Discussion in 'Markets & Economies' started by TreasureHunter, Dec 8, 2019.
Well, it looks like the 2020 collapse happened a month early for the British Labour Party.
i wouldn't call it a collapse, more of a transition to a "Corbyn neutral" economy. a significantly reduced Corbyn footprint
Someone should tell Corbyn that hope isnt a strategy.
The socialist democrat way!
Leftism doesn't help the economy for some reason. I don't know if people noticed.
Marc Faber - interesting (relatively new) video:
Here’s another interview. Haven’t had time to listen through the whole interview yet.
Took most of my cash out of the bank.......will keep bare minimum in my accounts. Went to minimum repayments on home loan and will save the rest as cash on standby.
My two cents, if your mortgage is significant focus on paying that down first especially if it's a variable rate as you are benefitting now from low interest. No point stacking if a real estate collapses sees you default and lose the roof over your head.
No, I have bugger all left to pay off....focussing on cash for the time being.
fiscally responsible but doesn't make sense in this upside down world
the mortgage will inflate away over time
he can maintain interest only for relatively very cheaply with these interest rates
if/when rates go up (IMHO they never will) he can resume principal+int.
Smart. Negative interest rates are killing deposits.
One can still regard banks as "safety storage deposits". They hold your money, so that it's safe. Really: even if someone breaks into a bank, they will still have your money available. Not the same if someone breaks into your house.
But if a bank run occurs...
And: if they already charge negative interest rates, then why the hell do they also charge various fees???
Inflate the mortgage away over time? How would that work and when has it worked?
Last thing I would want is a big mortgage going into a 10 or 20 year collapse.
Holding cash = losing money.
Sometimes Holding cash = making money, a lot of money.
Maybe hes waiting to buy at a low. A really low low.
128 billion would be alot of fun nites in Vegas!
It really tells you how rich he is, that he can just sit on that much.
I can’t stay up past 9:30 so fun nites in Vegas with $128 billion would be wasted on me.
Unlikely, but imagine what you could do to the gold or silver price by buying $128 billion worth at once?
I can't help mention a few scenarios I think could happen, should "collapse" occur - I think most of the following phenomena are unavoidable:
1) regional wealth transfer instead of everyone collapsing:
- the entire world will not collapse, but "the flag bearers" and everyone tied to them/some countries' economies will smash the ground, but many will survive, some almost "unharmed" - meaning that Brunei, Uganda and Belarus are not that much exposed as the USA, UK, Germany, France, Australia and Japan
- I can imagine the "collapse of the West", but most likely other countries will gain strength and become even stronger (I'm thinking of Asian, Latin American, African countries...)
- "contained" economies like New Zealand and Australia are also physically so isolated that they will most likely feel a dip and then things could get back to normal (due to the vast resources they have)
- not everyone will collapse, many countries will thrive, because a wealth transfer will occur, even between regions (from one to the other)
- wealth transfer also means running from the Dollar and the Euro: other currencies will rise (remember the rise of the Swiss Franc back in '08?)
- it would be interesting to watch the economies that are currently trying to prevent/escape the collapse: including the ones buying gold, escaping the dollar, but perhaps even Brexit can be regarded as and escape from the EU ("Escape from New York")
2) some for of gold standard or, gold-backed currency:
- it might be a limited gold standard or, even private gold-backed assets (I can't see why someone would launch gold-backed private pension funds?)
- so, invest!
3) the multipolar world:
- I think the West is losing ground, but this is happening very slowly (it's inefficient in everything: economically, the EU, NATO, everything...): it's not only in decline economically, but also socially and militarily
- nevertheless, the multipolar world will mean a fragmentation of the world into larger regional "blocks", as the US/EU/NATO loses ground (due to this I can imagine that sadly, regional dictatorships will arise - I'm pretty sure that major regional players will play more serious roles: Germany, Turkey, Russia, Brazil, Australia, Iran, India...)
4) rural areas, small cities are better:
- the aggressive urbanization has made big city life horrible to bear (just take a trip to Bangkok and you'll understand... or Mexico City or Los Angeles), so you'll be much better off, if you buy yourself a nice vacation home in a rural area or, a house in a small town somewhere
- it's also safe in small towns
- costs are more reduced, reason why all over Europe, people are moving into areas around the big cities (people are moving out), while the masses of migrants are coming in (Barcelona, Vienna, Frankfurt, London, Berlin)
People hoard cash, not just gold.
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