The Global Financial Debt Bomb is now Ready to Explode ! The Global Financial – DEBT BOMB! Global debt has reached $188 trillion, according to the International Monetary Fund. .The IMF has put out a statement tonight saying that debt is threatening global economic stability .in countries with advanced economies, public debt is at levels not seen since World War Two. while emerging markets public debt is at levels not observed since the 1980s .in the United States, the public debt is at 23 trillion dollars .why is the debt so high everywhere .Free money seems ironic .but the worst economies get, the more central banks reduce interest Rates.The more they lower interest rates the more we borrow; the more big companies borrow. Eventually that bubble almost by The definition has to burst. The Federal Reserve debt system is fulfilling its purpose – steal from the people. The banks create the debt, profit on its issuance, and the taxpayer owes back principle and interest to the banks who conjured the money out of thin air. Works for them.
The global debt load has surged to a new all-time record equivalent to more than double the world’s economic output, IMF chief Kristalina Georgieva warned Thursday. While private-sector borrowing accounts for the vast majority of the total, the rise puts governments and individuals at risk if the economy slows, she said. “Global debt — both public and private — has reached an all-time high of $188 trillion. This amounts to about 230 percent of world output,” Georgieva said in a speech to open a two-day conference on debt. The total land surface area of Earth is about 57,308,738 square miles, of which about 33% is desert, and about 24% is mountainous. Subtracting this uninhabitable 57% (32,665,981 square miles) from the total land area leaves 24,642,757 square miles or 15.77 billion acres of habitable land. That’s about $12,000 of debt owed for each habitable acre of land.
The planet earth does not have the collateral to borrow any more money, hence the effort to colonize Mars. Apparently, there are different levels of greed. We have now entered the provenance of ludicrous greed. If everyone were able to repay all debts (which is impossible because of interest charges), then the US Dollar would cease to exist, because it is only an IOU from the Fed that we pass around among ourselves as though it has value. even though what is owed to us by the Federal Reserve is not specified regardless of how many zeros are printed on those green pieces of worthless paper that we stupidly view as “Money.” Currency backed by debt.
Warren Buffett warns investors of rapidly increasing inflation and explains the best ways to protect yourself from its negative consequences. Listen to his advice closely; Mr. Buffett knows how to get through these times.
Warren E. Buffett is an American investor, philanthropist, business tycoon, and the chairman & CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of over 100 billion dollars. Buffett was born in Omaha, Nebraska. He developed an interest in business and investing in his youth and made truly incredible stock market returns over his career.
Should’ve known our money was going to become worthless when the penny stopped being made of copper. The FED’s coin and paper money is a rip off to steal our valuables, and the banks succeeded, that’s why they own EVERYTHING now It’s going to end badly when they stop buying the government bonds, hello big crash and burn. The funny thing about it is the FED will have to buy them all. The Fed will buy them all and hold them the off-balance sheet. No more mark-to-market, so all fantasy economics. Buckle up folks because it might get a tad bumpy.
The fact is we have much more debt now than ever before. If we have a robust financial disruption, default will rise in importance and move front and center. In the last decade, debt has soared across the globe. Of great concern should be the growth in non-recourse loans as well as unsecured personal loans. These are particularly dangerous. Many investors have become seduced into thinking the backing of government adds tremendous validity to both the explicit and implied warranty that come with government-backed instruments. History, however, has shown public debt can also be mishandled with creditors not getting paid or being paid with a less valuable currency eroded by inflation. Yes, even government bondholders will suffer.
Bubbles are Crowd Psychology states based on a stampede mentality, and it is difficult to determine what will cause a stampede or when. Stampedes will occur for no real apparent or credible cause. The work (exertion of energy) that the money is supposed to represent doesn’t exist. Since the monetary value has been watered down so much. The money doesn’t exist – so the work that the money represents doesn’t actually exist when people wake up to this fact. The whole thing is going to collapse. The money (or the work that the money represents) doesn’t exist. When the bubble pops, the people will be the ones to suffer. So it’s the people that are owed the money. The people are always at the bottom of the food chain! It is an imagery construct set up to screw the people just like so many other things accepted as usual. Just remember, if something doesn’t have value in and of itself, it doesn’t have any value. The dollar’s value is solely based upon the value people assign to it.
The human being has value because human can exert energy to produce something. Bubbles generally end this way, with everyone just giving up on self-control and grabbing for one last piece of easy money. Currently, enough new money must be injected daily really to keep the economy from locking up; and Central Banks are in a position to do this indefinitely though if the frail humans who are in authority will comply or not is also unknown. The debt bubble will pop when the number size limit of a computers memory is reached. Floating Point numbers can literally be astronomical in size. Politicians are drooling over the idea of taxing manufacturing robots now. They never sleep while generating revenues and don’t need welfare when they lose their jobs. Nothing good ever came from the marketing, buying, or selling of DEBT and nothing good ever will. When a bankster, government, or corporate entity sells or buys debt, it’s called “trading.” If you or I try to sell or buy debt privately, it’s called “racketeering.” The collateralization of debt is going to be the final coffin nail when this completely fucked system buries itself once and for all. The million-dollar question is. Where will the black swan come out to get the party started?
Will the Future Global Society be Cashless? — War on Cash Cashless payments are on the rise. They are fast, easy, and convenient. Worldwide, cashless transactions have become the norm. All over the western world, banks are shutting down cash machines and branches. They are trying to push you into using their digital payments and digital banking infrastructure. Sweden Is On The Verge Of Going Completely Cashless. India and China are following the trail. The Swedish central bank, predicts that cash transactions will make up less than 0.5% of the value of all payments made in the country in 2020 Now in China, in places like food courts and some McDonalds, you cannot use cash.
A Cashless society is a vision for the future. With the rapid increase in technologies ranging from debit and credit cards to technologies like Apple Pay and Samsung Pay, hard and fast cash is becoming redundant and thus a day is not far when we will do away with cash and checks. And thus this society which doesn’t use cash is also termed as check-less society. Talking a bit further, the obvious advantages are:- Firstly, we would able to track our money right to the last cent, penny or paise which we find cumbersome with currency notes and coins.
Finally you won’t lose 25 paise buying a commodity which costs ₹ 75.75.( Americans and Europeans won’t mind that much as they are still able to use their cents and pennies but still who hates convenience) Secondly, convenience. It’s so liberating to not desperately counting your money in front of the shopkeeper. Safety. You don’t risk losing your money and in case even if you lose your debit card or phone, no one can misuse it without your pin code or even better fingerprint(maybe even without your iris). And even better you can simply block your cards promptly and thus no one can use the cards even if they are hackers. You can obviously not block someone from using hard cash. Go green..! Not just green it would free up quite a bit of man power and natural resources which are utilized in minting money. Disadvantages- One would sorely miss the smell of freshly minted notes and the reliability and comfort hard and fast cash provides. Sure, physical cash is just a vessel of the perceived value we as a society have agreed upon.
There is nothing stopping us from doing the same with bits of code stored in data centers. It might be difficult in societies like India, China, Brazil, where lots of people still only accept cash, but that will change soon enough. Mobile paying in the US is a hippie’s toy. In China, it is the main currency. So yeah, cashless is viable as long as all parties of the transaction agree to it as an excellent method of accounting for and transferring value, just be careful not to be too eager and eliminate 10% of your cash currency overnight as India did, let adoption spread naturally as it does in China .
In China, there is no complete cashless status, but a cashless system is approaching. Nowadays, Chinese people are shopping, saving money, and transferring money, and all these behaviors have no cash participation. Instead, they are using Alipay and Wechat. In China, fund flows in the two digital ecosystems mentioned above that integrate social media, business, and banking, and are operated by two of the world’s most valuable companies.
This contrasts with the United States, where many companies are charging fees for the payment process and handling the payment. Western bankers and credit card company executives are facing the same anxiety: Without banks and credit card companies, payment may be cheap and easy. Payment Apps such as Alipay and WeChat have rapidly become omnipresent forces in China’s consumer economy, with 520 million and 1 billion monthly active users. According to the data of payments consultancy AIT Group, the two systems jointly traded $2.9 trillion in transactions in 2016, accounting for half of all consumer products sold in China. Alipay has signed agreements with a number of payment processors in the United States.
Some taxi drivers in New York are offering passengers this payment option. Alipay said its expansion aims to help Chinese tourists, but few in the payments industry believe it will stop there. In addition, Chinese consumers are saving more money on payment apps. In 2013, Alipay began to provide money market accounts. By last year, it had built the business into the world’s largest money market fund with a total value of about $243 billion. For the U.S.bankers, this is another pain point. They have always held customer savings and used the funds to make external loans to make a profit. If U.S. consumers follow Chinese people, banks will have to find other (and possibly more expensive) sources of funding. In short, even in China, money is not from Alibaba or Tencent; it must be loaded from a bank account.
Although the threat is real, U.S. bankers have enough time and choice to implement it. Banks need to try to integrate their payment systems into social media platforms and e-commerce platforms instead of having technology companies do all the work and get all the rewards. We’re almost already there, at least in most Western countries. Coins and notes are mostly just physical tokens that represent a virtual currency, they’re no less dependent on electronic systems than a credit card, or PayPal is — a few big electromagnetic pulses in London, New York, and half a dozen other places (well, trickier than that since the critical data’s all shielded and redundant, but you get the idea) and the cash in my pocket isn’t worth anything more than what’s in my bank account, on my credit card, etc because it’s not backed by anything.
That’s not really a problem, fiat currency doesn’t need to be backed by anything more than the country issuing it, but it highlights that the coins and notes are unimportant — we only keep them for convenience and familiarity. As we’ve seen recently in Greece (and to a lesser extent elsewhere over the last 7 years), for short term problems (a few days or weeks) it’s essential to be able to have enough cash to live off if there’s (for example) a run on a bank — however the cash is only worth anything during that period because it’s expected that the economy will survive that blip. I cashless society is possible but not desirable. It is a cold hard reality that the solar storm in 1859 (when there were 1.5 billion people in the world) brought down the newly created telegraph network as sparks were shooting out at operators. Such a storm would cause trillions of dollars in damage, far worse than any cyclone or hurricane. In 2012 (when there were 6.5 billion people in the world), a similar size solar storm as 1859 missed the Earth by six days.
The loss of ability to conduct routine transactions even for a week in a modern urban area would make a lousy situation nearly catastrophic. There is actually a kind of competition between the USA and Euro Zone to increase the value of circulating banknotes. €380 billion: banknotes of 12 national currencies in the year 2000. $564 billion: Circulating USA banknotes in the year 2000. €681 billion: Initial Euro-zone production of banknotes. €806 billion: Circulating Euro banknotes at the end of the year 2009. $942 billion: Circulating USA banknotes at the end of the year 2009. €1,171 billion: Circulating Euro banknotes at the end of the year 2017. $1,571 billion: Circulating USA banknotes at the end of the year 2017. Although the ECB has elected not to include the €500 banknote in the new series, they have ordered more than enough €100 and €200 banknotes to replace the € 500.
Many people believe governments are trying to reduce the value of circulating as it is easier to track what their citizens are doing, but in reality, only Sweden and Norway are reducing their circulating cash. so Should societies go cashless? We ordinary citizens do not make these decisions.they are made in dark smoke-filled rooms then the order is passed on to the media to make people think they asked for the action. Highly-paid spin doctors seem to have control of the thinking of the masses. If you pay attention to this thing they call trending we have millions who live by the code of monkey see monkey.It is a little late to worry about the future as you have minimal effect on your future. I am deeply suspicious of this whole notion of going entirely cashless. Think about this from another angle. What if the power grid fails? If even from a natural disaster or terrorist attack. How is a cashless society going to handle that?
Think about how social media platforms have progressed. Everyone has been enthralled by this newfound power to connect to the world and share ideas and have new ways to do business. But; Have not the creators of these fantastic new tools thrown us all under the bus, so to speak, by abusing their newfound superpowers by making banks by selling our private information and data? What makes you think for one minute that a utterly cashless system is safe? And then there is AI, artificial intelligence. This technology is already progressing at an alarming rate, and we have never had the necessary conversations about the regulation of it.
A cashless society will also become a society where government plays a more prominent role as tracking bribes, and illegal payments will be impossible. In a country like India, where cash is still the king, struggles to control corruption, the move to a cashless society would mean a massive changeover. In a country like Sweden, where much of life has become cashless, it becomes increasingly difficult for merchants and people still wishing to live in a cash-payment society to even receive banking services. Not surprisingly, Swedish banks are slowly turning cashless.
What we are now saving and investing are now binary digits. In a world, however, where even the most secure sites, like the NSA or Yahoo, are not above being hacked, the prospect for a new and much more dangerous type of digital crime is obvious. Cashless depend on IT for handling payments. In a world without cash, everyone needs to use services provided by banks and credit/debit card companies. Thus, secret service agencies can monitor and observe all money transactions. If you go shopping, you‘ll need to use some sort of banking/cash card or a smartphone with a payment app. Obviously, IT security would become an even more critical issue. All payment service providers would probably charge their customers for each money transaction, but shops may offer to cover these costs to attract consumers. We all will be dependent on (central) banks and governments.
For example, if the FED decides to introduce negative interest rates or a bank decides to charge a new fee, nobody can avoid this problem. Hence, politics needs to introduce new laws and regulations to ensure trust by all parties and protect customers. Another example might be the limits of how much money you can transmit in a payment. Since every financial transaction is based on cashless payments, it is much easier for the individual to keep an eye on all her expenses and incomes. But if your smartphone battery were empty or you forgot to take your cards with you, you‘d face a severe problem.
Thus, biometrics will become an essential technology that enables a customer to use biometrics for authorization and authentication instead of digital means. Today, some small shops, single entrepreneurs, or shop owners cannot afford to provide cashless payment to their clients. It will also make their life much more complex, which is usually not an issue for big(ger) companies. The government may regulate the market to address this challenge, such as limiting fees and costs. Supermarkets or gas stations will automate their shops so that all items are electronically identified and charged. Let us pray that there is no issue with the transaction software. It might be challenging to deal with system errors. Who really wants to live in a world where Russian hackers have invaded the financial system?