Lots of theories
I think these increased sanctions against Russia are part of the plan to crash the economy. The sanctions cut off supply therefore raising prices. Higher prices slow the economy as peoples disposable income disappears due to the higher prices. Just look at the price of oil as an example. The sanctions also cut off business therefore reducing manufacturing activity. I think we could be headed to the next depression except there will also be inflation. The the Central Banks will have to put off tightening or even start easing from here.
Precious metals and residential real estate may be good investments in this scenario.
Here is what we can see
Here is my response:
The coordinated sanctions against Russia are providing one outcome for sure: they are collapsing the Russian economy and asset markets. Russian citizens are getting crushed.
I can say this much, the resulting worldwide inflation that will continue until mid decade is going to decimate a large percentage of the population. I would say up to 80% of the population will be ground down to a nub on some level, because of this hyperinflation that will persist.
The hyperinflation and die-off of the 2020’s will prepare the PC livestock of the earth for WWIII like the Great Depression of the 1930’s did for the relatively moral people in the leadup to WWII. The wealthy will clean up as they will be able to stay ahead of the rising tide of higher prices.
I would have to assume that even if the people are dropping dead in the streets, hyperinflation will ameliorate any adverse shocks and support house and rent prices. Hyperinflation will punish those in the bottom 80-90% of balance sheet wealth. Those who don’t own the income generating assets are going to be beaten down. Those who cannot get enough income from these income generating assets will be adversely affected.
I normally do not include owner occupied housing as an asset, because all it does is cost us money to run. We have to take profits and income from other sources to manage an owner occupied house. In instances with hyperinflationary conditions, owner occupied housing can be extremely costly to own and operate. Wage income quite often cannot keep up with the punishing costs of maintenance, rehabbing, and updating.
Clearly this is the goal of the globalists, as they have decided to suppress tight monetary policy while simultaneously handing out money in an unsterilized manner and purposely dismantling the consolidated global supply chain. The world’s shift away from hydrocarbon fuels couldn’t come at worse time (or better time if you are an insider globalist).
Because the governments have recently been cutting back on their massive deficit spending of the past couple years, I see QE in its current forms existing for at least another two to three years. I would estimate until 2025, and this will provide enough time for the existential enemies of the West, Russia and China, to consolidate their power and geographic control, while the world hurdles headlong toward World War III (Ezekiel 38-39).
Of course, bitcoin and gold could rise tremendously, but I would rather place my bets on income-generating assets.
Remember my predictions for 2022; S&P 500 will cross 5,000 and perhaps 5,200, and residential housing could rise by at least 10%. If you are generating income, the world will be a more manageable place for you.