Financial crash 2022?

[Haji 2003]

Twitter is buzzing not much in the MSM.

The problem seems to be Credit Suisse and Deutsche Bank is also being mentioned. But if one of these fails there may be knock on effects.

 

[HzAbbas]

This is bad. Very bad. It's going to be much worse than 2007/2008 because it comes at the tail end of enormous Covid QE & at the start of a massive energy crisis in Europe going into winter. 

[notme]

I have a solution but ain't nobody rich middle class folk wanna hear it: get to know your neighbors, grow food, stop buying stuff you don't need, support your neighbors when they're struggling to live. In short, be like poor folk have always been. 

Let capitalism collapse. It'll hurt but it's going to happen anyway, may as well learn to live in communities again,  like ordinary humans always did before capitalism.  

And then we will have a chance at survival. 

We don't need billionaires and kings. Let them hoard their worthless money.  We can live without it.  

[Muhammed Ali]

It's because central banks are increasing interest rates in an attempt to fight inflation. But rates cannot increase much (and they have already increased a lot) without causing many defaults because of how much debt there is in the system. The American Federal Reserve has been more aggressive in increasing rates than other banks and this has resulted in other national currencies losing value.

If inflation persists then central banks may decide to let it be high instead of causing another financial crisis. 

However this inflation may die away in a few months time (it was mainly caused by supply constraints rather than currency devaluation) and any major defaults would be dealt with by money printing like it was during the GFC.

[Muhammed Ali]

19 minutes ago, notme said:

We don't need billionaires and kings.

But we do need less ignorant people who help empower these evil leaders.

[Muhammed Ali]

Look at how recessions coincided with a fall in interest rates after they have had a sustained period of increases. The grey areas are recessions. The rates were dropped in order to deal with the recessionary periods. Lower rates cause more borrowing (more debt) which makes it even harder to increase them again. 

The bailout of some British pension funds which happened last Wednesday was also linked to the increase in interest rates (since the value of the gilts held by the funds has an inverse relationship to rates). 

Edited October 3, 2022 by Muhammed Ali

[HzAbbas]

The US raising interest rates isn't really going to do much, because ultimately as more and more countries run into trouble they will sell off (some) of their dollar reserves to shore up their own currency. 

China tells banks to brace for massive dollar selloff

And as this currency finds it's way back to the US inflation will get worse. 

I can't see this this getting better with the Ukraine War, the looking energy crisis in europe & now the looming collapse of Credit Suisse.

[justAnothermuslim]

7 hours ago, Muhammed Ali said:

But we do need less ignorant people who help empower these evil leaders.

Do you think campaign like this one below can help address the situation?

Global Walkout Campaign Calls for ‘Unified Pushback Against Globalist Agenda

 

Every Sunday at 8 p.m. London time, Global Walkout announces a new “step” or action people can take to extricate themselves from the globalist agenda and impede its progress.

[EiE]

Perhaps, read this.

 

"Pope Francis has ordered that the Holy See and connected entities move all financial assets to the Institute for Works of Religion (IOR), commonly known as the Vatican bank.

According to Francis’ rescript, financial and liquid assets held in banks other than the IOR must be moved to the Vatican bank within 30 days of Sept. 1, 2022.

The decree will force Holy See institutions, including the Secretariat of State, to move their financial assets to the IOR by the end of September. The Secretariat of State is known to have had accounts in Swiss financial institutions, including Credit Suisse, through which the controversial London building investment was initially carried out."

 

 

https://www.catholicnewsagency.com/news/252093/pope-francis-instructs-vatican-entities-to-move-all-funds-to-vatican-bank-by-sept-30

[Muhammed Ali]

10 hours ago, justAnothermuslim said:

Do

The extreme conspiracy theorists are more "knowledgeable" than most people but they lack in critical thinking. They allow their emotions to create altered versions of reality within their minds. They are harmful.

That isn't necessarily in reference to the walkout.

Edited October 4, 2022 by Muhammed Ali