The coming crisis

During the next few years, the entire world is going to see a financial crisis. No one alive has seen this kind of crisis before; no one alive will probably see this kind of crisis again during their lifetime.

This is what will happen during this crisis

• A large financial institution or a sovereign nation will declare bankruptcy.
• Because of derivatives, which cannot be honoured by a bankrupt entity, other financial institutions will declare bankruptcy.
• The world financial market will come to a standstill.
• People will not be able to buy/sell bonds/shares.
• Credit cards will stop working.
• Banks will stop cash withdrawals.
• Goods will stop flowing because once credit stops, oil delivery will stop.

Here the world governments will have two choices: Hyper-inflation or Depression.

The world will need a new reserve currency. The governments will insist on a new world currency because existing currency will have either lost value (hyper-inflation) or be unavailable (Depression). The World Bank will suggest governments use SDR as their world currency.
SDR is just another fiat currency like Dollar, Euro, Rupee, etc. It will allow the world bankers to create inflation / deflation on a need basis. It will transfer the wealth of the world from the poor and middle-class to the rich; because the rich friends of World Bank will be informed in advance about coming inflation / deflation. So these rich people can play in the financial markets without any chance of a loss.

We, the common-people, can protect ourselves from this coming crisis by performing the following steps:

• Keep most of your wealth in Gold, Silver, etc. Don’t store this gold/silver in any bank locker. Don’t use ETFs to buy gold/silver. Store the physical gold/silver at location where you can touch it.
• Use cash or Bitcoin (or some other decentralized crypto-currency) for transactions.
• Keep minimal cash in banks, fixed deposits, stocks, life-insurance, debt, etc.
• Pay off your debts early, if possible.
• Keep cash with you to cover expenses for 6 months or so.

A huge percentage of people across the world will not survive this crisis. But the people, who perform the above steps, will greatly increase their chances of survival. In fact, the crisis will transfer wealth from the unprepared to the prepared.