…….You will own nothing, but you will be happy.
Beware of the low interest rate trap.
The World Economic Forum have not been shy about their utopian plan for owning everything. When I say everything, I mean everything. How would they achieve such large scale property and asset accumulation?
By creating a massive debt bubble and manipulating a decades-long low interest rate policy.
With lower and lower interest rates, the costs of capital become lower and lower, forcing asset prices higher and the serviceability of debt lower. This lures the mis-informed into a false sense of security about the ability to service this debt.
By keeping interest rates low, the everyday person, desperate to try and accrue assets to improve their standing, is forced into these ever appreciating asset bubbles, as the assets seem to be accelerating out of reach. They get themselves into over-leveraged positions on this false sense of affordability in the vain attempt of getting in before they are left behind.
With a long-term asset-accumulation plan, the global elite keep interest rates artificially low, encouraging more and more people to pile into over levered positions. The slightest spike in interest rates will see this massive credit bubble pop.
Using a global pandemic, global lockdown policy response alongside fiscal stimulus to spike competition for increased wages. We are engineering inflation. We are limiting supply chains, increasing money supply and driving the concentration of purchasing toward fewer outlets which leads to increased prices, leading to inflation. The threat of increased corporate taxes leads to the increase of prices which is passed onto consumers, leading to inflation. Increased stimulus leads to competition for workers, which leads to increased wages, which leads to increased prices, as which leads to increased inflation.
What if this engineered inflation is leading to an ultimate end game? An end-game that few people are talking about? High interest rates! What if the global elite’s end game is to cause massive interest rate hikes to pop this bubble and absorb the assets?
The global elite own the central banks and reserves. They will step in as the “heroes” to save the day by buying all the fail d and failing mortgage-backed securities and collateralised-loan-obligations with their printed fiat, thus accumulating all of the underlying assets in mass-scale.
My assumption will be to let inflation run hot for a while, constantly devaluing the dollar, keeping interest rates low enough to force more and more people to over-leveraged positions on the assumption that they will never be able to raise rates due to the threat of a looming credit induced collapse. Then, when the time is right, allow interest rates to rise and the defaults to start. They will fire up the printing press and start scooping up all the assets from property to equities to debt obligations and everything in between.
“Don’t worry, we will take that debt off your hands, wipe the bad debt from your record and let you rent it back from us”.
The added bonus of the engineered inflation drive is that the massive debt levels of governments get inflated away with the devaluing of the dollar. The Cantillon effect ensures that those closest to the injection point of newly printed dollars benefit the most. They already hold the majority of assets that benefit from the price appreciation that assets experience through monetary and fiscal stimulus.
Don’t be lulled into this false sense of security thinking that your debt will inflate away too. Increased wages lag inflation by a long way. And let us not forget that wage increases are often set by the CPI print which is a manipulated and controlled metric. It is the volatile stretch in the interim and your ability to service your debt obligations that need to be front of mind. In the long run your debt inflates away too, but you will experience a rough ride of affordability and serviceability in between.
Be aware of the credit trap. Make sure your serviceability of debt can handle significant interest rate spikes and protect your purchasing power investments. Invest in hard assets, save in hard money and hopefully we make it through to the other side. Buy Bitcoin, stack sats.
I much prefer this mantra: Be wealthy, comfortable, own assets and be happy. Sounds much better than theirs.