Like Cattle to the Corral

The world is changing and those who understand where we are being pushed, are making preparations now. Your freedom may depend on it.

Like Cattle to the Corral

Although I often write about the man-made problems besetting the world I am an optimistic person.

Being able to see the pitfalls, allows one to avoid them, if not entirely then at least prevent catastrophe. I also believe that mankind has the capacity to overcome even the greatest folly.

However, recognising the solutions is the reason one can be optimistic when surrounded by absurdity.

In last night's budget,  the Australian government committed to the same economic approach taken by most of the western world. I call it the print and spend solution; although it isn't really a solution, more like a soothing balm.

In reality, the balm itself is likely to prove toxic when the initial effects have worn off. Government will be even more bloated, the citizenship more mendicant and inflation, once stirred will run rampant.

Some would say inflation is already evident.

Commodity prices, which feed into most everything are rising strongly. This includes food and agricultural products - the essence of life itself. The value of your money is declining as prices rise and wages remain stagnant.

To wean people off the excessively generous welfare, businesses will have to eventually offer more money which will ultimately put more upwards pressure on prices.

It's a catch-22  where higher prices lead to wage demands which lead to higher prices.

Eventually the people will see that government created the mess and free money comes with a very high price tag.

They'll also realise that government are incapable of fixing the problems they created. Instead, they'll resort to their usual process of higher taxes and these will be targeted at immovable assets like property.

In centuries past, the property tax has been the chosen vehicle of governments going broke. It is relatively easy for a government to add an additional impost to those with multiple residential investment properties or commercial real estate holdings.

That way it can be described as a tax on the rich which helps play into the fairness refrain they all like to parrot.

Last week, the German news reported that the EU were considering a 'one time' tax on German property owners to raise 310 billion Euros. This happened once before in Germany (1922) when they confiscated 10 percent of the property value, which actually set off the inflation crisis in 1923.

You can also bet your bottom dollar that a 'one time' tax is never imposed just once!

Taken to the extreme, like in ancient Rome, people effectively walked away from their real estate due to the unaffordable taxes imposed by government to prop up the wasteful spending elsewhere.

In my opinion, that's the crisis we will face.  A collapse of confidence in government. Then we'll see the real societal decline.

However, no matter how big the problem, mankind usually finds a solution. For me, I see the answer in blockchain technology.

That's the tech that allows irreversible transactions between crypto-currency holders. It is also being used for smart contracts, secure lending and alternative finance arrangements. Collectively these are known as DeFi.

DeFi is the future and has the capacity to eliminate many of the middle men who have been profiting at your expense for decades. It has the potential to replace traditional banks, stock markets, investment banks, property registers and most anything else where an intermediary sits between a buyer and seller.

It takes some time to get your head around but I am convinced it is the future. And that's why I am putting my money where my mouth is.

Investing in DeFi is at an early stage. Fortunes have been made but any more will be in the years ahead.

DeFi and other solutions generated through blockchain technology will allow more individual autonomy than ever before. It may usher in an unprecedented era of freedom from coercion and government interference.

This will be led by the true portability of wealth as it will simply be recorded on the blockchain ledger without any reference to government or third parties. This will allow individuals to easily move to states (or countries) they consider most welcoming of their talents or lifestyle goals.

It's very hard to imagine, but then again so was Australia having a forecast $1 trillion in debt. It was hard to imagine society being locked down, businesses being sent broke and liberties curtailed for no rational reason.

Even professors and expert researchers are now agreeing with the sentiments expressed on this website over twelve months ago in respect to the coronavirus response.

To put it as simply as I can, we are being herded like sheep into a government corral. Few can see the destination yet but those that do will be taking measures to break away from the herd and be prepared to tread their own path.

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