13/04/2021
THE "GREAT RESET" IS COMING: You will be hearing the term Great Reset a lot in the coming months and years. As I mentioned in the GYWO podcast, the world's biggest problem is the $300 Trillion of corporate, private, and government debt. Climate change can't even be dealt with if there's no money to spend on inventing new technology and changing infrastructure. Most countries in the world were technically insolvent BEFORE Covid-19. The spending needed post Covid-19 will force the world to either declare bankruptcy with every economy and society disentegrating, or they will have to coordinate a global response. That is what will happen, and that is why you are hearing the term "Great Reset" from the IMF, the Federal Reserve, Janet Yellen, the European Central Bank and others.
To achieve that Great Reset will require re-inventing the Global economy, as I said in the podcast. That will mean devaluing all of the world's currencies (which is happening now). A dollar, a pound, a yen, a Euro will buy less tomorrow than it will today. Your $100,000 savings will be worth $50,000 in 10 years or less. Every country will need to make their currency worth less to compete globally in trade (sell cheaper products).
Another step (already underway) is an attempt at controlled inflation. Prices for everything from coffee, to meat, fuel, sugar, wheat, housing, clothes, etc. will go up. Inflation will allow countries to inflate the debt away. This is done through money-printing. If you owe $1 billion dollars and you can print $1 billion dollars, you can pay off your debts. If interest rates are kept artificially low or negative, you can pay down the interest on your debt easier. Unfortunately, this also devalues the average person's paycheck. The only thing that retains value are assets that hold their value and it's mainly rich people who can own gold, silver, precious art, or expensive real estate properties that will retain their value--thus exacerbating the rich-poor divide.
Some form of Great Reset has to be done. It doesn't matter what country, President, or political party we are talking about. Most nations are borrowing or printing their money and it's the result of decades of poor saving habits and reckless financial policies. Now the bill is due.
Part of paying that overdue bill will be replacing the U.S. dollar as the world's reserve currency. A wave of new Central Bank digital currencies will be rolled out (and are being rolled out now). Reserve currencies tend to only last 50 years and 2021 marks the 50th year since the U.S. dollar abandoned the gold standard under Nixon. Facebook still wants to launch its own currency/coin and Amazon.com is already experimenting with one in Mexico.
This will add further fuel to the conspiracy theories that are already growing out of control. We'll hear about "the one world government," "the mark of the beast," "the illumnati," "the Jews" etc. Behind the scenes, however, the countries that re-do their social safety net to make sure the rich-poor gap shrinks, the countries that embrace new decentralized finance banking systems with greater transparency, and the countries that are willing to bring labor, capital, technology, and worker's rights together will emerge as the winners in a whole new economic system. There will emerge, ultimately, a more stable, equitable, and responsible system. But getting there will be filled with turbulence.
