KW: I take no satisfaction out of the current collapse in markets but now I am right- no longer wrong. I have been wrong now for over a decade as when I was in practice as a financial adviser looking after peoples money and trying to make their investment grow safely I bacame completely disallusioned with the fact that in 2008 /09 the global finacial crisis (GFC) was aleegedly solved with massive amounts of money printing. The media pronounced as much that the GFC was solved by the hero’s at the New York FED. I didn’t beleive it and when I realised that I could no longer give honest and worthwhile advice I quit. Yes it was a difficult decisoin to abandon my clients but I could no longer honestly say I was going to be helpful so how could I carry on as an adviser? Once out, my dismay at watching markets climb and climb based on the lie and delusion of all the printed money solving everything my delusion has just got worse and worse. How many times have I looked at my meagre Kiwisaver holdings sitting in cash while other funds soared in value and thought ‘I must be wrong this is going to continue’. Well it did until now. The illusionary bubble of ‘wealth’ has burst and if this article is right ‘we are only half way there’ then a global depression as we have been predicting by the placement of article after article warning of this possibility has been warning. I am sorry for my friends who have been boasting of 20% + returns from their Kiwisaver funds now aghast at the calamity befalling them as they now learn the hard way that the name KiwiSaver is wrong, nothing is ‘saved’ in this environment. It was invested into the speculative market bubble that was fun while it lasted but no fun now. ‘KiwiSaver’ I wrote to my clients before I left the business in 2009 should be renamed as ‘KiwiInvestor’ . It was and is a massive bubble of debt that is exploding in our faces, and was always going to explode. The idiots at the likes of CNBC are responsible for giving this debt bubble credibility but now all the debt is impoding. Covid-19 was just the pin but if it were not covid-19 it would be something else, the debt would always catch up with you. The risk now is to banks, potentially a banking collapse as they have all been speculating into financial derivatives amounting to over $600 TRILLION world wide!!!. Impossible numbers with these derivatives largely undisclosed to the public to understand the risks. Our Australian banks are into them as well, they all were, so cash in the bank is also not risk free, the banks can simply take our money to bail themselves out of a hole and some are predicting that banks are going to be drwn into an ocean of defualts. There are people still holding onto the myth that the markets are going to explode upward once again and ‘buy the dip’ because huge gains will be made. I think this is a very high risk idea, maybe some parts of the market only if you are smart enough to predict which part. We have been warm gold but even that is being hammered by ‘investor/speculator’ margin calls on derivatives having to be paid and gold being the only liquid asset with which to realise the cash. Nothing is sure right now and central banks lowering interest rates to zero or effective zero plus throwing more money at the problem are clueless as to how this could all go horribly wrong. I don’t know how a global depression could work out. All I know is my mother went through the 1929/30 depression and she valued her small amount of money greatly, she was very mistrusting of financial advisers, me I suppose!
What is happening in ‘markets’ is definitely life changing. However, could it bring some good? If it brings about the curtailment of U.S. aggression through out the world whether it be Syria, Afghanistan, Somalia, Venezuela where it is killing innocent people daily or the demise of the blaming rhetoric about Russia and China and nuclear threat this includes because its consumptive economy implodes from where it is right now this would be good news for the rest of the world.
Lets all hold onto our hats.