So where does this leave us, if the entire population is drowning in debt who is going to borrow the money to keep the debt expanding, which it must so the debtors can continue to service their loans? If the lending slows because of market saturation there is less money for people to service their debts, and continue to spend to support a 70% CONSUMER based economy. Once this cycle starts to turn down the pool of available money will shrink, the shrinking pool will go more towards paying down the debt instead of consuming. Less consuming will cause job losses that increases unemployment, which will shrink the pool of new borrowers even further. This is the precise reason that all governments have massively increased their debt loads to step in and fill the void of less people borrowing.
I can’t see any way out of this situation and the eventual outcome will be a devastating deflationary spiral that will make the great depression look like a picnic. This problem cannot be fixed; it can only be postponed, which is exactly what central banks are doing. This is why we have had record low interest rates globally for an entire decade, which has never happened in the history of mankind. By lowering the rates globally they are tempting the remaining pool of borrowers to dive in and help postpone the inevitable as well as printing money like there is no tomorrow, because this is what they fear no tomorrow. But to finish off with a happier story, you don’t have to suffer like the majority. Just get at least some of your money out of this collapsing casino and buy some precious metal life preservers for your family.
Thanks for the visit to my post.
By the @silverbug
While I agree that debt is a major problem, I think another significant problem, perhaps just as significant, is the lack of savings, or more specifically, the lack of interest bearing savings options. This is a side-effect of low interest rates that is almost never talked about. The average person used to have access to savings vehicles like money markets and CDs which paid decent interest rates. But with the continual suppression of interest rates by the Fed, those options are useless. The average person has no low-risk options to save money. Instead, they have little choice but to turn to the stock market, or real estate market, and put their savings at great risk. It seems every few years there is a major crash, which wipes away those savings. This leads to less savings, and less savings balance. When you combine toxic levels of debt with non-existent savings levels, you have a recipe for disaster.
What you say is all true my friend, But the debt burden is the reason for the low interest rate. Without these ridiculously low interest rates all governments of the world would be bankrupt, they cant even pay the principle on this debt, that's why it's zero. Thanks for your comment. Cheers
Debt is the gasoline of the current financial system.
The debt is the current financial system my friend.
What else can I say you summed up my opinion in a few short sentences my friend. If you don't hold it you don't own it. Cheers
Deflation, or Stagflation, that is until the inevitable central bank response of printing us into hyperinflation. Think, helicopter money. It's a global Ponzi scheme.
That's it my friend, the markets need deflation to heal, but banks and governments are fighting with inflation. So who will win in the short term I have no idea, but in the long term deflation will win, IMHO. Cheers my friend.
Yes my friend, as with all Ponzi schemes the end result is collapse. The inflation/deflation is transitory. Who wins is determined by who leaves the scheme and gets their wealth out of the system and into hard assets. Cheers.
Spot on mate, cant lose if your not in the casino. Cheers
It's hard to believe it's going on ten years since the 2008 scare. People are going to, you know what, when this debt problem unwinds. It will take longer than anyone can imagine.
It has already taken longer than I expected my friend. Thanks for the comment. Cheers
"The entire industrialized world is drowning in debt at all levels private, business and public"
That's by design. Just as local bank milk you over time, if you take on debt, central bankers milk whole the nations same way. It is a huge criminal operation that is slowly enslaving the whole world. And if some country is not part of this mafia extortion, then that same country is in war somehow inflicted upon it. Central bankers are enslaving the world by any means.
That's Fascism at it's core my friend, government and corporations working together to screw us all. Thanks for the comment my friend cheers.
Back at the turn of the 20th Century, a man named William S. Crowdy said, "Do not put your money in the banks, for they will fail." It has proven to be true more than once, as the owners use them as a tool simply to manipulate and control the populace.
It's all true, the power is not in the money, it's those that control the money so, If you don't hold it you don't own it. Cheers
Silver and gold is a very great opportunity right now
The prices of them both a very cheap but won't last very much longer!!!!
I don't know how long they can tie down the metals, but I cant see it being to much longer my friend. Cheers
Resteemed fellow member of teamaustralia. Cheers. Great Article by the way. I love the precious metals posts.
Thanks for that I appreciate it. Cheers
Thanks for the post @silverbug
like many others I carry a fair amount of debt on my credit card. I am now looking at reducing this but I took a gamble and decided to buy silver (up until June of last year). I'm hoping that it turns out to be a wise decision!
Thanks my friend, all I can suggest is try to tighten the belt to the bone and reduce this debt as fast as you can. Cheers
Yes most definitely! number one priority now!
Make sure you keep those silver life preservers for the family my friend. Cheers
Yep my plan is to sell my investments in the following order
Stocks > Cryptos > Silver.
My thoughts are to just hold onto the silver as its physical and therefore easier to hide from inheritance tax
What silver, I don't now what your talking about. Lol
Spot on! Great post @silverbug!
The world has never seen so much debt in history. It is not going to end well.
Your right my friend, I don't know how long they can drag this crap out, but the longer they do the worse it will be. Cheers
Absolutely, I'm surprised at how long they have been able to keep it together. That just shows how much control they truly have over the banking system and financial markets.
I wish I understood all this more. From my understanding about 90% or so of money is debt and it has always been this way - and it does lead to the cycles of growth and recession that you talk about (and then a once in a generation deleveraging as we saw in 07/8 and in the great depression). I'm not sure why investing in gold or silver should be any better than money though - they only have value because they are shiny, right? Genuine question from someone who is quite ignorant!
All money is debt now, this is the 1st time in history we have had a global debt based fiat currency system. It has been in operation now since 1971 when Nixon took the US$ off the gold standard, the gold is what gave the dollar it's value and not because it's shiny. Silver and gold are money everything else is debt. Cheers
I thought a small percentage of money was created by the government (about 3% - which is the cash we all use)? But I still don't understand the inherent value of gold or silver compared to say property or oil or a famous painting even.
You say you cant see the value in gold but you can in a painting. What give a painting inherent value? it's not shiny it's just a little bit of wood, canvas and a couple of bucks worth of paint?
Well, I said that gold is shiny (i.e., has some aesthetic merit)! You could say there is extra value in painting through - while there is no obvious utility, there is also the human labour, the huge amount of training an artist might have put in, the emotions it elicits, the place of that painting in the history of art and with human progress as a whole, etc. Granted, I remember watching an interesting bbc 4 program - probably on youtube somewhere - on how people investing in art is actually ruining the artworld - and there might be something of a bubble in the ridiculous prices these artworks fetch.
You can say the same thing about gold my friend, it's not just collected by people going on a stroll. It has a massive industry to produce it, it's not for free.
Yeah, I kind of get that, but it is still fundamentally a transferred subjective value, compared to the utility of say life-giving, or energy-giving resources like water or oil.
Anyway, that all said I do agree that there is probably some kind of reckoning coming (or to put it in less biblical language, a correction). I think that's more to do with the failure of government to deal with the issues of deregulated financial markets selling toxic debt, rather than the lack of a gold standard though. But as I said, I have a limited understanding.
Amazing post bud! Love that silver! Debt is enemy and once our enemy sees an opportunity to defeat us we will be in a world of hurt. Prepare and prepare some more. :)
Thanks my friend, just the thought of this pile of shit blowing up scare the bejesus out of me. Cheers
Yes everyday it does seem to get worse.
@anothervoice of the steemsilvergold community was here and up voted this post. Nice coins!
Thank you my friend. Cheers
Right now you have 666 payout "yesterday by silverbug 51 $6.66 53 votes." I hope some up votes soon. :-)
This post have been Read , Upvoted & Manual Curated.
Thanks for using #whalepower Tag and share with the Whale Power Community, Upvote , Reblogged , Comment when ever you can.
This message come up when you use #whalepower Tag.
@bullionstackers @paul-gillbanks Curator for #whalepower
Founder @bullionstackers
Latest Blog - Please Click to Read
Thanks @bullionstackers I appreciate the support, cheers my friend.
Great post! You are absolutly true but I have to add that I think people lost the connection to true value of things like "Money" and "Real Estate" etc.
My Grandfather teached me one important thing, that I doesn't understanded back when I was small but now gets more and more important in my life: "Money is debt - Gold is Money." .
Past proved my Grandfather, I think future will follow...
Followed you, again great Post! :)
Greetings, George.
Thanks my friend, sounds like your grandfather was a very wise man. JP Morgan was the original owner of the federal reserve he said "Gold Is Money, Everything Else Is Credit" cheers and thanks for the comment.
This is why we put away what we can now. Great post! Keep stacking away.
True my friend, better in your hands than someone else. Cheers
So true! Thanks for sharing @silverbug.
Thanks for reading. Cheer
Hey no problem at all @silverbug :)
Well said!
Thanks for that. Cheers
@anothervoice of the steemsilvergold community was here and up voted this post.
This post has been ranked within the top 50 most undervalued posts in the second half of Jun 28. We estimate that this post is undervalued by $44.06 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Jun 28 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
Thanks for another great article! I have a question for you: I understand that fiat is doomed in, lets say the US, because of massive debt levels, which will result in deflation and then inflation as central banks bring out the helicopter money... But is that situation really the case for us as well in Australia and New Zealand? Are our governments printing money like this? Our debt levels aren't as bad as the US and others so could we just endure deflation without the helicopter money, making our currencies safe?
Thanks for the reply, I think Australia is setup for a spectacular crash in my opinion, our personal debt in Australia is the highest in the world. Our housing prices are the highest in the world and we havent had a recession in nearly 28 years, which is the longest economic expansion in the world. So Australia has a lot of problems of our own. Cheers
I think it is our fault that we allow ourselves to become in debt. The system is designed for us to fail and most of us fall into the trap. We work 50-60 hours a week just to make meager wages and can not keep up with household expenses. This model is the family of 3-plus and kids are wonderful to have in your life it is a big expense. Healthcare premiums and out of pocket expenses can go over 25% of gross income. It is great that everybody has healthcare but the middle class is paying for it. Houses, cars, food and other expenses are high and drain the family income. For most savings is just a dream...
Why do I say it is our fault? We are complacent, we keep the same job and complain that we don't make enough money. The solution is to continue with job search and skills improvement. Otherwise you just fall further behind. It isn't going to get any better and it will be more difficult to keep up.
Thanks for the reply, This is the way the system was designed to work. They squeeze as much out of you until we start to scream, then they give a little back, It's a fine tuned machine to steal your wealth and leave just enough for you to keep getting up and go to work. The only way I see out of this is try to extract as much of your wealth out of the system an protect it. Cheers
The solution is a global agreement to default on government debts and wipe them out alongside the introduction of a gold backed currency which can be used by consumers to pay down debts denominated in fiat currencies. Yes the banks will suffer and it will cause a lot of pain, but it's the only way out as I see it.
Thanks for the reply, I think the banks will let the world burn before the let the debt go. This debt is what gives them their power, they wont just give it up. That is my opinion my friend. Cheers
I agree, they will try and there will be pain but there are more powerful entities than the banks. I think they know that they need to reform, before the parasite kills the host.
Hopefully, you've had a chance to study my posts on
paying off the Debt... This is an older post of yours...
I've been coming around this tag for 7 months now...
COIN MAN by @pocketechange