The Cryptocurrency Crisis | Armstrong Economics

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COMMENT: Mr. Armstrong, I simply sought after to specific my thank you. You had been the one person who referred to as the prime in Bitcoin. You stored my marriage, my house, and my long term. I attempted to inform a pal who went and took an fairness mortgage to spend money on Bitcoin. He would possibly lose his house now. I attempted to inform him you warned markets crash when everybody has purchased. He would no longer concentrate. Your idea applies to the entirety. Thanks such a lot. Your WEC stored my existence.

See you in Orlando.

OA

REPLY: I do know, The NY Submit has printed how persons are shedding the entirety and a few are considering suicide. That is the traditional Increase-Bust Cycle that governs. I do know a large number of analysts disagreed with me. All I will be able to say if they didn't see this coming, then they had been too biased and stuck up within the industry for themselves.

As I've stated, cryptocurrencies are an asset – no longer cash. They're certainly not a protected harbor in opposition to “fiat foreign money” and can NEVER be a shop of price as a result of NOTHING ever is. Gold rises and falls. Even all through the nineteenth century, there was once inflation and deflation. Bet what? If you end up on a gold usual, the price of gold rises and falls simply because the greenback does at the moment.

There are individuals who REFUSE to ever concentrate and stay preaching {that a} go back to the gold usual by some means mysteriously will clear up all of the issues. I believe they're smoking their marijuana means an excessive amount of. I have no idea how to give an explanation for it any more practical. There's a cycle to utterly EVERYTHING!. There's NO usual that may EVER paintings on account of the industry cycle. Here's a chart of the Gold/Silver Ratio. If there was once this fictional global the place by some means cash by no means appreciates nor declines, you could have crossed the road into Marxist Concept and Communism. That was once the entire reason why in the back of Marx – to create the very best global and finish recessions and depressions.

Paul Volcker in 1978 specific the cruel truth that no one listened to. He referred to as it the Rediscovery of the Trade Cycle as it at all times defeated those individuals who attempted to get rid of the industry cycle and create the very best global.

Arthur Burns, who was once the Fed Chairman on the time of the cave in of Bretton Woods. He too stated that the industry cycle at all times wins. I’m sorry, however that is truth. Marketplace crashes as a result of EVERYONE who ever idea of shopping for has purchased. One thing occurs and they are attempting to promote. The marketplace crashes as a result of there I a loss of contemporary purchasing. To live to tell the tale your personal funding choices, that is lesson #1 – When everyone seems to be speaking about that funding as the following exception to succeed in new heights, it’s time to go out.