mathjax

Tuesday, October 21, 2014

Stability in the time of economic collapse.

Economic stability in a collapsing market.

The world's economic health is poor and the outlook is uncertain.

This bleak assessment makes me challenge the assumptions on which people are participating.

One, quantitative easing is a lucrative scheme for the bankers and banks that caused the economic uncertainty / collapse in the first place. But it's not being leant out to industry so production can increase, new companies can expand and more workers can go back to work.

Two, given that the same US Dollar and crude oil system is the only market system these same bankers offer there seems to be one choice for investment.

Three, these same bankers are accused of manipulating the value of every investment they offer, including more of the same behaviour that caused the collapse then they haven't learned their lesson. It seems they have learned to cheat the system to remain rich and beyond justice. Their corrupting influence has driven honest investment out of the market. Banks selling toxic loans as credit default swaps to pension funds will backfire twice with average people losing pensions and bankers avoiding risk. This is counterproductive.

Four, it is being said by credible economists outside New York and London that the system is ready to collapse again because it can only go so far with trickery over real economic growth.

In this situation it seems clear to me that competition and the true value are lost in the US dollar and crude oil system. That is the reason they can continue a rigged game is that it's the only one we have to play. They assume we will keep coming back to them and they can continue wrecking average peoples finances.

To me, what people should do is not consider strategies that use the same rigged game but start investing in alternatives. That gives you some stability when the inevitable crash happens and it may provide honest returns better than the current system offers.

If we want the bankers to suffer they should lose their access to your paycheck and eventually they can't finance our destruction. Even real estate is dangerous because it relies on untrustworthy estimates made by bankers trying to get rid of bad assets. If your home is the only asset you own you are not immune from collapse of value. Governments can't step in like they did in 2008 because they rely on income tax and that's still anemic.

So I would argue don't buy gold and oil. Buy bitcoins. Invest in small companies that use alternate currencies as part of their finances. Use digital currencies that are not controlled by those same bankers. Take a portion of your money and move it to a new financial system.

To me, a new and unproven investment like bitcoin is better than a proven old economy sociopath. The risk and reward are honest and connected to real value. Unlike the old system. The more we take away the less they can cheat and the more competitive they are forced to be.

Today I bought my first bit quarter. 0.25 bitcoins. With that I bought 100 Startcoins.  It is scary but at the same time full of possibility.  Which is exactly what the old system used to be 100 years ago.

Do not doom yourself giving money to bankers that return it worthless. Give yourself a life line when the Titanic hits the iceberg. Perhaps become the nouveau riche when those New York bankers are out on the street? Getting in on the ground floor before every one else jumps ship gives you that potential outcome.

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