I have been urging everyone now for a very long time to GOTS (Get Out of the System!) and in fact, two years ago, I ran a members only thread about this topic here that inspired 74 comments about this matter (that I recommend all paying subscribers review if they have not yet done so by the way). In any event, I recall that before the US stock market crash of nearly 50% back in 2008, for months before the crash happened, I urged that readers take preventive proactive action based upon numerous signs that a crash was coming, including MMFs that “broke the buck”. Even when I issued a last warning of an imminent US stock market crash just seventeen trading days before the crash started, there were those that flippantly dismissed my call in the comments section of that article and stated that they were all in on the US stock market because they were sure the market was going to climb another 20% to 30% higher before any type of correction was possible. And in retrospect, perhaps I failed to get through to people by warning of a US stock market crash for months in advance as it only climbed higher during this time, so that when I issued my final warning, it was completely ignored.
I’m still unsure of how to convince most to heed my warnings when I so strongly believe them to be accurate as most times, warnings take some time to play out and they do not play out in the expected timeframe of the analyst and may take a few months to eventually materialize, due to the maxim that markets can stay irrational longer than an investor can stay solvent. Before I launched this newsletter and was still running a blog, I wrote about, after researching Million Coin (MM), that it was a complete scam. At the time I wrote the below paragraph and sent it to my patrons on 20 July 2021, MM was trading at $76. Back then, in a post that is still up for any of my current patrons to reference, I stated:
“With BTC just moving under $30k right now, just in case there are further significant sell downs between now and the two weeks from when I release my second BTC risk assessment podcast early next month, here is a quick and dirty intro to that podcast so you can be aware of these risks in the interim time before I release the second part of my BTC/ETH risk series. I also talk about the latest craze Million Coin (MM), minted by a YouTube star TechLead about half way in to the podcast, speculate that he made at least a $100M profit from what, in my opinion, was a get rich quick scam that actually worked, and at the 13:50 mark, I predict it will return to $1 a coin in just three to four months.”
The point of recounting the above, and the reason I emphasized my incorrectly predicted timeline in the above issued July 2021 statement, is the following. During my predicted timeframe for this scam to implode of three to four months, MM’s price plunged from $76 to below $13, but it still did not fall to my predicted $1 price during this time period. And the fact that it did not fall to my predicted price within my given timeframe caused more than a handful of MM investors with whom I communicated to push back on my prediction and to dissent with my opinion that MM coin was a scam run by a social media influencer to take advantage of the naivete of his millions of followers. Consequently, more than a handful of delusional MM fans called me out on my “wrong prediction”, confident that MM’s price would rebound much higher after what they called a “normalization period” in asset price. However, after another eight months, MM dropped to below $3. The point of this story is that because the timeline of a scam falling apart is impossible to predict, once a scam has been identified, a scam will always eventually be exposed, leading to a complete implosion of asset price. No one can deny today, that a 97.7% drop in asset price was, and is, a complete disaster. Thus, perhaps just monthly reviews and predictions would have been the better way to proceed to convince MM holders to divest of the coin when it was still trading in the $70 and $60 price range.
And this leads me full circle back to my GOTS discussion I had with paying subscribers here two years ago that I still consider as relevant today. Again, when discussing the necessity to only leave an amount equivalent to one month’s expenses in the form of fiat currencies in a a bank account and to hold the one month’s expenses in a fiat currency other than the USD even if one has to pay expenses in USD, many Americans push back against my warning, stating that I’ve been saying this for years but nothing has come true in regard to this warning.
To begin, this type of push back originates from pure ignorance. Those that claim nothing I’ve stated about the necessity to get out of the global banking system and out of USD has come true typically only source information from the worst source possible that only spreads lies and propaganda – the mainstream financial media. Thus, they continue to believe that the USD is strong today and believe that true inflation in the US is among the lowest in the world, just because US President Biden says so, and that the price index of core goods in the US actually dropped to start this year (deflation), just because the US government said so.
And such people are unfortunately the ones that will live their entire lives in delusion because of an inability to think critically for themselves. One only has to look at gold’s 17% rise against the USD from mid-May 2022 from $1,850 to $2,160 to understand that my plea to get out of the USD back then was accurate. Furthermore, as I discussed here, holding MXN over the USD for the past several years, and then converting MXN into USD to pay USD expenses every month, since the MXN soared by 34% against the USD in a recent three year period, was absolutely the correct financial decision. However, no American with whom I’ve spoken in recent years understood this simple fact, as the historical assumption of the average American is that the MXN is trash when compared to the almighty USD. Of course, I’m not stating that no American understood this, because if you’ve been a subscriber of mine for the past couple of years and are American, I would have expected you to 100% hold MXN over US dollars in your savings. But recall that I exposed the reason, in this article, why the USD index most referenced by American financial media is so disingenuous and will lead to comically poor currency decisions by those that follow it.
With that disclaimer out of the way and the understanding that the most heavily followed USD index is not a good index to use when making currency and monetary decisions about one’s savings, let’s look at the state of the USD index right now.
If we look at the above weekly USD chart, I can understand why many USD holders are not concerned about the fate of the USD, as this type of technical wedge formation, while it predicts a strong breakout from the converging wedge pattern, does not predict the direction of the breakout, thereby leading some to conclude that the USD will break out of the wedge higher rather than lower, thus reinforcing the Western banking narrative that “everything will be alright” with the USD. However, the reason this interpretation is massively flawed is due to the reasons I’ve discussed in the aforementioned linked article, in which I revealed