Paulo Pinto
Alti Wine Exchange founding member
Dear reader,
I must be honest. I am in a bad mood because of something I just read: this economic contraction we are in is four times worse than the one in 2008.
Western living standards are getting squeezed because of the sharpest economic contraction in modern western history, man-made by forced lockdowns. Centralized political authority, with central banks printing unlimited amounts of money to stimulate the economy, have arrived with a vengeance.
Historically, the result is always the same – and maybe you are already feeling this in your own life by paying a lot more at the grocery store. Corn, and soya and wheat are at eight-year highs.
The Arab Spring in 2010 was fueled because of the cost of bread. Higher commodity prices can easily lead to political unrest.
Now, summer is coming, and even though so many people eagerly await a vaccinated post-pandemic life –, things are not particularly looking good if you look at the bigger picture.
We are coming out of a period of globalization, with people owning assets in several jurisdictions, with new nomad capitalists stuck in different places that do not depend on any country for capital or expertise. Now, the difficult times come.
Those of you reading us know. We have been talking about inflation for a while, and we have been doing so in such an emphatic way because it is a matter of enormous importance.
The economic devastation we are living is generational, but we must not let the losses dominate our view, because for every crisis there is a strategy.
Those with no strategy, seeking more security, will only be more disturbed about every change happening in their lives.
For those with a strategy, things can change. Your attitude helps. It’s also important to have a sound philosophy of life, living as a free individual.
Looking ahead
As our long-time readers know, Alti Wine Exchange should be a workable part of your strategy dealing with physical goods as a way to help protect you from disastrous monetary policy.
We have been basically talking about a pandemic-stricken scenario, but everything flows from the way the monetary system is handled. Without that understanding, you are forced to rely on news made by people with conflicting opinions and credentials.
Worrying about money never solves our money problems – but taking action does. Choosing where to put your money is crucial.
Until next time.
Paulo