"Collapsing House of Cards": the world is on the verge of a severe financial crisis

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The Western financial system has begun to resemble a house of cards, which is collapsing not so much because of external influences, but under its own weight. The Federal Reserve has made an incredible array of critical mistakes since 2008, which is why it has become a co-author of the coming global financial disaster.


Just keeping interest rates at zero for more than a decade poisoned the system for many decades. Taking into account the position of the Fed, many banks in the world at this time to the eyeballs accumulated low-yielding long-term Treasury bonds and securities backed by no less risky mortgages. Financier Peter Schiff accuses them of such carelessness and criminal negligence.

Yes, at such low interest rates, the banks went up the yield curve. And the reason they were able to take that risk is because the government guarantees bank accounts. This created a moral problem. The clients didn't care what the banks did with their money because they knew the government would bail them out.

The Fed created a problem back in 2008, then all the while, officials trying to get away from problems created a bigger one to try to make amends for these mistakes and toss them aside so that we don't have to deal with all the consequences of solving the problem.

- the expert believes.

In the end, of course, the bankers only exacerbated the problem with more mistakes, and now economy The US is on the verge of the biggest economic disaster in its history. It turns out that the rescue of banks will lead to inflation and devaluation of the US dollar. Not the best combination - banking crisis and inflation.

Amazing and terrible things are happening: the government is bailing out the banks by impoverishing the population. In other words, Americans will pay for deep industry reform not because they are taxpayers, but because they hold US dollars and their income depends on that currency.

In fact, a paradoxical situation has arisen when there are so many problems and they are so diverse that when you try to solve one of them, it automatically becomes worse in another plane of this one big problem. Worst of all, there are too many banks and credit institutions around the world tied to the Western, or rather, the American financial pyramid. All this can lead to a fall, reminiscent of just the same house of cards.
  • Used photos: pxhere.com
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  1. Michael 68 Offline Michael 68
    Michael 68 April 1 2023 08: 18
    +10
    Stories about the collapse of the dollar have been going on for decades. Well, where is the collapse. As I understand it, instead of working on raising our own economy, we are constantly trying to hang noodles. The dollar will collapse soon. Europeans and Americans will live poorly. In the meantime, our entire elite was striving to bring money and families to the west. Where has our Medvedev's son been until recently? I don't know where now. But definitely not in NWO. At the mouthpiece of the president, the whole family, except for him, are citizens of other countries. The daughter of our MO said that the army has everything. Only probably thousands of fools do not know about it. And volunteer help. It is clear that I do not go to Dubai. Therefore, I and people like me have extra money. And we spend them on our boys. And to distract such articles from all this. But the question? How many billions Russia has swelled into foreign currency. And this currency was frozen in Russia. Moreover, the persons responsible for this were not only not fired. On the contrary, they approved it again. And our Duma and Putin V.V. no words said it was wrong. We see that the government tells us one thing. But it actually does something else.
    1. trampoline instructor Offline trampoline instructor
      trampoline instructor (Cotriarch Peril) April 1 2023 08: 54
      +2
      And this currency was frozen in Russia. Moreover, the persons responsible for this were not only not fired. On the contrary, they approved it again. And our Duma and Putin V.V. no words said it was wrong. We see that the government tells us one thing. But it actually does something else.

      All Russian authorities follow the instructions of one person who is always and in everything impeccable, like Caesar's wife. The frozen currency has already been written off under the muttering that they simply did not expect such impudence from the sharks of imperialism.
      And the impeccable boss recently admitted that in 2014 they made a mistake thinking that the problem of Ukraine could be solved through diplomacy, and now thousands of people in military uniform have paid for these mistakes with their lives.
      However, it has always been so everywhere, it is enough to recall the saying about fighting gentlemen ...
    2. Nelton Offline Nelton
      Nelton (Oleg) April 1 2023 19: 10
      0
      Quote: Mikhail 68
      Stories about the collapse of the dollar have been going on for decades.

      Exactly. Didn't read further than the title.

      instead of working to boost their own economy

      The economy for the year of sanctions has shown itself much better than the expected collapse.
      But the (predicted) collapse of the dollar is much more epic than the economic upheavals.
    3. boriz Offline boriz
      boriz (boriz) April 2 2023 21: 48
      0
      Stories about the collapse of the dollar have been going on for decades.

      Where are they going? What happens specifically to the dollar is not important. The Bretton Woods system will collapse, the dollar will cease to be a universal currency and will simply become the internal currency of one single currency area. This zone is AUKUS. And it happens before our eyes, non-stop. Countries are switching to dollar-free settlements.
  2. trampoline instructor Offline trampoline instructor
    trampoline instructor (Cotriarch Peril) April 1 2023 08: 45
    +1
    Worst of all, there are too many banks and credit institutions around the world tied to the Western, or rather, the American financial pyramid. All this can lead to a fall ...

    It may or may not lead.
    And if it does, it's scary to imagine what will happen to the Russian ruble and other currencies of developing countries.
  3. Irek Offline Irek
    Irek (Paparazzi Kazan) April 1 2023 09: 19
    +2
    Our blocked assets, they came out sideways, returned like a boomerang.
    1. Vox Populi Offline Vox Populi
      Vox Populi (vox populi) April 1 2023 11: 01
      +1
      Quote: Irek
      Our blocked assets, they came out sideways, returned like a boomerang.

      To whom did they return as a boomerang?! winked
    2. Saffron Offline Saffron
      Saffron (Igor) April 3 2023 09: 30
      +1
      Ours simply printed rubles for the amount of blocked reserves (this is how their FRS system works) and said - you can take your dollars - euros.
  4. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) April 1 2023 09: 28
    -1
    It’s better to go to the store, and at the checkout, instead of paying, say: “the world is on the verge of a severe financial crisis,” so they say, let’s go without paying ...
    1. isofat Offline isofat
      isofat (isofat) April 1 2023 10: 08
      +2
      Serge, I always suspected that you were capable of doing stupid things. fool
  5. The comment was deleted.
  6. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) April 1 2023 12: 50
    +3
    To do business, you need start-up capital, and at 15 percent or more it’s a robbery
    Installments, benefits and other tricks are good if you already have something, and if there is nothing besides desire, you need start-up capital.
    Zero rates were intended to give the poor start-up capital to create their own businesses and thereby increase self-employment. The profit from this mass of businesses was supposed to compensate for the costs, reduce the burden on welfare payments, boost the economy after the crisis of 8 years, but how else?
    The problem turned out to be good benefits, which were quite enough for a socially accepted standard of living, and this killed the desire to spend nerves and time on opening one's own enterprise, which would not yet bring income or only losses.
    With interest rates so low, banks went up the yield curve. And the reason they were able to take that risk is because the government guarantees bank accounts.
    The threat of an economic catastrophe is somewhat exaggerated by speculative expectations and sanctions policy. I suppose a return to normal, i.e. from head to foot, it's not too late, there would be political will for that, but it's just not enough.
    The situation when an attempt to solve one problem automatically leads to the emergence of another is a common situation in any business, the scale and consequences are just different.
    The whole world is tied to the US financial pyramid and can lead to a fall, reminiscent of the same house of cards.
    1. Lumpen007 Offline Lumpen007
      Lumpen007 (Alexander) April 1 2023 16: 02
      +1
      Zero rates for banks and the bank will give you interest
      1. Jacques sekavar Offline Jacques sekavar
        Jacques sekavar (Jacques Sekavar) April 1 2023 17: 45
        +6
        The higher the main bank raises the key rate, the higher the percentage of commercial banks issue loans and vice versa, the lower the key rate, the lower the rate of loans.
        In the USSR, it was not profit that was put at the head, but material production, and therefore loans cost 1% so as not to drive enterprises into a debt hole from which there is only one way out - bankruptcy.
        After the coup d'état and the restoration of capitalism, profit became the main indicator. As a result, exorbitant rates, corruption, inflation, the ruin of enterprises, the transition to a resource-based economy that requires minimal investment and gives high profits.
        1. Alexey Lan Offline Alexey Lan
          Alexey Lan (Alexey Lantukh) April 1 2023 19: 37
          +2
          Credits in the USSR for ordinary enterprises for current needs were issued mainly at 2-6%. Long-term loans for agricultural enterprises were also at 1%. As for the collapse of the dollar, there will be no collapse in the foreseeable future, but as a result of inflation, the dollar will become cheaper and the US national debt will actually decrease.
  7. Valera75 Offline Valera75
    Valera75 (Valery) April 1 2023 20: 01
    0
    I’m not a financier and of course I won’t argue. But I agree with those who say that the dollar will not collapse. It will probably get cheaper, some banks will collapse, but I don’t believe that people like Bezos, Bill Gates are sitting on their asses and let a tear go they can lose their hundreds of billions of Baku dollars and remain forever poor. Rather, they will come up with, if the worst happens, some kind of bitcoin and call everyone after it, then it is tied to the dollar, so far it is almost the whole world, and the crowd will follow them and write off debts under the guise and everyone will be forgiven. And what can we offer? Will the Russians offer the Chinese yuan?
  8. Andrei Andreev Offline Andrei Andreev
    Andrei Andreev (Andrey Andreev) April 3 2023 04: 44
    +1
    1) Hooray, Americans will die from the virus!
    1) Hooray, blacks will destroy the Americans!
    3) Hooray, there is a civil war in America, they have an assault on the Capitol!
    4) Hooray, soon the collapse of the dollar!
    ....) Hooray! Hooray! Hooray!

    To be honest, it's already enough...
  9. Saffron Offline Saffron
    Saffron (Igor) April 3 2023 09: 42
    0
    A bank collapses - everyone who kept money there (from a simple layman to pension funds of other countries) will go bankrupt (not many funds are insured). If they pump money into the bank, inflation will rise, the dollar will become cheaper, for example, by 10%. Thus, everyone who holds a dollar in their hands or on their accounts will become 10% poorer - read, they will evenly spread it all over the world. Who needs it (insiders) is gaining on this, but many go into the red (the yield on US government bonds is 2-3%, inflation is 2-3%, a reliable way to save money until the dollar falls more than 2-3%)