Hi Keith,
Economics isn’t my strong suit, either. But it’s clear that even those with “expertise” in this area don’t have all the answers. They’re either just as confused or not using their expertise in a way that helps us. Otherwise, we wouldn’t be standing on the precipice now.
Re skyrocketing mortgage rates dragging the market down: I suspect you’re right. I also think this may be the devil in the details that explains why Netflix’s stock just plummeted 28%. Analysis blame it on subscriber loss, and while that could be the case, I think investors may also be sending looming danger: the platform has been carrying INSANE amounts of debt to fund is to growing library of content—and rising interest rates spell disaster for anyone carrying huge debt now.
As for what we can do about the coming economic challenges:
I think the key will be diversification, as we simply have no way of knowing how things will shake out.
It’s clear that the Fed is fast-tracking a digital dollar in preparation for the “Great Reset” of the global financial system, so ultimately all dollars will probably be converted to digital dollars. At what ratio, we don’t know.
I think holding some precious metals is probably a good bet, at least in the short term. In the longer term, we don’t know how aggressively the government will track banking information when the digital dollar rolls out. Imagine a scenario in which you sell silver and attempt to deposit the proceeds in your bank account, but the government prohibits you from doing so because it demands to know the source of funds and has prohibited precious metals transactions. Or perhaps the government simply prohibits digital dollars to be dispensed for precious metals transactions so dealers can’t buy or sell gold or silver. My point is that we simply don’t know how long precious metals will be viable. That said, they may continue to be accepted in certain areas (most likely red states) for barter purposes.
Cryptocurrency is also an alternative, but like you, I have doubts about its viability. Most cryptos can easily be tracked and aren’t nearly as decentralized as people think. If governments want to prohibit cryptocurrency, they can do it in the blink of an eye. They can freeze or seize wallets and they have complete control over exchanges.
Owning income generating real estate (rental property) is good, assuming your mortgage isn’t too high and the interest rate is fixed, especially if it’s not in a big city. Many people will likely be migrating to less populous, “safer” areas. But if the economy falls into severe dislocation, people may have trouble paying rent.
The stock market is obviously due for a major crash; there’s no way of knowing what recovery will look like or how long it will take.
My point is that nothing is completely safe now. Every asset is a risk. We are clearly entering extraordinary times and will be challenged to do what we have failed to do for so long: become as self-reliant, creative, and resourceful as possible. Know that no one will save or protect you. Those days are over —and that’s actually not a bad thing.
A great winnowing is underway. Those with common sense and a true instinct to survive will emerge on the other side, weathered, wiser, and prepared to take back what’s ours from the people who have robbed humanity on so many levels.
We need to develop networks of like-minded people we can depend on. We need to educate ourselves and as many others as possible about what’s coming and why, how the economy “works,” and why it’s failed us so spectacularly. We will need these skills to resist and rebuild.
These may seem like dark and frightening times, just as the birth canal must seem dark and frightening to a baby just before it emerges from its mother’s womb.
But I believe with every fiber of my being that great things await those of us who are willing to endure the coming pain, my friend.
Stay strong. Keep your wits about you. Keep the faith. We’ll get through this and we will all be stronger on the other side :-)
