Has it Begun? Three Phases Now Lead to the Final Fiat Currency System Apocalypse
On August 5, 2024
By Awake-In-3D
Is the financial system crash upon us? Here’s what you need to know about the potential collapse of the fiat currency system apocalypse.
The global financial system today is showing signs of severe distress. But is it the beginning of global currency system apocalypse?
This Time, It Could Be Far Worse
Unlike the 2008 crisis, this time, the underlying issues are far deeper, and the usual remedies may not work.
Today’s alarming events may just be the beginning and the Federal Reserve’s usual tactics of cutting interest rates and pumping money into the financial economy might not be enough to save the Great Global Fiat Currency Debt System Experiment.
In This Article
- Market Downturn and Margin Calls
- Bear Market and Flight to Safety
- Federal Reserve Intervention and Quantitative Easing
- The Bottom Line
The current global financial situation is precarious. While today’s events were not disastrous, they signal potential future dangers.
The fundamental weaknesses from the 2008 financial crisis were never properly fixed, only temporarily covered up.
Advertisement
______________________________________________________
So let’s take a look at the three phases that could certainly lead to a final global currency system apocalypse.
1) Market Downturn and Margin Calls
A sudden and significant drop in global markets can trigger Margin Calls.
A Margin Call is a demand from a broker for an investor to deposit more money or securities to cover potential losses.
When this happens, large investment firms and hedge funds often sell assets like gold to cover their losses, which drives down the price of gold during market crashes.
For example, if the stock market plummets, investors who borrowed money to buy stocks (using leverage) must quickly provide additional funds or sell their assets to meet the broker’s requirements.
This forced selling can create a downward spiral, where falling asset prices lead to more Margin Calls and further selling, exacerbating the market downturn.
2) Bear Market and Flight to Safety
Continued sell-offs can lead to a Bear Market, which is a prolonged period where investment prices fall significantly, typically 20% or more from recent highs.
Advertisement
______________________________________________________
During a Bear Market, investors look for safer places to put their money. This rush to safety causes the prices of gold, the US dollar, long-term US Treasury bonds, and even Bitcoin to rise, as these are seen as safe investments.
A Bear Market reflects widespread pessimism and negative investor sentiment, where people expect prices to keep falling.
In such times, they often shift their investments to assets that are considered more stable and less risky. Gold is traditionally viewed as a safe haven because it maintains value better than most assets during economic downturns.
Similarly, the US dollar and US Treasury bonds are seen as secure because they are backed by the US government. Recently, Bitcoin has also been perceived as a hedge against traditional financial instability.
3) Federal Reserve Intervention (Bringers of the Currency System Apocalypse)
If the markets keep falling, the Federal Reserve (the central bank of the United States) may step in.
They will cut interest rates and use Quantitative Easing (QE), which means buying long-term securities to inject money into the economy and encourage lending and investment.
However, this can lead to the debasement of fiat currencies (making money less valuable) and eventually freeze credit markets, where businesses borrow money.
During the 2008 financial crisis, the Federal Reserve used massive QE to stabilize the economy. By purchasing large amounts of government bonds and mortgage-backed securities, the Fed increased the money supply, making it cheaper to borrow money.
While this helped to avert a deeper recession, it also set a precedent for relying on QE during crises. In today’s context, the effectiveness of QE is uncertain.
Further QE could lead to fast-rising inflation and erode the value of currencies. If banks, businesses and consumers lose additional confidence in the financial system, they might hoard cash instead of spending or lending, potentially leading to a freeze in the credit markets. It won’t take much.
Advertisement
______________________________________________________
The Bottom Line
Today’s financial troubles might be early warnings of a much larger crisis. The three phases—Market Downturn and Margin Calls, Bear Market and Flight to Safety, and Federal Reserve Intervention and Quantitative Easing—could lead to the collapse of the fiat financial system. It’s vital to stay aware and ready as these uncertain times unfold.
=======================================
© GCR Real-Time News
Visit the GCR Real-Time News website and search 100’s of articles here: Ai3D.blog
Join my Telegram Channel to comment and ask questions here: GCR_RealTimeNews
Follow me on Twitter: @Real_AwakeIn3D
IF YOU ENJOYED THIS ARTICLE PLEASE HIT THE “LIKE” BUTTON AND SHARE IT!
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © Dinar Chronicles
