CAN IT HOLD TOGETHER?
No, it can’t. That’s the answer.
Now, what is the question related to?
We will get there shortly. But first, consider that the President of Russia just had the opposition leader arrested after a seven year campaign of harassment.
No wait, I’m sorry. I meant to say, "the land of the free." You know, the stalwart of democracy. The United States of America. Now, I’m well aware that comatosed Americans don’t exactly see it this way. It is a bitter pill to swallow, but I assure you that the rest of the world isn’t quite so sanguine about it all.
Take a look at this:
Former Google CEO Buys Seized Russian Superyacht For $68 Million
And then this:
EU leaders start work on handling Russian frozen assets with caution
There’s another word that the rest of the world has for this: THEFT.
So the world is not exactly holding together at all right now. Let’s go more narrow and look at the US domestically.
So far 12 Oregon counties have voted to secede from liberal western Oregon and instead become a part of Idaho. The measure would require the state’s legislature to approve it and an act of Congress, which means it’s not going to happen.
It seems that the peasants are growing restless. Perhaps the recent new proposal to pay drug users $1,000/month has something to do with it.
Now, take a look at this.
This was 1910. A meeting of kings. The world of monarchies still existed. Within 10 years these guys were all dead… and not from old age either.
Things can remain stable, boring even for long periods of time, and then change very suddenly.
Lenin understood this when famously stating:
This, folks, is a period where decades happen.
The hubris that comes at the end of an empire is really something, isn’t it? There clearly exists a belief that criminal actions taken won’t have consequences. Keep in mind that Russian oligarchs (many of them) are anti-Putin. Many of the oligarchs were installed in the years following the collapse of the USSR with CIA funding. If you want a great read on the topic, I highly recommend my friend Alex Krainer’s (the NakedHedgie) book “Grand Deception” on the topic.
Speaking of Balkanisation and the great state of “get-me-the-f*#k-outta-here” California…
New California Law Will Base Electricity Bills on Income Level
From each according to his ability, to each according to his needs. People will suddenly become masters of unprofitability. You will find entrepreneurs and business owners will restructure their accounting to ensure that their “income” is very low. This already happens, of course, but it’ll continue.
You know what else will continue? The exodus.
Those are the winners. Here are the losers:
I point this out because human capital flight is the strongest determinant of future growth (or lack thereof). This is important for us as investors because you don’t want to be left holding the bag on investments in places that are in collapse mode… and conversely, you’d prefer to be a beneficiary of capital coming into any region or country.
For decades we never had to concern ourselves with this to the extent that we do today. Don’t get caught flat footed here. I think it’s going to be massive.
Smart investors are already preparing for what’s coming…
If you are a self-directed stock investor with a 3-5 year time horizon and you're looking for an edge, we can show you how. Just click on the links (below my name) to find the best solution for you.
- Chris MacIntosh
Capitalist Exploits | Glenorchy Capital Macro fund | Subscribe to Insider | Rebel Capitalist Pro
