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Economic collapse is upon us

by Drake Flyer about a month ago in finance · updated about a month ago
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Food is expensive. Driving is expensive. Where is this going?

Economic collapse is upon us
Photo by Alexander Mils on Unsplash

I remember being a kid when my parents had to go through a financial crisis. It was back in 2008 and it was caused by the American housing bubble. Back then I only felt it partly because my parents made sure that I and my sister were well-taken care of.

Today it is different. I am the one who has to tank the car, I am the one who needs to pay the bills and I am the one who has to buy the food. I can see the expanses growing, month by month.

Sometimes I wonder if all of this is worth it. Afterall, we are working our entire lives and yet we can not afford the basic. On the other side, there are millionares and billionares, whose wealth is exponentially increasing. How much longer can we live in a system like this.

We need a change. A change of the financial system.

If I was not worried about it 15 years ago, I am now.

And you should be too.

Not because of the financial crisis, because it will pass like any other.

But because we are so dependent on the American economy.

Here I must state that I am merely expressing my opinion on how unfair it is that the mistakes the USA does affect the entire world.

The following image is something that will decide our future once again.

Source. Macrobond

The graph shows just how MUCH money was printed in the USA as a response to the pandemic. 20% (and a bit more) of all the USA dollars ever created was printed in these two years. 20%.

The result is inflation.

There is more.

Simply put, we are dealing with a crisis on top of a crisis.

The epidemic, for starters, has flipped our lives and economies upside down—and it is far from over. The virus's continuous expansion could result in more contagious or, worse, fatal variations, causing further disruptions—and widening the gap between rich and poor countries.

Second, the war: Russia's invasion of Ukraine, which has wreaked havoc on Ukraine's economy, has sent shockwaves around the world. The already damaged supply lines are now even more broken.

The war's economic ramifications spread quickly and widely, affecting neighbors and beyond, and disproportionately affecting the world's most vulnerable people. Hundreds

Naturally, measures must be taken to counter inflation. And the result of that?

Stagnation.

No further economic development. If it continues this way, it will lead to a financial crisis.

Seems like there are two options.

We either embrace the inflation, where people will not be able to afford the basics or we go for stagnation, where people will lose their jobs and will not be able to afford the basics.

There is a third option, called stagflation, where you will not have a job, but even if you did, you would not be able to afford anything because it would be so expensive.

Stagflation, like a boogeyman used to scare children, is brought up by economic forecasters now and then to warn of how horrible things can get if we’re bad. And yes, we were bad.

“We now have the worst of both worlds; not just inflation on the one side or stagnation on the other, but both of them together”

- Mr. Iain Macleod

This is my first article here!

I hope you have enjoyed it. There will be many more. If you believe in financial freedom, please join me on this journey. We need to change the world for the better, together!



finance

About the author

Drake Flyer

There are 2–3 revolutions in one’s lifetime. Is crypto one of them?

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Nice work

Very well written. Keep up the good work!

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Comments (5)

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  • April Denise Stuartabout a month ago

    You definitely are telling it like it is. I hope that you check out my writing when you can.

  • Jack Nanuqabout a month ago

    Sir; I'm not so sure your parents did you any favors by "protecting" you form the financial troubles of 2008-201? I was a teen in the 70s and 80s. That was a time of gaslines, inflation and mortgage rates in the teens. Both my parents had "professional" white collar jobs and it was a struggle. My father worked 2 jobs most of that time. Us kids were encouraged to get jobs and hustle. It gave us a good foundation. we learned to be problem solvers.

  • Amy Liouabout a month ago

    This was quite interesting and unfortunate to read. I've been wondering how I could increase my own income as well.

  • InfiniteFlameabout a month ago

    Very well outlined ! you have drawn correct sequence of mishaps. Srilanka is a great example today. If interested do read here. I find your article complementary with me. Nice 😊 https://vocal.media/theSwamp/can-we-eat-money

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