Inflation, deflation, interest rates, tapering — the FED doesn’t know whether its coming or going at the moment, and things aren’t going to get any easier for Jerome Powell moving forward–particularly if the FED’s ‘transitory inflation’ story winds up being wrong, and the benchmark, instead of dropping, continues climbing (to perhaps 6%-9% by the end of the year).
If this occurs, the stock markets will realize that the FED was wrong, and panic will set-in — a sell-off is assured in this scenario.
In response to rising inflation, the FED will likely have no option but to raise interest rates and scale back its bond purchasing, which, if history is anything to go by, will kick-off the ‘taper tantrum’ of all-time (given how inflated the markets have gotten in recent years) — the financial world as we know it will collapse, and everyone reliant on ‘the system’ will go to the wall.
Bail-outs, bail-ins, a correction/depression/great reset — nobody knows exactly how the next financial collapse will unfold, but the vast majority of analysts and experts are now publicly warning that the end is nigh, that things are cooking far too hot, and that a historic, earth-shaking crash is inevitable.
The obvious question is timeframe: ‘how long do we have?’
A better way to ask that is probably ‘how far is greed and delusion going to kick the can down the road?’
Now, one thing causing me to stop and pause is the sheer weight and promotion behind the ‘looming crash’ narrative — everybody and their dog is now publicly warning of a financial collapse on par (or worse) than 1929’s Great Depression.
Deciphering this level of promotion is tricky. Is it a sign of the technological age we live in, where it is easier for analysts to reach the masses (via Youtube etc.)? Is it manipulation? Or is everyone reading the tea leaves wrong, and jumping on the bandwagon?
History would indicate that a crash is indeed overdue…
Since 1871 –the earliest date that we have reasonably accurate US stock market records– to today, the markets have consistently gone through boom and bust cycles (or Bull Markets and Bear Markets).
On average, there’s a full business cycle (boom/bust) every 4 to 7 years–but this is highly variable, with cycles as short as 2 1/2 years to 12 years. We’ve been in this current bull market for going on 13 years now, meaning we’re overdue a ‘bust’.
The most dangerous sentence in investing is “things are different this time” — but things have been significantly different in this bull market, from the very start. Money printing has been propping the markets up since the 2008 crash, and, as indicated above, if inflation continues rising, which the majority of analysts believe is an inevitability given the ‘foie gras’ feeding of stimulus into the economy, then a crash unlike anything seen before could be on the cards.
Note: 40% of US dollars in existence were printed in the last 12 months alone.
Money is usually a medium of change to facilitate the sale, purchase, or trade of goods between buyers and sellers. However, since there is no productivity (good and services) to back up the trillions of dollars currently in circulation, printing more money doesn’t necessarily increase the economic output (productivity), it only increases the amount of money circulating in the economy.
Basically, too much money in circulation chasing the same amount of goods leads to inflation. Officially, inflation is rising above 5% on an annual basis, the highest spike since 2008 — the impact of inflation can be seen in soaring food prices etc., but also in stocks and cryptocurrencies.
The other problem with the Fed printing too much money is that it leads to the devaluation of the dollar. What the Fed is doing now has been tried throughout history. But the outcome is always the same. Take, for example, Germany — between June 1921 and November 1923 in Weimar Germany, the highest monthly inflation rate rose by over 30,000%.
Zimbabwe is another country that tried to print their way out of the economic crisis only to find themselves in deeper economic woes.
So, why we haven’t we seen crazy inflation yet?
Well, the amount of money being printed is only one of four factors that contribute to inflation:
1. Industrial Output: How much “stuff” an economy makes
2. Employment: Too much employment leads to employers fighting over workers, which leads to higher wages, which leads to higher prices
3. The Money Supply: More money when an economy is producing the same amount or less stuff equals higher prices
4. Velocity of Money: If money is exchanging hands, and if so, how fast is it exchanging hands.
To offer some balance, there are a number of mainstream voices claiming that this current bull run is actually about to kick into a higher gear, that stocks are about to rise sharply due mainly to innovation and the end of the pandemic; however, these voices are questionable, to say the least. Bill Ackman is one, market manipulator extraordinaire; and Cathie Woods is another, though she does see Deflation as being one impending economic threat (which some indicators do actual support).
Note: Deflation is the overall decrease in the cost of an economy’s goods and services. While a slight decrease in prices may spur consumer spending, broad deflation can discourage spending and lead to even greater deflation and economic downturns.
Inflation, deflation, interest rates, tapering, bail-outs, bail-ins, a correction/depression/great reset — regardless of the exact mechanism, my take is that our time is up, and history supports this stance.
Furthermore, I believe we have only a matter of months remaining… If the FED is proven wrong about inflation (if inflation continues rising for the remainder of 2021), then I see this as the catalyst for downturn.
You best have your wealth out of the banks by then, out of fiat altogether, and into a combination of physical gold/silver, tradable goods, and cryptocurrencies — I fear a scenario rapidly unfolding where the dollar, and all fiat currency for that matter, becomes all-but worthless, with prices for goods doubling every few days (as was witnessed in Wiemar Germany).
This scenario is often painted as a disaster, and it admittedly is proven as such for those unprepared and reliant on ‘the system’; however, I see such as collapse as a time of great hope — the largest control method on the global population will be gone, we will be free to begin again, and I believe cryptocurrencies could hold the key, to everything.
As is the case with stock markets, the crypto bull run cycle is also nearing its end, and a bear market looms; however, there still appears to be a window of opportunity to make a profit before the inevitable 60-80% pullback occurs–a speculative opportunity, it must be stressed, so don’t go betting the family farm (prepping for the coinciding collapse of society is key, as is building your reserves of physical gold/silver and tradable goods, little by little).
I publicly mentioned Cardano’s “ADA” in early July, and if you’d gotten in at that $1-$1.50 mark then you’re currently doing okay. ADA has the potential to reach $10+ before the end of this bull cycle, meaning 1) there’s still an opportunity to get in, and 2) it offers great potential returns, which, if realized, can be used to help with your prepping.
And that’s the point I want to make: it is possible to both loathe ‘the game’ while also playing it in order to get ahead. As I said, there still appears to be a window of opportunity to milk the system before its collapse, but we’re likely talking months, so be smart about it.
The technology behind crypto –“the blockchain”– offers a way for the people to stick it to the man, I mean truly stick it right up the man’s arse. This is first chance in centuries, perhaps ever, that we the people have had the chance to take back control. For this reason, ‘the system’ hates the blockchain — it can’t be regulated, manipulated, controlled, or successfully taxed, and with mass adoption of Bitcoin, for example, comes the real possibility of deregulation and, in turn, freedom.
And this is main the reason I see cryptocurrencies exploding in the near future.
The coming Grand Solar Minimum and Magnetic Excursion/Reversal I warn of are nature’s Great Reset; and although destructive and devastating, we humans will survive them, just as we have each and every cosmic catastrophe of the past, for time-immemorial. And once over, after the dust has settled, within the wreckage and at the beginning of the rebuild, there it will be —the blockchain— ready and waiting for us, able to not only assist with the rebuilding of civilization, but to act as an already grounded foundation upon which the new and better world can be built.
Of course, we humans posses the ability to screw it all up, but a great hope exists: the blockchain has the potential to free humanity, I genuinely believe that — and all we need do for it to succeed is 1) adopt it, and 2) stand the hell out of its way.
If you want to stick it to the man, and I mean really stick it up the man’s arse, follow suit and adopt it.
Take your finances out of the banking system.
This is your first step to freedom.
Note: cryptos will undoubtedly see a 80% crash in line with the standard financial markets (likely in 2022), but unlike with the S&P 500 and DOW, etc., I see the adoption of cryptocurrency skyrocketing thereafter. Hold your nerve during the coming bear market, and accumulate, accumulate, accumulate. Keep your coins safe (offline if need be), and even an X-Flare and the resulting widespread grid failure won’t destroy your investment. Be in this for the long-haul. Your great, great grandchildren will thank you.
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Grand Solar Minimum + Pole Shift