BTC types Rejoice!
Yet another well researched "data point" supporting BTC as (at least a de facto) World Reserve Currency.
Coming your way, sooner or later. (After the US 2020 election by MID 2021 is the TK call on this)
Jeff Booth is the Chairman of the Board at Cubic Farms (Vertical Growing Systems) who has written a book which really captures what is going on in the world economy and is getting noticed BIG Time. (If you need a vertical indoor growing system, then have a look.)
A quick 'Shout out' Amplifier.
Jeff is a Main St. Economy person and entrepreneur who earns a living making sure we all get fed decent food.
CoinBase PodCast for those who listen while they work..
In a F2F Remote Video interview June 11th, 2020 on the Keiser Report (Episode 1551), Mr. Booth uses the deflationary example of early cell phones costing US $2000, and his monthly phone bill being 1400 in the early 90s, comparing it today with the value we have on a last year's model iPhone plan costing only US $50/per month to show how the price of communicating (Voice, TV, streaming, file transfers) has been deflated dramatically since then.
IF Tech is driving DEFLATION then Why are Asset prices going Higher? (Cantillion Effect driven) thank FED/Govt money printing "brrrr" is countering this massive deflationary effect of Tech which doubles every two years, countered with the doubling of the fiat money supply by these "Invisible hand" masters of Keynesian Economics to maintain balance and even rise asset prices (along with debt), with money printing to keep asset prices high and transfer wealth to the uber class which is what is destroying middle and lower class savings as they are forced to pay more for big assets (house, car).
Why are they doing this?
Well Pension plan preservation both public and private is a good place to start that investigation. Also think about it, the uber class who have all the assets AND all the debt, if interest rates rise they pay more and it takes longer and their wealth shrinks. Plus remote workplaces are going to continue to grow post COVID FOG, based on the success of Zoom growth going from 3M users to 100M users in just 45 days. This means Commercial Real Estate prices is going to decline as companies reduce their footprint to conserve cash as sales continue to 'flat-line' or decline for most.
If related pension plan held stocks and bond asset prices fall, that dividend cheque retirees (65 years are older in most places), the bigger check they rely on,just got a whole lot smaller.
(If you need BOOMER votes and BIG money donations from the uber class, you better keep those groups happy= Stable Stock and Bond prices, until after the election).
Mr. Booth in his Interviews also points out one interesting fact, in the last 20 years there has been 185 Trillion US $ printed to generate 45 Trillion in GDP. Think about that, govts needs to print 4 dollars into creation to generate 1 dollar of main St. wealth. Where do the other 3 dollars go? to paying interest on re-financed even large debt and into the pockets of the uber class. It's unsustainable and a recipe for political unrest locally and hot wars globally.
The Big Question?
"Should Government policy makers world wide get on the same page to latch their currencies to a reserve std (gold/Silver and maybe BTC) to stop currency manipulation?"
Unlikely. imo. Which means BTC will thrive and flourish amidst the chaos waiting for us in the immediate and long term future, which will see big political divides as long as they keep playing the race card and may lead to hot world wars as the leaders of regions shift the blame to other regions. (Iie the west vs. China or something bad like that.)
Both the guest Mr. Booth and the Interviewer (Max Keiser) agree on the balance, right now, being in favour of the "money printers" at to what is causing Stock prices to reach new highs on markets, even when the stocks go into bankruptcy protection Chapter 11 in the USA (like Hertz de-listing on NYSE?, now the price is still propped up with "gambling style" speculation purchases made by those using the Robinhood app)
Robinhood App Madness- "Steal from the Poor Give to the Rich!" (Gambling the FED will Bail out Hertz?)
Why is this Robinhood App action happening? This Robinhood Pump and Dump Day trader action is, imo, likely smart (Mostly Whale) day trading buyers & sellers in the NYSE are gambling the FED will bailout Hertz has too big to fail, and are buying low and selling high in Day trade action (using the Robinhood App), and then placing their "day winnings" in other hard stores of value (or guaranteed not to fail because they are financed by the really big banks like JP Morgan, Citibank, B of A to destroy everything in the market segment, like Amazon in Retail to capture the entire market segment profits in one stock) . These buy & sell fiat NYSE stock market trades driving the price of Hertz stock (despite Chapter 11) are easily placed by "Smart" day traders via their Smart Phones (like BTC) via the Robinhood App . Interestingly Keiser with Booth speculate Gen Z (those born after 1996) are wise and driving a lot of this? Maybe partly, that said the whales really drive "the bulk" of this type of upward price movement action with automated trading desk software and can easily 'pilot' the Robinhood Smartphone app on their iPhone or Android devices.
The Takeway: Depression 2.0 coming fast, take your pick as to how it happens.
Mr. Booth clearly postulates their are only Two Possible Outcomes for the World Economy, each with the same end result, A Massive Worldwide Economic Depression, (TK paraphrase and expand on the conversation in the episode) "One outcome is that the inevitable depression will being succeeded Money Std. Reset which will wipe out debt and collapses economy (asset prices go way down), or the Second possible outcome being Massive money Printing leading to Massive Asset Price Inflation , which also collapses the economy (Weimar Republic style)." In either case a new world currency reserve standard will emerge. Like many of us here on Publish0x, Jeff believes BTC is likely a very good choice as world currency reserve, probably mated with gold and silver, But only when this madness ends either way.
TK Market Forecast: Post November 2020 US Election I postulate current Trump Administration will let this Asset Price Inflation be maintained with the US Treasury (newly) controlled FED Money printing and purchasing of stocks and bonds, added directly to the FED balanced sheet until after the election AND then, in the likely 2nd Trump Term, we will see the RESET. IF Trump wins, (likely), it is very much likely , the President of the USA (Who has been executing, more or less the JFK playbook which never got fully played out) takes the first action, which will be to definitely RESET the World Economy to a new world reserve currency backing a new US Greenback , the question is WHAT will be the composition of that new world reserve currency Greenback? (which is hard to print if backed by REAL gold or precious metal reserves, as the country currency needs to have transparent proof they actually own those precious metals backing up their Notes which can be converted to any mix of those precious metals, in theory. If the US post 2020 Election (Trump or Otherwise) Administration simply issues a "New" Digital US Dollar with the same printing characteristics as we have now, EXPECT the smart whale investor to avoid it like the plague and go to BTC and metals directly for their hard stores of value. So follow the Whales, especially the Hedge fund guys like Paul Tudor Jones.
TK Reserve Currency prediction Post RESET? The conservative Outlook: Gold first, then... BTC?
Which "hard stores of value" become the world currency reserve?
I am thinking such a basket of reserve currencies at both the World and National levels will be made up initially of a basket of metals, gold leading the way and, by it's de-facto cousin relationship, also silver and, maybe platinum (and possibly some rare earth & or heavy metals valuable to main st. production of electricity generation and energy storage, like Neodymium) and, that BTC will become a de-facto 2nd cousin put into use by many businesses regardless of official governments dictates.
So during the crash, (onset trigger could be the new issuance of USA gold backed Digital $ in early 2021?) on the way to the 'official' RESET (not really that important once the 'cat is out of the bag' as govts will bicker over this for a while like in the 1970s when the world went off the gold standard, ( TK tidbit - I was young newspaper delivery boy, reading everything then, followed how it unfolded 1969 to 1971.
During the Crash, expect a lot of Fiat Financial Asset classes to be wiped out (The 2nd Trump Administration will execute on JFKs plan for the FED and restrict the FED role, maybe even eliminate it according to the original JFK plan way back in 1961 )
As companies try to avoid Bankruptcy (those ones holding a lot of financial assets that get wiped in the form of bonds and stock holdings), there will be massive efforts to reduce costs, cutting labor force, followed by sell-offs of assets at ever deflating prices in order to conserve cash and take that cash and shift it into stable hard stores of value represented by a new "Basket of World Reserve Currencies", where expect some Digital Fiat currencies without much backing to be polluting the mix at, European Central Bank "ECB", IMF "International Monetary Fund" and World Bank levels (To keep holders of Sterling, Euro and Yen happy.).
If/when the TK predicted US New Digital Greenback emerges it will likely be a gold (Deep Reserve?) backed Digital Note (maybe co-existing for a time w/ the existing US $ fiat Promissory Note for a brief period, til the swap out is made) and as such, I expect the Russians to counter with a gold backed Ruble and China to do the same with the Yuan (Both have plenty of gold in Storage, those without will need to lease the gold, which will drive the price up even further, to what its hard to say in the short term, long term over 3 years it could go north of US $10K ?)
TK note- The smartphone 'App World' being the fastest and easiest way to convert fiat to a hard store of Value will be BTC, and then by default other value add, hard stores of value.
The World Economic Reset: TK's "GET READY NOW" Investment Short List for 2021 RESET
No particular order, a good mix is always best, for sure there are other alt-coins of great value also worthy, so please add your comments below.
- BTC -Hard Store of Value (maybe lightning if the can get user adoption going @scale)
- ETH -Smart Contracts "SC"
- BAT - Permissioned Advertising
- IOTA - IoT & Smart Contracts
- CARDANO -dPOP & SC
- TRON - dPOP & SC
- TEZOS - dPOP & SC
- DASH - Fast Settlement- Retail Use
- ZCASH - Zero Proof Fast Settlement - Retail Use
- COSMOS - ERC20 Inter-Blockchain
- Exchange tokens- The ones with the best DEX Story (Meta/Multi Exchange Price Discovery Service supporting Peer to Peer Trading)
AND a good mix of the good ole' hard stores of value (bought in the dips of their own markets)
- 'Already Deflated Price' House and Land Assets (not many of them out there, so buy in your local market dip, but wait for the crash first)
- Food Stocks- dried goods, canned goods (don't rely on refrigeration or electricity)
- Lots of Water- Purified ( Get a manual filter system and start filling it up from the tap, filtering and then dumping it into large storage containers)
- Short Wave Radio with solar charged Battery (if you are into Prepping)
- Vitamin, C, D, and A,
- Hydroxychloriquine (In case 'they' ramp up a 2nd Plandemic w/ stronger COVID 19 effects.. , re-engineered, MSM promoted)
- Tonic Water (Lots of Quinine in it, drink flat, keeps the viruses away and Malaria/Yellow Fever at bay..)
- Your neighbourhood, your clan, reach out to reconnect with those to develop some trust "I've got your back, if you have my back stuff"
Other Stuff- If you have time... (about 12 minutes in fact) The first part of the Interview- 1551 Keiser Report is also quite good, so if you have time watch for 12 minutes as they compare what is going on now in the World Economy to the movie story line of Apocalypse Now. (Circa 1979- The horror, oh, the horror...)
One thing is for certain imo, there will be a big RESET in the World Economy, sooner rather than later, I am thinking MID 2Q 2021, regardless of which "hard store of value" is 'officially selected' by the powers of the day, but only AFTER the 2.0 Depression sets in, so
be prepared, be safe and prosper, NOW. (Because we are less likely to get govts on to one world currency std. soon to stop currency manipulation and embrace deflation, given their masters hold lots of debt and assets., the uber class, so that means BTC will rule in chaotic times, hopefully without hot wars and without race baiting )
TK over and out *****