World Financial Situation
|Nancy, when 9/11 occurred the world almost stopped both fiscally as well as emotionally. Yet in the end only a few buildings came down and 3,000 people died. While those deaths are certainly important to their families I can only imagine the fiscal and emotional impact across the world when the 7 of 10 occurs in Indonesia. My question is can we expect a thousand times impact on our economy and our emotional state worldwide as the 7 of 10 occurs. If so won't the monetary system almost collapse if not at least be paralyzed.
If so won't the monetary system almost collapse if not at least be paralyzed. If so, it is imperative that everyone make sure that they are well prepared prior to this event. Since in the hands of man, there is no telling what the world leaders will do from as simple as wringing their hands to as much as imposing martial law.
We have been asked many times about the strength of the financial system, and have iterated the many checks and balances that are in place and will be used when the time comes. The goal of the banking systems is to not only to survive, but to thrive. If they cannot thrive, they will certainly take all steps to survive. Closing weak banks and rolling the assets into stronger banks is a process that has been going on since 2008, the Wall Street crash, and will continue. This throws bankers out of work, throwing the bums out, but the system survives. A second defense is to limit banking services - only so many hours, only so much in savings withdrawn, smaller ATM withdrawals, that sort of thing. Next are price freezes which are imposed behind the scenes on the stock markets and bonds - no gouging by private parties. This does not make greedy brokers or bankers rich, but maintains the system. All of this has been in process already, during this the second Great Depression.
During any catastrophe causing loss of homes and businesses and crops, insurance companies routinely go bankrupt. In recent years they have tried to buffer their loses by refusing to insure homes for flood insurance if in flood plains, or refusing to insure homes for quake damage if in earthquake zones. If necessary in order to support business in the region, polices will be written but will become worthless when a disaster hits. The insurance executives take their retirement funds and run away, leaving their clients bereft. Governments, who must attempt to repair infrastructure, will do little to help those who have lost all. Those insurance companies not affected will continue as before, and those who were wiped out will make no apologies.