Some of you may already be aware by now of the World Economic Forum unveiling a program called ‘The Great Reset’. It is meant to be a blueprint of an ideal liberal society where we have an egalitarian society overseen by ‘benevolent’ rulers above it.
Sounds like dystopia to me!
The ingredients of ‘The Great Reset’ include an overhaul of our existing political and financial systems and changing social norms and cultures.
It would take me weeks to list out what the wish list is.
Let me focus on the financial aspect of it.
‘The Great Reset’ can only happen if the world fixes the existing system that created massive inequality.
The elites suggest the catchphrase ‘You will own nothing, and you will be happy’.
Basically, it is like the old joke of ‘Money can cause much worry, so let me relieve you of both your money and your troubles’.
The way it could work is through a market crash. The central banks, financial institutions acting as lenders, and large corporations benefit from a market panic where ordinary people sell low after buying high.
Then they can allocate the resources back to us and we’ll be happy despite owning nothing.
I don’t know about you but hands off!
Watching ‘The Great Reset’ fail
Many believe that ‘The Great Reset’ is a forgone conclusion. The elites have pushed for whatever they wanted and got it over the course of history.
Not this time.
We’ve watched how Russia faces sanctions from the West on their oil and other exports because it invaded Ukraine.
Yes, the West is united in moral solidarity here.
But behind the chest-beating, they’re buying Russian oil quietly. It’s all for show. Expect the price of oil to still go up because of the cover story, for a little while longer.
That will bite our hip pockets as businesses pass the costs onto us.
The other thing that came out as a ‘surprise’ is Federal Reserve Chair Jerome Powell now declaring that he will support a 25-basis point rate hike in the upcoming meeting on 15–16 March.
The prospect of a higher rate hike is off the table, for now.
The markets are not likely to crash this month. But inflation is going to run rampant, and the central bankers are going to face an even bigger beast that could defeat them.
Furthermore, as the elites’ prophecies of what is to happen continue to face delays or are not playing out because of the population standing up against it, the prospect of ‘The Great Reset’ going according to plan fades.
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So the markets are breathing a sigh of relief that the Federal Reserve is not swinging the big stick. It will resort to a smaller rod.
I see this as the central bankers and the fiat currency system aiming the knife at its own gut. It is about to fall on its own sword.
They really screwed up now. Rather than pre-empting a revival of the relevance of fiat currency by crashing asset prices to increase its purchasing power, it is going to crush itself beneath the inflation it groomed.
Let me share with you something my colleague Catherine Cashmore sent around yesterday. Her friend, real estate expert Louis Christopher of SQM Research, expects inflation to surge too. His firm says weekly rents are soaring in the capital cities.
Look around you. Oil is more than US$110 a barrel. Rents are up. Interest rates are likely going to rise in reaction to this.
It’s not a time to be blasé about the stock market.
And, in my opinion, gold will rise or at least assert its resilience going forward.
You should get some for safekeeping. Gold is a hard asset that can’t be created on a printing press.
Paper money is doing a swan dive in value in this current dynamic. Ask anyone filling up their car.
If you want a way to potentially boost your returns on gold, I can also suggest you try out ‘niche gold’.
What is ‘niche gold’?
Join me here to find out more!
God bless,
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Brian Chu,
Editor, The Daily Reckoning Australia
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