We just experienced one of the greatest credit bubbles in the history of the world. It was concentrated in New York and in London. Taking into consideration the Jim Rogers sterling analysis, it was perhaps even worse in London than in New York because of some laws and regulations that were passed in the United States. The politicians didn’t want to see anyone suffer, so they tried to smooth things over. However, they are only making things worse.

In the 1970s, the UK went bankrupt, and the IMF had to bail them out. It was inconceivable, because Britain was the richest most powerful country in the world at one time, but they simply couldn’t sell their bonds on the world market. As has been stated by Jim Rogers Sterling currency had nothing magical about it back then, and the dollar has nothing magical about it now.

In 1998, there was a huge company that failed in the United States. However, the government bailed them out. If they had been let to go bankrupt, a lot of businesses that recently failed would never had gotten themselves into that situation. The market wasn’t allowed to work. With every bailout, the entire system gets weakened. Eventually, the entire system cannot stand.

People have been ignoring the lessons of history for a long time. They won’t be alert or pay attention until it really matters.

Farmers won’t be as affected by the upcoming crisis. Farming is going to be one of the strongest industries in the future. China, Japan and Taiwan have been sending their goods to the United States, but that cannot continue. If they do, they will end up holding all of the bonds of the west. This is the first time in history that the undeveloped nations are financing the consumption of the developed nations.

Inflating away your debt has never worked in the long term. According to Jim Rogers Sterling money was inflated back then, and the Dollar is being inflated now. You cannot point to any point in history where that has ever worked.