September 27, 2021
Every trader remembers or has at least heard about the 2009 Financial Crash. In fact, many still have nightmares about it.
Greedy institutions like Goldman Sachs popped the mortgage bubble — resulting in a stock market collapse and a global financial crisis. A catastrophe for investors.
Us common folk suffered. Millions lost their jobs, savings, and even their home. It was out of our control. Our destiny has been shaped by dishonest market manipulators on Wall Street.
But the most shocking fact of all is that nobody went to jail for what was probably the biggest financial crime of the century. In fact, not only were they not held liable for their crimes, they even got a pat on the back and billions worth of bailouts by Uncle Sam.
The subservient media, politicians, regulators and lobbyists, are all in Big Business’s pocket. Today, nothing has changed.
In fact, by many verses, it’s only getting worse. You think 2009 was bad, wait to see what’s coming.
Staying up-to-date on the ongoing events of the market is hugely important. Moreover, so is being part of a community of stock-studying peers. The WSBDapp has such a group. You can read and take part in our stock conversations here.
It’s been a rough year and a half for our economy.
Our governments have fought Covid by following the policy of shutting down our economies, and printing insane amounts of money out of thin air.
Fear of the pandemic and the economic effects of lockdowns caused the S&P 500 to crash 34% back in February and March of 2020. The market was in chaos.
To avoid the lockdown causing economic collapse of unimaginable scale, the US slashed interest rate to near 0% and started the money printers. The rest of the world soon followed similar policies.
The market soon recovered; reaching new heights only five months later. Today, the asset markets are booming while the real economy suffers. Unemployment is still high and nowhere close to pre-pandemic levels, wages are down and small businesses are suffering. Don’t fall for it! The growth is artificial and does not in any way represent the whole picture. Let me explain why.
Since the beginning of 2020, the US money supply has increased by $5 trillion. Meaning that 25% of all dollars in circulation was created in the last year and a half. To put that into perspective, that’s more than the US printed in the first 228 years of its existence. Shocking.
The US spent $4 trillion on stimulus in 2020, increasing the national debt to $29 trillion. And skyrocketing the deficit to $3.1 trillion. More than triple from 2019.
Further growing this fake, artificial, asset bubble is the abnormally low interest rates the Federal Reserve set. This stimulates borrowing from fractional reserve banks. Which in turn increases investments with the newly issued bank credit. So money that would have otherwise been in savings accounts ends up being malinvested, creating bubbles.
Unfortunately, these bubbles unavoidably pop sooner or later, and the higher the rise the bigger the fall.
These are Quantitative Easing (QE) policies, and we’ve been following them since the 2009 financial recession. Our economy has not been healthy in a very long time, and the bubble has just been growing.
And despite all of this, the Fed can’t and doesn’t plan to reduce the purchases of Treasuries allowing interest rates to increase. If they tried… it would bankrupt the government as federal debt payments would reach unsustainable levels.
Besides, the insolvent Uncle Sam is not about to start being frugal. In fact, the US senate recently passed the trillion dollars “traditional infrastructure” bill. And on top of that they plan an additional 3.5 trillion dollars towards the “human infrastructure” bill.
Obviously that much money printing has a little side-effect that central bankers conveniently seem to forget: inflation. The annual inflation rate rose to a 12-year high of 5% this July. Unfortunately this is only the beginning. High inflation (maybe even hyperinflation) is coming, and at this point, it’s a matter of when not if.
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Our governments have created a well documented macroeconomic phenomenon called the Cantillon Effect. Discovered by Richard Cantillon, an 18th century economist, “The Cantillon Effect refers to the change in relative prices resulting from a change in money supply. The change in relative prices occurs because the change in money supply has a specific injection point and therefore a specific flow path through the economy” as defined by the American Institute of Economic Research.
Simply put, when a central bank creates money out of thin air and puts it out in the form of a stimulus, it won’t go to everyone equally. The entities and individuals that receive the bigger share will be those “friendly” with the central bank.
In our case, or the $3.1 trillion in stimulus we mentioned earlier: 2.3 trillion went to businesses. Mainly big businesses. While only 884 billion got redistributed to workers and families who could not work due to lockdowns. Corporations like Wells Fargo, AT&T and Carnival Cruise disproportionately benefited from the stimulus more than the average Joe. The problem is, the working man will, once again, pay the price.
The people and companies benefiting the most from the money printing reinvest it. Thereby inflating asset prices. And that’s why we’re in a bubble. Once the money trickles down to us… prices are already at their top.
For example, corporations use these funds to buy back their own shares, inflating the price, while CEOs and other insiders sell to the poor dupes buying at the top. Legal, government backed, market manipulation.
It seems like anywhere we turn Wall Street is profiting on our backs, destroying what we worked so hard to build. Once again your livelihood let alone your portfolios are at risk, and the greedy untouchable institutions on Wall Street are to blame.
It all seems so hopeless, but fortunately we have the solution.
Let me introduce the MacroHedge Exchange Traded Portfolio (ETP). The easiest way to beat Wall Street at their own game — passively investing in a basket of digital assets. All governed via the WSB token and developed by the community for the community, tailored to hedge and profit from the uncertain times ahead.
Made of 80% stable coins (31.66% USDC, 25.26% SEUR, 23.08% NZDS) and 20% tokenized commodities and cryptocurrencies (10% WGLD, 5% wrapped BTC, 5% wrapped ETH),the MacroHedge ETP protects you from both extreme volatility and inflation.
Stable coins (tokens linked to the price of FIAT) hedge investors from the extreme volatility of cryptocurrency.
BTC, ETH and tokenized gold are assets sure to increase when inflation hits and their house of cards collapses. You see, the likes of Bitcoin and gold have either fixed or constrained supply, meaning that no one can readily print more and thereby devalue them. They are known as stores of value. Ethereum on the other hand aims to decentralize finance, cutting out the institutions. Another project full of potential that is taking the world by storm.
The assets being combined for our Macro Hedge ETP, and the community governance that will help rebalance them over time, will help make for a perfect inflation beating combination, effectively managing risk and reward. Easy for any investor to include in their portfolio.
Our ETPs are also fully collateralized. Every time you invest, the protocol automatically buys the assets from a decentralized exchange. And contrary to stock ETFs, ours are self custodial and redeemable at any moment. So by investing you’ll get a token that represents your stake in the portfolio, and you can freely trade on.
Traditional funds are controlled by a handful of very rich individuals that often don’t have the best interest of the investor in mind. But our MacroHedge ETP is completely governed by the community, built from the bottom up.
The unique structure makes it easy to rebalance the portfolio every time market conditions change. The community votes on the proposal, and just like that — tokens are added.
For example: To hedge more efficiently against inflation REITS- Royalty, Streaming company stocks, and Traditional ETF Hedging Products could soon be added to the portfolio.
With our MacroHedge ETP, a new dawn of investing rises.
No more is your financial destiny in the hands of the Fat Cats on Wall Street. The tide is turning! For the first time, you’ll profit on the backs of the greedy Institutions.
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Check out the guide to ETP investing.
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