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The Economic Death Spiral Has Been Triggered

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http://www.zerohedge.com/article/guest-post-economic-death-spiral-has-been-triggered

The Economic Death Spiral Has Been Triggered

For nearly 30 years we have had two Global Strategies working in a symbiotic fashion that has created a virtuous economic growth spiral. Unfortunately, the economic underpinnings were flawed and as a consequence, the virtuous cycle has ended. It is now in the process of reversing and becoming a vicious downward economic spiral.

One of the strategies is the Asian Mercantile Strategy. The other is the US Dollar Reserve Currency Strategy.

These two strategies have worked in harmony because they fed off each other, each reinforcing the other. However, today the realities of debt saturation have brought the virtuous spiral to an end.

One of the two global strategies enabled the Asian Tigers to emerge and grow to the extent that they are now the manufacturing and potentially future economic engine of the world.

The other allowed the US to live far beyond its means with massive fiscal deficits, chronic trade imbalances and more recently, current account imbalances. The US during this period has gone from being the richest country on the face of the globe to the biggest debtor nation in the world.

......

CONCLUSIONS

The Basel BIS Bankers fully understand the underpinnings of the shift from a Virtuous Cycle to a Vicious Spiral presently underway.

They are doing everything within their power to offset it. Policies of "extend and pretend" and "kick the can down the road" are all just attempts at buying time.

Unfortunately time is working against them, as existing debt only increases as interest owed is relentlessly and cumulatively added.

The Basel BIS Bankers have no real answers. The eventuality of a fiat currency crisis is ordained and has been since the early warnings in 2007 of the Financial Crisis. The roadmap has been clear to all that actually wanted to look.

More at the link.

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+1

The thing is, it doesn't take a degree to work this out. My old man's an engineer and I remember a balmy evening in the nineties, watching them all driving around in their 4x4's and him asking, but where is all this money coming from? It was so bloody obvious to him that it was debt, MEW,the retail economy (hawhaw).

The piper has to be paid. And the politicians, business turds and liars who denied this will soon have our children's blood on their hands. Forget the Iraq war, how is Tony still standing after he sanctioned the wholesale looting of this country? YES I DO BLAME HIM AND HIS MOB :angry:

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+1

The thing is, it doesn't take a degree to work this out. My old man's an engineer and I remember a balmy evening in the nineties, watching them all driving around in their 4x4's and him asking, but where is all this money coming from? It was so bloody obvious to him that it was debt, MEW,the retail economy (hawhaw).

The piper has to be paid. And the politicians, business turds and liars who denied this will soon have our children's blood on their hands. Forget the Iraq war, how is Tony still standing after he sanctioned the wholesale looting of this country? YES I DO BLAME HIM AND HIS MOB :angry:

I sold everything and am all cash, single, retired and can live anywhere. What should I do with my money which is currently in USD? I need an income.

I need free (ish) health care so fancy living somewhere warm, considering St Martin (French side) in the Caribbean or Spain or southern France but should I rent for now, where is the HPC in it's cycle in these countries?

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I sold everything and am all cash, single, retired and can live anywhere. What should I do with my money which is currently in USD? I need an income.

I need free (ish) health care so fancy living somewhere warm, considering St Martin (French side) in the Caribbean or Spain or southern France but should I rent for now, where is the HPC in it's cycle in these countries?

Spread it across currencies maybe - with some asian exposure. Or all in where you intend to move. Difficult decision.

Easy decision - rent first, suss out the local market and whether you want to stay there permanently. Prices on the ground are not what they are advertised - especially if they are advertised in the UK! Most of the sustainable HPI crap stops at the channel tunnel.

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I sold everything and am all cash, single, retired and can live anywhere. What should I do with my money which is currently in USD? I need an income.

I need free (ish) health care so fancy living somewhere warm, considering St Martin (French side) in the Caribbean or Spain or southern France but should I rent for now, where is the HPC in it's cycle in these countries?

Killer Bunny. Calling Killer Bunny.

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Spread it across currencies maybe - with some asian exposure. Or all in where you intend to move. Difficult decision.

Easy decision - rent first, suss out the local market and whether you want to stay there permanently. Prices on the ground are not what they are advertised - especially if they are advertised in the UK! Most of the sustainable HPI crap stops at the channel tunnel.

Cheers, like everyone I don't want to miss out on any bounce back up when it does eventually come, but I know I am more negative about the worlds economy than most are, even on this site. I do think the UK is in for a big and I mean very big drop, but I am not going back there, it's far too cold and far too expensive.

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What should I do with my money which is currently in USD? I need an income.

I'm surprised a gold bug hasn't jumped on this with gusto

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I'm surprised a gold bug hasn't jumped on this with gusto

Indeed and it is an option.

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I'm surprised a gold bug hasn't jumped on this with gusto

I think it was the word "income" and not "paperweight" that did the trick.

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I sold everything and am all cash, single, retired and can live anywhere. What should I do with my money which is currently in USD? I need an income.

I need free (ish) health care so fancy living somewhere warm, considering St Martin (French side) in the Caribbean or Spain or southern France but should I rent for now, where is the HPC in it's cycle in these countries?

I have an uncle of dubious sexuality and much travel experience who could guide you in any future endeavour... pm me for further details :D

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I also have a lot of options but less free cash than others on here.

I'm soon to qualify as an electrician, have no ties or dependents, and the thought of either leaving this country or the rat-race and going travelling/working is appealing...

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The Basel BIS Bankers have no real answers. The eventuality of a fiat currency crisis is ordained and has been since the early warnings in 2007 of the Financial Crisis. The roadmap has been clear to all that actually wanted to look.

Well surely if it's a FIAT currency disaster, you'll need a gun and food stocks. Never mind local currency.

The article seems to address the US though, not the UK. But no doubt the UK is heading down the same road :ph34r:

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Guest eight

+1

The thing is, it doesn't take a degree to work this out. My old man's an engineer and I remember a balmy evening in the nineties, watching them all driving around in their 4x4's and him asking, but where is all this money coming from? It was so bloody obvious to him that it was debt, MEW,the retail economy (hawhaw).

The piper has to be paid. And the politicians, business turds and liars who denied this will soon have our children's blood on their hands. Forget the Iraq war, how is Tony still standing after he sanctioned the wholesale looting of this country? YES I DO BLAME HIM AND HIS MOB :angry:

The two are connected. He needed the "feelgood factor" to minimise dissent around the Iraq war. I wouldn't be surprised to find that the boom was initially engineered to make the Iraq war possible.

eight

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Guest eight

The smarter ones will suss it or fry their brains trying! :P

The clue is in the filename, although I had somehow "twigged" before I saw that. Pretty freaky though.

eight

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the death spiral was triggered a long time ago and actually people have been stating this for decades, just not the elites in power because obviously they are desperate to maintain the status quo.

the question is who loses out the most in the end and how to make sure it's not you.

personally I think individuals with high debts and low skills will be screwed the most, so that's most of the UK then. :huh:

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That never stops them :)

I think its too late to buy gold. If you didn't buy pre-2007, it's not a good investment (unless you think its going to go up to $5000).

Now silver...

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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