Welcome to the next financial global financial crisis

Some context is perhaps necessary.  The previous blog here was on 16th May 2017 titled "Let’s be honest, you are all hackers!".  That story is still relevant and it will be returned to again soon.

In the interim, much time and effort has been undertaken to understand the world we are in.

At the time of the previous blog post, it was quite clear that the world was moving towards another global financial crisis.  (***public readers to note that our approach is to reserve detailed background and information to the email subscriber list, regular updates to the private subscriber facebook group and then about 6-8 weeks later we will share the information on this page).

Many years ago, I had heard about Bitcoin.  Bitcoin is a digital cryptocurrency that many people would have heard about.  If not, that's ok, more in the future or do a mind boggling Google search which will return too much information and most of it rubbish.  I can't recall the price of Bitcoin at the time.  It started at around 1 cent (approximate) and by the time I heard about it, it was still only very low in price.  Earlier this year, I had my attention taken back to Bitcoin again by a close friend.  Once again I can't recall the price, but by now it was in the thousands.  Once again, if I had acted on my original instincts many years ago, I would be very wealthy by now.  I'd be well ahead if I had even acted on my instincts even last year, or even a few months ago.

As usual, I don't always act on my instincts.  Whenever I have, my life has been better.  Working out which instincts to follow and which ones to dismiss is the puzzle of human life.

But I never really wanted to be rich.  I want to live a grounded life with the people I love, my wife, amazing kids and friends.  I want to be able to support them faithfully, honestly and in a sustainable way.

Economically life has been getting harder and harder for many of us.  I started to wonder why it is getting so hard.  We could discuss many different economic, philosophical and cultural theories.  That comes later.  For now, we face some chilling realities.

Property prices in Sydney and most big cities have increased significantly and the hope of living in a permanent home in many places is now a dream that few in society will ever be able to realise.  And that is not a bad thing.  I don't have a problem with a house price of $1M, or $5M or event $10M.  Property prices don't matter.  What matters is - can you repay the debt?

How is debt repaid?  Money is paid by the borrower to the lender.  The arrangement assumes that the borrower can repay the debt.  How does a borrower repay debt?  Typically it will be through their job, business or other forms of income.

Crazy assumptions.

World debt since the last global financial crisis has risen by over $80 trillion dollars.  Total world debt is roughly around $230+ trillion dollars.  Every person in the world is now in debt of over $300,000 each.

The numbers and math ceases to make sense.  And let's not even have the discussion yet around who has $230 trillion dollars to lend out in the first place.  The fact that anyone has that kind of cash to lend is ridiculous in itself.  

Quadrillion comes after trillion and it all starts to sound like a kids game.  The world doesn't need quadrillions of debt.  

There is another long story behind all the above.  Deeper background, more detail, facts, graphs and stories.

The fact is, it cannot continue.  And it has stopped.  

The Bank for International Settlements (BIS) has finally announced what we already had seen.  The world is heading towards another financial crisis.  You can read more here.

Please subscribe to our email list here and let's enjoy the ride!

(c) Jarred Taylor and peppersnort 2017