There will come a time when the "Horse Dung" Paper Derivative Contracts are rendered worthless..!!

in #news7 years ago (edited)

Garbage and vomiting diarrhoea of the Mainstream Narrative

Horse Dung For Sale.jpg

We are heading for a big disaster

Despite the garbage and vomiting diarrhoea that continues to be pumped out by the Mainstream Narrative regarding The Economy, I strongly believe that we are heading for a big disaster.

Since 2008, Central Banks around the World, including the Federal Reserve, have shot The Economy full of monetary heroin and as a result of this have taken on more debt, spent more money and have effectively dug themselves into a deeper hole than that what they found themselves in back in 2008.

Instead of solving the problems that caused the Financial Crash of 2008 they have simply found a way of papering over the problems and if anything have actually made them worse.

An even bigger crisis

We are now heading for an even bigger crisis and economic calamity than that of 2008 and one that will make the crisis of 2008 look like a kindergarten tea party.

The fact that The Stock Market is still rising is totally irrelevant as there is a disconnect from The Economy and The Stock Market, something I have covered on many occasions.

The strength of the U.S. Stock Market alone is simply a by-product of the Federal Reserve and this goes the same to all Stock Markets and their relative Central Banks.

The reason why the U.S. Stock Market is so strong is simply due to the cheap money that is being created by the Federal Reserve.

Artificially low interest rates and quantitative easing

Artificially low interest rates and quantitative easing have fuelled The Stock Market bubble but these are the policies that actually undermine real economic growth.

What we are witnessing is a simple transfer of wealth from Main Street to Wall Street instead of having savings and productive capital investment we now have rampant debt creation and speculation.

None of this is good for The Economy. It might make people wealthy on paper but it is nothing more than an illusion.

Serious problem in the next decade

The World is going to have a serious problem in the next decade and a lot of people are going to loose a lot of money.

I hope I am wrong, but the signals are already there that I am right.

It will be a financial crisis that is going to be the worst in our lifetime and it is not going to be fun.

People should be knowledgeable and prepared and it is up to each and every one of us to educate ourselves.

What to invest in

No one should invest in anything unless they themselves know a lot about it.

Don't listen to me and don't listen to the Internet or television, because when you are investing in things that you don't know about and we hit bad times you may find yourself in a serious problem.

China is going to be the next great Country

China is going to be the next great Country in the World whether we like it or not.

It was the U.S but this is going to change as a result of reckless monetary policy decisions from the last decades and this is the sort of thing people should educate themselves on.

West has witnessed the creation of an excessive amount of debt

The Federal Reserve have been probably one of the most influential factors to the problems that the West has witnessed the excessive amount of debt that has been created and is likely set to be a huge problem.

In the past, there have been other Central Banks in America prior to the Federal Reserve and they have failed.

This one is no different.

A World without a Central Bank

A World without a Central Bank would have a problem, but a World with the Central Banks that we know today is an even bigger problem.

Central Banks have driven interest rates to nothing which has destroyed peoples wealth at the same time as increasing their own balance sheet with excessive debt and this is causing massive problems which in turn is keeping interest rates to near zero.

This is a problem. This is a huge problem.

It would be great if we could abolish Central Banks as we know it and replace them with a digital replacement.

Rugrats and Academics

Since the crisis of 2008, Central Banks have continually looked at reducing their Bond and Debt positions to shrink their balance sheets, but just as they think they can, they get a call from another crisis stricken entity to be saved.

It's simply a vicious circle.

Rugrats and academics are running Central Banks and they will attempt to save what or who they can as they have done in the past with absolutely disregard to the consequences.

#Gold and #Silver are an Insurance Policy

Whenever there are problems and people lose confidence in Governments, money always finds its way into buying #Gold and #Silver. It doesn't matter whether they should or they shouldn't, it's what people do.

For a new investor looking to add precious metals to their portfolio my advice would be to learn about The Market.

Everybody should at least own a bit of #Gold and #Silver in their portfolio as an insurance policy if nothing else.

Most people have fire insurance, car insurance or home insurance on the basis that it protects them from a disaster.

People should treat #Gold and #Silver as an insurance policy and if you are lucky enough to time the Market right you can also make a lot of money along the way if you get in at the right time.

#Gold moving West to East

Over the last 5 years we have seen a trend in #Gold moving from the West to the East with a high demand for #Gold now in Asia.

The U.S. is the largest Debtor Nation in the history of the World, along with the likes of: Portugal, Spain, Greece, the rest of Europe and the UK, with the wealth in the East where the demand for #Gold is going to be coming from.

Future trading of #Gold and #Silver

In the future, #Gold and #Silver is going to be traded totally differently with a lot more trading done over the Internet as opposed to Exchange Floors and Clearing Houses that have been around for the last decade.

The same also will apply to Stocks and Bonds.

In the future you will not see any trading floors as these will all be totally replaced by #Blockchain and the Digital Distributed Ledger Technology.

At this point the "Horse Dung" Paper Derivative Contracts will migrate on to the #Blockchain.

In a real nightmare scenario the term crisis will cease to exist and it is not a matter of "if" but now simply a matter "when" the outfall of this migration takes hold.

There will come a time when the "Horse Dung" Paper Derivative Contracts are rendered worthless..!!

Thanks again for reading.

Stephen

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Shared on twitter. Stephen

one word: DISRUPTION!

Quite agree Stephen mate. Although I don't really like the idea of central banks for any reason, except perhaps as a page in a history book.

Cheers Dylan. Took me nearly all day to type. Just wanted to get it off my chest. I think we are all about to see something pretty catastrophic in the Markets soon. Stephen

I completely agree with your assessment that there is going to be big crash coming in the very near future. People's debt is at an all time low, massive money printing is not doing what they hoped and is just pouring fuel on the fire as more money creation means more debt. Yes it will get uggly.

The fact is that the collapse is already happening though. Like you mentioned we don't have to look at the crypto market as going up as much as the fact that the fiat currencies are loosing value.

There is only one thing backing the value of fiat today. This is the belief of the people and the military strength of your country..

US for example is loosing power in both ends. As you say china is taking over as the super power.

The only thing I say which didn't play out as China had planned and that might hinder them in taking over power is the development of crypto. As you say they have spent emmense amount of money and energy on moving the gold from the west to the east.

If gold had the same position as 10 years ago I would see them being an absolute power house right now. But the fact is that cryptocurrency have changed the economic playing field.

Why mine gold when you can mine bitcoin ? Will it be necessary to back the crypto with gold and silver.. these are questions which I am not so sure about. Also if China now is banning trading of cryptocurrency and thus not really adopting it, how will they be able to secure the place as the number one economy in the world ?

This is awesome i hopr we live to see the time that block chain will take over. For me i believe the central bank is a very corrupt system
Thanks for sharing

heh very good Stephen, been a bit steemit absent due to crazy clients, be back around more towards end of the year!

Cheers Rich. Hope everything is ok. Stephen

heh yeah things changing fast, good to know your spearheading on this, peace

Way to put it all in perspective! I agree with almost every detail in the post but am skeptical about China becoming the foremost superpower. They don't have the bedt problems that we have but they have population problems. How will they deal with their population problems? It has seemed to me that they would need to do something drastic in order to create the most simple piece that any superpower needs, space. Not that they couldn't do it. Since they have invested a ton in our debt, they could theoretically cause a situation where we cannot pay our obligations and "take over" our resources. Just curious your thoughts on the chain of events that would go down leading to China's overtaking the US globally. Not to mention replacing the global currency with the Yuan. Thanks for the write up!

Very good post. Keep it up 👆

I think that will be used in all areas of the blockchain. all over the world.

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