5 replies to this topic

[Madin]

What are peoples thoughts on the theory that the major world banks have collapsed various nations economies by design?
How can a nation like Greece for example, have such a massive debt placed upon it by the banks, when by some reports up to 90% of the debt is not owed by the people?

There is a feeling amongst quite a few analyst that the derivatives market is rife with fraud, fraud that the major world banks know about, and yet still continue on with.

I am not not looking to push conspiracies on anyone, it's just that at a gut level, the idea that the banks did not know that the kind of debts that they loaded unto, for example Ireland & Greece, would crush these nations economies, is ridiculous to me.

[Námo]

Comment on the topic title:

You may very well speak of a collapse of the current financial system, based solely on fiat money. Many economists are now predicting a return to gold-standard.

However, a collapse of the economy is quite another business. We're most likely experiencing the second leg of a double-dip, and heading into an economic recession. But people will still produce and consume goods, so the economy will somehow continue, one way or the other. In Greece we now see an emergence of a barter economy; in Spain many people still have lots of the old 1000 Pesetas bills (saved for nostalgic reasons), and in one region these are now used as local money, with a flowering local economy as result. Also expect a boom in informal economy and local self-sufficiency.

[duke_Qa]

I'm no economist, but it certainly looks like we are on our way into a involuntarily reform of the global economy. Personally I think this is mostly the world paying for letting people abuse the system with short-selling and other hacks on the economy for a quick dime. You could say it started back in the early 90s, but the final nail in this coffin came with Bush and his "Gun AND Butter" governance, which does not work when you have finite resources and emigrating industry.

For all we know, it could be over within a month, end of the year, 2021, beyond or never. I suspect the two last ones will not happen, as nations will go to war over resources once things gets that bad, and the western world still has plenty of acceptable weapons lying around.

[Pasidon]

I strongly predict nations will be investing in gold soon for a revamp of currency. The common bill and low-grade coin has been compromised beyond their uses.

[Madin]

Very interesting.

Thanks for your responses.

Edited by Madin, 19 August 2011 - 07:14 PM.

[Námo]