The Great Wealth Transfer: How You Can Profit from It

Tatiana Hart/ September 16, 2018/ MONEY/ 0 comments

How to Deserve to Thrive Under Any Circumstances

You deserve to thrive during any economic uncertainty and financial downturn because you put a ton of effort in accumulating your wealth. So how do you deserve to thrive?

I always use the word deserve literally: it does not denote entitlement but a set of actions you take- consciously or subconsciously- to bring certain events to life.

That’s it. Deserving means physically manifesting something by way of action or inaction.

What is a Wealth Transfer?

A wealth transfer transpires from a premeditated attempt of the few to re-distribute wealth and to forcible extract wealth from the public and use it to the benefit of those who is in power.

Wealth transfers have been conducted by the past governments including the most recent privatization of patron’s assets in Cyprus, nationalization of financial assets after the ruble collapse in the 1990’s in the Soviet Union, and the hyperinflation of the Deutsche mark in the Weimar Republic and finally the collapse of the local currency in Venezuela.

We entered in the first phase of the Great Wealth Transfer in 2005-2006 when the first real estate bubble began. Banks opened credits to people who had no assets and oftentimes did not have even jobs.

Housing prices rose as speculators continued buying and flipping homes blinded by the easy money. It continued until unqualified home buyers began defaulting on their loans and affecting the bank bottom line.

The so-called housing bubble led to the financial crisis of 2008 and since the debt accumulation continues as the United States economy declines.

This first phase of the Great Wealth Transfer is referred to as Financial Repression.

Financial Repression is a very popular financial engineering scheme deployed by financiers.

The tool is very powerful due to the mechanism of transferring the purchasing power of the many to the debtors. Yet is is very subtle because most people do not associate money with purchasing power.

Banks intentionally have been killing the purchasing of the money you have been working hard to earn.

Not coincidentally, they manage your perception  by calling inflated real estate prices appreciation  and not the erosion of your purchasing power to disguise the fact that it is exponentially diminishing.

We have discussed purchasing power as a function of  money at length here, here, and here.

So how do we win the Great Wealth Transfer?

Winning the Great Wealth Transfer: Undervalued Assets

The Buy low, sell high investment principle cannot be overstated: it is the simple math of having our money grow from a small amount to significant wealth.

Warren Buffett and his mentor Benjamin Graham preached and practiced this principle to their own wealth.

Most of the assets and paper- and digital-based fiat assets have been overvalued in the past thirteen years.

The stock market has been doing so well so only an amateur naive investor will get seduced by consistently rising the Dow Jones Industrial index and the share prices of technology stocks.

Furthermore, the United States debt has been exponentially rising.

Intelligent investors, or the so-called smart money, always seek and invest in undervalued assets.

In the situation of the exorbitant high United States and world debt, and thus an impending world-wide currency crisis, true undervalued assets as to be physical.

Here is why. Non-physical, contract based assets are predicated on the accumulation of debt.

When the debt becomes unsustainable, debt-based assets such as stocks, bonds, currencies, cryptocurrencies, Exchange Traded Funds, mutual funds, options and such, will return to their intrinsic value – zero.

Since paper money is debt and the above financial products are generated from  debt, their actual value will reflect their intrinsic value of zero.

Is Real Estate a”Real” Asset?

Real implies materiality and ownership perhaps. However, is it absolutely true about real estate? Most real estate is purchase with leverage.

Remember my conversation with a Myconian private lender. His business has been booming because his clients have been extending mortgage terms well past fifteen and thirty years.

Moreover, many multi-unit real estate investors have no intention on paying off mortgages on their rental real estate and pass this legacy to their heirs.  they prefer the illusion of freedom and cash flow to being debt-free.

Having scrutinized the predominant mentality of the United States real estate investor, we must ask: Is real estate a true physical asset that is protected from the impending fiat system collapse? 

No, it is not. It seized to be a true real physical asset when real estate became overextended with leverage and its prices blew through the roof and have been amplified from 2005 onward through the present.

What do you think will happen when the currency becomes officially worthless?

The Federal Reserve states that that there is still three cents in a dollar left so we still have time to speculate.

Do not put your hopes up on the infinite “appreciation”.

When hyperinflation hits, real estate and land will become bargains, given you have true assets – gold and silver. When that happens, the greatest wealth transfer in our lifetime will occur.

Real Money

Precious metals such as gold and silver have in fact intrinsic value due their industrial use.

Besides being used as money by our ancestors, they have utility in other spheres of our life, in particular silver. What makes silver true money is its versatile industrial use.

Also, for an investor with is small investment, capital silver yields a superior return on investment.

Due to severely suppressed spot prices, you may purchase an ounce of silver for $14.6 (at the time of writing).

However, the true value of silver based on the true dollar value to the total debt ratio is $622 per ounce. a $23 up since last week.

You will get a whopping 40x return on investment overtime, when the debt-based system can no longer be sustained.

You can take advantage of  a very lucrative  investment opportunity in the true form of money -precious metals – through the link below:

If You Do Not Hold It, You Do Not Own It

The elegant bar below is not Swiss chocolate, although Swiss have a very practical sense of humor.

It is the finest grade gold.

Each square of the bar weighs 1 gram  and it is worth about $40 at the spot price.

However, insiders know that the spot price is highly managed and the gold true price is at least four times higher. You can surely buy a lot more chocolate for one of the squares than just one….

Switzerland has a ton to learn from about money.

Having sustained the gold-backed currency through 2000 (compare to the United States which repealed the gold standard in 1971), Switzerland has maintained high standards of living, economic and financial integrity, and political neutrality.

It did not come as a surprise that during a recent national referendum, the country reject the universal basic income offered to them by the vast majority (95%) of the votes.

Swiss wealth and high standards of living stem from their mentality and work ethics. Indeed, you cannot get something for nothing. The Swiss understand that best.

 

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