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The_King

The Upcoming Financial Crisis That Will Dwarf That of 2008 - Expect Civil Unrest

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every month i predict economic crisis coming next month. 1 day I also will be a prophet.

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i alrdy said that the global monetary transmission mechanism is not working since 2014.

only a matter of time b4 the global economy self-adjusts.

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23 minutes ago, socrates469bc said:

i alrdy said that the global monetary transmission mechanism is not working since 2014.

only a matter of time b4 the global economy self-adjusts.

heng me already live in slum, after self adjust it still the same

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24 minutes ago, socrates469bc said:

 global monetary transmission mechanism

what is global monetary transmission mechanism?

internet bank transfer??

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27 minutes ago, absoluthell said:

what is global monetary transmission mechanism?

internet bank transfer??

monetary transmission mechanism is the mechanism whereby credit created/tightened by a central bank via varying interest rates flows into the real/physical economy.

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Just now, socrates469bc said:

monetary transmission mechanism is the mechanism whereby credit created/tightened by a central bank via varying interest rates flows into the real/physical economy.

means now control interest rates useless, central banks are toothless?

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Just now, absoluthell said:

means now control interest rates useless, central banks are toothless?

yes, u can put it this way.

us fed funds rate is now ard 2.25% but for the past 10 yrs or so, it was below 0.75%, thereby creating an abundance of liquidity in the financial market.

unfortunately, this abundance of liquidity is unable to flow into the real/physical economy, thereby creating a global financial asset inflation.

in the event of a financial/economy crisis, lowering of interest rates will be useless due to the abundance of liquidity created in the past 10yrs or so. thus, despite the low interest rate environment created in the aftermaths of any economic slowdown, the abundance of liquidity created from the previous monetary loosening session means that the propensity to borrow is low.

think of low interest rates as cocaine, u need more to get the same level of highs.

unfortunately in a real economy, an even lower interest rate doesnt get u to the previous highs.

case study will be japan and the lost 2 decades.

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19 minutes ago, socrates469bc said:

 

think of low interest rates as cocaine, u need more to get the same level of highs.

 

WW3 is another option

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1 hour ago, socrates469bc said:

yes, u can put it this way.

us fed funds rate is now ard 2.25% but for the past 10 yrs or so, it was below 0.75%, thereby creating an abundance of liquidity in the financial market.

unfortunately, this abundance of liquidity is unable to flow into the real/physical economy, thereby creating a global financial asset inflation.

in the event of a financial/economy crisis, lowering of interest rates will be useless due to the abundance of liquidity created in the past 10yrs or so. thus, despite the low interest rate environment created in the aftermaths of any economic slowdown, the abundance of liquidity created from the previous monetary loosening session means that the propensity to borrow is low.

think of low interest rates as cocaine, u need more to get the same level of highs.

unfortunately in a real economy, an even lower interest rate doesnt get u to the previous highs.

case study will be japan and the lost 2 decades.

like that means cannot recover?

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Once WW3 starts, banks will go into a reset. Hopefully, cyber currency is the norm so the Rothschilds of the world can be eliminated.

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18 minutes ago, Satki said:

Once WW3 starts, banks will go into a reset. Hopefully, cyber currency is the norm so the Rothschilds of the world can be eliminated.

still got other powerfull around like rockefellers

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2 hours ago, socrates469bc said:

yes, u can put it this way.

us fed funds rate is now ard 2.25% but for the past 10 yrs or so, it was below 0.75%, thereby creating an abundance of liquidity in the financial market.

unfortunately, this abundance of liquidity is unable to flow into the real/physical economy, thereby creating a global financial asset inflation.

in the event of a financial/economy crisis, lowering of interest rates will be useless due to the abundance of liquidity created in the past 10yrs or so. thus, despite the low interest rate environment created in the aftermaths of any economic slowdown, the abundance of liquidity created from the previous monetary loosening session means that the propensity to borrow is low.

think of low interest rates as cocaine, u need more to get the same level of highs.

unfortunately in a real economy, an even lower interest rate doesnt get u to the previous highs.

case study will be japan and the lost 2 decades.

 

50 minutes ago, absoluthell said:

like that means cannot recover?

Means time for the world to burn and start a new... same shit will happen again though

Edited by Sir Bao
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1 hour ago, absoluthell said:

like that means cannot recover?

 

1 hour ago, Sir Bao said:

 

Means time for the world to burn and start a new... same shit will happen again though

means the world economy will take some time to digest the excess liquidity.

dont worry, there wont be another world war since mad will keep all in-line.

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39 minutes ago, socrates469bc said:

 

means the world economy will take some time to digest the excess liquidity.

dont worry, there wont be another world war since mad will keep all in-line.

I guessing about 8 to 12yr?

Edited by The_King
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trade those whipsaws, bear or bull still make money 

 

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On 2/12/2019 at 2:59 PM, socrates469bc said:

yes, u can put it this way.

us fed funds rate is now ard 2.25% but for the past 10 yrs or so, it was below 0.75%, thereby creating an abundance of liquidity in the financial market.

unfortunately, this abundance of liquidity is unable to flow into the real/physical economy, thereby creating a global financial asset inflation.

in the event of a financial/economy crisis, lowering of interest rates will be useless due to the abundance of liquidity created in the past 10yrs or so. thus, despite the low interest rate environment created in the aftermaths of any economic slowdown, the abundance of liquidity created from the previous monetary loosening session means that the propensity to borrow is low.

think of low interest rates as cocaine, u need more to get the same level of highs.

unfortunately in a real economy, an even lower interest rate doesnt get u to the previous highs.

case study will be japan and the lost 2 decades.

Its because of this excess liquidity that halfway caused 2008 crisis...

And instead of giving its due regulation... Financial institutions makes it even "lose" with many pattern like low interest rates,bonus for bankers who caused this...etc.

Low interest rates supposed to draw money from bonds and such into businesses and innovation... Instead, it draws money into risky businesses that doesnt contribute to the economy...

And in the case of china, into housing that is over supplied...

Its the case of because something is valuable and govt oversupply it until it become worthless but govt and investor keep up the appearance for fear of economic collapse...

Right now if govt across the world dun start .... Sorry... We are too late to do anything...

Other than wait for the inevitable...

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2 hours ago, Worcer said:

Its because of this excess liquidity that halfway caused 2008 crisis...

And instead of giving its due regulation... Financial institutions makes it even "lose" with many pattern like low interest rates,bonus for bankers who caused this...etc.

Low interest rates supposed to draw money from bonds and such into businesses and innovation... Instead, it draws money into risky businesses that doesnt contribute to the economy...

And in the case of china, into housing that is over supplied...

Its the case of because something is valuable and govt oversupply it until it become worthless but govt and investor keep up the appearance for fear of economic collapse...

Right now if govt across the world dun start .... Sorry... We are too late to do anything...

Other than wait for the inevitable...

thats why i been saying that the us fed rates shld have normalized by 2014 since 2012.

basic monetary economic modeling will alrdy tell my pigu that the propensity to borrow will not be effective below a certain interest rate.

this excess liquidity globally will take a very long time to be mobbed up.

i m just waiting for schumpeter creative destruction to take place.

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