentioned) on stock markets.

I see it this way: we all are creating debts to get some money for living, and majority of those money are ending up in pockets of financial giants and stock markets. However we (people) are still having debts, just we don't have money we borrowed.

ps.
To answer your technical question. Please visit: https://guides.github.com/features/mastering-markdown/
And look for section "Tables". It's quite easy and straight forward.

Yours
Piotr

Agreed @crypto.piotr!

And thank you so much for the Tables / Markdowns hacks. Great stuff and I will try to learn more in order to craft more appealing posts.

Much appreciated!

That's the reason why Bitcoin (or any other Crypto) will destroy fiat money long-term.

Thx for your kind comment

hopefully none of it would happen during our lifetime @elbiasto

collapse of FIAT currency could bring entire world to its knees and I would expect long years before our lifes would get back to "normal"

Yours
Piotr

Our system of measuring value is a relic from the 19th and early 20th century. Until we fix that, i'm afraid that we're not going to solve the root of the problem and create real solutions for 21st century life.

Monetary policy isn't going to fix a broken fiscal and trade policy. It is like giving a weak pain-killer to a cancer patient. Eventually, it will not work and the patient will be worse off.

Dear @charcoalbuffet

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Perhaps you could also visit my latest post and share your own view on discussed topic. I would love to hear your opinion.

Yours
Piotr

A while ago I opened my eyes wildly in shock reading today’s news.

Stop doing that - they only tell you small pieces of the mess to inflame you and throw you off your game.

And yes, they will kick all their cans as far down the road for as long as they can as anyone would. Pensions, assets without underlying value, health care, high death, and low birth rates, disease rates, poisoned food. It's all bad and much more.

Best to ignore the "bad news of the day" since its cherry-picked for you.

My opinion for this is simple.
All people on the world just need money for cover living cost.
If government dept the country too much and it's not possible to cover the debt. We get the hyper inflation, where money lose the value and people can't sustain their live.
If that will push forward that will be happen to more and more countries.
Weak countries can be easy defeated by stronger countries, which now invest in military and that is the reason why WORLD WAR 3 is just possible.

Czesc @atnazo

Dopiero zauwazylem ze jestes z polski :) Dzieki za komentarz.

Pozdrawiam serdecznie,
Piotr

support the post - but we cannot influence them - we can only get ready - and diversify our assets. Maybe it will be 1 year, maybe 10 - now you have to think about accumulating in safe assets - when everything collapses there will be an opportunity to buy cheap / this is an inevitable process - just get ready - it will be fun!

Hey @crypto.piotr,

Generally, printing more money or increasing debt is a sign of a struggling economy. My opinion is that the politicians making these decisions only care about one thing - the next election. They will do whatever it takes to get themselves re-elected, regardless of the long term consequences. If they think that putting in a provably poor economic policy (printing more money)will delay an economic slowdown until after the next election, they will happily do so.

I think that a major economic crash is coming, not sure when, but it is on the horizon. I just hope that I can build enough of a position in Crypto in time to ride it out. Crypto is going to become a "safe haven" investment (among other things) during times of economic uncertainty, I believe.

Thank you for this excellent comment @jk6276.leo

  ·  3 months ago (edited)

Hello @crypto.piotr

For my honest opinion...

The answer is.

No

This also includes the extensive Scot that is being mined and distributed.

Without real implication, this is really going to keep the debt ceiling higher and higher.

Be it the government or the crypto world.

We probably have to find a way to brainstorm into helping both the public and SME as partnership to stir up economy.

Question is, which one is the best token / crypto that is usable and grow into something big and decentralised on the long run?

Amazing comment @dses

Thank you for sharing your "honest opinion" with me. I always appreciate.

Have a great monday ahead :)

Yours
Piotr

  ·  3 months ago (edited)

They need to keep their "bubble" on the same growth level. The idea is very simple, the moment the bubble "indicates" that is drying out, investors will withdraw money from it, further reducing the profits for others, therefore others will also withdraw. Hence if no "profits" are generated "artificially" via depth creation, there will be no REAL NEW investment.

This is why the normal monetary system is doomed to blow one day. Crypto will take over, I am sure. When is (was always to my view) the question...

Late thank you for this excellent comment @forykw

Yours, Piotr

@crypto.piotr firstly i really enjoy reading all your articles and specially like this one. You address something that really does raise the same questions in me. I believe that the solution to this problem was already devised in 1947 and the issues were pointed out by people like Egene Böhm Bamwerk or Mises in particular in great detail. Deficit spending has been carried out throughout history and must be looked in terms of products and services that are coupled with resources that are being bought cheap by means of regulatory frameworks that finally were defined by probably the same colonists that secured them. I believe there is a FIAT money battle being fought, that will continue as this new paradigm will unfold. Finally it is being allowed by a group of intellectuals that literally had to wait until recently for us to be able to carry out this experiment with the D-Economy. For some the neo-liberalists and for others the libertarians, or a so called covert Organisation named mont-pelerin. Stuard Hall has a great essay on neoliberalism. Keynes is gone and the second world war is over, but we are still living by the same marxian monkey circus that doesn’t have a free market due to corporate oligarchy in many governments and also institutions. I believe when it comes to institutions such as the IMF etc. of today, we do have some influential academics who really are putting an end to violence and mass consumerism that really rose from macroeconomic marginal subjectivism. I think one think tank can overpower another over time and yes, i believe in think tanks that are malevolent in their overall conduct motivated by self interest and don’t benefit humanity as a whole. We simply can’t afford to destroy the only home we have. If the above are corrupt, i believe there is always someone higher and on top of them that says: ‘wait a second guys, you can’t do this’. When the Keynesian consensus began to collapse in the 70s the remnants caused perennial inflation, lead to erosion of value and for a reoccurring financial crisis. Thatcher met Hayek! Today i believe we are tackling the issues of global warming, automation and wealth inequality. I welcome this new age of international political economy and embrace a more laissez-faire ideology.

Dear @yangyanje

I just realized that I never actually thanked you for your amazing comment. I absolutely appreciate it.

Perhaps you could also visit my latest post and share your own view on discussed topic. I would love to hear your opinion.

ps.
Would you perhaps consider using "enter" from time to time? To separate blocks of texts? It would make it much easier to read.

Yours
Piotr

My friend,
@crypto.piotr!

Printing more paper money, banknotes or fiat money, whatever they call it, what you achieve in the medium and long term is to increase the inflationary phenomenon and reduce people's purchasing power. In addition, it pulverizes the salary of workers who will greatly affect their family or business economy.
It is a way to hide the impact of the economic crisis that may be looming in a given territory or nation...
The main sectors affected must be the production of food and goods and services, in the midst of this problem is the common citizen who can see their quality of life deteriorated.

On the other hand, I understand that the world economy meets certain cycles of adjustment or adaptation to new demands, I also understand that from time to time central banks have the option of printing a certain amount of paper money to replace old bills with new bills,

"but At the time that China prints fiat money from other countries, I think it is a well-studied agreement that allows China to invest on a large scale in infrastructure and services works expanding the power of its economy on a global scale."

Thank you for inviting me to this forum, I hope to have contributed to my comment! @nachomolina

Thank you for this amazing comment @nachomolina

The bubble boom to bust is certainly a premeditated cyclical pattern. Only the names change the faces are all the same. The eventual and inevitable collapse only negatively impacts the poor and middle class and is designed to create a greater dependence on the machinations of our controllers.. Proxy wars, famine, genocide, race baiting, classism, etc are all successful tools of the trade to keep social mobility in check. It's us and them but they do an amazing job of convincing all of us to fight each other over money and religion for the most part. I'm not saying its so elaborate as to be attributed to the Illuminati it's just a fact that when you have acquired a certain amount of wealth you can no longer lose or make bad investments.. The CIA and the military industrial complex of the west insure the paper trail always ends up where it's supposed to..

Posted using Partiko Android

I just realized that I never thanded you for this amazing comment @skramatters

BIG THX buddy :)
Yours, Piotr

Dept can be:

  • repayed
  • refused to repay (declaring bankrupcy)
  • inflated.
    I vote for the third. Economists are wondering for 10 years why we don't have inflation. I think in some years, we will have. If the zero-interest-rate and the quantitative-easing-nrX don't help, the helicopter-money will have to come. (If nothing else helps to the economy, they will print even more money and give it to the people who will in fact spend it.)
    The USA also inflated its debt after the World War II.