History Predicts A Major Transfer Of Wealth
History repeats itself. Monetary cycles also have a tendency to repeat themselves, tracing back even to the ancient civilizations of Greece and Rome. The one upside, is that by examining the past and comparing how they dealt with monetary problems, it can give us insight on where are problems are headed today. For instance, every single time in history that a governing body intervened in a free market, the market would undergo a correction. Likewise, every single time a government made the decision to create currency, thereby devaluing their currency, without fail, events of inflation and or hyperinflation followed suit.
Invest According To Historical Wealth Cycles
A natural conclusion of understanding that wealth is cyclical and that history has a tendency to repeat itself, is to base many of your investment decisions on that transfer of wealth and invest accordingly. If a cycle has occurred repeatedly throughout history, there is enough evidence to base a financial decision on that pattern. William Strauss and Neil Howe, of the Fourth Turning, made the statement: “The reward of the historian is to locate patterns that recur over time and discover the natural rhythm of social experience.” Cycles have always been an important part of human history and have allowed civilizations to grow and adapt and change. From the life cycle of the human body, to the cycle of seasons, life is very cyclical. Anything based driven by human emotions is caught in a cycle. The markets, which are often driven by greed and fear are no exception to that rule.
There have been many types of economic cycles in history, but the most basic format is the expansion, this leads to crisis, followed by recession and finally recovery. This cycle has repeated and has been timed with some regularity. A 20th century Russian statistician Nikolai Kondratieff built the theory that economies are subject to a more long-term cycle of booms or busts. These boom-bust cycles have occurred regularly in 50-60 year cycles. The cycle that should draw our attention the most these days is the currency cycle. The currency cycle occurs less regularly, but is always the same. A country will have a good monetary source that retains its own value (gold, silver), they move from quality to quantity by lowering their currency value (printing the dollar). Currencies go back and forth from quantity to quality throughout history
Currency Creation Is Always A Destructive Cycle
The creation of currency, while it allows for short-term economic gains, long-term it is very destructive for a currency. Eventually, people using the currency realize their currency no longer has value and doesn’t buy as much as it used to. Thus, the shift begins back to precious metals. Currently, we are in a wealth cycle that favors gold and silver. Unfortunately, for the first time in history, every single country in the world is wrapped up in a fiat currency and interconnected as one large global economy. The concerning part…every fiat currency that has ever been created has failed. A 100% failure rate, if you were told that you had cancer and that you had a 100% failure rate, how would you respond?
Invest In Gold And Silver To Favor The Current Cycle
Just like anything else, it’s important to be aware of the current cycle so you are able to respond and get ahead of it financially. Gold and silver investments offer you the opportunity to take advantage of the current economic cycle and to make it profitable not destructive to your wealth. It’s time to get off the sinking ship of the fiat dollar and invest in something a little more tangible. For more information speak to a Redhawk wealth advisor near you today.