Is this the collapse of the Financial System?

[analog]

Is what we are seeing now the REAL end of the road for the Debt-based Monetery system or is it just going to be a repeat of the 1920-30s depression?.


What do you think will happen between 2010 and 2012 in the Financial world?.

[messed_up_faerie]

Is what we are seeing now the REAL end of the road for the Debt-based Monetery system or is it just going to be a repeat of the 1920-30s depression?.


What do you think will happen between 2010 and 2012 in the Financial world?.

I would hope so but I'm afraid I don't have even a fraction of the necessary knowledge to make a prediction either way and even if there is someone on this forum who does, it could well be wrong, lol.

[flickflack]

What's happening between 2010 and 2012 is more likely to be the end of the US Dollar as the world's leading reserve currency. It seems now that some speculators are giving up on the US currency. It's not so steady anymore.

[Anders Lindman]

Fractional reserve banking requires a continuous economic growth to sustain creation of new money in the form of debt, and then even more money in the form of debt to pay the existing debt and so on in an ever growing spiral of money creation out of thin air.

The economic growth in the world has been and still is dependent on a growing supply of crude oil. The global oil production has remained essentially flat since around 2005. This means that the economic growth needed to fuel fractional reserve banking will not be possible as long as this growth is dependent on more oil.

The decline in global oil production is the real reason behind the economic recession. And it's also the real reason for the climate change debate which is just a smokescreen used by politicians for tackling a global decline in oil production (Al Gore recently canceled his global warming speech in Copenhagen). It's also the reason for the 911 attack inside job which allowed the U.S. to take control over strategic parts of the Middle East to secure oil interests.

Fractional reserve banking will probably still be possible for some time to come, especially if alternatives to oil become available at a competitive price.

There is no lack of money in the world, but the money is being sucked up into the top of the monetary pyramid. And it becomes stuck there since new money has to be created in the form of debt at the bottom of the pyramid. It's almost like a pyramid scheme. Money can only be created at the lower part of the pyramid through economic growth.

My guess is that the U.S. dollar and other currencies in the world will still be used between 2010 and 2012 but that some kind of new global currency control will be implemented, maybe even before 2012.