The Global Debt Crisis

I decided to make a video explaining the debt crisis. Check it out, i think it's really important that as many people understand it as possible - unfortunately, few people do.

I've designed it so basically anyone can follow it. Happy watching

HTML:

<iframe width="425" height="349" src="http://www.youtube.com/embed/Kz6xG2YtyyE?hl=en&fs=1" frameborder="0" allowfullscreen></iframe>

 

html failed. But here's the youtube link:

 

Hi Thefinancialreality,

Don't you think you have shot yourself in the foot, by predicting a collapse in the next 2 months. If this fails to happen, where does this leave your blog?

I understand you are into silver, but do you really see a future where we unbury some silver from the backyard, to swap for some potatoes to eat?



Johny.

 

Thanks for your response. I'm merely regurgitating the research I've done from people who know what they're talking about. Peter Schiff, Max Keiser etc. These are the people who have been right about absolutely EVERYTHING so far. They predicted the housing collapse, the 2008 global financial crisis and everything in-between. They understand what's going on unlike our politicians and the fools in the mainstream media.

I see this as the end of the FIAT money system and back to a gold/silver standard where our money is actually worth something - not just what the government tells us. Back to honest money. Afterall, we've only being using the current FIAT money system for 40 years. Silver/Gold has been money for thousands of years.

 

Possible but unlikely in my view. Gold and silver up are not because the modern society would be gone very soon but the deficit crises since GFC have being forced the central banks who have a lot of reserves to question how to diversify the risks in case the manageable risks such as just EURO gone, US in default for a few months, and more needs diversification for foreseen risks, or bad lucky all of the computers fail to work in a few months?

Gold and silver are not a final solution but thousands of years has put them as the value storage in the emerging economies especially. I could not forget how valuable gold was. Most of them would not there. It means demand from billions of people. We could argue paper money would die but no fact and then most of the people including me are crying for guess.

***
If we guess we have to know the chances are 50% at average. It is not wrong to get some gold and silver in our backyard but if we have to exchange potato for gold. The riots and uprising or the desperate poor government could lead a lot of people to your backyard to confiscate them!

We need the middle ways in the market for a balanced journey for rich or poor life. Do hope no one would try to confiscate the gold and silver in the name of the societies. It is anti-revolutionary for our evolution. If so, all of us would be collectively poor or worse in the turmoil of the revolution. That is a completely different challenges for all!

I guess it is rational to think Gold to be $3000 or $5000 in spikes. I guess it is also rational to think Gold comes back to $1000 or $500. But if we go too far from there we would put ourselves in hell when the time take longer than what we could expect!

***
Could we say the global systems are too complicated for us in workshops and offices to know what it is? Could we say it is a huge open-loop micro control systems which sometimes just swing to fear everyone and we just over-react without any clues? In this sense I agree that gold is not a investment vehicle if you work on the bottom-up approaches.

However we could not say top-down approaches would fail definitely so gold is a vehicle for speculators such as George Soros. He claimed the ultimate gold bubble quite loosely if we notice his reflexive theory for his market betting. The problem is few of retail market players know any trustful market philosophies and application conditions and context.

We are too easy to ignore the fact that we don't know what is the future darlings!

 

My belief system is Nobody can predict the future. What will Australia be like in 10 years time? I do not know! It is easy to say that the sky will fall. Lots of people are saying this at the moment.

Negativity begets more negativity. If someone has an inkling of vision for the future, I listen to those who give me hope. I support those investors who can give me direction. Not the 'collapse of society' type.

I want to know: where to put my money, when to put it in, when to take it out, where to store it in-between investments. Anyone who can't provide this information is just another fortune teller.



Johny.

 

Johny you have to understand that people have real reason to be worried. If you accidentally left the gas on at home as you went for a long trip to the beach, should you be worried? Yes!

People aren't worried because others are worried, it's because things are actually really bad at the moment. Although I'm not asking you to be worried. In fact, you don't need to be worried if you prepare accordingly.

The Financial Reality

 

Today and tonight seem we could have less worries. Good news that the smoking and flaming in EU looks little bit weaker.

1. Gold up
2. Stock up
3. Less risks to burn our houses down from the EU flaming

Our houses here could be safe for tomorrow. Rumor said we have cut off the gas pipe linkage with the EU and US. Why don't cut all of link to this so terrified world?

***
Are you sure?

Could we lay down tonight rather than right up to worry?

The internet and high technology are too powerful in contagion. I am worrying about what if the virus flam all of our computers now! It is more risky than the gas pipe and switch. How could we stop worrying?

***
Burn to die or worry to die?

I would like to die in worry. I usually worry quite a lot for the remote smoking and flaming. But I could not keep to worry even I really enjoy to worry. Why? It is because my family starts to worry about me.

The people in the market are mad! They need the people out of the market to stop them worrying.

What is this world? What is this market? A machine to put all into the hysteric bipolar disorder!

***
Worry, worry, and then what would collapse? The sky should be there; the market should be there; what would be not here? 95% probability is you and your money would be gone with your worrying.

You don't make money for your family and you should worry. You fail to be responsible and you should worry. We worry since we lose. We worry since we see the money become ashes and we don't know how to get them back.

If you don't worry who should worry?

I really worry but try to limit it somehow. I always wonder whether it is useful or helpful to worry!

Is the worrying making you better?

***
Gold is back to 1663! Do you have less worries? You should not!

It could drop down tomorrow. Who knows? If it is up now you should worry since you don't know what happen tomorrow. If it down now you should worry. If it goes nowhere you should worry! When you see ahead you could not see anything in future, do you worry? You should worry!

We were born to worry? We have the right to worry? Absolutely!

GFCI made us worry. GFCII is making us to worry. Do you worry about GFCIII, IV, V... Life is a lake full of worries if you want to worry!

However worries are different from wisely finding what problems we have and what we should do to fix the problems. Long time ago someone told me it is useless to worry but I just could not stop worrying. Am I useless and then I have to worry?

Is it good no worrying but dance on tap to work on your own problems?

 

Hi Julius,

I started writing a response but it ended up getting too big to post on these forums in one post so I posted it on my personal blog:

Why Doom And Gloom Doesn’t Really Help : Chris Cunliffe

I'm happy to continue the discussion on these forums though.