The Great Financial Catastrophe

 So the Great Financial Crisis of 2007-9 will now transcend into the Great Financial Catastrophe. This could very well involve a total reset or more likely a collapse of the world economy, financial system and world political system. And it won’t be orderly. It is likely to take a very long time and will involve bankruptcies of  major parts of the financial system as well as many major nations. It will also lead to social unrest, escalation of wars, major poverty and famine with the world population going down significantly.

The Essence of Liberty: Volume I: Liberty and History: The Rise and Fall of the Noble Experiment with Constitutionally Limited Government (Liberty and ... Limited Government) (Volume 1)I sincerely hope this is wrong. As they say, hope springs eternal.

But, after 150 years of decline and decay, it has to happen sooner or later. The world is going to have to learn that “funny money” can not possibly create real, sustainable wealth. — jtl, 419

by Egon von Greyerz via Gold Switzerland

The Essence of Liberty: Volume II: The Economics of Liberty (Volume 2) Most people are blissfully ignorant of the fact that 2007-8 was just a mild rehearsal of what we soon are going to experience. The additional $60 trillion in credit and printed money since then and the lowering of interest rates to zero have given the world the impression that all is now well again.

Let me be very clear, nothing is well. As a matter of fact in the 8 years The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3)since the start of the Great Financial Crisis the bubble economy has now properly spread to the world’s second largest economy – China.  China has had exponential growth in debt from $2 trillion to $28T this century. A major part of this debt has financed white elephant projects and ghost cities. It would be surprising if the total Chinese bad debts were below $10 trillion before all of this is finished.

Combat Shooter's Handbook Reconnaissance Marine MCI 03.32f: Marine Corps Institute The Betrayed: On Warriors, Cowboys and Other MisfitsThe bubble contagion has also totally infected most emerging markets. With massive growth in debts, a stronger dollar and collapsing commodity prices, almost every emerging economy is now starring into the abyss. As Michael Snyder of the Economic Collapse Blog recently pointed out, 23 stock markets around the world are now crashing. Of the 23, there are 22 emerging economies and the 23rd is Greece which definitively is not emerging but sinking into the Mediterranean. But don’t believe that this epidemic will just affect EMs. No, the contagion is already spreading to the West and this autumn we will see stock market falls that will shock the world, spreading massive fear throughout the world economy. I expect this autumn to be the beginning of the end of the 100 year old failed experiment of manipulation and repression of the financial system by bankers and central banks.

So the Great Financial Crisis of 2007-9 will now transcend into the Great Financial Catastrophe. This could very well involve a total reset or more likely a collapse of the world economy, financial system and world political system. And it won’t be orderly. It is likely to take a very long time and will involve bankruptcies of  major parts of the financial system as well as many major nations. It will also lead to social unrest, escalation of wars, major poverty and famine with the world population going down significantly.

I realise that this forecast sounds very alarmist and like an impossible doomsday scenario. I sincerely hope I will be totally wrong. But sadly the risk that I will be right or at least partly right is major after 100 years of excesses in the world built on no solid foundation but an ocean of debt and printed money. Nobel Prize winners in economics, central bankers and ordinary people will learn the hard way that worthless pieces of paper that they call money cannot create real lasting wealth.

For the privileged few that have wealth to protect, gold and silver outside the banking system is a must. At the end of this reset, we will hopefully see a world based on rewarding real work and investment, with real ethical and moral values and a sound monetary system. But the road there will be very long and arduous.

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The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3)The Essence of Liberty Volume III: Liberty: A Universal Political Ethic. This is the volume that pulls it all together. With reference to Hans-Hermann Hoppe’s description of Murray Rothbard’s work, it is a “unique contribution to the rediscovery of property and property rights as the common foundation of both economics and political philosophy, and the systematic reconstruction and conceptual integration of modern, marginalist economics and natural-law political philosophy into a unified moral science: libertarianism.” Available in both paperback and Kindle versions.

You might be interested in the other two volumes of this three volume set: The Essence of Liberty Volume I: Liberty and History and The Essence of Liberty Volume II: The Economics of Liberty

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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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