Is Another Market Crash Inevitable?

The new capital requirements for financial institutions – known as Basel III – has been widely discussed lately. The plan is to raise the bank’s capital ratio, not to avoid another financial crises, but to lower the frequency of them. Isn’t there a better solution? Well, J.S. Kim at SmartknowledgeU think there is…

“In crisis, we turn to our governments and bankers to help us out, a very foolish response since it is bankers and governments that have created this crisis.”


“Today, there is not a single government in the world that has provided an adequate or sustainable solution to our global monetary crisis,” the founder of the independent research and investment firm SmartknowledeU, J.S.Kim, writes in his latest newsletter.

Here’s the rest:

The most prominent criticism from Keynesian apologists regarding our monetary crisis is that there is no better system than the one we are using and that supporters of Austrian economics always complain but offer no solutions.

This simply is not true.

Rather, our global leaders refuse to hear or consider the solutions we present.

Because our global leaders’ “solutions” to our present monetary crisis are false “solutions” predicated on the guidance of bankers, there is ZERO CHANCE that the world will not be plunged into another financial crisis that is deeper than the one we experienced in 2008 despite the denials of our political and banking leaders.

Today, citizens desire real change, not change disguised as maintenance of the status quo that politicians and bankers offer to us.

Today, we are unfortunately afflicted with a state of learned helplessness.

In crisis, we turn to our governments and bankers to help us out, a very foolish response since it is bankers and governments that have created this crisis.

How can we expect real change from the perpetrators of this crisis?

Any real positive change that has benefited citizens has always been sparked not by the State, but by individuals.

Today, the results of our dependence on bankers and governments to produce change will result in certain failure and more restrictions on our freedom.

In my book, “The Golden Gift,” is an idea that I believe can revolutionize the current monetary system and ensure that the current global economic catastrophe of massive unemployment and currency devaluation that plagues nations in the Americas, Asia and Europe will be unlikely to ever repeat itself in the future.

Not only is this idea a relatively simple idea to implement but it would also impact humanity in a massively positive manner, from helping to alleviate poverty, to restoring peace between warring nations, to destroying the conditions that give rise to terrorism.

It is a simple idea yet one that would have profoundly positive humanitarian implications in an indirect manner as well as a direct manner.

And most importantly, it is an idea that could be implemented despite the strong opposition it would assuredly receive from Western governments and bankers.

While far from a perfect solution, I hope that my idea will spark a discussion that will eventually create an implementable solution if the one I have presented currently contains too many flaws.

I strongly believe that one must have, at a minimum, a basic understanding of the artificial framework in which we live where those in power constantly sell propaganda to us as truth, if we are ever to break free of their mental and psychological constraints.

J.S. Kim


I believe that we must explore the reasons why society holds so many widespread beliefs to be true that are not, and why we often hold beliefs so tightly for no other reason than the fact that someone, somewhere, at some point in our lives, ordered us to believe it.

If we can understand this, then perhaps we can awaken from our century long slumber.

And at least that is a start.

By J.S. Kim

Managing Director & Chief Investment Strategist


Related by the Econotwist:

Bank of Canada Puts Price Tag On Basel III

Central Bankers Propose To Propose Repo Clearing Arrangements

Bankers Hail The New Basel III Regime

Central Bankers Announces A Higher Form Of Capital Standards

Basel III And The Fawlty Towers

Will Basel III Crush the Global Economy?

Is Quantitative Easing An Attack On Your Freedom?

Beware: Global Asset Bubbles Growing!

6 U.S. Banks Collects 93% Of Industry’s Trading Revenue



1 Comment

Filed under International Econnomic Politics, National Economic Politics

One response to “Is Another Market Crash Inevitable?

  1. The Destructionist

    If you haven’t already watched the documentary, Capitalism: A Love Story, then I highly suggest you do.

    At first, the trailers made it sound like it was a joke. I thought it was going to be another one of those propaganda films pitting “Bleeding-heart Liberals” against “Right-wing Neocons” (you know the kind), but it wasn’t like that at all. Instead, the film was serious and focused primarily on corporations and their zeal to maximize their profits at all costs and with total disregard to the people or to the countries they might ultimately affect.

    A part of the film that I found especially intriguing was the presentation of a document written by Citigroup that was sent to the wealthiest of its investors; essentially stating that America was no longer a Democracy, but a Plutonomy (an economy run and powered – not by people like you and me – but by corporations and the wealthiest 1%). To be honest, I thought the document was made up bullshit and I’d never be able to find it online. (After all, who would be so brazen, or so stupid as to compile such information and then to let it go public?) But I was wrong. It’s real:

    Equity Strategy
    Plutonomy: Buying Luxury, Explaining Global Imbalances

    As I read page-after-page, I could feel my eyes growing wider and wider in utter disbelief (My God…I mean, it was like reading a manual on how to successfully turn our world into George Orwell’s, “1984”)!

    I have to say that I’m rather embarrassed that I didn’t know about this document (or the documentary) before today. But now that I do, it only confirms what I’ve written about in times past: the powerful corporate élite are actually designing plans to take over the world’s economies and fashion its various countries into collectively owned corporate blocs, whereby people are no longer consumers, but hive-like workers.

    Now I know what you’re saying, and I totally agree with you…(It sounds like, “crazy talk,” right?) But there will come a day – however absurd it sounds – where national allegiances will be replaced with “corporate allegiances.” It might not happen tomorrow – or even a year from now – but trust me… Someday, it will happen…