Macroeconomic trends for 2021 – part 1
When we analyze the current global economic landscape in early 2021, there are certain clear indicators that suggest the coming year ahead will not be an easy one, especially based on the setting of 2020 just passed. At least for fiat-based economies it doesn’t look good. For cryptocurrency though, 2021 is set to be – and is already – legendary. Let’s look at the global reserve currency, the dollar, to begin with. We can see that since the start of 2020, the US dollar lost 7% of its value or purchasing power. We can see the actual dollar value in the DXY, which measures the dollar against a basket of other international currencies. In this way it gives a fairly accurate measurement of the purchasing power overall. We can’t simply look at the price of gold or any other assets in dollars, so the DXY is the best measuring standard.
In March 2020 we had the Corona dump, where global markets took a dive. But when money printing came in to perform a so-called rescue, there was a rapid bounce back. This quantitative easing (QE) to the tune of trillions of dollars printed out of thin air by the Federal Reserve central bank, flooded the market with dollars backed by nothing, acting as a band-aid but in reality diluting the value of all dollars already in supply. So by June, with lockdown ruining the world, the dollar simply fell again. And by August the dollar reached new lows, even lower than the initial Corona dump back in March.
And since then the dollar has steadily slid still further to new lows by the start of 2021. So we entered this year at an annual low in the global reserve currency. And this is despite, or perhaps because of, the massive printing of trillions of dollars to flood the already weakened economy. This is precisely how inflation arises, and purchasing power is lost. There has been some hint of a recovery in the dollar since the start of 2021, but it has faltered and since February – over the past week in fact, dollar value on the DXY is steadily dropping once more. Oil prices may be climbing again, which bodes well for countries like Russia, Venezuela and other producers, but it may not be enough to pump up the entire global economy at this stage.
Now if we look at 2020, we can see how the disastrous lockdown policy destroyed businesses and jobs. This trend will continue into the coming months throughout 2021. The knock on effect of business closures by the thousands will only really be felt in coming months, contrary to the rosy forecast media is trying to paint. We all know the media is no longer the bastion of objective reporting of fact, but rather a controlled propaganda mouthpiece for those trying to accrue more power over the masses. Fake news is the new norm. Journalism is all but dead, except for some rare last bastions of truth and free speech.
Also government stats are not to be trusted and are pretty much massaged numbers, reconfigured measuring sticks and more smoke and mirrors. Unemployment figures, for example, no longer consider or account for those people who have actually totally given up looking for a job due to their being no jobs to suit them. So there is worse to come in that regard. More businesses going bankrupt and more unemployed.
And this includes places like UK and Australia. Stimulus incentives will not be enough. In fact they may end up having the opposite affect to that intended because people will get so used to receiving free money without the need to go to work, that they will find it hard to return to a paying job when they were getting free money and handouts from the government in true communist UBI style. That strategy is likely to backfire.
The US minimum wage of $15/hour will be too much for business owners, whose biggest expense is often wages, so laying off workers will be the norm. Add to this the increase in AI and robotics, where it’s cheaper to have, for example, supermarkets with self-service check-out tills and no need to employ tellers, and we will see a natural decline in the need for low skilled work force. Amazon also already uses robots in their factories, all managed by one manager.
In theory AI will take the jobs and UBI will feed the people, who will have more time for leisure or philosophy, but we have yet to see this play out smoothly and it may take more than a few years for it to really be sustainable as a system, if ever. We have seen how Communism led nowhere in the old USSR. It’s a great idea in theory but the implementation falls massively short because you usually just end up with a dictatorship under a Stalin or Mao anyway. Still, companies will embrace AI since it removes the problem of wages, medical aid and pension obligations.
So overall it looks like 2021 will be more of the same downhill slide in the economy that we saw in 2020. The global economy appears to be deliberately being dismantled for the precise purpose of introducing the elite’s Great Global Reset, launched by the World Economic Forum and its arch villain-like leader Klaus Schwab. This covid pandemic and lockdown was a perfect cover for the powers that be to crash what was a crumbling global economy so that their NWO agenda can be implemented, consisting of a new global cashless world digital currency.
In part 2 coming shortly, I will discuss a few further parts to the forecast for 2021, including the role of cryptocurrencies and digital assets that we can also expect in the coming months ahead, so stay tuned. For now the immediate solution to ride out the collapse of the fiat system, is to buy physical gold or silver, as well as bitcoin, for a store of value long term.
(image pixabay)
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