The Era of Global Austerity Measures, what the people in your democracy don’t know will be used against them – March 16, 2020,
So it’s finally here, I’m not big on a Gold, but this might be the time to have some Silver or some Gold bullion, potentially some U.S dollars, Swiss Francs, British Pounds or even maybe, just maybe some Euros. I’m skeptical about the future of the Euro because although there are some fiscal responsible European countries, there are also a lot of European countries with very big governments.
So, yeah, the Western World was never built to house a welfare state, if you’re a believer in a big welfare state, you’d be better off moving to communist Mainland China where the Chinese Government will definitely make sure that you feel secure. The Chinese Communist Party only ass that you give up your liberties and freedoms and serve the Chinese Communist Party do not put any God before the Chinese Communist Party and accept that the Chinese Communist Party is the ruler of the world.
The Western World was built on the concept of individualism, volunteerism and the freedom to pursue the property. Individuals bring value to a property, the government can build and maintain infrastructure but as the Chinese communist party has shown the world with their many ghost cities, just because the government builds it doesn’t mean the people will come. North Korea has very clean, well-maintained streets, but they’re empty unused and given the chance most North Koreans would leave North Korea in an instant to be in a freer South Korea.
People want freedom and a big government prevents free people from paying for things they actually want. If I’m forced to pay for anything I don’t want, regardless of the money supply, eventually there reaches a time when the cost to service the loan exceeds the ability for the consumer to pay.
The world has officially reached this period of time and the only way out is debt renegotiation, now, if you think renegotiation of debt is not a big a deal, I’m sorry to say, but you’re wrong because when an individual declares that they can’t pay back their debts, the cost for them to borrow in the future goes up rapidly. Let’s say I owe $1 and I agree to pay 5 cents on those dollars, in the future, the creditor will want to collect more interest from me, to avoid n the event I default again. So this means in the future I will have to pay a much higher interest rate.
How American Asset Prices Differ from other countries in the Western world
Now, luckily for America and Americans, their housing markets have refused to come back, which is probably an indication of Americans’ comprehension of a market economy. But in other parts of the world, the opposite is true, in other parts of the world, asset prices, namely asset prices that don’t turn a profit are at record highs.
You invest for cash flow, you invest for Dividend payments, you put money in the bank with the expectation that you will get interest on the money you saved, I get that many people assume this is an ancient economic theory, but it’s the only way to keep the market moving. If you attempt to install an authoritarian or socialist economic system, well at the very least you’re going to have to have an IMMEDIATE answer for “what happens if”.
Humans are complicated, innovators are complicated, ideas that I can’t even fathom right a fellow human has already designed and mastered if you’re a government person who can’t comprehend the genius of a fellow human being is that human beings economic genius supposed to be suppressed because Government people believe that resources would be better served somewhere else?
As great as America is now, it would actually be 10 times greater if humans were allowed to unlock their potential. The concept of a FREE MARKET revolves around unlocking one’s potential and oddly enough, humanity via technology has reached an era of deflation pricing, however, prices aren’t allowed to deflate because our central banks have to feed the Public Sector beast.
Recently Federal Government Chairman Jerome Powell decided to engage in Quantitative easing, while at the same time lowering interest rates, he assumes that COVID-19 is some disease that will kill humanity, when in fact it seems more like a virus that humans will simply have to learn to live with. People are recovering NATURALLY already from this virus, no special medications, just simple self-isolation, and people are being cured, one could even make the argument that what’s causing death with the COVID-19 are the experts who try to over medicate the patients.
I remember having the flu and feeling like I was going to die, but then recovering because I knew subconsciously that many other humans had recovered from the flu in the past. Now, imagine having Covid-19 and being told by medical professionals that you’re going to die? How would you feel as a sick person who possibly has other health problems? When you’re going to kill a chicken, you can’t kill the chicken in the presence of the other chickens, because they’ll all have a heart attack.
The power of the mind is unbelievable and if you consume mainstream media content or create thought leaders in your mind, you could be a victim or an example of their flawed thoughts! I’m sorry, but Covid-19, as bad as it is, humanity has gone through far worse and the Central Bank response to Covid-19, has been a disaster because the reality is, the retail sector and many of the entry-level job creators have gotten a stimulus package, manufacturers just got a massive stimulus package, governments just got a massive stimulus package a lot of people have been shopping like it’s Christmas.
Employers could simply offer more money for employees to show up for work and the government could simply offer a tax break for people willing to take the risk. It’s silly, the response to covid-19 has been silly, but people in debt do silly things, with that set aside get ready for The era of Global Austerity measures, the market has spoken, interestingly enough, what Covid-19 has brought back into focus are the essentials people need to survive!
The market in my view is demanding a reset of big government, I personally don’t think this is the market wanting a Gold Standard or gold-backed currency, my personal belief is the market wants central bank reform and central bank reform equates to the shrinking of entitlement spending and a shrinking of the Unionized public sector! In my opinion and I’ll say it again, we’ve just entered into the era of Global Austerity measures!
I think this bodes well for the U.S dollar and very bad for countries whose currency has been devalued to pay for their bloated public sectors! Although the U.S Dollar should strengthen, this doesn’t mean that the particular U.S States won’t see a massive hike to their cost of living if that doesn’t make sense to you, it’s because you’re not comprehending the reason why costs of living go up in a period when they should be declining!>>The Public Sectors<<< Interesting times ahead!
