The Cryptocurrency Crisis
COMMENT: Mr. Armstrong, I simply wished to specific my thanks. You had been the one one who referred to as the excessive in Bitcoin. You saved my marriage, my residence, and my future. I attempted to inform a good friend who went and took an fairness mortgage to spend money on Bitcoin. He might lose his residence now. I attempted to inform him you warned markets crash when everybody has purchased. He wouldn’t hear. Your precept applies to all the pieces. Thanks a lot. Your WEC saved my life.
See you in Orlando.
OA
REPLY: I do know, The NY Publish has printed how individuals are dropping all the pieces and a few are considering suicide. That is the conventional Increase-Bust Cycle that governs. I do know lots of analysts disagreed with me. All I can say if they didn’t see this coming, then they had been too biased and caught up within the commerce for themselves.
As I’ve mentioned, cryptocurrencies are an asset – not cash. They’re not at all a secure harbor in opposition to “fiat foreign money” and can NEVER be a retailer of worth as a result of NOTHING ever is. Gold rises and falls. Even through the 19th century, there was inflation and deflation. Guess what? If you end up on a gold customary, the worth of gold rises and falls simply because the greenback does proper now.
There are individuals who REFUSE to ever hear and hold preaching {that a} return to the gold customary one way or the other mysteriously will remedy all the issues. I believe they’re smoking their marijuana method an excessive amount of. I have no idea find out how to clarify it any easier. There’s a cycle to utterly EVERYTHING!. There’s NO customary that may EVER work due to the enterprise cycle. Here’s a chart of the Gold/Silver Ratio. If there was this fictional world the place one way or the other cash by no means appreciates nor declines, you’ve gotten crossed the road into Marxist Idea and Communism. That was the entire motive behind Marx – to create the proper world and finish recessions and depressions.
Paul Volcker in 1978 specific the tough actuality that no one listened to. He referred to as it the Rediscovery of the Enterprise Cycle as a result of it all the time defeated these individuals who tried to eradicate the enterprise cycle and create the proper world.
Arthur Burns, who was the Fed Chairman on the time of the collapse of Bretton Woods. He too acknowledged that the enterprise cycle all the time wins. I’m sorry, however that is actuality. Market crashes as a result of EVERYONE who ever considered shopping for has purchased. One thing occurs they usually attempt to promote. The market crashes as a result of there I an absence of recent shopping for. To outlive your individual funding selections, that is lesson #1 – When everyone seems to be speaking about that funding as the subsequent exception to achieve new heights, it’s time to exit.
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