Friday 1 December 2017

Money’s End.

12th November 2019, 11.15am. Global currency trading collapses causing a ninety two trillion dollar drop in world liquidity. 10.57am all major stock markets stop trading. 12.05pm banks begin to close their doors and you’re left with the cash in your pocket. After frantic conference calls there’s worldwide agreement to apply 11th Nov 0.00am backup data to begin 0.00am 13th Nov. With twelve hours to notify all major players the 13th begins almost as if yesterday never happened but by midday the collapse began again with the same consequences and a similar response, but this time using the 4th November data. This would give a week to figure out what was going on. Automated high speed and algorithmic trading was banned with currency trades to be no faster than one per second. This would slow the market. All went well until on the 19th a collapse occurred again. They went back a month then two months but each time a collapse occurred. By then January 2020 had become September 2019. Computer systems were scrutinised along with every aspect of the financial market but there seemed nothing awry. In these one and two month periods everything went differently except they ended in a collapse. It was like they were just climbing a slippery slope only to slide back down again. A wider range of the brightest minds was brought in to identify the problem. Only when they built a computer model of the whole financial process did an answer become evident. It was called the ‘Kid/Toy’ syndrome. Give a kid a hammer and sooner or later he’ll flatten his finger with it. The combination of the professional financial mindset and the technology at its’ disposal will always cause a collapse. (like the 2010 ‘Flash Crash’ where the US lost one trillion dollars in 32 minutes) It was all just a matter of time. The question then arose, ‘How far back do we have to go before it doesn’t happen again?’ 

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