The Next Decade Will Look Nothing Like The Past Ten Years

Why would I make such an obvious statement as a way to greet a friend?  Quite honestly, most people assume that the next ten years will bring about as many advancements in technology and culture as we have seen in the past ten years.  Think about all of the wonder-filled advantages we have today compared to 10 years ago.  For the most part, it is the images of these ‘progressive changes’ that come to mind when I say the next ten years are not going to be like the past ten years.

Certainly, all these things have come at an equal cost?  The ongoing wars and loss of personal freedoms are but one price most of us have gladly sacrificed even if they were paid unknowingly.  But, on a more fundamental basis, how will we pay for the expected growth over the next ten years if things are supposed to advance and grow even more than they have this decade? 

To even begin to answer the question of how we can pay for the expected growth we have to take an honest assessment of just how have we paid for the rapid changes in the past decade.  The answer is simple even if the reasons why are not so simple.  Quite simply, we paid for almost everything in the past decade thru creation of HUGE debts…Personal Debts, Corporate Debts, National Debts and International Debts.  I am guessing that the next decade will have to be paid for with ‘Inter-Galactic Sized Debts’, but since we don’t yet have any trade partners across the galaxy we will have to settle for the next best thing our governments can think of…HYPER-INFLATION.

Why would we want ‘hyper-inflation’ when most of us can’t even keep up with the regular inflation we have been burdened with over the past century?  Oh yeah, we can buy ‘more stuff’ we don’t even yet know that we can’t possibly live without…Is this why?  This may be true for a few people but the real answer is even more simple.  Hyper-inflation is the direct result of increasing the supply of money, and all of us need more money, so it is easy to see why we need to print up some more money isn’t it?  We all need more money.  I think I will just scan and print a few notes now…Don’t report me to the government because that is their job isn’t it?  To print the money?

Actually, the governments of most countries relinquished their control of the money supply in the first half of the last century.  It is the Central Banks that print up the paper money, but it is the commercial banks that create new money thru a system of fractional lending and debt creation.  Basically the idea is this…New money is created thru lending the same money over and over again to create huge serial debts.  These debts can be sold and traded thru a very complicated financial system that makes no objective sense.  In the proposed financial system of the next decade I would not be surprised if someone builds a proposal for a debt based fund that has been traded on futures from trade across the galaxy…It makes about as much sense as creating more money from debt and a little more sense than printing money from nothing.  Doesn’t it?

Despite this problem with debt based money the “Galactic School of Economics” seems to have been widely adopted in the so called developed world countries after the tremendous success of Robert Mungabe in Zimbabwe.  “And just what did Robert Mungabe do?” most of you will ask me?  Mr. Mungabe was a brave pioneer in the modern world of galactic economics, ahead of his time.  He successfully employed the system of fractional debt to print quantum amounts of money in a short period of time.  I know you want to know how bankrupting the country of Zimbabwe can be considered a ‘success’?  This economic policy was successful in putting almost all assets in Zimbabwe under government control and Mr. Mungabe was certainly happy with that! 

But, for the rest of us who have yet to fully implement the ‘Galactic School of Economics’, Mr. Mungabe allowed us to see first hand what potentially lies ahead for us as we march head-strong into the next decade with our fractional debt creation and quantum money expansion…So what happened?…Most people in Zimbabwe eventually gave up the use of paper fait money and reverted back to trade with real assets like gold, silver, copper, and diamonds, as well as a barter system with food, water, petrol, and tools all facilitated with computers, cell phones and jet airplanes!  So, I thank Robert Mungabe for showing me what may be ahead for most of us in the next decade.  This world sounds completely different from the past decade indeed…A hybrid world of today’s technology and yesterday’s debts and tomorrow’s personal survival assets.

Those of you who study history know the most important history to study is the history we are living right now!  Sure people say, “This time will be different from all those times in the past because we have learned how to control all the variables in the system…”, or some variation of this fantasy.  Some will say, “We are smarter than Robert Mungabe and what happened in Zimbabwe can’t happen here…”  Actually, this is true because some people of Zimbabwe still had access to gold and diamonds in their rivers and land to grow food and a remnant barter system on which to continue trade with their neighbours etc.  Our world is more complex and most of us are counting on that complexity to somehow protect us…But, in actuality the bigger and higher our complexity, the harder the potential fall might be.  So what happened in Zimbabwe can’t happen for most of us.

I would not waist time on bringing ‘bad news’…I am the bringer of ‘good news’.  While on first reading of this article you may not see much to be excited about, none the less, I am excited about the next decade and beyond.  The first step beyond the problems of today is to understand the issues and what results to expect.  I love analogies and here is one of my personal favourites:

If you put a frog in a pot of water and very slowly heat the water, at first the frog will enjoy his new habitat and he will relax.  As the water heats up the frog stays in his watery home confident that the water will stay a perfect temperature.  Eventually the frog falls asleep due to chemical changes in his warmed nervous system when the temperature rises.  At this point nothing but a miracle or divine intervention will save him from boiling himself to death while he dreams sweat dreams.

This is your wake-up call if you are like the ‘sleeping frog about to boil’ in debt.  You can still get out of the debt system in time.  It seems to me that the action needed is counter-intuitive for most of us.  If the bank creates the debts to make more fait money then maybe we should be aware of the something the banks don’t want us to do! 

The banks don’t want you to use real asset like gold and silver as money because they can’t make as much profit with those forms of money and they can’t increase the supply of gold or silver the way they can print up quantum sums of fiat paper money. 

The central banks spend a lot of effort convincing the general public that gold and silver have no role in the modern financial system…Why would they do that unless it served their goals of fractional debt creation and quantum money supply inflation?  Maybe owning gold and silver can protect us from hyper-inflation.  Maybe this is something worth understanding.  Maybe the fact that top hedge fund managers like John A. Paulson are investing heavily (46% of total holdings) in gold and silver is something you and I should pay close attention to.  Maybe the fact that most central banks have not sold off their gold reserves since they declared gold was of no value to the money system almost 40 years ago means that the banks are not putting their fiat money where their indebted mouth is.

Obviously, none of us can live without money and I am not saying that we should, but we should have some way to control the banking systems inflated supply of money.  A monetary system tied to gold (Maybe with silver, copper, platinum and other non consumable commodities) goes a long way toward keeping inflation under control.

How much gold and silver should we keep on hand at our local bank for emergencies and what form that gold should be in doesn’t really matter because your quick access gold just needs to be in small denominations of free market bullion that is not legal tender so that it can’t be confiscated by the country of issue.  Krugerrands are a good example if you can get them.  Another popular small denomination gold bullion are Shekels from the Swiss mint Agor Heraeus.  Shekels can be purchased safely from:

www.youniquewealth.com/savings

If you have your debt under control and you have some savings already set aside in money savings, money market funds, stocks, or hedge funds you may want to add to your portfolio a personally owned and allocated bullion bank account.  Such an account would enable you to personally sell and buy gold and silver at spot market prices in any currency you want any time you want.  The purpose of the bullion bank account is to create your own reserve hedge against inflation while a trading account would be more for investing.  A popular bullion bank that I have found easy to work with is Anglo Far East Bullion Bank Company:

www.anglofareast.com/affiliate/kb-001

Remember the boiling frog…Our pot might be set to boil next year or ten years from now…Just don’t fall sleep and do nothing to get out before the heat overwhelms you.