As the current global market relies on the value of fiat money currency, we are now facing a global currency crisis with an anticipated domino effect on our economies.
As certain authorities said, one factor that props up the current global financial system is confidence. Meaning our money system which is fiat money has no real value which must be backed up with tangible assets.
Our global financial system is just a Ponzi scheme, it has no real value and is built on US debt which many considered wrongfully as a reserve currency. With the paper money having no tangible asset as a backup for its value, it solely relies on empty promises made by a government overwhelmed with debt.
Banks at the moment have little cash as percentage in deposits. And with the current global financial system there are just a few safe haven investments that you can turn to just in case things comes crumbling down.
Here are some of the evidences that the worst on economic scenario is yet to come.
- We have already experienced the biggest credit, government debt, and real estate bubble in history.
- The US economic status is not getting any better which is a sign that the government is bankrupt, and that the US dollar currency will continuously lose its value and that it cannot sustain any longer.
- The global financial system is unstable due to its dependence of fiat currency which is very unsound money.
- Banks are over leveraged.
- We have witnessed the failure to save the western economy and that its ill effects are continuously suffered by the people.
- The cheap oil era is near its end.
- There will be a great competition over vital commodities as the population continues to explode.
- US, Europe, China and Japan had simultaneously had weak economies.
- Baby boomer’s peak of taxpaying and spending years is nearing its end.
- Greater septicity of economic risks due to the inter-reliance and connectedness of different markets.
As based in history no fiat money has ever survived for a long period of time. As we are now facing economic crisis, let’s open our eyes to other ventures that offers safe haven investment from this crisis that we are facing today. Give gold and silver investment a try.