The stock market crashed in 2008, and evidence suggests that the global economy is still not fully recovered more than a decade later. To recover from the financial shock, bailout and stimulus packages have been deployed to accelerate financial recovery. Governments have done what they deem necessary to ensure that life as we know it can continue along the most familiar paths. The question, however, remains whether the crash was just a symptom of a larger, more widespread problem.
As one of the most powerful global political and economic players, the U.S. government has played and will continue to play a key role in the changes taking place in the global financial system. Yet the country has established a pattern that could end up undermining the very structures it influences. As long as the government can maintain the high level of trust it initially built up, the status quo will remain unchallenged, but that seems less and less likely as time goes on.
With the “temporary” suspension of the gold standard, the world economy shifted to its current course in 1971. It was then that the 1944 Bretton Woods agreement was abandoned and the currency became legal tender today. But what is the difference between money and currency? Why is it relevant to ordinary people? How can it affect ordinary people? It’s important to know these details before anyone starts to understand why money was “as good as gold” but not anymore. This is the key to understanding and predicting how another stock market crash could occur, as well as personally assessing and extrapolating its likelihood.
Some people think the financial system is just one giant Ponzi scheme, but does it really matter as long as everyday needs are met? Is the problem just at one point it’s in an infinite loop of only feeding itself? What role does debt inflation play in this? How much influence can governments really control, and to what extent are they willing to maintain that control?
Economic analysts provide information on how individuals can protect themselves and their families from inevitable economic shocks and speculate on the possibility of a world where financial collapse is really just a matter of time.
Directed by: Tim Delmastro
