1 Fiat,
2 Central Bank/Treasury UBI Issue Direct to Consumer
3 Bank vs. FinTech/Exchange offered Crypto Derivatives,
4 P2P Crypto & Proof of Keys
5 Metals
6 Barter
Six columns will be left standing after the Economic Reset, which I expect to happen in 2021, earlier rather than later. The Question will be for the averaage investor and consumer in what sate will be each.
What will your mix & dependency be for which use cases? IN the face of the coming Bankolypse?
As the world devolves into these "Six Columns", the stores of value we will juggle for the foreseeable future to protect and grow you buying power, some interesting trade-offs will be made at the consumer level, which will see banks as we know them today, all but disappear.
Expect today's banks to either morph or perish, to be either be replaced by or, directly compete with, a growing vast array of emerging Fintech variants Defi and otherwise, all wielding a vast array of "crypto paper" products, some based on crypto (likely BTC first) , a few of which have 'lunged' out into the "early lead", namely BTC Futures and derivatives there of.
Beware, No proof of Keys, no ownership of Crypto assets.
Banker Bewilderment: What No bail outs this time!?
Yup, As the US Treasury and other Central monetary institutions follow suit with their own centralized digital fiat, set up solely to deliver UBI 'Universal Basic Income" directly to the consumer, banks will be left on the sidelines saying WTF!?
Banks, no longer able to create money out of this air at the command line are truly screwed. Imo and, experts in the field also trumpeting same, banks will have no choice but to "paper crypto" as derivative offers, ie "BTC futures", to cover their own rapidly depleting reserve positions, as more and more of their fiat holdings, especially those bank chattels in real estate, crash through the floor boards and lose as much as 65% of their value, due largely to a lack of buyers with a sufficient credit to prop that market up.
All the while, during this traditional banker bust, the average person on the street can expect the Consumer basket of goods" index (sans Home mortgage and car lease) CPI to rise quite rapidly, real hyper inflation that , due largely to a shortage of real paper cash & digital credit to buy these essential products and cover basic health, rental and car lease and mortgage payments, as central govts tightly control the flow of digital fiat via US Treasury issued debit cards to their muzzled minions. BAh!!!!!!!!!!!!!!!
It's the Global Economic Reset creeping forward, right before our very eyes, for all to see and few to comprehend and act to protect their buying power.
Banker Beware.
Columns 1, 2 and 3: Fiat, Central Govt Digital currency for UBI, Papered Crypto: The Unholy Trinity?
When it comes to buying power, me says yes. Nothing good long term comes from using these columns to "prop up" your buying power and quality of life. Especially column 3 , the illusion of owning crypto, so called "Papered Crypto". At least column 1 and 2 are more or less understood as inflationary tools designed to prop up markets through the issuance of more debt.
The wild card is the Central govt "debt Jubilee Kill Switch". Those with the most debt stand to win from such an act of total Economic Destruction? Maybe. What is clear is the US banks will "take it in the shorts" Lehman and Bear Sterns style, especially since the US Treasury has imminent domain over the operation of the Federal Reserve, per (royal decree) Executive Order from the WH. It's a Mexican Standoff which is jaw dropping beyond what Clint Eastwood has ever seen.
TK tip: Those with the Most Metal: Gold, Silver et al, stand to win in this global game of chicken (destined to wreak havoc on your life and savings). Namely Germany, Russia. China and the USA,(Maybe even Mexico with Lots of Silver & MS 13 challenges, along with maybe South Africa having lots of Gold and the ANC "toilet politik" stuck to its foot) . All of these metal hording countries are claiming to have huge gold reserves on which to partly underpin their UBI shenanigans to maintain control of the herd. Want your UBI cheque? Take the Vaccine and get your ID, otherwise bugger off. It's also wise to note the US claims big deep ground reserves? What is that any way?
What is clear is the large cadre of banks big and small are truly screwed. How quickly these banksters morph into crypto capable fin-tech companies remains to be seen. The internal cultures of most of these banks are scant on crypto tech and large on financial politic. Not a good mix. The prognosis is not good generally with few exceptions.
Canada? Other traditional Western Economic Engines? How will they be counted? Well the Losers in this Economic Razing of the World Economy get to lease their gold from others at higher expense to finance their own UBI scams, as they kick the can down the road wondering why on earth they didn't accumulate metals and high value crypto to back up there increasingly worthless fiat issues. Canada et all is the shining example in this big "L" group, which translates into even higher rates of real inflation and rapidly declining consumer buying power for a long, long time. Think Venezeula 2.0.
The 4th, 5th and Six columns: P2P Crypto, Metals and Barter- My Three Amigos Extrordinaire or UBI Nightmare?
When the proverbial Shite hits the fan, as it is doing daily (at the repo window, the US has printed more fiat this past month than in the entire history of the USA) , duck and cover is not an option.
Grab a garbage can lid, line it with a bullet proof vest and defend yourself physically. When it comes to finance, defend your buying power now, behind these Growing, strong columns.
'Hard Stores of Value" rule, followed by non papered Metal holdings (you actually have the gold, stack of silver etc., in hand) and anything viewed as valuable in the product and services categories which can be easily exchanged in a Barter form.
What is very clear is UBI "Universal Basic Income" represents total submission and complete loss of personal freedoms not to mention rampant inflation and continued rapid erosion of buying power, not an option I will take.
Finally What About Taxes in the Future?
Yeah what about them?
Ask yourself this? Have the governments of the day, in your locale, over the last 30 years and, their respective Political class elites been fiscally responsible where there is hard evidence 'they' have managed monetary policy to protect your buying power?
Nope.
There is not one shred of evidence out there across a multitude of countries that either management of fiscal or monetary in nature have benefited you the consumer and small investor .
Your decision on what to do here in the realm of taxation is just that, yours. It's very personal. However make no mistake, your treatment of this realm IS the "pivot point" for really changing your country into something either totally worthless due to no action, or something great a la 1776 due to the right action.
Crunch time folks. Pick your columns well. Protect your buying power and please don't feed the monsters with in your own locale, the governments of the day, you will receive nothing but grief for your act of submission.
Be Strong like Bender, he hoards metal & thrives in an oil economy, it's old school "backbone" stuff, that still works. ;)
TK over and out.
*****
