After all the Lockdowns, people are demanding their freedom and will not be denied. Everyone has started to behave in Pre-Covid ways; one result is huge increases in the cost of natural gas and coal. For conutries with substantial nuclear powered electricity, the costs are skyrocketing as well. Demand for all kinds of electrical energy keeps pushing prices higher.
Winter is coming quickly, especially in Europe and China. Climate/Covid policies have created huge problems by shutting down many of the old coal-fired energy plants. They cannot be turned on again over night, if at all.
Natural gas can be imported from Russia, the United States or the Persian Gulf, but the cost is very high now. People in Europe and China will be forced to pay much more for their heat. Result, less money for everything else. Food and transportation (gas/petrol) are going up as well. Wow. This means a major economic downturn is coming at us all soon, or very soon.
Another issue is a lack of things at the store and gas/petrol pumps. Stupidly, lockdowns have hit the truck drivers; not enough of them and incredibly poor working conditions.
It is going to be a long winter.
China is going through significant blackouts for two-thirds of its people. This is hitting their factories as well as homes; transportation too. Their export driven economy is being hit hard. 100s of companies are leaving China as fast as they can; just shutting the doors and walking away. Then, there’s the floods, (which have been 30 feet or 10 meters high) which continue; that too is drving companies (and their jobs) away.
What is the Chinese Communist Party (CCP) to do? They can’t/won’t import more coal from Australia; it is too expensive and Australia may not send it (the Quad). The CCP has seen this coming for a while. From an earlier post, Covid and an Economic Collapse have been long planned. China has now been pushed into a corner of its own making.
What next? Now? Hyperinflation! China must still import its coal, natural gas and oil. How to pay for it? Think food as well. Answer, the digital Yuan that has been rolled out in China during Covid. The CCP will not even have to print the funny money; just add zeros digitally. Soon, the Yuan (digital and paper) may resemble the German Mark of the 1920s.
Is the Global Economy going to collapse? Yes, but not all at once. Japan has prepared and will struggle on. Same for the US. It will be difficult. For the rest, the complete collapse of the Chinese economy will be a disaster. No liquidity. No Euros, Pounds, or Dollars chasing each other. Many large companies/firms will cease; they will not be able to pay their debts. Same for the banks; all (or most) of them. Derivatives will collapse and take $Trillions in digital wealth with them; poof, gone in a flash. That is instant Deflation.
We are already seeing foreign investors not being paid. In has started in China, but may expand elsewhere. This is selective default. Where will the investors/banks get the money that they were counting on to pay their other bills. This extends down to everyone; that is how all collapses happen.
It will be a messy transition to 2022. Go to the bank and get as much coinage as possible, especially silver, even if it is old coins. If you can afford it, buy 1/10th ounce gold coins; an full ounce will get you followed/attacked. Any kind of metal has intrinsic vallue over worthless paper. Whatever you do, keep your penny or loose coin jars.
China may have to go through hyperinflation; they are doing it to themselves. The rest of the world will push China away as rapidly as possible. They will go through a massive deflationary collapse. Think dollars with the buying power of 1900; a loaf of bread at 5 cents or 5 pennies. Now you see why I am recommending hording coins; they will buy much more soon. Yes, even pennies. If the new dollar is worth 40 of the old one, a penny is also worth 40 times as much. Now think, dimes, quarters, half-dollars and dollar coins; no one will want the old Federal Reserve Note dollars, but will gladly take your coins. Of course, this applies to coinage from all currencies. An ounce of silver and gold could appreciate in value by 40 times or more. Bitcoins even more.
This is not the end of the world. It will be difficult, but we will get through it. The new energies are coming and the old ways/energies will be dropped; sometimes like a hot potato.
In the end, the people who have all of the money/wealth now will not have it after this collapse. This is a shift the Universe is demanding. New energies – new ways – new wealth – new politics – new powerful. The old people in power and institutions are fading away faster and faster. They are being replaced with BETTER.
Love, Light and Laughter,
