Market

A World Crazy Beyond Imagination

A World Crazy Beyond Imagination

We are about to enter the last month of the strange year that is 2021.

Things have been crazy, to say the least.

Imagine five years ago if someone told you that the world would be like this? A virus outbreak, global shutdown, supply chains facing massive strains, rising prices on literally everything, vaccine mandates, riots and protests over racial and ideological tensions, and a globalist organisation called the World Economic Forum telling the world to embrace a green revolution, as well as needing to change your diet to include insects, weeds, and soy products.

You would laugh at the storyteller for being a lunatic.

Well, you are living through this, and I doubt anyone except the sociopaths among us find it funny.

There is no doubt that we are living in a dystopic world.

When news is fake…

Many of you have tuned out of the mainstream media already. The free-to-air broadcasts on TV, radio, and internet websites have turned into dumpster fires with plummeting viewership, retractions, and mounting bills from defamation lawsuits.

Here are some examples that you may be familiar with.

Protests against corrupt governments, lockdown restrictions, and vaccine mandates are now a regular event across major cities. Those attending number in the tens or hundreds of thousands. These protests are largely free of widespread damages or injuries and deaths, unlike the ‘Summer of Love’ across the US in 2020.

Yet, you will hear from mainstream media sources that only a handful or hundreds of ‘far-right extremists, QAnon conspiracy theorists, or anti-vaxxers’ are attending such rallies.

Some of you may have seen footage taken by rally attendees or even turned up to such events, and hence know that the media is acting in bad faith.

Then there is the narrative that the global economy is going to recover soon after having shut down in some capacity over the last two years.

You watch market commentators and economists talk about how the property market is booming like it never has and that inflation and the rising cost of living will be temporary. At the same time, you hear about how many small businesses are bankrupt and large corporations are laying off workers because of vaccine mandates or rising costs.

To top it off, world leaders are warning of difficult times ahead and that you need to lower your expectations. The media personalities then echo this by teaching you that you should downgrade your living standards and be content.

If you think that is ridiculous…check this out.

How about the narrative of how face masks will stop the spread of the coronavirus? This one is a real cracker.

You have seen countless pictures and videos of world leaders, public figures, and sports and media personalities wearing face masks. However, footage has leaked showing many of these people are mask-less when they are no longer posing for photographers. And even the press is starting to question it.

Remember Victorian Premier Dan Andrews walking to a press conference mask-less?

Oh, he copped two penalty infringement notices and that’s that.

If this is a genuine virus, many of these people (and a lot of us, frankly) should be long dead by now.

Mask wearing is merely posturing or virtue signalling.

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Reality is a show

It gets even more ludicrous from here.

I went to my local police station (in Sydney) this week to report a traffic incident, and the police officers were all mask-less. I did not wear one and we went about our business. However, I needed to go to another police station the next day to follow through with the report.

This time, it was a local area command centre where the main workstations are out of sight from the public. The officer came through the door to attend the counter and put her mask on. Ushering us to the counter, she requested I take my mask out and wear it before we went about our business.

During my stay, I saw several personnel file out of the headquarters into the public waiting area without masks. Some would walk out the door and put on their masks.

It was like watching a show where as soon as they come out in public view, they put on their costumes.

Stay on the ball

Rantings about the craziness of the world aside, it is critical that you focus on the ball to stay ahead of the game.

This includes an important development last Thursday when the Federal Reserve confirmed that Jerome Powell would remain as the Chair.

Many expected that to happen. It was not a surprise. The alternative was Lael Brainard, the uber-dove who is now the Vice Chair.

I might be reading too much into this but let me go out on a limb to explain what I am seeing.

The constant doublespeak about inflation being transitory, but you should get used to the new normal of rising costs of living, could augur something nasty.

I have an uneasy feeling that next month’s Federal Reserve meeting could see them accelerate the tightening of monetary policy.

These people know that inflation is out of control and they cannot hold off too much longer.

Why not?

Because the world is awakening to the failing economic system. People feel it in their hip pockets and at the dinner table. They also hate the constant talking down by those who appear on the news.

Perhaps the market has seen through the tricks and lies.

They know these people put their masks on when they face us, much like the police officers filing out into the streets.

Are you prepared?

This is a good time to really consider which assets to park your cash in.

Let me leave you with these charts to ponder over.

Here are the charts for the Australian stock markets and Bitcoin [BTC]:

These have rallied very strongly since 2020. A sudden rate rise could cause the speculators to pull their cash out and put it in safer assets.

Also, check out this chart:

This set-up looks like a possible rally is coming up for gold.

Until next week.

God bless,

Brian Chu Signature

Brian Chu,
Editor, The Daily Reckoning Australia

PS: Our publication The Daily Reckoning is a fantastic place to start your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here.

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