Federal Reserve Internal System Crash, Just A Bug? Or A Sign Of Instability?

On Feb 24th the internal banking system which the Federal Reserve uses to deliver funds to investors crashed and was down for two and a half hours. A scary moment for economists as confidence in the US economy among economists is becoming increasingly shaky. Glem Chambers, one of the World's most prominent financial writers wrote an article titled: How To Spot The Stock Market And Bitcoin Crash Of 2021. 2 days prior to the banking system crash. In the article, Chambers details how the stock market and Bitcoin are potentially reaching hyperinflation levels.

hyperinflation happens when the numbers that represent the actual value grow so high that the true value of the currency or property depletes greatly. This is especially concerning because of the poor economic conditions brought about by covid 19. In Joe Biden's first Month in office, more than 800,000 more people filed for unemployment in the United States. That's 200,000 above the amount initially predicted by economists. It is rare that economists are that far off, but economists have been betting on the lockdowns being over and the return to a pandemic-less economy to help bolster recovery. 

Market runs like the recent Gamestop run, which actually on the same day as the Federal Reserve system crash became reignited and led to Gamestop's value tripling within just a few hours, is building an unstable market. Another sign of a market's instability is the value of Gold and Silver, which are also shooting up in value. When things shoot up in value, it may seem like those are good signs for a healthy economy, but on the contrary, Gold and Silver are primarily used as an economic safe net for if the US Dollar were to crash. If the demand for precious metals goes up, it means people are buying them up incase their portfolio fails, worse yet, if the dollar crashes. 

https://usdebtclock.org/

Something anybody can do, is go to the US Debt tracker. Here, in real time, you can watch the US debt go up. As of the time of writing this article on Feb 24th, 2021, The debt was 27,929,927,835,966. But if you were to go look yourself, you would see a big change in this number in the wrong direction. The US Economy is one that lives on a backless and fiat currency, only living on the faith of its users. Generally, backless economies like this can only survive on consumerism. If enough Americans lose their jobs, and if there are enough economic disruptions like natural disasters, like a blizzard in 13 States for example, then the foundation of the US economy will start to crack.

There have been many economic collapses historically, which lead to the hyperinflation and Ultimate devaluing of currency. One famous example is the Zimbabue Dollar, which became so hyper-inflated the introduced bills such as the 500 million dollar bill. To read details on how Zimbabue ended up hyper inflated, as well as 4 others, you can read about them here.

Was the outage today just a technological bug? Was it the act of some hacker in his parent's basement? Or was it an intentional outage to try and slow the bleeding? If the ladder is the case this  would definitely be a crack in the foundation of the US economy. If you are reading this and are wondering what to do, just remember a quote by Louis Pasteur "Fortune favors a prepared mind." Make sure you have enough food to handle supply chain disruptions, make sure you are invested in something other than the US dollar, and make sure you have a plan if the Dollar does go.

Written by, Tyler Wiest
Project GAS Writer/Producer

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