What Will Be?

The governments of the world are pumping huge amounts of money into the banking system. The money that was destroyed in the credit crisis was not government-issued, but generated by the financial system. The governments are forced to replace this money by government-issued money, to prevent a general loss of monetary savings, which would lead to social chaos.

This government policy is likely to stabilize the financial system. Healthy companies will yet thrive. That should yield a big economic boom, as there will be lots of money available. Banks will soon be able to restart lending and multiply the money that they are receiving now. We will then re-encounter the limits of fossil energy resources. The high oil prices must return. The boost won't last long, because huge inflation will cause another financial crisis. The governments will try to prevent this by taking money out of circulation, at the cost of proper government expenditures. Whatever they will try, social chaos will become inevitable.

I believe that the next collapse will be three years from now. You don't want to be a Jew living in Exile at such times.

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