Recently, The World Economic Forum is a Switzerland-based non-governmental organization that was founded in 1971 to engage leaders in business, academia, and politics on key economic issues relating to the advancement of the global economy.
The Global Reset
“The Great Reset” will be the theme of a unique twin summit in January 2021, convened by the World Economic Forum. This reset, as described, will help transform our global landscape from a technology, humanitarian and economic perspective. We can look at this reset as something to come or look at evidence to determine if the reset has already begun.
Reset = Revaluation (RV) = Currency Re-denomination
Remember these terms, as they are interchangeable. When you hear any of these terms you can be fairly confident that they are referring to the same thing.
Why should you care?
Extreme Volatility in Finance Markets
A global reset could bring extreme volatility to the various asset classes as investors race back and forth between investments trying to preserve and generate profit. Think about lower bond yields and the price of oil going negative a few months ago.
The problem with a reset is that there is no playbook. A new financial system will not come without bugs and unforeseen issues that could further cripple an economy that is in the middle of a reset. The transition to a new financial system WILL NOT be seamless. Imagine not being able to access your funds, pay your bills, or buy food for any extended period of time.
Employment and Jobs
New technology will be utilized to make governments and other enterprises more efficient. But it will come as a cost to jobs for blue and white collar workers. In order to adapt you will need skill sets that will be in demand in a post-reset world.
Inflation is when the prices of consumer goods and other items go up in price dramatically or over a period of time. However, what is really happening is that the US Dollar is losing value.
Gold and other Precious Metals Catapult in Price
The US could possibly bring back a gold-standard – meaning that our currency will be backed by gold and/or silver. This will bode well for individuals and banks that have acquired these metals.
China has plans to launch a gold-backed cryptocurrency, with the intention of destroying the US Dollar. Other countries will need to follow suit. Which they are.
A Debt Jubilee
Consumer, Corporate & Government Debt is out of control. All that debt cannot be repaid under current arrangements. It all will need to be restructured, including some debt forgiveness. We have seen some evidence of this possibility recently:
1. U.S. postpones government student loan interest payments
2. U.S. issues PPP Loans to Small Businesses without the need to pay it back
3. April 14, the IMF approved $500 million to cancel six months of debt payments for 25 countries, 19 of which are in Africa.
A New Financial and Supply Chain System
A new financial/supply chain system will include DLT (Distributed Ledger Technology) to improve the integrity and efficiency of legacy systems that are subject to fraud and inequality.
Does that mean Bitcoin will be the new World Reserve Currency? Not necessarily, However Bitcoin along with other cryptocurrencies could continue to be used as economic assets and the foundation for the future of decentralizing some parts of how our governments and enterprises operate.