- The trends that have driven the past 10 years are now ending/over. Ride their reversal wisely.
- Crisis can destroy or magnify your prospects. Your decisions today will control which outcome you experience.
- In many cases, you need to do the opposite of what the 'herd' is doing
- The 6 essential strategies for prospering through the next crisis
Strategies For Prospering Through The Next Crisis
Those with the open-mindedness, courage and optimism to adapt in time will be far less impacted — and indeed, will have much better odds of coming through this transition the better for it. Amazing opportunities will arise during this time to increase all aspects of your wealth (yes, money — but also in all the other important Forms Of Capital, too).
Don’t count on currency “money” retaining its purchasing power.
States (governments) always follow the same pathway: when financial promises can’t be kept, states debauch/devalue their currencies as a politically expedient short-term solution.
But alas, just like central bank stimulus, the short-term expediency becomes the permanent policy, and the unintended consequences start piling up, for example, a loss of trust in the state’s currency.
I see Venezuela’s destruction of its currency as the canary in the coalmine. The first canaries to drop lifeless from their perch will be non-reserve currencies. Then the weakest of the reserve currencies will be over-issued (via credit rather than actual money-printing) and then even the mightiest will collapse.
Many people reckon the US dollar (USD) is the weakest, and perhaps they’ll be right, but I think the Chinese yuan (RMB), Japanese yen and EU euro will lose purchasing power first.
The RMB isn’t actually a “real currency,” it’s simply a derivative of the USD via the official peg. As for becoming gold-backed, please examine any chart of Chinese debt issuance (all of which is currency) and then compare that to…