Reminder that economic collapse can happen any day now.
> That is all.
bump economic threads are always the best.
One day
"Just print more money"
Will not work for the U.S. and the world will decide not to put up with our bullshit.
>>73672113
central banks keep pumping cheap money into the economy in hopes of trying to stimulate it. Yet in spite of all this, the real world economy is barely keeping afloat. Now what happens if central banks stop pumping money? What happens if one of the many, many bubbles we have, that have been even more artificially inflated in the past 8 years, burst? Bubbles, such as the housing market, Chinese economy or government debts?
I've already withdrawn a part of my money from the bank. With inflation hovering around 0%, aside from the withdrawing costs there is downside to this
There won't be a crash in the next 10 years, but when it does happen the central banks of the world won't be able to do anything at all to stop the total crash into oblivion. They have exhausted all their tools already.
There should have been a regression in 2000 already, which would have restructured the economy, but instead the establishment decided to postpone, and in turn making it much worse.
this pic is US, but the same thing is happening in Europe
>>73672441
But your money will become useless anyway.
Buy metals and Swiss francs, gogogo
I wish I knew how to do that though ;_;
>>73672612
What makes you think this fake economy has 10 years of life in it?
>>73672904
Notice how you can buy groceries still? It will hit Venezuela levels before it totally craps out.
>>73672382
You realize that right now the government can't even print money, right? We have to politely ask the Fed to do it.
>>73672698
>But your money will become useless anyway.
That is very much possible. Tbh, I don't know what is going to happen once shit hits the fan. But it is possible, in theory, that a collapsing banking system causes money supply to contract. This, in turn, would lead to a huge deflation, which would increase the value of my money. Of course, collapse could also lead to massive inflation, in which case my cash money would double up as toilet paper
>>73672612
10 years? that seems like a generous estimate
>>73672441
>>73672698
Maybe. We could end up in a deflationary spiral once QE runs out of steam - it's already happening in the Eurozone - negative interest rates on central bank bonds (wtf?). A deflationary spiral will decrease the value of capital holdings relative to currency so holding cash may be a viable way to ride through the pop.
What is certain is that near-0% loans for mortgages have caused a massive property price bubble double the size of the 2008 bubble in the UK - any interest rate rise over 3% will see massive debt defaults which could fuck up our banks again.
>>73672113
>using technical analysis
chartists are the joke of stock analysis
fuck off. charts are unquestionably useless on their own
>>73672113
It won't. We will never witness a happening.
>>73673234
What happens when interest rates can't be held down?
I'm already dirt poor, so whatever.
>>73673211
IMO its pretty likely that we'll have a brief deflationary period followed by hyperinflation.
Extreme pessimism as people realize the banking system is broken will cause deflation. The economy will grind to a hault and GDP growth plummet to negative. Central banks only know how to print money so since thats their only play they may print to reverse the deflation but it will be a futile effort and eventually cause hyperinflation. If that does not happen, people will start switching over to stronger currencies. Gold-backed renminbi, Swiss Franc, Crypto, precious metals etc. The abandoning of the USD wi flopd the market with dollars causing hyperinflation.
Hyperinflation is inevitable its just a matter of what route will be taken.
>>73672904
I think it has more actually, 10 years is a low estimate. Just look at how Japan has survived since the late 80s doing the same thing we are doing. "There is a great deal of ruin in a nation".
How do i profit from whatever is happening
>>73673567
Won't happen. Fed will print, print, print and buy treasuries.
There will not be a functional market, but the headline rate will be the desired & engineered value.
>>73673567
Then it's REALLY FUCKING HAPPENING for the UK. Mortgage debt is the single largest component of household debt in the UK by a huge margin. Mortgages have eaten up the increase in absolute income by inflating property prices, rather than QE inflating the pound.
http://www.independent.co.uk/voices/no-it-s-not-time-for-britain-to-be-intensely-relaxed-over-household-debt-a6817926.html
>>73673714
Buy low sell high :^)
>>73673567
What happens to interest rates that causes us to not be able to hold them down?
Guys I barely know shit about economics, should I just take some community college courses about it? this seems like an actually beneficial thing to know
t. american
>>73673234
holding fiat through a financial breakdown...fuck m80, you'd do worlds better steadily visiting 10 shops and buying a slightly larger than normal amount of non-perishable goods. Discreetly hoarding away a solid supply of sustenance. Blanket-covered in the car, slowly bringing it in the house with the gym bag type of shit. Rough times are rough, keep almost emaciated as the rest of folk, otherwise you get sniffed out or overworked.
take payment for surplus in hard commodities only. silver, gold, water, security...
>>73672113
IMHO
Anybody that wants a habbening is gunna be disappointed.
Japan has kept a lid on their disaster since the 80's.
The ptb will raze the economy to prevent a crash that drives them out of power.
This will end with a whimper not a bang and it will be years from now.
>>73673876
Interest rates are proportional to risk. For debts it's the risk of default on the debt aggregated across a whole portfolio - if people start defaulting then banks raise interest rates on lending to cover losses.
Banks have been giving out mortgages at about 1% interest for years in the UK - because they get essentially free money at 0.5% interest from the Bank of England's QE scheme. Turn off QE and suddenly they have to cover that loss through raising interest rates.
>>73673806
Same in Scandinavia. Sweden's Donal Trump(Bert Karlsson) has started building trailer parks for this reason, in preparation. Also unlike the US, you can't just leave your house/aparment to the bank to deal with like in the US, the debt is on you as a person.
>daily happening thread
It might happen, although the one to witness this will probably be your grandchildren
>>73673602
Yes, this is what I'm afraid of too. Whatever happens, if the happenings start happening, central banks will try to fix it. This, in turn, will lead to a huge inflation. However, protecting saving from hyperinflation is a bit more tricky. I hesitate to buy gold, as it may be overvalued. I've been thinking of investing in raw materials, but I'm not sure how to do that. Perhaps invest in some fund that deals in these. Part of my money I will keep as cash anyway, in case there is deflation or a collapse in the banking system (hedging my bets here, put my eggs in several baskets)
>>73673698
Japan is a bit of a special case though, for many reasons. Even if we end up in a similar situation as Japan, happenings might turn that stagnation into a rapid collapse
>>73673124
No governments print money though (real countries, not those shit hole African countries that are begging for things you throw away, I don't know or care about them). It's borrowed from banks at an interest rate, an interest rate that they're completely free to fluctuate to whatever degree they feel like. There's a reason Nazi Germany is derided throughout the cucked capacity of the world and it isn't because some Jews died.
>>73672793
Apmex.com
Forex.com
EBay.com
>>73673898
Start with "Economics in One Lesson" by Henry Hazlitt.
free pdf here,
https://mises.org/library/economics-one-lesson
>>73673876
Interest rates are proportional to perceived & calculated risk, not "risk." It's always calculated from models which contain some element that just fills the gap to the desired number, even though it has to stay reasonable.
Idk about UK but in the US,QE as it pertained to baseline rates had more to do with saturating the competitively set proportion of primary-market Treasury bond issuance so that rates stayed lowish. I don't know if anything I've said has a point but finally, yes rates will increase but I see no reason to suggest that increases will be exponential other than saying "oh man, I know that currently perceived risk isn't that insane right now, but if we just assume that the financial world goes to shit before anybody with lots of money can anticipate it, then we might run into a situation where other people have already placed bets accordingly" ...
Or maybe, exponential over what time frame? Like 12 months? Why?
>>73674011
Well uh that response to myself was meant for you
>>73673512
that's bullshit, look at what happened with the flash crash
NORMIES GETTING BTFO
CAN'T WAIT FAMiLAM
>>73673714
Unless you have a shifting of hoarded value you won't.
If you're leveraged your fucked.
If a happening happens you won't get credit.
Crapitalism is a system of letting wealth expand in the population then deliberately sinking it so the elites can buy it all back cheap.
It's the modern economy and it fucking sucks.
