If you think the world’s chaotic already, wait till next month.
It mightn’t feel like it here in Australia. Maybe the unseasonably cold winter is keeping things under the lid.
Yes, there’re increasing tensions here with ‘The Voice’ campaigns.
But by global standards, it’s been quite civil. It’s a sharp contrast to the open conflict in Ukraine, France, the Netherlands and other parts of the world.
For our sake, I hope things here won’t get worse. It feels like society is hanging by a thread everywhere. It only takes something small to plunge everything into disarray.
Anger simmers and dissatisfaction boils over
There’s no denying the quickening pace at which events are developing.
I can’t say it enough to hone in on the point.
Think about the latest civil unrest in France and the Netherlands over their Government’s policies to impose further hardship upon their people.
In the case of France, it was about raising the retirement age.
Meanwhile in the Netherlands, it was about limiting the use of fertilisers that would threaten the livelihood of farmers. And disagreement between the parties in the coalition government over immigration limits became the final straw that caused its collapse.
Tensions boiled over in these countries, to the point where it’s made the headlines. Similar things are happening in the US, UK, Germany, Italy, and elsewhere. It’s clear that the people are divided, and both proponents and opponents are willing to march and show their disapproval.
For many years, most Western governments have run massive budget deficits. This is driven by an ageing population, a service-based economy rather than one based on manufacturing, more government handouts (especially during the Wuhan virus outbreak), and politicians promising more benefits to secure the people’s votes. Consequently, the government increased taxes on businesses and households to make ends meet.
A hot-button issue has been the impact of man-made activities on the environment and climate. Proponents argue that certain choices we make as a society could devastate future generations. This has led to proposals to alter our lifestyle, some of which include significant spending to develop new technologies like renewable energy, battery technology and smart meters. And as you’d expect, these are often subsidised by governments with taxpayers bearing the burden.
From a philosophical perspective, these policies sound reasonable, as it’s for ‘the greater good’. Everyone should theoretically do their part to make the world a better place.
So why the pushback from the people?
When reality bites
Human beings are by convention creatures of habit. We seek comfort, are risk-averse and dislike change. We can tolerate discomfort and hardship to a certain extent.
Once we reach the threshold where something becomes unbearable, we’ll act.
So, people around the world are now rising because they’ve reached their limit.
But what limit? The ability to make ends meet.
These past few years, the general population has stomached much unfair treatment and observed rampant hypocrisy. They’ve seen how their leaders and celebrities travelled overseas and partied while they were in lockdown, which ruined their livelihood — especially if they ran a small business. Their pay packets have bought them less while their leaders enjoyed higher-than-inflation pay rises.
The extended period of a low or zero interest rate environment ravaged society by bringing economic woes such as wealth inequality, inflation, runaway asset prices and skyrocketing debt — both public and private.
In the short term, debt and inflation can push asset prices up creating a ‘wealth effect’ that gives people an ego boost. Let it persist, and it creates a yawning divide between those who own assets and those who don’t.
This is what most Western governments have done. Corporations and wealthy individuals exacerbated this by lobbying for changes that benefit them…or inoculating them when it isn’t in their best interest.
Think about how the Green agenda has led to unequal treatment between the wealthy and the ordinary people. Corporations stand up for these policies to receive government subsidies and tax breaks while the people bear the costs, especially on their utility bills.
There’re some examples that are downright absurd. Recall last year how European Governments encouraged their people to use less heating during winter and shower less during summer? This was part of a strategy for damage control after their wager to sanction Russia to save Ukraine backfired. Russia cut off their supply of natural gas causing them significant inconvenience.
But earlier that year, they’d passed exemptions from the carbon pricing scheme for those who owned yachts and corporate jets! Talk about a blatant ‘up-yours’ to the people!
It’s no wonder they’d take to the streets to express their outrage!
Protect your wealth and capture opportunities like the central banks and the elites
Let me be clear on one thing…
I don’t advocate taking to the streets and risking your safety to fight the authorities.
In my view, they no longer exist to serve society and act in our best interest. That went out the window in 2021–22 when we saw the way they treated the lockdown protesters. It was a stark contrast to how they responded to the mob violence in the 2020 ‘summer of love’.
I don’t put it past them using strong-arm tactics. Not only that, but they’re also now attempting to control the narrative. Going forward, they’re looking to pass a law to punish news outlets or social media platforms for not removing dissenting opinions and posts.
Despite the odds appearing stacked against us, I see a silver lining to this.
Yes, it’s hard for you to imagine. Here’s why.
All these point to them on their last legs. They’re now imposing outright censorship because they lost the narrative once Twitter fell to Elon Musk last year.
I’ve written about how they’ve shredded their credibility via a prolonged campaign to push an agenda rather than faithfully reporting truth and facts.
Don’t expect them to capitulate, nor that they’d collapse anytime soon though.
You must therefore protect your wealth first, then reach out and help others in need.
There’s one asset that has retained purchasing power for the longest time — gold. It’s real money. Central banks and the elites are buying it at record quantities. They know what’s coming and they’re desperately hoping that it’d help them prevail as they lose control.
You’d do well to follow what they do in this case.
Find out more about where you can buy gold with my investment service, The Australian Gold Report. I also will show you how you can build a portfolio of established gold producers to leverage the power of gold and build your wealth.
August is going to be a hot month. Don’t get caught up in the mess. Instead, identify the opportunities to shore up your wealth so you can prevail over the confusion and chaos.
God bless,
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Brian Chu,
Editor, The Daily Reckoning Australia
