Whomever wins the election is going to face a serious currency crisis during their term in office. This will emerge after another economic crisis: retail bankruptcies. The excess money printing by the Federal Reserve due to the pandemic is causing fears for investors, whether individuals or nations with our bonds and holders of dollars. The only reason that "King Dollar" has not declined severely lays in the point that all central banks have been utilizing the printing press. When the pandemic ceases to be a civil and economic problem, the data on the amount of US dollars that were printed will be alarming. By the way, we, at Evolution are predicting the virus begins to fade by the February-March 2021 timeline.
King Dollar...
was as high as 104 in May of this year. For those of you that do not keep track of the purchasing power of the dollar, this would be a good time to broaden your horizons. It settled at 94.04 last Friday. It has been range bound since it fell sharply in June. At the same time, competing currencies like the Euro, Yen and Pound have all been gaining strength. In our economy which is serviced orientated, a strong dollar keeps things like oil, utilities and food lower in costs. A weak dollar will be noticed immediately, as the price of those items will rise dramatically. The charts indicate that the dollar will eventually fall below 91. Then, it will form a new range from 87 to 92. The crises will arise as other nations will seek to dethrone the dollar as the world's reserve currency. We, at Evolution see an international compromise engineered by the IMF. It will be a power grab by the agency, just like the recent power grab by our central bank, the Federal Reserve. They will devise a basket of currencies that will form the reserve for trading. It is a step for China to be declared the new king of currencies. The future is no brave new world.
Anyway, the aspects of this outlook will generate the talk in our media about turning our economy into a cashless society. They already have one in Sweden. The writing on the subway walls all point towards this transformation. We say this will be another nail in the coffin of US individuality and our free, capitalist economy. As long as you have money in your pocket, you cannot be arrested for vagrancy. The idiot millennium generation does not think about repercussions of this change. They only see a quicker service by taping their iPhone to pay a bill. The Fed sees power to know your every movement with money. They can follow the trail that you leave in digital dollars. If that was not scary enough, this millennium generation had better read, "1984." Advocates will cite the use during the pandemic and as a result, the growing use even after the virus fades. A survey by Trans Credit Union already points to this conclusion. Yeah, well, this is how we see value in actually using cash in a transaction.
* Credit cards mean less profits for any business doing business. * Society gets more divided as not everyone has good credit to use credit cards. * Privacy is lost in many, many ways and as data is collected, even newer ways will result. * You are open to theft from hackers. * If there is a power outage, bank holiday or similar, you will suffer hunger and other problems. * You are tempted to buy and pay later. It is like eating too much, you get fat and medically sick. * Banks wait to charge you late fees, any kind of fees. You get yourself in debt. * If you make late payments, banks can raise your interest costs. Read the fine print! * You forget how to budget. Freedom of buying with no added concerns like monthly checks to cover bills, a need for stamps or time on the internet to do the bookwork. * Most important! You forget how much and how hard it is to make "real money." And if some concern is going out of business, having cash in your pocket allows you to get a great deal as opposed to having your transaction declined because you have reached your credit max level. * Having a dollar in your pocket means that you will never go hungry. Food for thought. Peace.
