It took centuries to create the global economy that existed in 2019. The European age of expansion, as messy as it was if judged with modern morals, created the largest population expansion in known history.
In the end, which we can define as the years between 1995-2020, the global economy was more or less an extension on US political ideals. The form was cast in the shadow of the Second World War, but it came into its own when the Soviet Union fell around 1990.
However a person feels about the US model, it is difficult to argue that it was nearly totally dominant for three decades globally. Former Soviet republics raced to join up with the West, and even former hardline communist states like China embraced market capitalism.
Now, that is all over. It ended in 2020 with the rise of the global political class’ response to COVID19. We are now living in a fully centrally planned economy, much like the one that existed in the latter years of the Soviet Union.
There is No Going Back
A “return to normality” from this point isn’t possible.
The point of no return was likely in the summer of 2020, and today, we have crossed the Rubicon. It is impossible to unwind the level of state planning that has entered the global markets, and continued “stimulus” will be required to avoid total collapse.
At least in the short term.
But – and no one wants to hear this – from this moment, total collapse is unavoidable.
To be sure, we have seen the beginnings of what the coming collapse will look like. Recent events in South Africa are likely a good model for what is to come to the world at-large. The rolling riots in the US during the summer of 2020 are also worth looking into as it concerns what the fall will look like.
Of course, the economic and social marginalization that created the conditions for collapse predates COVID19. Economic – not racial – inequality has been on the rise since at least the 1970s.
With a massive (think 90%) of the global population with little in the way of economic assets, the time is right for revolution. We don’t want this to happen – revolution is messy – but given the stance of the global political class, we are sitting on top of a ticking time bomb.
Afghanistan and Political Collapse
The Taliban was marginalized – if not eliminated?
After 20 years of brutal fighting against the world’s most potent military machine, the rag-tag group of militants was supposed to be all but eliminated.
In the span of a few weeks – and with seemingly ZERO foreign assistance, the Taliban had taken Kabul and was going door to door looking for US collaborators.
No doubt, what happened during August of 2021 in Afghanistan will be studied for many years to come. It was amazing to see.
Now, the US will have a very difficult time keeping up the appearance that it has any sort of military potency, which may create a situation that empowers both rival states, as well as radical groups that now have access to loads of US made weapons via the Taliban’s distribution network.
It all happened quickly – and there is likely more coming.
You Won’t Have Time to Prepare – If You Haven’t Already
With corrupt governments, privately owned central banks, and major media outlets all working together, the common person has been left in a position that is unenviable. CNN’s Clarissa Ward actually described the Taliban as “seeming friendly” as she was covered in a burka, and the crowd chanted “death to America”.
For anyone in Kabul who wasn’t aligned with the Taliban – it was too late to prepare. The US government had no plan to evacuate US nationals, and a generation of Afghans who trusted the US vision for a modern Afghanistan had been betrayed (and may be hunted down by the Taliban).
The power structure won’t tell you to buy cryptos, or prepare for a world where fiat currency falls apart in a matter of weeks. Much like US collaborators in Kabul, anyone who trusted the central banks will be hung out to dry.
Are cryptos the only asset that can help you?
No. Of course not.
Gold and silver are also great – but not nearly as convenient as Bitcoin. One of our biggest problems in the crypto sector is that we still measure tokens via fiat currency. Bitcoin makes headlines when it hits a new high in USD or EUR terms.
In the centrally planned world that we live in – we should understand that every major token will continue to make new highs in terms of fiat currency terms. That is what happens before a collapse.
Other prices, like rent for an apartment, or car values, are also rising quickly. Central banks have set the course for hyperinflation, and the value of fiat currency will drop to zero.
Much like the fall of Kabul – we can’t know the hour and date that faith in fiat currency will implode. We only know that that day is coming, and when it does, you want to be prepared.
It will happen faster than you think.