Macroeconomic trends for 2021 – part 2 - the role of cryptocurrency

Following on from part 1, where I discussed the overall general financial conditions on the planet, primarily in the west, for the coming year, I now want to go deeper into the role of cryptocurrencies in this future potential scenario.
Let’s remember that 2020 saw the lockdown devastate many small and medium businesses globally. This trend will continue further throughout 2021. Currently the stock market and Wall Street, are showing a totally opposite signal, compared to the Main Street retail sector of society. The over-valuation that we currently see in stocks, with all time highs being reached all the time now, will most likely lead to a significant correction downwards at some point.

This may play out in the next 12 months or so. Experts like Harry Dent, a leading economist with decades of research and experience, are suggesting that major historic macro cycles are converging in 2022. He mentions a 20 year and 40 year cycle which meet then, and is convinced of a massive crash in the making right now.

The current stimulus bailouts by the Fed and their money printer going Brrrr, may initially appear to be patching up the leak, but in reality it is the actual cause of a bigger crash to come. The stock market bubble is currently inflated by this free money. As a result it can continue posting gains from the stimulus being pumped in, but in reality what we have are numerous “zombie companies” that should have been allowed to go bankrupt, as they normally would in a healthy free market economy.

When the stimulus checks and bailouts end, we will see the biggest stock market crash in history in 2022, according to Harry Dent, and others. Some sectors will, of course, still do well. Essentials like mining companies, food and basic needs, will survive, including the health care sector.

The housing market is one sector that may be due for a significant downward correction much sooner though. In London housing prices are still bullish and the sentiment is buoyant, not at all fearful. However, stimulus in that sector within the UK market is due to end within months – by April – and that could trigger a correction. The City of London however, is an economic country unto itself of course.

Also New York has been somewhat gutted by lockdown, with many of its citizens fleeing to the suburbs or rural regions lately, for practical purposes. Thus the rural housing market there will grow but New York itself will not recover or return to former levels in a hurry.

Overall poverty levels will continue to grow, as they did in 2020. 150 million people were reported to have fallen into poverty in developing nations last year. In USA 8 million people also fell into the poverty bracket. You can see footage of the food bank car lines stretching for miles in America, including South Florida. Many are going to food banks for the first time ever to receive handouts. Also energy bills are going unpaid in previously middle class sectors of society. This is the trend which will continue for the foreseeable future.

This is where cryptocurrency and digital money comes in. Whether this collapse is deliberately engineered to bring about the end of the old financial system or not, is a matter of debate, but it will certainly be ushering in the WEF (World Economic Forum) plan for a cashless society. It may not arise fully this year just yet, but is moving in that direction. China is leading the way with its already tested digital Yuan.

Less and less cash fiat money will be used in society as a whole. New policies are being introduced at bank levels, where cash withdrawals are being reduced and restricted. ATMs are simply running out of currency, or enforcing limits on customers. Central banks of many nations want to bring in their own version of a digital currency, in design similar to bitcoin but in implementation quite the opposite.

Where bitcoin is decentralized and not controlled by any one power or person, CBDCs (central bank digital currencies) will be totally centralized, controlled by the government, who will be able to track and trace every single transaction by using the same ledger technology that bitcoin uses on the blockchain. We may appear to be revolutionizing or progressing technologically, but we are regressing in human rights like freedom of expression and the right to privacy. A tighter totalitarian regime is emerging politically under this new roll-out of the cashless society and digital currency.

This is precisely why bitcoin and other cryptocurrencies like it are more important to the individual than ever before. They still allow for a semblance of privacy or at least independence, where anyone can transact with anyone else outside of any government control, across borders, with minimal fees or middle man. Bitcoin effectively eliminates the banks, and they obviously don’t like that, which is why a clash of control mechanisms may continue. Bitcoin may become the currency of pirates.

After all, banks are also experiencing the slow and silent slide toward collapse after lockdown. Negative interest rates will come first, as we saw briefly in 2008 after the last global financial recession in Greece and Cyprus. This is apparently likely before the end of 2021 in certain nations. Bail ins, will occur where banks simply take a percentage of your money from your account without you having any say in the matter.

The banks are the ones that loaned out too much money to too many unqualified people, leading to bad debt. The bail ins will be their attempt to rescue themselves from the problem that they created in the first place because of their greed and because of the entire monetary system that has been forced upon us, based on debt and credit. This entire monetary philosophy is immoral to begin with, and was always doomed to collapse in upon itself. And the time of the great collapse is arriving.

Cryptocurrency is already removing banks from the entire financial equation, through the new sector called DeFi or decentralized finance. Cryptocurrency platforms are now facilitating lending, something that only banks used to do. The old banking system will basically become redundant as DeFi takes over, although the central banking elite may attempt to oppose it. Already DeFi is a $50 billion industry, on its way up to $1 trillion. The market cap will steadily grow in the fledgeling cryptocurrency lending sector.

This is how the once small but revolutionary blockchain technology sector upon which cryptocurrency is built, will rise up like David to topple the banking Goliath. New decentralized institutions are emerging and the old central bank system is losing control. Countries are run by central banks, so governments are also losing control over the financial industry of their citizens and that’s precisely why they want to eliminate paper or cash money and bring in their own version of a cryptocurrency or digital fiat currency.

This is where the financial battle will be fought as we head into this decade. The transition is happening right now. There may be a collapse of the old system while simultaneously the new attempts to take hold. Those who are savvy will be able to make themselves sovereign and independent financially, by using bitcoin and the DeFi coins and blockchains to obtain financial backing, without using the banks, and still thrive. However, those tied to the old legacy financial institutions may end up going down with the sinking ship.

Therefore the need to educate ourselves regarding the new alternative cryptocurrency market available today, is more crucial than ever. It is a financial system that can empower the individual as a sovereign entity in their own right, without needless domination from government, who themselves are using an immoral or unethical system to control us already.

That immoral system is the fiat currency system based on money printing with zero backing, as well as the system of debt, credit and usury. That criminal and fraudulent old legacy banking system, imposed by a shadowy elite centuries ago, must collapse now and be destroyed. The time for the global cryptocurrency financial revolution has arrived. History is being made as we speak, and we can be at the leading edge. Bitcoin is just the start.

(image pixabay)

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