This page has been archived and commenting is disabled.
The One Common Feature In Every Financial Crisis
Submitted by Simon Black via Sovereign Man blog,
Spontaneous combustion.
Alien invasion.
Zombie apocalypse.
What do these have in common? Their likelihood is next to impossible. So why worry?
This is how people tend to think about the financial system.
Mentioning even the possibility, for example, that the US could default on its debt is met with so much scorn and contempt it would be safer to stand on the street corner warning about an alien invasion.
The same goes for the imposition of capital controls. Or a collapse in the banking system. Or a currency crisis.
No one, from the average guy on the street to a Nobel Prize-winning economist, wants to acknowledge that these possibilities exist.
And yet the most casual glance at the headlines proves that these events not only can happen, they do happen.
The Greek government is broke. This didn’t happen overnight. It’s not like Greece has always been a picture of financial health and just recently fell on tough times.
Greece has been broke for ages. As has the Greek banking system– overstuffed with government IOUs and bad loans that have no hope of being repaid.
And that’s why we’re seeing everything unfold in the headlines. Bank runs. Capital controls. Default.
It all starts with debt. Whenever a country gets too deep into debt, it’s going to get into trouble. History is very clear on this point.
Debt almost always leads to negative consequences, most notably default.
They’ll either default on their private creditors, i.e. the poor souls who loaned them money to begin with.
Or they’ll default on foreign governments, creating destructive trade wars and currency crises.
Mostly, though, they’ll default on their obligations to their citizens– suspending pension payments, imposing capital controls, raising taxes, destroying the value of the currency, and bailing in the banks with customer deposits.
Debt kills. And sooner or later, if history is any guide, nearly every heavily indebted nation will resort to this very limited playbook.
Just look at Greece: the government has established tight restrictions over bank withdrawals and is even preventing people from accessing safety deposit boxes.
This highlights yet again that banks are merely an extension of their governments– stooges that will turn against you in a heartbeat and comply with every order their bankrupt master gives them.
It’s foolish to hold one’s life savings within the banking system of a heavily-indebted nation.
And doing something about it need not be complicated.
It’s 2015. You can move savings to an offshore bank account (i.e. a stable foreign bank with very strong fundamentals) without having to leave town.
Or in some cases, without leaving your living room.
It’s also easy to hold real assets like gold and silver in a fully insured, non-bank safety deposit box overseas.
This is sound advice for anyone living in a heavily-indebted nation.
It’s not some wild assertion or conspiracy theory to acknowledge that there’s risk in the system. The publicly-available data is very clear: almost every western nation is insolvent and far past the point of no return.
These are real risks not to be assumed away. They’re uncomfortable and unpopular to think about. But they are not negligible.
And in the face of such clear data, rational, thinking people ought to have a Plan B.
»
- 35495 reads
- Printer-friendly version
- Send to friend
- advertisements -
Martians are comming!........Nah It's just the wife
My sister has a rational Plan B. And now she works from home and makes $4,800 a month just using the alphabet. You can do the same. Just contact us at PlanB.com
Here’s another Zombie…
What happened to the conveniently forgotten Mark-to-Market?
Is it STILL marked to fantasy?
If our economy is so “exceptionally” strong, and the FED-manipulated markets are just a spit away from the new all-time-highs, why not change the “FAS 157” back to normal? BITCHEZ!!!
Looney
https://en.wikipedia.org/wiki/Mark-to-market_accounting#FAS_157_.2F_Acco...
NWO royalty:
https://celebrity.yahoo.com/blogs/celeb-news/nicky-hilton-marries-james-...
In fact, back in 2005, Forbes magazine ranked Rothschild family patriarch Mayer Amschel Rothschild as the seventh most influential businessman of all time. He "helped invent modern banking by introducing concepts such as diversification, rapid communication, confidentiality and high volume" in the late 1700s in Frankfurt, Germany. His empire spread throughout Europe.
LOL They forgot slavery.
Where is Hercules when you really need him?
Where is Zeus when you really need him?
Calling Ares, God of War.
They're all standing in a soup line on the outskirts of Athens.
The one common result of every Financial Crisis?
We all get poorer...
http://galeinnes.blogspot.com/2015/07/economics-for-serfs.html
Aka Yahweh to some ME tribesmen.
Farting. Oh, Hercules!
Better call the Dr. and tell him you have cancer, he'll understand.
Fifth labor?
In market of fiat coercion, there is no price discovery, and so there is no mark-to-market other than is create by corrupt analyst and statistician that is employ of criminal class bankster. Boris is not lie!
Level 3
BITCHEZ
DERIVED AS COMPARED TO NON-OBSERVABLE INFLUENCES (or some such shit)
Honest. I wouldn't kid about stuff this serious that's so fucked up.
Good post.
Boris is also use alphabet, but is make more money extract copper. You are come work for Boris! Bring you are own leather glove and thick rubber boot. You are bring sister too if is experience stripper!
"Do not run! We are your friend!"
-- Mars Attacking
Credit greases the wheels and excess debt kills the deal.
In case of violent rape, there is no consideration for any lubricant.
Rational thinking people?????? What's that?
Someone with a Plan A of gold/silver and a Plan B of lots of lead.
Smart rational person knows he need silver in Plan B too.
Does Krugman know about this?
Greece debt deal gets approved this weekend and Monday we are back over 18000. What a fucking joke.
Kicking the can down the road presumes there is more road.
One day they'll miss the can and kick a Teller Mine by accident.
Hope remains.
...and springs eternal.
Kicking the can down the cul de sac.
The people that voted no last weekend might have something to say about that.
So, what "The End Is Near" drama do we come up with now?
Given that ISIS, Ebola, Syria, Ukraine and Greece are so 'Yesterday'.
Oh, wait... Jade Helm.
Is it TGOF and after 5 pm somewhere yet?
3 years ago it came to me that the U.S. stock market would never go down again, and that at the first hint of a major sell off exchanges would be shut down and selling stocks would be banned, and I said so at business insider, repeatedly. While I admit I wasn't expecting to see this happen in China first, I still don't understand why most people haven't looked at modern capabilities coupled with human nature and reached the same obvious conclusion too, because it's clear that they haven't, because they keep talking about this stock crash that's never going to come. Brilliant people too. I actually worry some of them might retreat into seclusion when it finally dawns on them.
The Pope is a Marxist.
Hang the jesuits.
Banksters are the common Denominator
The first thing to come to mind after reading the title was something else.
Hey man! Your avatar is hurting my feeeeeelings!
Yeah. Humans.
Yes***...But it is a special subset of that set..
(***And some may not even believe that they are human.)
lol
Buy productive farmland that has flowing water, not wells.
Even better if the government pays support on the land.
When people live tied to an ATM, the risk is high!
When you have ducks, chickens, pigs, sheep, orchard, and vege patch that's your ATM.
Yup! 100% agreement. Also special skills necessary for survival can be use as currency.
The next bubble? Agriculture?
I had some nice grass fed beef from Austrailia last weekend. Turns out that's the hot ticket down under!
There's something afoot with Australia's wealthiest entrepeneurs and its rural sector.
http://www.afr.com/business/agriculture/billionaires-beef-up-in-bush-201...
Its only an ATM if you can protect them from hungry neighbours.
Don't fuck with the zombie apocalypse motherfucker.
Don't fuck with the zombie apocalypses mother, fucker!
Emergency! Call Krugman, Yellen, Bernanke. They'll know what to do!
I imagine that chinas downturn will be the iron butterfly that knocks this rig of helium party balloons from the sky.
Thanks to the cloacking efforts of the fed and the media no one will know until they find themselves out of work and facing accelerating inflation.
Them shits will swing high.
Jews?
What did I win?
Squid...you won an onion video!!!
https://www.youtube.com/watch?v=5IhlNK3hEeE&list=PLnO1WA8xbIP6uszHAAlwqO...
thanks!
Spontaneous combustion?
Sorry Simon, Spontaneous combustion is a common occurrence in non compacted coal piles.
Three are, cannot be, no financial crises without banksters.
Liberty is a demand. Tyranny is submission..
Sylvester McMonkey McBean is Zion.
Why keep hard assets overseas or in a bank? I heard for years Singapore had a benevolent dictator. Things were booming.
Now the government is discussing bank bail-ins. You want us all to come to South America Simon? Fine buy us all a ticket and crowdsource your private empire. Until then shut up. I am sick of hearing about it.
Frankly, if I want to be a warlord in South America I will do it myself. For now, I am staying put. I can be a local warlord here in feudal America.
LOL. There are no stable locations on this planet as long as “Just Us” and their Neo-Nazi’s control the USSA war machine.
The real "underlying reason" is that infinite growth is not possible on a finite planet.
Debt almost always leads to negative consequences, most notably default.
Government debt (a promise to complete a trade) "always" leads to default. Governments never deliver on their trading promises. They just roll them over, and that's default. There has never been a case where a government could collect enough taxes, fees, tariffs, thefts, and levies to support it's insatiable propensity to grow ... exponentially.
On the other hand, trader's debt, (a promise to complete a trade) almost "never" ends in default. It almost always ends in delivery as promised. And when the MOE is properly managed, DEFAULTs are immediately met with like INTEREST collections guaranteeing zero INFLATION ... all the time, everywhere.
Debt is not the issue. Deadbeat traders who are not quickly ostracized from the marketplace (through high interest loads on their trading promises) is the issue.
I take issue with your solution. Whether money in a foreign bank or gold in a foreign safe deposit box, the very first target of capital controls is always assets held outside the country and/or freedom of travel. So unless you plan to emmigrate at the first sign (!) of trouble, you need to keep your currency nearby, not electronically whisked into the ether, where it can dematerialize at a keystroke.
This!
You can move savings to an offshore bank account
If that is your plan B - you need a new plan
Hell I have a plan 3B, That would be Beans, Bullets, and Bullion.
Don't forget the asswipe!
Plan A3B!