Unprecedented causes lead to unprecedented consequences. No amount of monetary or fiscal policy can fix the errors of the past.
Unprecedented causes lead to unprecedented consequences. No amount of monetary or fiscal policy can fix the errors of the past, just like no modern treatment can quickly restore to health a drug addict debilitated from a decade-long drug abuse.
Anyone who believes that money doesn’t grow on trees need not look too far. The current global economic crisis is a result of just that. The federal reserve has been printing money out of thin air to bail out banks that passed along bad debt as assets to rest of the world.
The Federal Reserve has printed over a trillion dollars to combat the spending freeze. While the rest of the western world has followed their lead. All this money will inevitably lead to hyper-inflation; devaluing the dollar and possibly dethroning it as the currency standard of the world. “Everyone says a little inflation can’t hurt us,” said Martin D. Weiss, chairman of Weiss Research. “What they don’t seem to understand is, that’s inflation in a growing economy. Inflation on top of rising unemployment is another thing entirely. It’s much more painful, and it could be the straw that breaks the camel’s back.”
Here is a list of some current and upcoming crisis’ we must prepare ourselves for:
1. Global Real Estate Overvaluation
3. Excessive Leverage
4. Global Bubbles (Globalization has placed us in a world where one country’s economic collapse can devastate another)
5. Retiring Baby Boomers
6. Global Warming
7. Crude Oil and Energy Crisis
9. Decline in Key Commodities, including Steel, Iron, and Water