Modern world is full of speculation, The entire financial system as we know it is under extreme strain..
Preface: In 2019 November… Wuhan, China…. Pandemic spread across the world making entire world economy stop for sometime.
Millions of Humans lost their lives due to the virus. Policy makers across the world had no choice but to put aside their conservative approach and start printing money….
What happened after 2020 ?
Literally Trillions of dollars, Euros, Pounds, Yen and Yuan were printed. Countries with large central banks just went ahead to rescue the world economy. They just printed and printed….. Transferred funds into citizens accounts, Rescued troubled companies and kept on transferring wealth
Results:
Capitalism flourished and most of the wealth that governments printed went to corporate world. They have meticulously and carefully bought every asset class, Stocks are at all time high, Gold prices at all time high, Silver at all time high…. Real estate at absurd prices… Even vehicle prices increased.
Who will pay for stimulus debt:
Every currency note the central banks print is actually the debt. Now Technology enabled central banks to just transfer the money into banks. Fresh currency is created almost everyday …. All this debt is nothing but sovereign debt that is owed by the nation to its own people or others in some cases.. Every Dollar printed is accounted for…. It simply is national debt as dollar is reserve currency of this world. But balance transfers from US current account has always happened and Pandemic just increased its speed…
Debt Pile Up:
Somewhere in Rural Asia, In Middle of no where…… Earth moving equipment is working day and night…. Construction labour sipping tea and getting ready for work… They will build sky scrappers…. Billions of dollars worth of cement, concrete, Iron is being used…. Literally for next 3 years no mountain, river, lake can stand the mighty power of US dollars…. Every stone will be crushed, removed and made into fine powder….. The amount of money that is wasted in Asia is just crazy….
The Story of American Dollar :
The United States is one country that must be credited for spending trillions of dollars to rescue world economy during the pandemic… But, the mighty country did not realize the only thing that was standing between world economy collapse and success was Dollar itself….. Dollar current weakness came from continuous stimulus that have been going on from 2008.