Our Financial System is Wobbling
One of the most critical systems that almost all of us rely upon is among the most complex and unreliable – the financial system.
News reports indicate that the financial networks are far more prone to breakdowns and malfunctions that most of us believe. To make matters worse some of the big banks seem to be preparing for the total failure or the current financial system.
Some examples of the unreliability of financial technology include:
- The New York Stock Exchange (NYSE) had to halt trading in two of the most significant stocks around; Alphabet AKA Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN), because of an unspecified malfunction on April 25, 2018. The cause of the failure was called a “price-scale code issue,” that was not defined. The Financial Post speculated it might have occurred because merely because Amazon and Google’s stock prices were over $1,000.The truth is, our banking system is far more vulnerable than the average American thinks.
The world’s largest banks know financial technology is unreliable, so their backups to the present financial network use the block chain technology. The block chain is a highly encrypted network that is more far more secure than traditional internet connections.
- A consortium of giant banks that includes BNY Mellon, Credit Suisse, UBS, HSBC, the Deutsche Bank, and Banco Santander are developing Utility Settlement Coin(USC), a cryptocurrency. The USC would enable banks to keep moving money around through the block chain; an alternative network, if the regular banking system goes down.
- America’s largest bank JPMorgan Chase is testing its block chain solution for moving money called Quorum. American Banker reported that Chase and Goldman Sachs tested a $150 million transaction through Quorum on April 21. The Royal Bank of Canada and the Australia and New Zealand Banking Group are also participating in Quorum. Like USC, Quorum can is seen as an alternative financial network.
- However, it is not only commercial banks. Britain’s central bank; the Bank of England, is researching the potential of sending large amounts of money through the blockchain, Digital Trends reported. The People’s Bank of China (PBOC), China’s central bank has its block chain research institute.
Everyone and anyone that relies on the current financial system needs to ask what do the bankers know that we do not? Why are big banks spending so much money researching alternatives to present day monetary technology?
It sounds as if bankers and financiers are quietly building an off-the-grid backup system of their own… just in case. Don’t miss this.
“Backing Up” Your Own Financial Situation
Having several back-ups for your finances and technology is always a good idea. Here are a few suggestions:
- Put part of your money in precious metals like gold, silver, and platinum. They are not perfect, but precious metals can hold value better than some traditional investments.
- Have some hard money in the form of paper cash or gold or silver coins stashed away where you can easily access it. Keep the stash well-hidden and never talk about it. The bad guys have ears.
- Learn how to barter. It is a vital skill during cash shortages, hyperinflation, and other financial crises.
- Have items you can swap; such as canned foods, fuel, ammunition, eggs, cigarettes, tobacco, liquor, wine, beer, candy, condoms, sugar, first-aid supplies, building supplies, tires, car parts, firewood, etc., available in case of financial crisis.
- Have skills that you can barter such as carpentry, auto repair, plumbing, bicycle repair, cooking, hair styling, gun repair, black smithing, computer repair, baking, hunting, gardening, first aid, etc. Remember having skills in areas that people need will give you endless opportunities.
- Research alternative financial technologies such as cryptocurrencies, block chain, etc. These solutions are getting easier to use all the time, and news reports indicate that ordinary people are using cryptocurrency to survive the hyperinflation in Venezuela. Unlike gold or paper cash, cryptocurrency can be used to buy stuff online. (liquidity is extremely important)
- Backup all financial data offline on paper or flash drives and in a secure cloud storage solution. Having two or three or more backups is the best way to preserve data.
- Have a backup power system and a satellite internet connection so you can stay online and connected to the financial system – if the electric grid goes down.
The most important rule of financial survival is the most basic. Do not keep all your eggs in one basket. Having several backup systems for your finances might be the key to your family’s survival.