There are three huge challenges that you must conquer [vanquish] or these digital waves will smash you over the next two years [see photo].
What is creating this wave that might just destroy you? It all starts with "The Dollar Milkshake Theory" invented by Brent Johnson. The notion is that as all the global fiat currencies collapse there will be one that investors must hold and that is the US Dollar.
The US Dollar will suck up all the investment funds in the world of any note just as you and I slurp up our favourite milkshake. And that process has just begun.
Consumer Inflation... A strong US Dollar will export consumer inflation to everyone who does not get paid in that currency. Therefore the first challenge is to deal with the impact of global consumer inflation on you. Everything you consume is moving up in price. Even though discounts are going to be present right now [because distributors have an inventory "overhang" since the lockdowns] but these are generally discounts on higher ticket prices. You must be prepared to look for substitutes to what you normally consume.
Asset Deflation... Central banks are raising interest rates as they seek to contract money supply. And this is squeezing the capacity of banks to lend to all forms of asset creation [real estate, small business, startups, etc]. In this phase of money supply management there will be an asset recession/depression. We can see this happening as there is no obvious store of value at the moment as prices slide for Gold, Bitcoin, shares, bricks-and-mortar, etc. The fiscal spending on green technology policies by governments is also a factor in devaluing historical assets. You must be prepared to lower your debts and deleverage your assets.
Shortages... The power and curl inside this digital wave comes from shortages. Baby formula has become the poster item for shortages inside America today. This is the crushing blow for most households, businesses, industries, governments, and communities. There is nothing that creates economic chaos faster than electricity outages, food shortages, loss of low cost shelter, etc. Sri Lanka is an economy that is experiencing the impact of shortages in all aspects of life. The result is a collapse of social order. You must prepare for the degradation of supply and distribution of the staples of life.
Richard.
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