Why the Global Financial System is About To Collapse [2006]

http://johnlaw0.wordpress.com/2011/08/23/why-the-global-financial-system-is-about-to-collapse-2006/

by david927 • 15 years ago

8 9 15 years ago

johnlaw0.wordpress.com

weagle20012• 15 years ago

I don't think this is remonetization, but I do think the dollar bubble is popping. QE has caused excessive supply, so massive inflation is coming. Moving to gold is a good way to avoid the dollar bubble and also all of the other bubbles (real estate, debt, etc). Gold is also a bubble, but it will pop after the dollar adjusts.

david927• 15 years ago

It's not just QE, either. The movement of pricing oil in alternate currencies is potentially devastating.

chalst2• 15 years ago

From a Keynesian perspective, one accepted by many non-Keynesians, QE is not yet in danger of driving inflation, because there is still deficient demand in the US economy.

Bigger dangers to the dollar come from two directions: (i) America's massive debt burden - the joint public and private sector debt burden is around 350% of GDP, and (ii) America's declining (relatively and perhaps absolutely) competitiveness. The goldbugs are staging a theatre that distracts from what matters.

A very brief summary of the case against the gold standard: http://www.j-bradford-delong.net/politics/whynotthegoldstand...

weagle20012• 15 years ago

Just for clarification, when I said "moving to gold" I meant in your portfolio and not as a currency. I'm certainly not in favor of moving back to the gold standard...I think that ship has sailed. As I understand it, an increase in dollar supply can take 1-2 years to cause inflation. A 300% increase has to cause inflation, and they're still printing (paying banks to keep excess cash).

The bubbles in real estate, personal debt, and stocks are just the beginning. The government debt and dollar bubbles are coming next. That's why I'm buying precious metals and foreign currencies...I don't see how the recovery will happen before a massive correction occurs.

sek2• 15 years ago

Who wrote this? I don't think that the first result on Google is by accident. http://en.wikipedia.org/wiki/John_Law_(economist)

This blog was created when it was posted on HN so i assume this is yours david927

Why so secretive?

sek2• 15 years ago

Here on USA Gold, a gold seller (now it makes sese) is a part of this text quoted. http://www.usagold.com/amk/usagoldmarketupdate042307.html

This seems not very trustworthy and should animate people for an impulsive gold shopping spree.

ChuckMcM• 15 years ago

Yes, this appears to be an attempt at social engineering.

As far as I can tell the piece is complete fiction.

The 'goal' of the article is to convince people to buy gold.

The fiction is that it was written at some time in the past and purports to be as true today as it was in 2006 (although it was written 5 years later).

I can assure you that in 2016 I will be able to write a piece which, had I written it today, would have given you all the advice you needed to invest wisely.

I expect it would be simpler to invent time travel, pop ahead 5 years, look around and then pop back.

macavity23• 15 years ago

Argh, grey text on white background. Thank god for firebug.

Why the Global Financial System is About To Collapse [2006]

Related Stories