The Great Reset
I don't think that there is anyone who will disagree that the world seems to be descending into chaos. What is particularly alarming is that, world-wide, issues are emerging with the banking system which, previously, were unheard of. There are reports out of the U.K. that people could not access their accounts from their phones on Black Friday of all days.
These issues have surfaced in the U.S. as well. Silicon Valley Bank collapsed completely nine months ago and now there are numerous reports of account holders not being able to access their funds. On a personal note, my wife has been stacking one of the ISO20022 compliant digital assets and, though there is money in her bank account, she is now unable to effect further purchases. At the branch level they are unable to offer any explanation whatsoever as to why the attempted purchases have been blocked.
Observers have suggested that we are in the midst of a liquidity crises. As prices continue to rise, people are increasingly unable to service mortgages, car loans and credit card debt. Banks are stuck holding the bag, as it were, on all of these fronts. To compound the problem, as the bond market continues to collapse, banks find themselves in the unenviable position of holding paper that continues to decline in value.
Applications to close branches in the U.S. are at record levels. Bank of America intends to trim it's work force by 24,000 jobs! So many commentators have pointed to the problems in the banking sector. In response, the narrative that revolves around possible "bank runs' is gaining momentum.
We are starting to see that the real estate bubble is beginning to burst. Prices in San Francisco, for example, declined 15% in the third quarter and 12% in Seattle. We see this trend in Canada as well as people are selling their homes in Ontario and moving out to the east coast. Declines in home prices are beginning, especially in high-priced markets like Toronto and Vancouver.
On a commercial level, vacancies in the office-space segment of the market are at record levels. Owners of these properties are feeling the pinch from a high vacancy rate on the one side and high interest rates on the other. Bankruptcies in the retail sector are high and that trend is expected to rise. It has been suggested that even retail giants like Target may be on the verge of collapse.
Bed Bath & Beyond, the store for seemingly everything in your home during the 1990s and 2000s, filed for bankruptcy back in April. “Thank you to all of our loyal customers. We have made the difficult decision to begin winding down our operations,” a statement at the top of the company's website said Sunday morning April 24, 2023. The first nine months of 2023 have seen other big-name retailers including David's Bridal and Party City file for bankruptcy.
Strategy Moving Forward
I did a post a couple of weeks back on a trend that is becoming increasingly visible and that is 'homesteading'. People are beginning to trade the hectic and expensive life in the city for the less expensive, and simpler, life in rural areas.
It has been suggested that, as a way to insulate yourself from runaway inflation, one strategy would be to stock up on commodities. Buying gold has, traditionally, been one way to hedge against inflation since it has been seen as a stable source of value. But other simpler commodities can be considered such as food, fuel and other supplies needed around the home, I did a post four weeks ago on this topic for those who are interested in the economic factors that are contributing to this economic decline.
On the same day, I did another post where I suggested another, alternative, way to hedge against what many are predicting to be a serious crash in the economy. Though I am not a financial advisor and the material presented should not be construed as financial advice, here's the link.
It is at the risk of sounding alarmist that I offer up these comments for your consideration. However, everyone is awake to the clouds forming on the horizon. One trip to the grocery store is enough to convince anyone that things are beginning to unravel. Food banks report that they are under increasing pressure to service the need.
Make no mistake about it. Max Egan has suggested that there will be, almost certainly, significant social disruption in response to what is about to unfold. I cannot say that I disagree. The real question is how to properly and adequately prepare for what is most certainly an approaching economic cataclysm.
There are resources in abundance available to help you. As an example, there are a proliferation of videos on YouTube from 'preppers' who offer up some very good suggestions as to how to prepare before the shtf.
Time is running short. Do your research. Find ways to prepare yourself and your family for what is shaping up to be nothing less than economic and social upheaval.
As a post-script, I have attached the link to a YouTube channel I follow "Epic Economist". This video is a review of the biggest names in restaurants in the U.S. to file for Ch. 11 bankruptcy.
See more comments