Investing Through a Currency Reset (2024)

A currency reset could work as it would allow governments to repay their debts in the new world by making their currency worthless, thus reducing the real value of their obligations. This reset could potentially even involve a debt jubilee, where outstanding debts are forgiven, and a shift to a new global financial system occurs. While this may seem like a crazy possibility (and it is only a possibility), it would present a unique opportunity for those who are early in realizing this is the way things could go.

Is it possible to get wealthy during a currency reset? Possibly, but it’ll take balls of steel I suspect! If it was possible, I’d consider these 4 things:

1. Understand the current financial system and its potential weaknesses:

The current financial system depends on the creation of new currency over time through the act of lending – we live in a debt-based financial system. If there’s no growth in debt, instability occurs. To create this new debt, interest rates must continually fall, which creates asset inflation first, then increases the price of consumer goods, then wages. Credit expansion like this makes the debt [relatively] smaller over time.

It works for government, and it works for us too, if we invest in assets (something (like real estate and shares) that increases in price over time, ultimately putting more cash in your back pocket later on)

2. Invest in assets that perform well in the future world:

Once you understand that currency expansion is a design flaw and a feature, all you do is swap currency for assets, ideally using debt. The theory goes, as interest rates go to zero (as part of a reset), the asset can be translated into the new currency and your debt is effectively forgiven. Real estate, shares, fine art, and other alternative assets, including bitcoin and precious metals, are all on the menu here. In this universe, the only asset to avoid would be bonds, denominated in the currency going to zero.

3. Why using debt to acquire assets works:

If the currency reset involves a debt jubilee, it may be advantageous to use debt to acquire assets before the reset occurs. This strategy could potentially result in a significant increase in wealth, as the debt may be forgiven or reduced in the new financial system. There’s no guarantee that private debt would be forgiven in a jubilee event, of course, but let’s hope it is!

4. Diversify your investments, and your forms of money:

   See Also

   It might seem like cash is becoming obsolete. This author says that's a false narrativeThe Future Of Money: The 4 Predictions Of Cash | Stax PaymentsWhat Debts Are Not Discharged in Bankruptcy? - ExperianWill the U.S. Dollar Be Dethroned?

To minimise risk during a currency reset, it’s essential to diversify your investments not only across different asset classes and markets but in different forms of money too. This will help protect your wealth in case some investments perform poorly during the transition.

Conclusion:

A currency reset, with or without a debt jubilee, presents a unique opportunity for those who are prepared and informed.

Remember things can change fast, though. By the time it’s obvious what’s occurring, everyone else would have taken action. By understanding the current financial system, investing in diversified assets that perform well in the future world, and using debt strategically, you can position yourself to get wealthy during a currency reset.

By Darcy Ungaro|2024-03-03T16:30:41+13:00March 3rd, 2024|Bitcoin, Interest Rates, Investing, Investment Property, Kids, Mortgages, Myths busted!, News, Retirement, Tomorrow's U|