The End Of The Line For Fiat Currencies (from Macleod Substack)
The shape of the next financial crisis is now becoming apparent. Rising bond yields, driven by increasing risk in the light of G7 government debt crises in the four major currencies will have the following consequences:
· A collapse in equities, the suddenness of which will be exacerbated by sudden awareness of the knock-on consequences
The BRICS coalition is establishing an alternative to using the dollar as a reserve currency in international trade involving 50 countries This deals a significant blow to the hegemony of the dollar in use of international trade
· Liquidation of malinvestments in the private sector, leading to insolvencies, unemployment, and potential banking distress
· Panicked collateral liquidation of equity stocks by banks as loans become uncovered
· Economic slumps in all the G7, leading to lower tax revenues and higher welfare costs leading to soaring budget deficits, which in turn tightens the bond trap screws
· A doom loop of rising bond yields, interest rates, deficits, collapsing financial collateral values, deepening economic slumps, corporate failures, and banking crises Rinse and repeat, again and again
· Financial and systemic contagion between G7 nations will ensure that none of them escape the collapse, and individual national remedies will be overwhelmed
In a nutshell, the entire system of credit embodied in fiat currencies faces the prospect of a rapid collapse
Yep. Regime's adapt just like a virus. When we think we got them covered they adapt even more lethal. Whew. Our work is cut out for us. Thanks Trygve, for helping us to keep hope alive with positive ways to do it. Take care.
The End Of The Line For Fiat Currencies (from Macleod Substack)
The shape of the next financial crisis is now becoming apparent. Rising bond yields, driven by increasing risk in the light of G7 government debt crises in the four major currencies will have the following consequences:
· A collapse in equities, the suddenness of which will be exacerbated by sudden awareness of the knock-on consequences
The BRICS coalition is establishing an alternative to using the dollar as a reserve currency in international trade involving 50 countries This deals a significant blow to the hegemony of the dollar in use of international trade
· Liquidation of malinvestments in the private sector, leading to insolvencies, unemployment, and potential banking distress
· Panicked collateral liquidation of equity stocks by banks as loans become uncovered
· Economic slumps in all the G7, leading to lower tax revenues and higher welfare costs leading to soaring budget deficits, which in turn tightens the bond trap screws
· A doom loop of rising bond yields, interest rates, deficits, collapsing financial collateral values, deepening economic slumps, corporate failures, and banking crises Rinse and repeat, again and again
· Financial and systemic contagion between G7 nations will ensure that none of them escape the collapse, and individual national remedies will be overwhelmed
In a nutshell, the entire system of credit embodied in fiat currencies faces the prospect of a rapid collapse
Yep. Regime's adapt just like a virus. When we think we got them covered they adapt even more lethal. Whew. Our work is cut out for us. Thanks Trygve, for helping us to keep hope alive with positive ways to do it. Take care.
You have a national platform here.
Please use it frequently, intelligently, courageously, and wisely.
Teach those of us who do not have the name recognition that you have: how to help you, and cooperate with you, in this endeavor.
And please let that go beyond a simple “hit the button and subscribe. “
There is a willing pro-democracy army out here, but it must be led, instructed, and networked.
Thanks, David. Good question. Teach us.