The root of the problem is taxation and inflation. Bottom line, people don’t have money to spend, because it’s being stolen from them by the government and central banks. This means people don’t have the money to invest in things, nor would they have the customer base even if they did. This situation is further exacerbated by overregulation, which further stifles productivity, especially in an environment where capital is already scarce.
The side effect of this is that people don’t want to work. They simply have no motivation. Therefore, the reality outside the markets (on main street, as it were) is that not enough people are producing goods and services. Especially the kinds of goods and services that are important to an economy. Some people react to the lack of motivation by getting on the dole, while others make up fake jobs, and are enabled to do so by government regulation. Too many people want to be gender studies specialists, and not enough people want to turn wrenches and drive combines. That is, produce the very goods and services that sustain life, which is precisely what an economy does.
This brings us to the next problem. All that money that the governments and banks are stealing isn’t being burned. It’s being misallocated to useless endeavors like central planning and wars. These things are giant black holes that consume resources without giving any return. So the few people left who are producing something of value, their efforts are being redirected away from providing quality of life on this planet to things that are antithetical to that end. So things that not only redirect effort away from producing goods, but which also destroy some of the goods that are still being produced.
The US has another problem on top of all this. 75 years as the world’s economic superpower has made us weak. We’ve been able to inflate our currency without diminishing our buying power abroad, which has fueled our laziness, allowing for an entire generation of political science majors who couldn’t produce a useful good or service if they tried (which they won’t). So when reality kicks in, we’re going to find that our supposedly highly educated society actually has the real world life skills of the average third world dirt farmer. Which might explain why California looks like a third world slum right now (it is legitimately unrecognizable).
All this being the case, I don’t see how our economy can improve until taxes are lowered, central banks stop printing us into inflation, and there’s an end the regulatory stranglehold on business. And even if all three happened this very hour, I’m afraid it would be too little too late. Because it wouldn’t change the fact that the generation in charge is spiritually and intellectually dead. If gifted a free and open economy, they quite frankly wouldn’t know what to do with it.
So apparently the plan in place vis a vis the great reset is to centralize everything. One massive global company town. Which of course we know how that ends. Whether it’s feudalism, fascism, or communism, central control doesn’t work. It would simply kill the last remaining net producers on the planet and then everyone would go from poor but well fed to poor and starving. The plan they’re outlining-let’s face it-is turning cities into giant concentration camps.
The million dollar question is what does all this mean for markets and the currencies? This newest experiment in central planning, like all the others before it, has been fueled by debt. Which of course can only last for so long. Namely, it can last only up until the point when the borrowers still have something of value left to their name. Once their wealth has been extracted from them, the lenders will have no further reason to lend to them.
Thus, this cycle can continue up until the point when the average person has nothing of any value left to their name. I would argue we’ve reached that point. Furthermore, I believe what we’re seeing now is the creation of the largest bubble in history, so that when it pops it will destroy as many people as possible. It seems the goal of the great reset is to repossess as much property as possible through the banks and ultimately the central banks. And who will end up wielding that sword is anyone’s guess. One question I’ve never been able to answer is what would happen to the fed’s balance sheet if the system collapsed. Which is pertinent because a system collapse would ensure that the vast majority of property would end up on that balance sheet, with no clear owners other than the shareholders. It’s almost as if the central banks are building their own global government that will at least temporarily supersede elected governments. Fascism without the guise of democracy.
When the bubble bursts, I think we’ll see a short lived period of deflation, with currency actually strengthening. This is because debts will have to be settled. People will be trying to sell assets for cash, to hold onto what they can. This will mean different things for different people. The wealthy will sell their summer house to keep their Manhattan penthouse. The middle class will sell their second and third cars to keep their three bedroom ranch. The poor will sell their jewelry and electronics to keep their car, because they already lost the house.
The consequence at this stage is that everyone will see falling assets and rising currency valuations, and they won’t want to catch the falling knife. This will drive asset prices down even further. Those who still have net worth, and could afford to buy some assets at bargains, will be afraid to do so. They’ll be fearful because they won’t know how long that cash has to last. Perhaps the rest of their lives, which will be especially true for older folks. Their tendency will be to dig in and prepare to ride out a decades-long depression, so even those with cash will be spending like they’re poor.
What they won’t realize is that when the debt shuffle is complete, which will take a matter of months, the currencies won’t have any more value. Once people have saved what they could and lost what they couldn’t, the money will have no intrinsic value to it. Especially since the central banks will be printing at warp speed to bail out the banks, as they become more and more insolvent due to all the defaults. The unwashed masses won’t realize this, but the global economy certainly will. Once they have settled their debts, corporations will be quick to liquidate their cash for assets. This will mean a flood of currency coming back to the issuing states from abroad. And when consumers catch wind of inflation, all that money they’ve been hoarding will come out to play, pushing velocity into exponential growth.
But what about UBI? If the stimulus has proven anything it’s that UBI can’t put money into the real economy. I’m also skeptical that the government or central banks will allow enough assistance for people to save their homes and businesses. They want control, so they’re not about to gift people their homes and especially their businesses. My feeling is that the stimulus is carefully designed to inflate the bubble to its absolute limit, so that the burst is more dramatic. I think what we’re seeing is about all there will be, which is just the crumbs of what’s left over from their pump into the markets. That is, 90% of the so called assistance is going to pump the bubble, with maybe 10% or less actually going to where it’s needed, for the placation of the masses so they’ll agree to it.
Will stocks melt up or down? Initially, I think they’ll crash. Then melt up. But with inflation out of control, will it matter?
When will the bubble burst? Nobody can say. Even the central planners can’t say. One thing, though, I am convinced that the fed, the government, and wall street are all 100% committed to keeping it going as long as they can. I don’t buy into conspiracy theories about this or that person or entity purposefully crashing a market. Case in point being Sep 2019 when the bubble actually did pop, but they patched it up so quickly nobody noticed.
Like I said before, it will pop when the people no longer have any net worth. In other words, when people no longer have anything left worth stealing. One thing people need to be clear about is that the great reset has already happened. The banks already own everything. They are simply allowing people to continue to believe that they own their house or business, for the purpose of keeping things going just a little bit longer, so that they can transfer just a little more wealth. The longer they can keep up the charade, the richer they get. The so called great reset isn’t an event so much as just doing the paperwork so that the deeds will reflect the actual owners. Until then, they’ll allow people to maintain the illusion that it’s theirs.
Well, am I wrong?
hahahah joking as that is not my nature but I have always lived simple within my means but enjoy getting what I want but nothing to fancy