2009 has started with a bang and even on inauguration day, the stock markets plummeted.
In my view, we are at the very beginning of the crisis. Once there is another wave of corporate defaults, there will be another phase of the banking crisis. Governments are trying to maintain the status quo with very little success. Throwing "helicopters of money" at the problem (Bernanke) is not solving the issues. Central banks are not ruled by the same laws as ordinary citizens and they do not have to report their figures or information to anyone. Shocking isn't it?
Well, here's what you can expect:
more waves of bank failures
more retail stores going bankrupt
more redundancies and job losses
further house price falls
increases in property taxes even with falling house prices
However, here's the flip side:
there is the opportunity for new money systems to emerge from this mess
a surge in complementary currencies and new ways for barter and exchange of goods and services
more internet types of exchanges
less of a stranglehold with few huge banks, but a plethora of different financial bodies being formed
new innovative ways of exchange
money becoming our master, rather than the vast majority being slaves to it
more transparency and honesty in the system as a whole
a NEW WORLD CURRENCY - you read it here remember!
I am not sure how this will come together, but there will be a new currency - it could maybe incorporate the USD, some EURO currency and an ASIAN mix of currencies. It is not clear yet, but there will be a whole new world as far as money is concerned.
Look closely at the Transition Towns movement - started in the UK - and spreading rapidly around the globe. This is in response to the situation of Peak Oil and Climate Change. It brings together the local community and can also involve the issuing of a local currency.
We have exciting times ahead.
I'll be back with more soon!
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1 comment:
Barbara, you are right on target. Smaller private currencies, local currencies and sound money (gold and silver) these are all emerging in the US now the dollar is sliding into default.
As my grand pappy always said, "you can drink yourself sober, but you can't spend yourself rich." You cannot save a sinking economy by spending more government created funny money and adding more debt. If this were true, every fiat currency system in the history of the world would still be operating today...instead ALL previous fiats having failed miserably.
In this situation, crisis will equal opportunity with a little insight and hard work added.
Mark
DGCmagazine
MainStreetCash
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