A financial letter to those who care about future conditions
Before getting started, I am legally obligated to say that I am not a financial adviser and this isn’t financial advice. I am simply someone that studies the economic and financial landscape and has a strong opinion of where things are going, based on things in action and what I know. With that out of the way, lets get into where things are going, and what it means to you…time is extremely limited.
Look to Venezuela
In the 1990s you could buy a snickers bar for .50 cents; today, that same bar will costs you $1.49. This increase in price is due to inflation. In school they often teach that inflation is the costs of living going up, in reality, it is the purchasing power of your dollar going down. Anyone who has been alive for 30+ years can remember the price difference between things in the 90s, and things today. This is extremely important because in the United States, we’ve only averaged an inflation rate of 19.51% over the last 10 years, yet we’ve seen prices of goods and services double, triple, or more. Today Venezuela is dealing with a 1,000,000% inflation rate (Yes. That is 1 million percent), and the United States is getting closer to the same position Venezuela was in before their hyperinflation.
Let me explain…
Once upon a time, Venezuela was the 4th richest country in the world. It also has the most oil reserves in the world (18% of the world’ oil) followed by Saudi Arabia (16% of the world’s oil). Despite all of this, Venezuela’s economy started to crumble after the global price of oil dropped drastically. Once oil prices fell, Venezuela started to borrow money from other countries to keep their social programs going. Now Venezuela is $150 billion in debt, with only $8 billion in reserves. The combination of these things resulted in hyper-inflation, which lead to a worthless currency (their money holds very little value), mass starvation to the point of eating starving zoo animals and trash, millions of people fleeing the country and more. The only people doing well in Venezuela today are the ones that held, silver, gold, US Dollars, and cryptocurrencies.
The fall of the US Dollar and upcoming crisis
Since 1944 it has been agreed upon that the Dollar would become the Global Currency. Most American dollars are actually held outside of the United States by other countries. One of the reasons for this is because it is the standard currency for international markets for commodities such as gold, silver, oil, etc. The fact that the US Dollar is used as the world’s reserve currency is the main reason why our national debt never mattered in the past.
“The United States can pay any debt it has because we can always print money to do that.” -Alan Greenspan
Former Chair of the Federal Reserve of the United States
The Federal Reserve controls the world’s supply of US Dollars, and Alan Greenspan is regarded as one of the 3 most powerful known people in the world. While most people understand that printing more money is historically a bad idea for any country (it devalues their currency), they missed the real point that Alan was making…The United States is the only country in history to have money that is printed out of thin air used as a world reserve & global currency. Other countries currently don’t have a choice but to use the U.S Dollar, and since we print what the world has to use, there is no debt that we can’t repay…for now.
The Venezuela and U.S. Dollar Connection
There are 3 key elements to Venezuela’s failing economy:
- Huge price cuts on their main export on a global scale.
- $100B+ debt
- Continued social programs during the oil price reduction.
The United States is positioning itself to be in an equal, worse, or slightly better situation (better than Venezuela but worse than the Great Recession of 2007-2009).
The United States “export” situation
While the United States does not have a natural resource that is getting greatly devalued, we have something that can be many times more dangerous…the world’s reserve currency. Oil, diamonds, and gold are all nice; however, over the last 75 years, there has been no natural resource as valuable as our ability to print the world’s reserve country, the same currency used to pay-off debts between countries, and the reason why Alan Greenspan said that we will always be able to pay any amount of debt. This ability is only as valuable as the value placed on the U.S Dollar. As you read this Russia, China, India, Japan, Turkey, Venezuela, & Iran are all working towards dropping the US Dollar as a reserve currency. They are currently looking at gold, silver, and cryptocurrencies as an alternative option. The fear of the US Dollar plummeting was also echoed by Democrat Congressman Brad Sherman of California on 5/9/2019 when he pushed a bill to ban all cryptocurrencies for fear that it will take power away from the US Dollar, which is true since crypto was created as a response to the lack of government trust. All of this leads to the next big problem…
The United States debt never mattered because we printed the money that the debt was paid in; however, that’s all starting to change. As countries drop the US Dollar and cryptocurrency rise, not only will the US Dollar drop in value, but it will force the United States to pay its debts in other agreed forms of payment (gold & silver usually being the next option). When this happens, our national debt becomes real, with $1.1 Trillion+ owed to China, $1 Trillion+ owed to Japan, and hundreds of billions owed to Brazil and other countries.
Historically speaking, before the US Dollar, countries settled debts in gold and silver, which is why each major country still store those assets today. So here is an easy question to ask yourself to better understand the situation…What will happen when we owe trillions of dollars to other countries, but only have a few hundred billion in gold reserves? Answer: Higher inflation rates, higher taxes, and an economic downturn.
Continued Social Programs under harsh times
This issue threatens an economic collapse on its own, and the effects will only be amplified by the other two potential threats. All finances and reserves for Medicare Part A is expected to runout in 2026. All Social Security finances and reserves are expected to runout by 2034. The only way to keep these programs going will be through increased taxes.
This all leads to social programs getting cut, and those who need them will have to suffer the consequences, or increasing taxes on the generation that is already struggling to survive. People are already staying on their parent’s insurance longer, having a harder time finding a good paying career, living with their parents longer, and are having a harder time becoming home-owners, we also have more than $1.5 trillion in student loan debt, with 11.5% of student loans being 90+ days past due. Does all of that sound like a generation that can deal with heavier taxes to pay for Medicare, Social Security, and other social programs?
The United States and Venezuela side by side
The United States vs. Venezuela
It is important to remember that Venezuela was once the 4th wealthiest country in the world and has the world’s largest oil reserves. You never want to think that their situation could never happen in your country because every top country, kingdom, nation; etc., eventually falls…the only question is, how well will we absorb the impact?
Fortunes are made in bad economic times
You only have 3 choices when you know that an economic catastrophe is coming:
- Do nothing and hope for the best.
- Take financial safety measures to try and keep the lifestyle you have.
- Position yourself to reap a fortune during the expected hard times.
This letter is for those who want to do option #3. How do you protect yourself from the US Dollar going down in value, and obtain more wealth in the process? The answer is: Digital Assets.
What are Digital Assets & what do I get out of all this (The conclusion)
Digital assets are commonly known as cryptocurrencies. The most popular digital asset in the world is Bitcoin; however, it is far from the best choice. While top retirement plans struggle to sustain a 12% return on your investment and great Real Estate investment can yield a 40% return on your money, top digital asset investments generate returns over 1,000% (and that is during a bad market).
Digital assets are extremely valuable because:
- The blockchain technology that they’re built on records every transaction that has ever and will ever happen. This gives you the ability to trace all transactions.
- Just like gold, silver, and other raw materials, there is a limit to the amount of digital assets that will ever be available (per asset). For example: there will never be more than 21 million bitcoin.
- Each coin has a different purpose. What most people don’t understand about digital assets is that they’re made to serve different purposes. Some coins focus on privacy, while others focus on tracking the authenticity of items. The numerous purposes coupled with its limited supply is what helps establish a demand and value for the different cryptocurrencies.
I’ve been talking about cryptocurrencies since 2016. In that time, you would have made 10 -100+ times your money based on the digital assets I talked about at that time. While countries around the world are trying to dump the US Dollar, they are also showing interest in different digital assets. Yale University, Starbucks, Google, the New York Stock Exchange’s parent company, Facebook, and many other institutions are also invested in cryptocurrencies and preparing for a financial shift.
Digital Assets Return on Investments (as of 5/14/19)
Litecoin – 2,000+% ROI, NEO – 6,000+% ROI, Bytecoin – 1,400+% ROI
While the above digital assets aren’t the coins I buy, nor would suggest, they serve the purpose of showing you the types of ROIs in the cryptocurrency industry. It is also important to keep in mind that the gains shown are based on the current bad market. As the market recovers, the ROIs will increase. This is your opportunity to take advantage of current and future market conditions.
I am helping individuals and businesses get into the digital asset space, by leveraging the cryptocurrencies that offer the safest investment, while yielding strong returns. There are 2 options:
- Secured 2x ROI – This option is an investment that is secured by digital assets. It will require a minimum investment of $1,000 and funds will be locked for 1 year. All parties involved will be required to sign a contract before any funds are sent or received. The benefit of this option is that your return will be personally guaranteed. The disadvantage is that gains will be capped at the 100% ROI.
- Digital Asset Portfolio Service – This option is for aggressive investors that are willing to assume full responsibility of potential down-swings in favor of keeping all the profits that come along with the portfolio. While this option has no secured ROI attached, you can benefit greatly from a strong crypto market. The minimum investment for this option is $10,000 and has a 10% fee that can be paid upfront or taken out in digital assets prior to building your portfolio.
I put this letter together as a final warning, like how I warned people about Bitcoin back when it was around $300 (now its over $7,900). I will not try to convince you to enlist my services. I will not chase you down nor follow up. Everything that happens from this point forward will be on you, and you alone. Regardless of what you decide to do, I wish you the best.