Impending Depression

Introduction

“I feel like I’m in a dream. A bad dream. The kind of dream where you know something terrible is going to happen, but you can’t stop it.”

Housing Market Crash 2007-2008

The financial institutions, knowing that something was going very wrong, decided to provide subprime mortgage options. A subprime mortgage is an option that allows financially unstable individuals to qualify and afford a mortgage. These borrowers are typically given adjustable-rate mortgages (ARM) in which their interest rate can fluctuate based on changes in an index or margin. The idea behind these types of loans is that they allow someone with poor credit score access to home ownership; however, they also come with higher rates and shorter terms than traditional fixed rate loans.

The crisis started because of a new type of investment vehicle that allowed investors without any personal assets or liabilities (i.e., risky investments) into what was previously a safe investment class: real estate securities backed by residential homes. In other words, banks could now sell mortgages off their books as “securities”–collateralized debt obligations (CDOs)–to other financial institutions like pension funds who were looking for higher yields than those offered by government bonds.”

Causes leading up to the 2008 Crisis

The following are a few of the causes leading up to the 2008 financial crisis:

  • Housing market bubble: In 2001, interest rates were lowered to make housing more affordable. This caused an increase in home prices, which fueled a housing boom. Between 2000 and 2006, for example, home prices increased by 95 percent (from $200k to $350k). But after 2006 when interest rates began rising again, people could no longer afford their mortgages and started defaulting on them in droves. This was what caused the housing market crash that led us into recession at that time.
  • Financial crisis: The collapse of Lehman Brothers Investment Bank in 2008 triggered an unprecedented global financial crisis that was made worse by banks’ excessive risk taking and failure to manage their risks properly. Banks relied heavily on debt financing instead of equity financing due largely because they thought they would always be able to sell assets at higher prices down payment or even refinance loans as necessary – but this wasn’t possible when people stopped buying houses (or any other asset) because they couldn’t afford them anymore!

Current Housing Market Crash today

If you remember the housing market crash of 2008, then you’re probably familiar with what a crash looks like. That crash left many people in negative equity, meaning that they owed more on their homes than they were worth.

Today’s current housing market is similar to the one before the Great Recession: it’s full of foreclosures and underwater borrowers. In fact, there are still more than 3 million mortgages that are underwater today—and those numbers aren’t shrinking fast enough to make up for future supply.

A new Global Economic Depression?

You may have heard that we are headed for a new global economic depression. What does this mean? It means that there will be another global recession, but it will be much more severe than what we experienced in 2008. A recession is a period of temporary decline in economic activity and inflation, which can last from six months to multiple years depending on the severity of the downturn. When people say “global” economy, they mean that the entire world’s economy is affected by these changes in business activity and monetary policy—not just certain regions or countries within it.

A depression is similar to a recession because it involves negative growth rates across various sectors of an economy (e.g., consumption spending falls sharply as fewer people purchase goods/services). When these negative trends persist for at least five quarters (that’s two years), then we call them depressions instead! The cause of depressions varies from country-to-country depending on their unique circumstances: For example, some countries might experience large fluctuations due to external forces like war while others might experience internal factors such as banking crises caused by poor management decisions over time; but regardless there are always reasons why one country could fall into such dire circumstances compared with another.”

Follow the Money – The Federal Reserve, Coronavirus and Fiat Currency

The Federal Reserve, established in 1913, is the central banking system of the United States and is responsible for printing our money. The Federal Reserve System (the Fed) has total control over our economy through its ability to manipulate interest rates and print unlimited quantities of money out of thin air. A government decree is the deciding factor on the value of money printed.

Fiat currency literally means “so-called” because it’s not real money — it’s fake! The paper money is printed on is manipulated and holds little value once this economic depression begins in earnest.

What comes next?

The next several years will be rough. Fortunately, you can prepare yourself by planning ahead. Here are a few things to consider:

  • Prepare for a global economic depression. This is the worst-case scenario and one that could occur at any time—the market is too unstable, our national debt is unsustainable, and more nations are entering into global trade agreements with their own currencies (which means they’ll no longer need dollars). This would paralyze America’s economy and ultimately lead to widespread poverty; all we can do now is hope it doesn’t happen anytime soon.
  • Prepare for a global pandemic or war that would cause mass casualties in our country (or even worldwide). If this happens sooner rather than later, we’ll see less food available on store shelves as everyone panics about whether they should stock up before things get worse—and then there’s always the chance it could spread through air travel as well! In short: bad idea!
  • Prepare for another financial crisis like 2008-2009 where banks collapse because no one wants to lend them money anymore due to fears about defaulting loans being worth less than expected due some unforeseen event like another recession happening soon after already existing ones end (which creates uncertainty at best) or worse yet – A Global Financial Crisis caused by bad investments made overseas which makes it impossible

Prepare for what is coming next!

You can prepare for what is coming next by:

  • Establishing a budget and sticking to it.
  • Saving money by reducing expenses on luxuries such as expensive dinners out, cable television subscriptions, and shopping sprees.
  • Find a way to make extra income. Having all your eggs in one basket is riskier than you think.
  • Cutting back on expenses like food and entertainment.
  • Find other unique ways to make money (etsy, writing books, consulting etc.)
  • Buy food and other items you use in bulk, while you have the money.

You may not have time for these things now but soon you will have no choice but to do them if you want your family’s survival intact during these troubling times ahead.”

Conclusion

There’s no denying the fact that we are in the midst of an economic depression. Yes, there are signs and indicators that point towards it being more severe than the one experienced during 2008 – 2009. Do not take our word for it, instead do your research! Listen to more than one side, and don’t take all media coverage as being truth.

Life Altering Social Credit Score

Introduction

If you were to ask the average American about their thoughts on the Chinese government, they would likely tell you that it’s pretty authoritarian and doesn’t necessarily respect human rights. But if you asked them about the Chinese government’s plans for its citizens’ social credit scores—a new system that will measure citizens’ trustworthiness using big data technologies—they might be surprised to learn that it sounds like something out of a dystopian sci-fi novel. And yet, this is exactly what China is working toward developing right now: a system where every citizen has a score based on their behavior and associations. It could tell us who we can trust and who we should avoid at all costs!

What is your Social Credit Score?

You’re probably wondering what your Social Credit Score is. That’s an important question, because it could have big implications for your financial future.

For example, if you have a low score and want to buy a car or rent an apartment, good luck getting approved. If you have a high score and want to take out a loan from the bank, that should be easy as pie. The system is still in its early stages of testing but will eventually be implemented nationwide by 2020—and government officials predict that it will raise China’s rating from “medium-low” to “high.”

So how does it work? Basically, it’s like Facebook with no privacy settings and more access for government officials! Every citizen has their own unique Social Credit Score based on all sorts of data collected about them over their lifetime—including things like criminal records (if applicable), employment history (or lack thereof), internet usage history (which includes things like posts on social media), academic performance at school/college/university… basically everything they do is factored into this thing called “social credit,” which was first proposed by President Xi Jinping back in 2014 when he took office as leader of China’s Communist Party

Under the Social Credit System, the State Council plans to reward those who score well on it.

The Social Credit System will be implemented at some point in the future, and the State Council has declared that it plans to reward those who score well on it.

In detail, the following rewards are planned:

  • 1st place: 50 points
  • 2nd place: 40 points
  • 3rd place: 30 points

Banks and other financial institutions can then use that information to determine things like whether a person should be approved for a loan.

The system will also be used for more than loans. For example, you might want to pay a bill at the supermarket. The cashier will ask to see your social credit score before proceeding with the transaction.

Then there are employers who might not hire someone if their score is low. The same goes for landlords, who may not rent a home or apartment to someone with a low score — and even dating sites could refuse entry based on an applicant’s credit rating.

What determines your rating?

Your Social Credit Score is a number that represents your financial and social worth. It’s calculated based on everything from the way you use your credit cards to how many times you visit the hospital, and there’s also a section for your online shopping habits—Amazon, anyone?

You can think of it like this: if you have good credit, you’re more likely to be approved for loans or mortgages. If not, well…you might have trouble getting a seat on an airplane!

The SCS formula combines all kinds of different data sources in order to calculate its final score. These sources include information about who you are and where you come from (like gender or ethnicity), what kind of jobs/income sources exist in their community (like if they’re employed or unemployed), their education level (from elementary school all the way through university level), what groups within society they belong to & whether those groups are considered “high-risk” by authorities such as criminals (for example). The formula also takes into account various forms of social capital like participation in local government activities or religious activities; as well as any other relevant factors such as driving records that may affect their ability access services like public transportation systems which require ID checks before allowing entry into them…or even just being able to drive themselves places safely without causing accidents due poor judgement skills due lack sleep deprivation due poor diet choices leading up finally finding someone willing lend enough money ($$$) needed pay off debts owed back taxes owed so that could afford rent month after month instead living paycheck week paycheck without fail until one day when finally does happen — can no longer continue paying bills anymore due missed payments lead eventually resulted lost job ended up homeless again which

The rules are constantly changing.

As you can see from the above list, the Social Credit Score system is not perfect. It’s a work in progress. The rules are constantly changing and it’s likely that there will be some bugs or glitches along the way. Additionally, while your score may not be completely representative of who you are as an individual, it is still important to take care of your reputation—and keep in mind how much power this new system has given government and businesses alike over people’s lives—because what is said about you could very well become true (unless they don’t like you).

When will the system go into effect?

  • The system is already in effect in some areas of China.
  • It will be implemented over the next few years.
  • Maybe it’ll go into effect in 2023!

It’s already in effect in some areas of China, including in the cities of Rongcheng and Qingdao, where residents run into problems when their scores are too low.

  • You may have heard that China is in the process of developing a social credit system, which will use an individual’s online data—including their social media activity, criminal history and financial records—to create a score that determines whether they get loans, apartments, jobs and other services.
  • It’s already in effect in some areas of China, including in the cities of Rongcheng and Qingdao, where residents run into problems when their scores are too low.
  • In one example reported by Quartz journalist Casey Meraz Jacobs: “One resident said he had wanted to start a business but was denied because his score was too low.”

A new system will be implemented in the next few years to measure citizens’ trustworthiness using big data technologies.

Your Social Credit Score will be a measure of how trustworthy you are. It’ll be based on your online behaviour and could affect things like whether you can get a loan or a job.

The system will use big data technologies to calculate the score, which is expected to be implemented in the next few years by the State Council, China’s cabinet.

Citizens who score well will be rewarded with some kind of special treatment by the government – for example being able to rent an apartment without having to pay anything up front – while those with low scores may face restrictions on their travel permits or internet access.

Conclusion

The idea of a social credit score sounds like something from the dystopian future. But in China, it’s here and it’s real. The government has created an enormous database that tracks every citizen’s behavior and finances, assigning them a number that determines their access to loans and other services. From the outside, it looks like a nightmarish police state—and some experts think it could be coming soon to America too!