Being in quarantine and “Working From Home” has given me some valuable time to reflect on the global impact of the Coronavirus and well as the inevitability of a financial and economic crisis that is coming our way in 2020.
I was reminded about the Global financial meltdown in 2008 and how the US government and the Federal Reserve aka “The FED” bailed out the Big Banks, because they were “Too Big To FAIL”; unfortunately the FED printed all that currency out of thin air and bought $700 billion dollars’ worth of CDO’s aka Collateralized Debt Obligations. Only The banks can come up with this kind of garbage financial products, which the US taxpayers are holding the bag. Honestly, I would like to know where the US government would store this kind of crap of toxic assets, which is a great liability for the American people.
If you remember in 2008, the most common phrase in the news is “Too Big to Fail” and in the alternative media reporting on this, another phrase was common i.e.” TOO BIG to JAIL”. In 2008 TARP – the Troubled Asset Relief Program was created to help bail out banks. Banks like Citigroup, Morgan Stanley, etc. were needed to be bailed out because it will create massive losses that could financially and economically damage the United States as well as the rest of the world. This Crisis all started because of the US banks offering loans to folks who shouldn’t be getting these loans in the first place due to bad credit history, low incomes, and other requisites, etc. To learn more, please do watch the movie – The Big Short, you will definitely learn and be entertained.
How banks created CDOs – collateralized debt obligations to market and sell bundles of mortgages to other banks and investors. The CDO’s are packages of ridiculously bad mortgage loans and these banks spend billions and realized that these CDO’s are worthless. So govt came in to bail these banks because the banks are too big to fail.
Now coming back to 2020, We are experiencing a similar situation and a crisis is approaching us as we speak. This 2020 crisis will be known as the crisis where we bail out industries that were too big to fail because the Fed might start buying stocks to bail out the stock market. The FED and the Govt is planning to bail the whole Stock Market valued at $42 Trillion. So, I’m sure you can see with your own eyes and mind how this is going to be played out. So, it’s not the real estate market crumbling it’s the stock market.
The reason that the stock market is crumbling and many of the largest corporations and industries are close to bankruptcy looking back from 2008, The United States had the Longest Bull Run in History from 2008 to February 2020. Many businesses accumulated too much debt at 0% interest, all their growth is fueled by debt and instead of saving their profits in a savings fund or some form of a reserve, many corporations like the ones in the airline industry have used 98% of their cash reserves to buy back their stocks to raise their share’s values, which will make them look really good in paper at least. But, unfortunately when the global economy started to slow down, especially the pandemic was the pin that burst the corporate debt bubble, many companies and individuals all across the world were swimming naked.
Many industries like the Aerospace(Boeing), Airlines, Hotels, tourism, real estate, etc. came to the federal government and cried their hearts out for a bailout. So, the US Federal Government and the Federal Reserve decided to have a $6 Trillion stimulus package that will buy the corporate bonds as well as shares in the stock market.
This stimulus package of $6 Trillion ($2 Trillion From Congress +$4 Trillion from FED & Treasury) is not going to be enough, history is repeating itself or I should state its rhyming. Let’s remind ourselves back in 2008, initially the FED’s would spend $475 billion to buy the toxic assets and later increased to $700 billion. Now in 2020, the initial budget was $ 750 billion and raised the budget to INFINITY to buy as many shares is necessary to maintain the financial and economic status quo. You might be wondering, how is this possible, I would love to elaborate more in detail, but I will touch upon this at a later stage.
Just to keep in mind, if you remember the game of Monopoly, the Bank(Banker) or in this case the Central bank which is the Federal Reserve can print Currency out of thin air.
If you would like to learn more about the history of money, our monetary system; the difference between money and currency. I would highly HIGHLY recommend Mike Maloney’s Hidden Secrets of Money.
Get Gold Stack Silver Buy Bitcoin(Bitcoin Cash is the Real Bitcoin);)
How we as individuals can take advantage of the current economic conditions, if you were able to accumulate and save up your cash reserves, This is one of those times in our lives where we can grab the opportunity to acquire shares of great companies with an upstanding record in the marketplace at really low prices; Even it’s a great time to buy precious metals like gold and silver, especially silver is really undervalued, already in the marketplace, it has been very difficult to buy silver coins and bars, even thou the spot prices of silver is really low. Eventually, in due time, the prices of these precious metals will rise. If you are adventurous, I would recommend delving into cryptocurrencies, especially the privacy-based cryptos like Monero, Aeon, Zcash but also it would be good to have the large-cap cryptos like Bitcoin Core, Bitcoin Cash, Ethereum, Tether, etc. as part of your overall portfolio.
Monero Is What Bitcoin Noobs Think They Bought, Which is Fungible, Digital & Sound Money – Dr. Daniel Kim #moneromaximalist
But the most IMPORTANT INVESTMENT you can ever do in the current economic condition we are currently in is to invest in YOUrself and raise YOUr Human Capital, which is to gain knowledge and skills that will keep you highly marketable in the marketplace as well as generate income on demand in the new economy we will be entering into. It is also important to maximize your Human Capital with the right mentorship, leadership, network as well as your valuable skills needed in the marketplace.
Raise Your Financial Confidence
Increase Your Human Capital
Lets Bring Economic Freedom To The World