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Digital Black Swan

The Digital Black Swan is how the current economic collapse will likely unfold. I don’t claim to know what the pin will be that will finally pop the global debt bubble. I also don’t claim to know when this global debt bubble will finally burst. I do however have much experience with multiple economic collapses and black swan events.

I retired at 19 and invested everything in real-estate. A black swan event, 15% inflation combined with 21% mortgage rates at the same time, wiped me out financially. I started over and rebuilt my finances, only to live thru the stock market collapse of 1987, the Savings & Loan crisis of the 1980’s, the Dot-Com bubble, the stock-market crash and real-estate bubble of 2008 and now today’s global debt bubble.

I retired a second time at 38, and have spent the last 20+ years doing everything on my bucket-list. There are two things that are drastically different today, than from any of the economic bubbles and collapses that I lived thru before. This video is a discussion of what is different this time, and how I believe the upcoming financial bubble will finally burst.

The first thing that’s totally different this time, is we’re in a global debt bubble that has gone hyperbolic.  This global debt bubble has had an effect on virtually every asset class, including the stock market, real-estate, commodities and almost everything else.  And it’s not just affecting the United States, but the entire world, at the same time.  The side-affects of this global debt bubble have made drastic changes in modern society.

The second thing that is totally different in today’s global debt bubble, is the digital age we now live in. Never before during any economic collapse has news flowed around the world at the speed of light.  In the past, news of bubbles bursting, or major disasters happening anywhere in the world, took a day, and sometimes several days, to spread around the world.   And collapses of stock markets or real-estate, fully played out over weeks, and often many months.

Today everybody knows of major news, from anywhere in the world, within a few minutes, or at the most a few hours.  When things happen fast, and people don’t have time to digest what is happening, they react impulsively.  When something finally happens that finally pops this global debt bubble, everybody in the world will learn about it almost instantly.  Combined with the technology to sell assets within seconds, or at most a few minutes, that everybody has with their smart phones, there will be a mad rush to the exits, with millions of people all trying to sell their stocks, or crypto currencies, all at the same time.

When everybody wants to sell something at the same time, and nobody is willing to buy, prices will crash like never before in history.  What used to take days, weeks and months for a stock-market crash to fully develop, can now happen over a few minutes, to maybe a few hours.  When this happens at such a rapid pace, panic will feed upon panic, with millions upon millions of people rushing to sell before it’s too late.  Everybody will know that everybody else is also selling, and they will be afraid to take the time to think thru what is happening instead of just reacting themselves.  Panic breeds more panic, and in today’s digital age, cooler heads will not prevail.

The faster panic spreads the more violent it will be.  There will be nobody slowing down to think about what is happening, because time will be of the essence to sell assets as quickly as possible, before it’s too late.

It’s hard to believe that in today’s digital world, when the global debt bubble does finally pop, that billions of people will just patiently wait in line to sell their stocks or crypto currencies in an orderly fashion.  Get real!  Who are you kidding!  And that is what will turn this economic collapse into something truly unique in world history.

That’s not the worst possible scenario though.  What if the internet went down, and nobody could use their smart phones to keep up on rapidly unfolding news and sell their stocks and crypto currencies?  What if somebody set off a nuclear bomb, causing an EMP, or electromagnet pulse, that shut down the smart phones of hundreds of millions of people, as they are trying to sell everything in a panic?

Or, what if your government, turned off all cell service?  You say that would never happen?  It’s happened in China.  It happened several years ago during the Arab Spring, when governments shut down everybody’s cell phones so they couldn’t communicate with each other, and organize protests against the government.  You think it won’t happen here.  People are already being censored by social media for saying things that disagree with the “accepted” truths.  People can hardly say certain things without concerns about being politically correct.  Do you really still think that your phone and internet will be guaranteed to work if the world goes into a giant panic?

So you think that you are smart enough to see the bubble pop when it finally happens, before anybody else realizes what is happening? You think that’ll you’ll just wait until the very top and sell everything instantly, whenever the bubble burst finally happens, and sell out at the top and become rich, before all the hundreds of millions of poor suckers realize what’s happening?  Really?

Ya really think that the people who are causing all this global debt bubble wouldn’t dare to turn off cell phones and internet?  Really?

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