Wherever you are right now in the world, I hope you are okay.
Maybe you feel like you are slowly getting back to normal. That is good, but it is not true.
We are not going back to normal this time. At least, that is what I believe.
This whole corona crisis has something fishy about it. Although the pain and suffering of many is very real, there is something I don’t believe here.
First off, I am not claiming I know, but I do believe I am a person with a healthy dose of simple but sound reasoning.
You might remember that there were big problems with the overnight repo market in September of last year. This market is also called the “shadow market of banking” because this is where the banks get their liquidity overnight.
They actually ran out of money back then.
Do you know what happens if one bank collapses? Not so much. It just hurts a bunch of people, there are headlines in the news, some people that are big enough are bailed out, and we move on.
But when 6 or 7 of those big banks collapse simultaneously, the world has a problem. You and I have a problem.
I personally believe we were very close to the whole system just coming to an end back then. And sure, we could start over again. But if that would happen, it would take decades of suffering, famine, and probably war to get the world economy back on track.
But all of a sudden, there was the pandemic. A reason to halt the world economy. Or was it a reason to do something else?
Central banks from all over the world reacted as they have always done in the past: they are printing money. But this time, the situation was severe enough, to do it by the trillion every month. We have never seen this in the history of the world. The amounts are staggering.
They are literally flooding the system with currency now, but we don’t feel it yet.
Not yet. All these vast amounts of currency are just accumulating somewhere and waiting.
Now if we slowly start to move again, this currency flood will start to move as well. And do you know what will happen?
Inflation. Strong inflation. The loss of your savings and buying power.
In my perspective, what is really happening right now, is a currency war, and it is not going to be over soon.
I expect a “race to debase”, where all big nations like China, Japan, Russia, the US, and Europe are debasing their currency in order to stay competitive and provide their market with sufficient amount of liquidity in order to survive.
And with that race to debase, the majority of people will lose a lot, and a few will make money like never before.
But even if my predictions are true, it is not so important
What will happen to you is more important. Because the only thing that matters is how you should navigate through all of this.
Because even when you are very very small, there are things you should start doing every month now in order to thrive.
How and what you should do is what we will be talking about over the next few weeks.
In the meantime, start educating yourself financially and stick with us.
Because this time, we are not just going to get back to normal.
To your freedom,
