If you are still managing your money the same way as last year then you could be playing a dangerous (even deadly) game… probably without knowing it. Think about it…Central banks have clearly lost control of the global economy.
They can’t raise rates without breaking things… and they can’t NOT RAISE RATES without inflation becoming the new normal.
Checkmate.
Looking back, it seems obvious that a decade of near-zero interest rates created the biggest misallocation of capital the world has ever seen.
Because you could borrow money for free… we invested in riskier and riskier things…
Ridesharing scooters that people smash for fun…
Food delivery apps that couldn’t even turn a profit when we were literally locked inside our houses…
Meme stocks and monkey jpegs….
Loss making companies in every sector of the economy have not just survived but thrived.
Even cruise ships (if there’s a less essential sector of the economy I don’t know about it) got a bailout!
And let’s be clear… this is ALL a direct result of the endgame of the 40 year downtrend in interest rates (which has now reversed)
Since 1981 interest rates fell… and fell… and kept falling until they hit zero and THEN WENT NEGATIVE!
Obviously this was crazy, but it’s important to understand WHY this generated so much wealth for the boomer generation.
If you bought a house back in the 80’s the value of the house went up, sure… but it really went up because the value of the debt went down.
Interest rates got cheaper and cheaper… which gave people more borrowing power… which brought more buyers to the housing market…
More buyers with more borrowing power made prices go up, and loan repayments go down.
Which made prices go up even more, and that brought even more buyers in.
A beautiful positive feedback loop which lasted for 40 years until <checks notes> about 6 months ago.
Bloody hell…
The “everything bubble” was really the decrease in interest rates, which enabled so many other mini bubbles…
Rolexes selling for 10x retail…
A badly drawn JPG of a cartoon ape selling for a million dollars!
Wine appreciating at 20% per year compounding for decades!
Second hand cars selling for literally more than the new list price wtf!
Look, it was fun while it lasted…
But the tide has gone out, we can see who has been swimming naked… and reality has asserted itself with a vengeance.
We have plenty of Silicon Valley unicorn companies that will never earn a profit but not enough oil wells.
There isn’t enough wheat to feed most of the world.
The central banks aren’t able to offer a solution to inflation that doesn’t involve making us all poor and unemployed, so we spend less.
And it’s more than “just another recession like we maybe have every 10-15 years” (HINT – it’s been 14 years since the last one)
The next recession is going to make us wish we were back in 2008… when the central banks actually had the power to fix things by turning back on the money printer.
That’s the key thing to understand here…
Like a heroin addict who doesn’t actually get high from his fix anymore…
The money printer doesn’t work anymore.
Zero interest rates just “stop the economy from feeling sick”… they don’t actually make it grow.
The whole world order is collapsing… The Pax Americana that’s been in place since 1949 (where the USA guarantees peace for the world’s commerce and trade, and in return gets to be the global currency) is disintegrating IN REAL TIME…
Authoritarian regimes across the world are challenging the power of Western democracies… and they JUST MIGHT WIN!
You need to be prepared for the NEW multi-polar world order that’s waiting in the wings.
That’s the bad news… but let me give you some good news.
The thing that’s got our whole crew excited, and all the best traders I know licking their chops at the opportunity…
We’ve got something especially cool coming up for you.
You see, all the “RULES” for getting rich were written post WWII and they held up great… until recently when the economy they were built to work with DISAPPEARED and got replaced.
We’re going to talk about how the RULES OF THE GAME have changed this week, and I’m going to lay out a simple plan for you to get on board with the NEW RULES of wealth creation in the altered economy.
So pay attention to my posts this week…
Over the next few days I’m going to talk about the REAL DRIVERS of the enormous prosperity we’ve enjoyed over the last few decades.
And how all of those megatrends have not only stopped, but REVERSED…
And how you can MASSIVELY PROFIT RIGHT NOW from the new paradigm by GETTING IN ON THE NEW MEGATRENDS EARLY!
This is all leading up to a FREE wealth creation summit I’m holding in partnership with some of the best traders in the world on Thursday, November 17 at 6pm EST.
We are going to do a roundtable and discuss these huge and impactful issues and talk about how to position yourself for massive profit.
As usual I’ll be dishing all the information you need to know for FREE, with nothing held back…
So if you want to stay at the cutting edge… REGISTER FOR THE FREE WEBINAR HERE
This is going to be the BEST event we have ever done, so make sure you register!
See you there…
P.s. We are going to launch a new, advanced course on wealth creation that I’m thrilled to bits about. No, you can’t buy it yet (I’m waiting until Black Friday so I can offer a massive discount) but if it sounds interesting to you, just zap me a message to mikesneweconomybootcamp@gmail.com and I’ll give you a sneak preview 😉