When this bubble finally bursts, will we witness the biggest dollar collapse and stock market crash in U.S. history? “The bigger they come, the harder they fall” is a well used phrase, but I think that it is very appropriate in this case. From a low of 6,443.27 on March 6th, 2009, we have seen the Dow nearly quadruple in value since the last economic collapse and financial crisis. It has been a remarkable run, and it has lasted far longer than virtually any of the experts anticipated. But what goes up must come down eventually. This stock market bubble was almost entirely fueled by easy money from the Federal Reserve, and now that easy money has been cut off and the next economic collapse and dollar crash is on the horizon.
For instance, when Ron Paul told CNBC that the biggest stock market crash is imminent he was strongly criticized for it, but he was 100 percent correct… This market is in the “biggest bubble in the history of mankind,” and when it bursts, it could cut the stock market in half. Many other analyst and expert saying the same that economic collapse is imminent and its time to prepare.
What ‘Economic Collapse ‘ means:
An economic collapse is a complete breakdown of a national, regional or territorial economy. An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for years, or possibly even decades.
A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels. Hyperinflation, stagflation and financial-market crashes can all be causes. Government intervention is usually necessary to bring an economy back from collapse, but can often be slow to remedy the problem.
The Great Depression in the United States is a prime example of an economic collapse. The 1929 stock market crash brought on a collapse that lasted for many years and saw high levels of poverty. Well-known economist John Maynard Keynes claimed this was from the total lack of government involvement in the economy or the financial markets.
A collapse differs from a crisis in that the effects are longer lasting and it crosses multiple aspects of society. For example, the 2007-2009 Great Recession lasted less than two years, and the U.S. only experienced six quarters of negative GDP growth totaling just over 5 percent from its peak. Compare this to the Great Depression, which last 3 and a half years and wiped more than a quarter of U.S. GDP. In addition, unemployment during the Depression surpassed 24 percent, while the peak during the Great Recession was about 10 percent.
A recent economic collapse was in Argentina at the turn of the 21st century. This four-year period included unemployment riots, a collapse of its currency, which saw the emergence of alternative underground currencies, an overhaul of the government and the infamous default on large sums of sovereign debt. The root of the collapse can be traced back to years of military dictatorship and the government deficit created by the Falklands War in the early 1980s.
Other common occurrences during an economic collapse are forced bank holidays to curb withdraws, strict capital controls, and the overthrow of the sitting government.
Definition of ‘Stock Market Crash’
A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be a side effect of major catastrophic events, economic crisis or the collapse of a long-term speculative bubble. Reactionary public panic about a stock market crash can also be a major contributor to it.
Josh Sigurdson talks with author and economic analyst John Sneisen about the recent reporting on a potential currency war in the near distance. A G-20 communique has removed the following pledge to refrain from competitive devaluation: “We will refrain from competitive devaluations, and will not target our exchange rates for competitive purposes.” Now, the pledge says the following instead: “We reaffirm our exchange rate commitments made in March.” As a trade war heats up between the United States and China and tariffs negatively affect both countries, this notion of competitive devaluation is laughable. So, you make your countries more competitive on the markets but in return cause vast inflation and a monetary crisis.
The crisis was inevitable anyways, but speeding it up isn’t exactly the fastest way to success. Treasury Secretary Steven Mnuchin has endorsed the latest communique. All fiat currencies eventually revert to their true value of zero. They always have, they always will going back to 1024 AD in China. This time will be no different and to speed it up at such a rapid rate, all while hiking interest rates, watching massive bubbles inflate in the stock market and in many of the housing markets within the United States AND China, this is a recipe for disaster. We cannot put a date on the inevitable crash as the fundamentals are simply off the table.
But with that said, it will happen eventually and it’s better to be over prepared than underprepared which is why individuals need to break free from the centralized system and decentralize their lives. People need to be independent, self sustainable, financially responsible. It’s up to you.
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