Is this the Great Reset?
For a few months now I have been seeing videos on what YouTube bloggers have called the Great Reset. Many bloggers describe the Great Rest as the beginning of a mass inflation and or the beginning of a big clampdown on people's personal freedoms and liberties.
For example with the resent start of CoronaVirus some countries like Australia have started a policy of not letting there citizens not leave the country for a year or two or until the authorities decide they can leave, basically treating people as serfs or slaves, I didn't confirm this but read it in the press and did the best I could to try to confirm it. So that's my limited understanding of the situation there.
There have been many lockdowns in Europe the United States or partial lockdowns in the States California and New York being the most famous of these.
To pay for the destruction of all the business going under there have been big bailouts of big business and in some cases unemployment and special programs for smaller business.
There was no rise in taxes to pay for all this, mostly it was paid for by rising deficits and money printing, this happened in the E.U.. The United States,and New Zealand, Australia ect.
With all this happening there have been many bloggers suggesting this is the Great reset.
So far this money printing has not led to hyperinflation or a collapse in the economy, it has lead mostly to recession and briefly a depression which it seems like we are coming out of.
My view is we will remerge into a recession and eventually more inflation. As the world economy slows down the E.U and North America and Japan ect will panic and try to coordinate some kind of worldwide bailout by reinflating their currencies to try to get their economies going again.
My view is there may be a short term rally in the USD but so far the US dollar has been weak, now trading at 1.20 to 1.21 to the USD.
Many emerging market currencies are declining against the USD but one that has been rallying is the MXN or Mexican Peso. That's signaling to me inflation is in the pipeline in the USA.
As of today the price of gold has been trending down from over 2,000 per ounce to just around 1,800 per ounce, I dont believe gold will rally intel the E.U. and the U.S. gets big bailouts thru there respective political process and that may be why gold is trending down.
Bitcoin and Tech shares meanwhile have been on a tare to the upside. Bitcoins trading between 20,000 to 18,000 per coin.
There has been talk of the Central Bank of Switzerland taking its currency down and buying Apple shares, It has been seen as a way for Central Banks to retain purchasing power of there treasuries without holding gold or as a compliment to gold, we may see Central Banks holding Bitcoin for the same reasons.
My view is we will see slowing economies, rising unemployment and more pressure on governments to do something and that something is deficit spending and money printing and the issuing of their own Central Bank Digital currencies. The Fed has written papers on how they may go about doing this, if you can't fall asleep just read the papers!
Here is my video on my views and some possible ways to protect your savings.
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