NEWS: Deutsche Bank warns the global economy is ‘sitting on a time bomb’
BUT: Pause for a minute!
While some warn of inflation ahead, others warn of an economic depression.
Given the amount of currency debasement occurring around the world (and yes even in Australia) either option is on the cards. The truth is that experts do not know when, which one, or in what order these will occur.
Personally I believe that both of these will occur as the fiat currency system we all use goes through the final death throws on the way to full currency debasement.
I also expect a new currency system will emerge, and it is most likely a digital fiat replacement for the currencies.
How do you prepare for this?
Simple Answer: Tangible assets.
For years I have been acquiring tangible assets and storing these for preserving wealth. These are;
Income producing property and income producing businesses, (eg a side hustle) as some of the ‘assets that put money in my pocket every single month whether I work or not’. (yes that is my definition).
Remember the training when we learnt this lesson.
So as a result of being prepared;
• If inflation occurs, the cash flow from assets go up. (Net Profit)
• If deflation happens, the returns may decrease, but then so will expenses.
The next option is storing metals like Gold and silver, (then more recently Bitcoin) out of the banks, takes me out of the fiat monetary system, preserving wealth.
The important question from this is what will YOU do to prepare for the next 10 years?
Kel
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The global economy is on course for a “devastating” rise in inflation in the next few years that will hit every corner of the Earth, Deutsche Bank has warned in a stark new report.
It says the world is going thorough its biggest shift in direction in 40 years in terms of economics and that it could lead to levels of inflation, in just a few years, that would wreak havoc with our lives.
Inflation – the increase in prices of the goods and services that we all buy – has for decades now been seen as the bogeyman of the economic world.
When the prices of everyday stuff like bread and petrol goes up, people tend not to be happy about it. History has shown us that when it spirals out of control – as it did in the years before the Nazis came to power in Germany – things can get out of hand pretty quickly.
Former US president Ronald Reagan summed up this fear by describing inflation “as violent as a mugger, as frightening as an armed robber and as deadly as a hit man”.
As a result, economies around the world have worked hard to keep inflation down.
