The Crash Conspiracy
I live between New York and San Diego. In both cities, the streets have been telling me one principle message- the American consumer is tapped out. Whether it is in real estate, food, gas, or discretionary spending, the American consumer isn’t buying as much.
In addition to a tapped out consumer, the average American is levered up in debt. Many of the young people I have met are using student loans to sustain their existence. When a person speaks of going to graduate school, he or she is typically implying the inability to secure a job. Similar to the military, college serves as an escape from unemployment.
The trick just mentioned is an old one. The first few waves who went to grad school have now graduated. Most remain unemployed or under employed but with one critical difference, they are now in debt. Their real intention for grad school was easy access to student loans. This loan not only paid for schools but also sustained their lifestyle. In a great number of cases, these loans were taken with the foresight of default.
The logical question then to ask is why are Americans taking loans they know cannot be repaid in the near or distant future when responsibilities such as children, mortgage, and health insurance accumulates. Well… some of it is plain stupidity, but the answer for most cases is that Americans are expecting a currency reset.
There is talk in the doom and gloom community that a stock market crash is coming. Although this piece of information is accurate, it should not fall under doom or gloom. The crash coming in 2019 is a collective desire. Nearly everyone want it to happen, from the elites to proletariat.
The millennials want the crash to eliminate their student debt and make housing affordable. The elites want the crash so they can default on corporate bonds. The government wants the crash to wipe its hands clean from the $22 trillion national debt. America is a debt nation, and all debtors want currency evaporation.
So what does it all mean? It means that America is preparing to default collectively as a nation. A default can appear in the form of hyperinflation- killing the debt by making its denominated currency worthless. Or… it can appear in the form of restructuring- national assets being sold, public services cut, and sharp drops in the standard of living. While the former is desired, unfortunately, Americans will get the latter. The dollar will not crash, the debt will be repaid. National assets such as infrastructure will be confiscated to repay foreigners.
Do not get into debt thinking a default will let you escape its repercussion. In the upcoming environment, good old fashion hard work will once again shine. Learn new skills, work hard at what you do, save your capital, and cultivate your vitality by avoiding vices such as drinking or casual sex.
When the crash does occur, deflation, not inflation is what will be rampant. All the debtors will liquidate the material items they have piled while you were building your spiritual fortress. Since money will be scarce, you will get these items for pennies on the dollar. Stack on cash, not gold. Build character, not mansions. You can do it!