I took a break today from the news narrative I normally follow closely and took a moment to contemplate what I already know or see; Really it was a moment of reflection or assessment of our current financial chaos, both here in the U.S. and countries globally. It seems the world is struggling with the same problems everywhere. Here is what I see.
We have seen four banks failures over the last four weeks, yet during the Federal Reserve press conference held 5/3/23, Jerome Powell reported to the press that he feels there is no problem with the banking industry and labels it as '“strong”. Literally minutes later after making this statement, Pac West Bank began collapsing. And why are these banks failing? Banks made poor investment choices, buying bonds during a time of low interest rates and those investments are now underwater as the Fed Funds Rate (FFR) is now at 5.25%, with current bond prices now being much lower. With the threat of banks going belly up, consumers have now begun to remove their cash out of banks and for good reason given all the current bank chaos. People are asking themselves, where do I park my cash that is safe and earn a decent return on my money. Pt are flocking to liquid assets such as short term T-bills, Bit coin and CD’s that are less risky than banks and pay you a better return on your money. Putting your cash into hard assets is another good choice, when looking to store your wealth elsewhere.
Next I see commercial real-estate whoa’ s. As more people are working from home now than ever, companies no longer need large amounts of real-estate office space. Now, owners of commercial real-estate office space have a lower demand for their buildings and companies now need smaller rental spaces for their employees. Furthermore, over the next year banks and commercial property owners will need to sit down and agree to new financing terms for the currently expiring loans on their office buildings. These new terms will include much higher interest rates for the same property, making it difficult for investors to re-up for the same properties they once owned. My feeling is that the banks will be the forced recipients of investors returning the property keys back to them as investors walk away and lick their wounds. This will put further pressure on banks and contrary to Jamie Diamond’s & Jerome Powell’s out look, “things are not fine”. Because of the current instability of the banking sector, banks have tighten their lending standards. Less money will be available for loans to businesses, people and developers. Adding to the problem, the Fed is also drying up cash liquidity & borrowing with their high interest rates that nobody can afford, even if the banks would loan to them.
I see fiat currencies such as the U.S. dollar continue to be debased, as well as other countries native currencies losing their purchasing power from all the dollar printing the Fed accomplished in 2020-2021. I see countries actively working together to move away from the U.S. dollar (USD). This is evidenced by the recently formed BRICS nations (Brazil, Russia, India, China and South Africa). The BRICS nations now offer an alternative payment for countries purchasing goods and services in the international markets. They have chosen to not use the USD as a the main means of transactions. Because the US dollar (USD) has been used as a weapon at times to punish nations that do not conform to US policy or interests, countries have stepped back and considered their punitive risk for staying in the dollar system. Furthermore, the fluctuating strength of the dollar has caused other countries added expense to their products they manufacture. As the dollar strengthens, it is more expensive for countries to purchase goods denominated in U.S. dollars. These same nations also see that the U.S can print money out of thin air in exchange for their hard fought commodities coming out of the ground and arriving to market. I don’t see the dollar being dethroned in the near future, but I do expect a steady decline of it relevance over the next 10 years.
Next I see soaring energy prices. Organizations with unelected officials such as the WEF, WHO and NATO, seem to direct the narrative when it comes to energy. With this big push for “green energy”, ESG scores and Woke movement, people and companies are being subjected to very restricted policy under what I call a false narrative. I’m not saying that we shouldn’t be good stewards of our planet and look to incorporate better or more effect ways of energy production, but this narrative and claim of “climate change” takes more faith than I’m willing to give it. Watching the elites fly into Davos annually on their private jets belching jet exhaust, seems to be in conflict with their message of preserving the planet with carbon limiting choices. Maybe this ESG narrative is just a way for the global elite to grab more power by requiring the people comply with their restrictive directives that keep the people restrained and legislated. CBDC’s also have their place in this narrative of control by central planners & elites. Their is a push by elites to have your travel document credentials contain all of your private/personal/medical information, ESG scores(Environmental, Social and Goverence). Even now, investment firms are attempting to tell their clients to invest in highly rated ESG companies and not base their investment recommendations on company fundamentals or balance sheet. The US has the ability to be energy independent, yet the current administration and other three letter entities insist on making it financially difficult for the average citizen. Some examples of this could be represented by the shut down of the Key Stone pipe line by president Biden as he first enter his office following the election. President Biden also halted permitting for oil exploration and extraction as well. This pushed up fuel prices for all to experience and added to the hurdles of restoring supply chains normalcy. American leadership elected to lower fuel prices by draining down the strategic oil reserves, which worked in the interim, but the trade off was not worth it as now the reserve will need to be refilled at higher oil prices. Kicking the can down the road is how I see it. Oh yes, don’t forget that oil fracking was also suspended by the current administration, yet it remains a viable way of boosting US petroleum production as well.
How do I keep my wealth safe? My answer is Bitcoin
My vision for the world financial system is one that is more equitable and inclusive, with greater access to financial services for all people. It should be a system that works for everyone, not just the wealthy. A system that encourages innovation and encourages international collaboration. The current system should be designed to support sustainable economic growth and ensure that everyone has the opportunity to benefit. Additionally, I believe it should be a system that is transparent, accountable, and accountable to its stakeholders. Bit coin fills the bill for this vision. It has a limited supply of 22 million, so it cannot be debased. 19 million of that is owned by someone already, which leaves about 3 million left to be had by you and me. Once its gone, what do you think the price will do? Have you gotten your piece of the pie? Bitcoin has the most secure network in the world. Not even the US military can compete with this. Because bitcoin cannot be manipulated or controlled by elites or bankers, it has a special appeal to people, nation states and the world. Because of bitcoins incorruptibility, I see it becoming the choice of the world for the now petro dollar. Yes, oil will be sold in bitcoin units. I would encourage you all to do your homework on bitcoin. Learn, understand and see it’s value. Have your “aha moment”. Give yourself a chance to get it while it’s cheap.
The Shift Chronicles 82983
Scotty Reagan
Great info about bitcoin! Seems to be a great answer.
Love my Bitcoin.