EdwardTeach

Inflation getting out of control so the central banks raise interest rates to make it more expensive for people to borrow money so they borrow less. This has the effect of slowing down spending in the economy which causes inflation to come down. The central banks have two options: 1. Raising interest rates and reducing the money supply will stop inflation but crash the banks. 2. Lowering interest rates and increasing the money supply will save the banks but cause hyperinflation. They have painted themselves into a corner with all of their money printing since 2008 and now they’re stuck in a situation they cannot win. Either option will ultimately cause a collapse of the currency and economy and there is no way out.

It wasn't a bailout. It was a “Bank Term Funding Program” (FED speak). Just so you know.

Are they calling it a bailout this time? Like the US is not in a recession because they say it isn’t and a man can be a woman etc.

I'm calling £2K gold by the end of summer.

Wonger's not invited because he's a party pooper. Come on guys let's party like it's 1929!

Counseling? No way. If we break £1600 I'm ordering champagne, coke and strippers and inviting everyone to a party at Wonga's house.

Who knows what the future will bring. My aim is to be positioned with the necessary tools, knowledge and skills to be able to be flexible and adaptable to whatever situation may get thrown at me. Assuming there isn't a nuclear holocaust which I would have no control over so don’t worry about, the worst case scenario would be a total economic collapse and multi-year long depression. If today, right now the internet stopped working, the shops never got any deliveries again, the electricity went off and the water supply stopped working I am in a position to be able deal with any or all of these situations and could do so on a permanent basis for many years if necessary. Not just to survive but to thrive. I’m not going to just hide in a cave and exist. If there’s a crash followed by a long depression I want to be able to live a good standard of life with an abundance of everything I need and be in a position to help the people around me and teach them how to do the same for themselves to if necessary. Getting prepared required buying a few new tools and taking some time to acquire some new knowledge and skills but it’s straightforward enough to do if you put your mind to it and are willing to work. Also I’m lucky enough to have access to some land in the countryside which is a big bonus too. Financially speaking I’m also fairly well positioned to weather a crash without losing what I already have. Then on the other side of a crash after the prices of real assets drop I have some gold (not enough!) to buy them at a far more favourable ratio to what we can at the moment. So hopefully I would also in a good position to be able to actually profit very handsomely from a crash and depression. As for the government reaction. Well lets just say I’m not counting on getting any help from them any time soon. Nah, we’re probably going to be on our own and if anything the government are more likely get in the way and be a hindrance. Hopefully there won’t be a crash or depression and we can all continue living our cosy easy lives as we are. But if the worst happens, or anything in between, I’m ready for that too.

According to Gregory Mannarino the debt bubbles that have been created this time round are the largest financial bubbles that have ever existed in the history of mankind. No matter what metric you use to compare them to the previous bubbles these current ones are by far the largest ever and by a considerable margin too. This means that when they bursts they have the potential to create the biggest financial crash ever. We’re living in ‘interesting times’ as the Chinese would say. I suspect that historians might be talking about what we are living through right now for centuries to come. Two years ago I was ill prepared and vulnerable which felt scary when I suddenly realised what was going on in the financial world. But now that I’m prepared to weather a major crash and live through any depression which might follow that fear has turned to excitement. I’m ready. Bring it on!

It looks like SVB was probably just another canary in another coal mine rather being the first domino to set off a huge chain reaction bringing the whole financial system crashing down. People are beginning to feel relaxed again and think that this recent financial wobble won’t be the start of the next big crash. The world is going to continue spinning as normal. At least for a little bit longer anyway… These black swans keep coming along every few months and we all know that sooner or later one of the swans will turn out be a domino. That’s too many mixed metaphors for one comment but I think you get the gist. 😆

What do those letters say?

Oh good. We've still got time to buy more gold.

They can save either the dollar or the banks but that can’t save both. Are we in the end game yet?

“I’m firmly committed to holding those responsible for this mess fully accountable”

The headline should read: Sleepy Joe’s assurances turn minor crisis into a full-scale panic!

Nothing is likely cause more panic than wheeling Biden out and telling him to say that everything is fine. 😂

The Bank of Japan's 10 year government bond didn't stay pegged at 0.5 for very long. 😆

Thank you for being a gentleman. I believe in being honest when expressing my views but my comment was also said in good nature and no offence was intended by it. As for what the future of what banking looks like to me? I honestly don’t know. I dream there will be a decentralised digital blockchain currency backed by gold but I very much doubt it. There are dark and powerful forces at work in our central banks trying hard to prevent anything like that from happening. There are also other powerful forces at work in the BRICS+ nations who want to escape from our unbacked Western fiat currency system so that they can create their own gold backed digital financial system. This sounds like a big step in the right direction but I suspect their system will still centrally controlled too and it will be ‘pegged’ to gold rather than ‘backed’ by it meaning that people won’t have the option to exchange their digital currency for physical gold if they wanted. Everything is up in the air at the moment and no one knows how the chips will land in a few years time. It’ll probably be something that no one expects though. Hopefully whatever it is will be a decentralised system but who knows? My gut tells me that despite all the bad stuff going on things are still moving in the right direction. There’s a financial storm going to pass over the world and things might get really rough for a while. Things may look bad now but all around the world there is goodness everywhere there too just waiting for an opportunity to come to the fore like seeds in the frozen ground during a winter frost waiting for the right time and opportunity to sprout and flourish. Hopefully there won’t be a huge financial crash in the coming years but if it does happen I think it’s our responsibility as the few people who hold real money (gold and silver) to use it thoughtfully on the other side. When bubbles burst things will drop in price and we’ll have an opportunity to buy them dirt cheap for pennies on the dollar. With our gold we’ll be in a position to help others who are less fortunate than ourselves. So when the time comes try not to be too selfish. Obviously don’t just give your gold away but at the same time be mindful how you spend it and use it for good purposes that are positive and constructive for others as well as yourself.

Every bank and financial institution around the world will be on tender hooks right now demanding instant payment for everything and no delays on transfers. They’ll also be very averse to handing currency out to anyone for anything and do everything in their power to hold on to it to ‘keep it on the books’. Basically you’re ok so long as I leave my currency in the bank and I’m ok so long as you leave your currency in the bank. But as soon as one of us bottles it and takes their currency out first the other person loses theirs. Now imagine this scenario on an infinitely larger scale between large banks and financial institutions as well as us individual depositors. It’s like an enormous game of chicken and whoever panics first wins.

Absolutely yes! Simply use any other medium of currency or money to make transactions. Failing that just barter. When push comes to shove never underestimate the human spirit and our willingness to adapt. Despite the best effort by every single government for thousands of years black markets have always existed and will always exist. This will be no different. One way or another CBDCs are destined to fail sooner or later.

Sorry to say this but that’s an awful defeatist attitude. Even in China under the strict regime of the Chinese government the rollout of their digital Yuen CBDC has stalled because people refuse to use it. So far everywhere a CBDC has been rolled out people are refusing to use it and it’s working. Even in communist China! So have a bit more faith in yourself and your fellow man. All you have to do is continue paying for things using any existing method other than the CBDC. That’s not so hard is it?

They might only allow you to buy coal or fuel if you haven't reached your carbon credit limit for that week.

There’s possible contagion effecting Etsy already with sellers there are not getting paid. Rumours on the internet are that Etsy is still taking payments from the buyers but they are holding onto the currency instead of passing it onto sellers.