The world monetary system isn't working anymore.
There have been for several decades several attempts at lowering the world reliance on the US DOLLAR: 1 way to reach this end was with The Euro, another attempt was diversification in particular the IMF has been diversifying, another very recent one that mainstreet knows very well is the the meteoric rise of cryptocurrencies in particular Bitcoin, and the last major one I can think of is gold which Russia & China have been accumulating & has support from many people that take the decisions.
The current world monetary system has always been broken and over the decades it has accumulated "problems".
One of those is while the USA have been able to profit from this, their own population is turning socialist, the income inequality has grown, and they are collapsing from the inside.
All the wealth they have stolen, all the money they printed, they will pay back in a way.
The USA have been printing money and taking massive debt (liabilities > total country assets now!) without repercussions, without hyperinflation.
But all of that is coming back to bite them.
Here is the allocation of SDRs. Gives a good idea of how money is allocated.
Special Drawing Rights (SDRs) are IMF-controlled world money whose value is calculated using a basket of currencies. They were first introduced in 1969 to reduce the world’s reliance on the dollar for international liquidity but fell by the wayside until the late financial crisis.
Here is the source article:
www.winton.com/longe...onal-monetary-system
A new monetary world reserve could be a crypto that is a basket of currencies of 5-10 countries that make most of the world GDP, and all of which currency is pegged to gold but not in a rigid way, more like they have gold reserves behind their currency, but then dilute it according to their growth or contraction. Like "The currency must have 4% gold in reserves.GDP grew by 3% this year, so we are printing some money but not an insane amount"
You know, some sort of fractional gold reserve.
The Biggest economies in the world should group and form an international authority that manages the world reserve.
Or if the east and the west can't stand each other then the world can divide in 2, again, and each side has their own...
There are many ways and none of them include a Bitcoin ponzi scheme.
What is West Europe? This is west europe:
ourworldindata.org/g...ccording-to-maddison
The map is really great, east Asia is kinda complex and Africa isn't really one bloc but who cares.
Shows how the world is much more clearly.
How about this?
In 2019 the USA represent 23.6% of the world economy (nominal).
I don't think the shift will necessarily be violent.
After 1789 France had a terror regime, very bad, ~10 years, followed by Napolean and the conquest of Europe.
In 1917 Russia got rid of their Tsar, and had an extreme regime until Lenin death in 1924 (7 years). Tought luck, Stalin was a total psychopath, and very few heard that Lenin wanted anyone except Stalin as a successor, I think preferably Trotsky, the whole USSR had a sociopath running the show for 30 years followed by the cold war and then the collapse. Total of 70 years following their revolution.
In 1918 Wilhelm II abdicated, and was the last Kaiser of Germany. Germany was in the hands of the banks and experienced hyperinflation and wanted a new Kaiser so they elected Hitler and then...
But the USA, they have alot of problems sure, they aren't doing a complete revolution, the perma-revolutionaries on the left want to change the constitution, but it's not something like modifying the whole command structure (always an open door to the worse sociopaths).
Maybe they get a civil war, they could become a socialist hellhole, but nothing like the french terror, or Hitler WW2, or Stalin...
I wouldn't be too negative.
The USA ponzi scheme, printing money out of thin air to buy real stuff, is getting close to the end.
The 2020 depression will be worse than the 1929 one. Basic numbers are worse, and the reason why 1929+ was so bad (while we don't even remember the depression of 1921 that started worse than 1929 btw) is because the government and central bank "helped".
The more they "help", the worse it gets. And they're about to "help" a whole lot.
After all ends, west europe & its offspring (USA CAN AUS NZ) will generate at least 33% of the world GDP.
The total world domination of the west of late middle ages to the start of the 21st century is over, but it doesn't mean they're going to become complete dumps.
Idk thought, with those aging populations, yikes. And progressism has gotten to ridiculous levels objectively.
Might be a slow and steady decline from here.
And you sure can expect governments to make all sort of idiotic and terrible decisions on the way.
I heard Russia was pushing fearmongering in the west about the coronavirus.
Putin what a c**t. Was time for this bubble to pop big time anyway, maybe he helped us.
When you look at the number the USA are just so underwater, and world investors have to lose trust, or they're complete idiots, so burgerland won't be able to steal money from the rest of the world to bail itself out. They're so screwed. They had decades to get a balanced budget but the banks kept being greedy, the voters kept asking for more free stuff, and the government kept spending more and more. Their own fault.
The plebes in the US are probably going to want "higher taxes on the greedy rich", what morons, way to shoot yourself in the leg:
1- A big part of the problem has been share buybacks: The rich to avoid mega taxes just use profits to buyback shares. This raises prices for EVERYONE: the average worker fighting for higer taxes on the rich has to pay a higher rent, a more expensive pack of chicken legs, etc.
2- Income inequality will stay high forever: The government will never be able to tax the entire population at ridiculously high levels. Robbing 1% of the population thought? Easy! Even if they hide half of it government still gets big revenues, they just need to keep it below a level where the rich just flee or give up. Easy for them to tax concentrated wealth. Oh, and they even have the full support of their idiotic voter base!
Scam scam scam scam scam.
As usual, the average voter getting fleeced voluntarily and cheering while doing so.
Just like the average mainstreet investor. Same story all the time.
Average people... The harder they get punched in the face, the louder they cheer. HURRAY! 😆
There have been for several decades several attempts at lowering the world reliance on the US DOLLAR: 1 way to reach this end was with The Euro, another attempt was diversification in particular the IMF has been diversifying, another very recent one that mainstreet knows very well is the the meteoric rise of cryptocurrencies in particular Bitcoin, and the last major one I can think of is gold which Russia & China have been accumulating & has support from many people that take the decisions.
The current world monetary system has always been broken and over the decades it has accumulated "problems".
One of those is while the USA have been able to profit from this, their own population is turning socialist, the income inequality has grown, and they are collapsing from the inside.
All the wealth they have stolen, all the money they printed, they will pay back in a way.
The USA have been printing money and taking massive debt (liabilities > total country assets now!) without repercussions, without hyperinflation.
But all of that is coming back to bite them.
Here is the allocation of SDRs. Gives a good idea of how money is allocated.
Special Drawing Rights (SDRs) are IMF-controlled world money whose value is calculated using a basket of currencies. They were first introduced in 1969 to reduce the world’s reliance on the dollar for international liquidity but fell by the wayside until the late financial crisis.
Here is the source article:
www.winton.com/longe...onal-monetary-system
A new monetary world reserve could be a crypto that is a basket of currencies of 5-10 countries that make most of the world GDP, and all of which currency is pegged to gold but not in a rigid way, more like they have gold reserves behind their currency, but then dilute it according to their growth or contraction. Like "The currency must have 4% gold in reserves.GDP grew by 3% this year, so we are printing some money but not an insane amount"
You know, some sort of fractional gold reserve.
The Biggest economies in the world should group and form an international authority that manages the world reserve.
Or if the east and the west can't stand each other then the world can divide in 2, again, and each side has their own...
There are many ways and none of them include a Bitcoin ponzi scheme.
What is West Europe? This is west europe:
ourworldindata.org/g...ccording-to-maddison
The map is really great, east Asia is kinda complex and Africa isn't really one bloc but who cares.
Shows how the world is much more clearly.
How about this?
In 2019 the USA represent 23.6% of the world economy (nominal).
I don't think the shift will necessarily be violent.
After 1789 France had a terror regime, very bad, ~10 years, followed by Napolean and the conquest of Europe.
In 1917 Russia got rid of their Tsar, and had an extreme regime until Lenin death in 1924 (7 years). Tought luck, Stalin was a total psychopath, and very few heard that Lenin wanted anyone except Stalin as a successor, I think preferably Trotsky, the whole USSR had a sociopath running the show for 30 years followed by the cold war and then the collapse. Total of 70 years following their revolution.
In 1918 Wilhelm II abdicated, and was the last Kaiser of Germany. Germany was in the hands of the banks and experienced hyperinflation and wanted a new Kaiser so they elected Hitler and then...
But the USA, they have alot of problems sure, they aren't doing a complete revolution, the perma-revolutionaries on the left want to change the constitution, but it's not something like modifying the whole command structure (always an open door to the worse sociopaths).
Maybe they get a civil war, they could become a socialist hellhole, but nothing like the french terror, or Hitler WW2, or Stalin...
I wouldn't be too negative.
The USA ponzi scheme, printing money out of thin air to buy real stuff, is getting close to the end.
The 2020 depression will be worse than the 1929 one. Basic numbers are worse, and the reason why 1929+ was so bad (while we don't even remember the depression of 1921 that started worse than 1929 btw) is because the government and central bank "helped".
The more they "help", the worse it gets. And they're about to "help" a whole lot.
After all ends, west europe & its offspring (USA CAN AUS NZ) will generate at least 33% of the world GDP.
The total world domination of the west of late middle ages to the start of the 21st century is over, but it doesn't mean they're going to become complete dumps.
Idk thought, with those aging populations, yikes. And progressism has gotten to ridiculous levels objectively.
Might be a slow and steady decline from here.
And you sure can expect governments to make all sort of idiotic and terrible decisions on the way.
I heard Russia was pushing fearmongering in the west about the coronavirus.
Putin what a c**t. Was time for this bubble to pop big time anyway, maybe he helped us.
When you look at the number the USA are just so underwater, and world investors have to lose trust, or they're complete idiots, so burgerland won't be able to steal money from the rest of the world to bail itself out. They're so screwed. They had decades to get a balanced budget but the banks kept being greedy, the voters kept asking for more free stuff, and the government kept spending more and more. Their own fault.
The plebes in the US are probably going to want "higher taxes on the greedy rich", what morons, way to shoot yourself in the leg:
1- A big part of the problem has been share buybacks: The rich to avoid mega taxes just use profits to buyback shares. This raises prices for EVERYONE: the average worker fighting for higer taxes on the rich has to pay a higher rent, a more expensive pack of chicken legs, etc.
2- Income inequality will stay high forever: The government will never be able to tax the entire population at ridiculously high levels. Robbing 1% of the population thought? Easy! Even if they hide half of it government still gets big revenues, they just need to keep it below a level where the rich just flee or give up. Easy for them to tax concentrated wealth. Oh, and they even have the full support of their idiotic voter base!
Scam scam scam scam scam.
As usual, the average voter getting fleeced voluntarily and cheering while doing so.
Just like the average mainstreet investor. Same story all the time.
Average people... The harder they get punched in the face, the louder they cheer. HURRAY! 😆
25% Gold
5% Silver
20% USD
20% EURO
10% CNY
7.5% JPY
7.5% GBP
5% CHF (for stability and safety)
0.000000% Bitcoin