When Illusions Fade
from The Wealth Watchman:
In the last installment, I asked this community if we’d all prefer to use our stacking to build something specific, something lasting, for both ourselves and our posterity, rather than simply to stack for its own sake. From the feedback I received, it seemed this idea really struck a chord with many in our community.
We looked at some amazing, legacy properties, including vineyards, farms, and plantations, just as examples, but the truth is, you could apply this same line of reasoning to many other types of properties out there. The question is, what’s your pleasure? What’s your bliss? What would you like to spend much of your life building, for the future?
The sort of assets and businesses we looked at would, undoubtedly, be a bit pricey(even if they were for sale), in early 2015. Many of the ones we viewed are the sort which usually wouldn’t be for sale…at least, not yet. There are many businesses which you could buy now, that, under normal circumstances, would be a great thing to own. For many of them though, the big problem yet to come, will simply be this:
Due to insane monetary policies of central banks(for decades), countless business owners were led to believe in, invest in, and build for a system that was built to fail, to begin with.
They were led to believe in a long-standing market, where cheap credit would always flow like wine.
They were led to believe in an economy, where consumerism would always drive healthy sales.
They were led to believe that interest rates, and borrowing rates, would forever remain low.
Some, more specifically, built businesses on the assumption, that traveling, and the savings and cheap credit needed to maintain it, would be relatively stable for the foreseeable future.
Put simply: most of our peers have been led to believe in a picture of the future, which does not exist.
Sadly, most have invested their entire lives…. in an illusion. The great problem with illusions, of course, is that when the slightest bit of reality is applied to ihem…
When the fiat, debt-based dollar returns to its true value, when interest rates fly to the heavens, the prices of nearly everything will suddenly undergo a massive revaluation.
When central banks, in a blink, decide to step away, without warning(as we just witnessed in the Swiss Franc), and no longer maintain these illusions(at great cost), those visions of the future will be no more.
The saddest part about all this, is that in the aftermath, when the illusion is gone, many will sadly see the world rightly, for the very first time in their lives. I weep for those people, and it is our job to help as many of them(especially those who are close to us) as possible.
Yet, when the curtain is lifted, and the shards of the illusion are swept away….those who didn’t believe in the monetary gimmicks, and instead stacked for a better future, will see a world with enormous opportunities, for the very first time.
What kind of opportunities can you expect?
I’m glad you asked!
Previous Financial Fallout
When 2008 came, reality suddenly hit with the force of a 10 ton Mack truck. Nearly everyone was caught “offsides”, as they discovered the “rule book” they’d been playing by, was wrong to begin with.
Many business owners, thankfully, were able to drastically scale back the operations that were no longer profitable, to survive. Others have been able to focus on reducing their debt burdens, at the cost of further expansion(and employment).
The fact remains though, that tens of thousands of businesses in the States alone(including hundreds of banks) have gone down for the count, throwing tens of millions into unemployment. Some of the more fortunate casualties were able to find buyers for their assets at reasonable prices. This lessened the amount of the burden that those poor souls were still on the hook for.
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