What if we decided not to care that “there would be a financial crisis” because we were prepared and had a tested contingency plans?
If the scenario is desired, let’s see what will create the highest probability of the next financial crisis occurring. Some say (in suspicious unison) that there will soon be a big financial crisis. And others give fairly realistic scenarios about what will occur if the U.S. , North Korea(or another world power) economy collapses, the worldwide financial system collapses:
The central banks and all financial institutions will suspend their activities. Somebody said there will be tanks in front of banks’ doors, in order to prevent the population from even taking money from an ATM and all payment systems will be shut down. Crises in Greece and Zimbabwe show that these scenarios of looking down financial services are possible, and each central bank has all rights reserved to decide what to do, which we will discuss later.
There will be hyperinflation. It seems that we should maintain the idea of hyperinflation as a principal pillar in our minds. It will be very probable that it will happen, and you’ll see why. Just because it seems probable to me, in the next article, I will show you how the population (and especially the businesses) have fared in the period of hyperinflation.
Any country that could enter into a collapse of their financial system would generate a global financial panic that would lead to explosion of the interest rate. Investors would invest in other currencies, such as the euro, yuan, or gold. And again, it would generate hyperinflation.
Experts like Gene Roddenberry have this to say about financial crises: Nuclear warfare is not necessary to cause a breakdown of our society. You take a large city like Los Angeles, New York, Chicago — their water supply comes from hundreds of miles away and any interruption of that, or food, or power for any period of time you’re going to have riots and attack actions in the streets. Our society is so fragile, so dependent on the inter-working of things to provide us with the goods and services that you don’t need nuclear warfare to fragment us anymore than the Romans needed it to cause their eventual downfall.
You can find this prediction (and others) of Gene Roddenberry on the internet.
I personally think it is very possible for currencies to fall, but this situation is an effect, not a cause. In my opinion, the causes of the future crisis could be one of the next five.
- A generalized cyber attack on national banks or treasuries.
- A global food crisis
- An attack like the one Gene Roddenberry was talking about
- A natural disaster with a major impact
- A war.
A Generalized Cyber Attack on National Banks or Treasuries
I recently received information that secret agencies are now struggling to contain cyber attack initiatives, which are intended for “testing” or “warming.” These kinds of attacks are small but frequent. For the moment, they are small, such as attempts to see if it “works.” Some want to find the solution to generate a globally generalized attack. (Even only attacking banks in a few countries will be enough.) It could block the banking activity. Do you realize what would happen if all money suddenly disappears, or if zeroes are added to the amounts held by some in the bank accounts? I worked in a bank, and I can tell you this situation is very possible. I cannot tell you more because I have to keep the bank’s secrets till I die, but just imagine what would happen if an electronic or cyber attack happens now, even at a low level. (I mean “only” hundreds of thousands of dollars or euros.) Then imagine what would happen if ALL the bank accounts are simultaneously attacked!
This destructive general impact on banks and other financial institutions has a name: hyperinflation. This word is synonymous with financial crisis. When financial services fail, the entire financial system is blocked affecting all services and this could cause a global financial downturn like never seen before. Imagine all financial services being hacked and all of your money disappearing over night. What would you do? What would this mean to your business, to your personal life? What could cause this better than cyber attacks? Just think about it!