We hate to be negative but there are so many negative things going on in the world economy at the moment. Not only do we have a new default issue in Puerto Rico, but we still have not fixed Greece.
they still have a withdrawal limit on their accounts! In January, new laws passed in the European union that will no longer be able bail out banks. This is a step in the right direction, but what happens next? Without bailouts what is the point in staying in the union? It certainly feels like a precarious position.
Of most concern is the way that debt has developed over the last 10 years. Since the global
financial crises debt has not been paid down and has actually increased overall. The cost of dept in advanced countries is very low whilst the cost for developing countries has
increased. The most developed counties have the most dept. This phenomenon creates an increasing divide between countries We are also seeing more and more wealth inequality.
Whilst overall debt levels are increasing (somewhat exponentially) this is happening in different sectors than before the global financial crisis. Banking dept has slowed whilst government and corporate dept has skyrocketed. We have a shifting of burden of debt. From our banks and onto our governments and our jobs. Corporations that employ people are bigger and operate internationally fed by cheap dept from their home countries. New debt for governments and corporations has been funded from money printing. It adds up to do the opposite of what was the intended response to the 2008 financial crisis.
See the graph bellow show global dept over the last 14 years.
Although banks can be fairly disposed of, countries don't particularly like to go bankrupt. This could be the difference this round. Over the course of history there is quite a list of countries with sovereign debt issues. It even includes the UK and the United States. These types of events lead to major currency fluctuations and major problems.
So with the destabilised currency environment Bitcoin and crypto currencies become more appealing. They can be transacted with easily despite the external conditions. Also transparent real time accounting offered by crypto currencies can prevent these unseen debt movements in the future. What seems like an uncontrollable issue with debt might finally be able to be cured.
Negative interest rates are on the cards for many countries around the world. Money printing presses are getting warmed up in Japan and Europe. this is not a good sign for savers around the world. Crypto currencies like Bitcoin also starts to look like a much more sound way to store value now having 8 years of history.
New debt is different in that it's not centered around the banks. We can call it bad bad debt because it directly effect our countries and our jobs. Bitcoin offers a solution to this on multiple fronts. It reduces reliance on the country for financial stability, it guards against inflation, negative interest rates and it allows debt free banking and and encourages a debt free economy. Hopefully with the issue getting closer to home, this time we might really be able to solve it.
they still have a withdrawal limit on their accounts! In January, new laws passed in the European union that will no longer be able bail out banks. This is a step in the right direction, but what happens next? Without bailouts what is the point in staying in the union? It certainly feels like a precarious position.
Whilst overall debt levels are increasing (somewhat exponentially) this is happening in different sectors than before the global financial crisis. Banking dept has slowed whilst government and corporate dept has skyrocketed. We have a shifting of burden of debt. From our banks and onto our governments and our jobs. Corporations that employ people are bigger and operate internationally fed by cheap dept from their home countries. New debt for governments and corporations has been funded from money printing. It adds up to do the opposite of what was the intended response to the 2008 financial crisis.
See the graph bellow show global dept over the last 14 years.
Although banks can be fairly disposed of, countries don't particularly like to go bankrupt. This could be the difference this round. Over the course of history there is quite a list of countries with sovereign debt issues. It even includes the UK and the United States. These types of events lead to major currency fluctuations and major problems.
So with the destabilised currency environment Bitcoin and crypto currencies become more appealing. They can be transacted with easily despite the external conditions. Also transparent real time accounting offered by crypto currencies can prevent these unseen debt movements in the future. What seems like an uncontrollable issue with debt might finally be able to be cured.
Negative interest rates are on the cards for many countries around the world. Money printing presses are getting warmed up in Japan and Europe. this is not a good sign for savers around the world. Crypto currencies like Bitcoin also starts to look like a much more sound way to store value now having 8 years of history.
New debt is different in that it's not centered around the banks. We can call it bad bad debt because it directly effect our countries and our jobs. Bitcoin offers a solution to this on multiple fronts. It reduces reliance on the country for financial stability, it guards against inflation, negative interest rates and it allows debt free banking and and encourages a debt free economy. Hopefully with the issue getting closer to home, this time we might really be able to solve it.
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