| Deflation | Inflation | Currency Reform | Boom | Value Storage | ||
| ↓ | → | ↓ | ↑ | * | |
↑ | ↓ | ↓ | ↓ | |||
| ↓ | ↓ | ↓ | ↑ | ||
| Bitcoins | ? | ↑ | ↑ | ↑ | ** | |
| Diamonds | ↓ | ↑ | ↑ | → | *** | |
| Foreign Currency | ↑ | ↓ | ↓ | ↓ | ||
| Gold | ↑ | ↑ | ↑ | ↓ | *** | |
| Real Estate | ↓ | ↑ | ↓ | ↑ | * | |
| Account Balance | ↑ | ↓ | ↓ | ↓ | ||
| Art | ↓ | ↑ | → | ↑ | ** | |
| Land / Farmland | ↓ | ↑ | → | ↑ | ** | |
| Life Insurance | ↓ | ↓ | ↓ | ↑ | ||
| Antique Cars | ↓ | ↑ | → | ↑ | * | |
| Platinum | ↓ | ↑ | → | ↑ | * | |
| Raw Materials | ↓ | ↑ | ↑ | ↑ | * | |
| Collections | ↓ | ↑ | → | ↑ | ** | |
| Owe / Debts | ↓ | ↑ | ↓ | ↑ | ||
| Silver | ↓ | ↑ | ↑ | ↑ | *** | |
| Government Bonds (EU) | ↑ | ↓ | ↓ | ↓ | ||
| Government Bonds | ↑ | ↓ | ↑ | ↓ | ||
| Exchange Articles | → | ↓ | ↓ | ↓ | *** | |
| Watches | ↓ | ↓ | → | ↑ | ** | |
| Forrest | ↓ | ↑ | ↑ | ↑ | ** | |
| Whisky | ↓ | ↑ | → | ↑ | * |
Short Resume for the different investment items.
CASH
How does the money come about?
Only a fraction of the money in Europe come from the ECB's printing press and the National banks. The majority of CASH arises from nothing! YEAH, you don't believe that, you think you read wrong? Saving Banks and Private Banks are able using “Giral money creation” doing so, new money is created. This money is called FIAT-MONEY
All what the banks need to arise money from nothing is a reserve ratio of 1 percent of the credit line in the central banks.
Simple example: If a bank establishes a credit line of EUR 100.000 then they only need to have 1000 euro in Cash or coins deposited by the ECB (European Central Bank). This means that for every Euro they can create 12,5 and up to 100 times Giral money.
Another simple example: You take a loan with a bank, 500.000 Euro. The bank only needs to send 5.000 Euro to the ECB and this way create 495.000 Euro from nothing!
I hope you get the bigger picture of all of this.
A last note why money in your account is insane:
- It is not your money
- You don't get any interest
- In emergency case you can't access your money
- You are depending on a 3rd party
- Friendly advice never leave too much money in your account.
Before the end of the euro, we expect not only a significant phase of negative interest rates in the euro zone (cash is sensible here, since there are no negative interest rates), but also deflation.
In deflation, all investments fall apart from cash. It is therefore advisable to have enough cash up your sleeve in order to buy tangible assets in a countercyclical manner in deflation.
No matter whether real estate, companies, stocks, precious metals, art, cars or whatever. In deflation, cash is king.
Keep up to 20 percent of your assets in cash. It has long been said: Cash is King - and when we say cash, we mean cash! Do not park your cash reserves in your accounts, but in the form of physical banknotes in safes and lockers
Although this does not generate any interest like daily allowances, at least no negative interest gnaws at your assets.
And in crisis situations, where access to accounts can be blocked faster than you can say "Yikes!" you can always get your money. Cash enables you to seize opportunities in individual investment classes immediately. You can also use cash to make counter-cyclical purchases for investments that have already been made. This strategy forms one of the foundations for the preservation of your assets in times of economic and political upheaval, historic debt highs and creeping devaluation
Even if the cash is demonized by politics and the financial world, a certain amount of cash is elementary. Even if the financial world does not go under, but only the banks and their ATMs remain closed for a few days, you will appreciate the cash.
Would you like to invest in CHF?
No, you don't want to do that, why? Because, for years Switzerland has been the name for safe harbor investments and to store your money, time has changed, since 2017 Switzerland has complied with the Automatic Tax Information Exchange program which mean, all bank accounts get reported to the local tax authorities in foreign countries. Most large investments are already moved to Singapore, Caribbean and the USA. Moreover, Switzerland has made a 450 billion CHF investment in EURO and applied a negative interest of 0,75%. On top of that they are printing new money, astonishing 793 billion CHF did they invest in bonds and stocks.
Real Assets Protect your assets!
For hundreds of years has real assets proofed to retain its value. In every Financial or Economical Crises, it retains its value.
Advice get out of paper values and get into Real Assets. Make investments in something you know about and in best case something you can feel and touch. Investments in real assets which are limited by math or the nature are the best investments one can do.
To implement wealth legs!
Like in any financial- or Economic crisis different wealth legs are destroyed, that's why you need to implement many wealth legs, so you are strong like an old tree.
If you assume, like we do, that the EURO system will collapse soon then all your paper investments are worth nothing. Everything that is controlled by 3rd parties should be replaced by something you can touch and is not dependent on the EURO SYSTEM.
Below is what I would call the perfect asset protection:
- Up to 30 percent precious metals
- Up to 10 percent Diamonds
- Up to 30 percent debt-free real estate
- Up to 15 percent into Forest, Land, fields, meadows
- Up to 15 percent into stocks (mines, raw materials, water, digitization)
- Up to Exotics (Whisky, Art, Antique cars, Watches)
- Up to 5 percent Bitcoin
- Up to 20 percent Cash (for the Deflation) after that, 0 percent in the Hyperinflation
- Up to 2 percent Foreign Currency
- Up to 3 percent government bonds (speculative)
Stocks
The secret of the stock exchange business is to recognize what the average citizen believes the average citizen is doing.
Contrary to popular belief, we don't always think stocks are solid assets. No question about it: shares are securitized shares in companies. And companies usually have real assets in the form of real estate, buildings, plants, machines, vehicles or inventories. In addition, there are often property rights such as patents or trademark rights. All of this can be assessed transparently on the balance sheet, but can also be manipulated through creative accounting (see Enron)
In addition, there are companies like Google and Facebook that currently generate gigantic monopoly profits from algorithms protected by patent law, but that have little or nothing besides these zeros and ones (as well as trendy company headquarters in Silicon Valley).
Why good stocks are still real assets.
Nonetheless, shares are justified in a cleverly diversified and balanced property portfolio - provided that some qualitative criteria are met. As I said, shares are shares in companies. Without their productive and innovative work, economic progress would be impossible.
Criteria for stock selection
Acquire:
- exclusively shares in companies that have a solid and forward-looking business model
- Shares in companies with low debt, an attractive dividend and - above all - a clearly recognizable current undervaluation
- only stocks of companies that you know and whose business model you really understand.
BITCOIN
Even if you have no idea or don't think of bitcoin, please read this section.
One would have to write a book on this subject, the Bitcoin could be one of the greatest revolutions.
If you've heard of Bitcoin in the past few years, then mostly negative. Bitcoin is a child of the 2008 financial crisis. It was created in response to the misconduct, scandals, and failure of the financial industry and our monetary system by a certain Satoshi Nakamoto.
We first came into contact with Bitcoin in 2011 through a customer and acquaintance. We were asked what we think of this mysterious money from the Internet. To us, the idea of having digital money sounded absurd and therefore absurd, and we dismissed it as nonsense.
I printed out the bitcoin white paper and started reading it. Already after the first page I was wide awake and sitting up in bed. With every page, I was more and more tied to Nakamoto's statements. After completing the eight pages, I had goose bumps and knew that Bitcoin has the potential to change the world.
One embarks on a never ending journey through the history of money, fiscal policy, mathematics, game theory, cryptography and computer science. You will have read many headlines about Bitcoin. It was a mania, a tulip bubble, Bitcoin would soon disappear or be banned. However, Bitcoin still appears to exist. And not only that, it
grows and even gets bigger. Why is that?
Bitcoin facts
- Bitcoin is the longest-serving and most stable blockchain - it has been active since January 3, 2009
- It has never been hacked and has been running 99.9 percent since the beginning.
- It is a decentralized peer-to-peer network with around 14,000 full nodes.
- Bitcoin is thermally limited to 21 million coins by a cryptographic algorithm.
- Bitcoin is the first digitally limited asset.
- 18 million have already been mined (86 percent of all available bitcoins)
- The last Bitcoin is produced in 2140.
- A block is regenerated every 10 minutes and the finder of the block is rewarded with 12.5 bitcoins.
- The reward is halved every 210,000 blocks (approximately every 4 years). This is called halving.
- The next halving is in May 2020, when there are only 6.25 bitcoins every 10 minutes to find a block.
The Bitcoin system is intrinsically deflationary and not based on debt!
Myths and bitcoin
Most Bitcoin critics either see their skins floating away or have little or no idea what Bitcoin actually is. The media are also throwing up a lot of nebulae and half-truths about Bitcoin, so that when people hear about Bitcoins for the first time, they fall into pre-built thought patterns before they even try to really understand Bitcoin. The more something is shot, the more it should spark your interest and you should look into it.
Bitcoin is destroying the environment
Bitcoin destroys the environment through its enormous hunger for energy, is a frequently quoted statement by people who are usually sitting in a skyscraper that is illuminated day and night and is air-conditioned around the clock.
Why does Bitcoin need energy? Bitcoin mining is the backbone of the Bitcoin network. So-called miners use highly specialized computer chips to secure the network and to confirm transactions. For this, they receive a fixed reward of bitcoins for each block.
The more people participate in these mining operations, the more secure and secure the network is. Operating these mining chips costs electricity and energy.
In return, however, it is also clear that the less a miner pays for electricity, the more profitable the undertaking is. This has led to an increasing number of miners relying on renewable energies and some of them in the most remote areas of the world. Electricity from a hydropower plant in the rear of Mongolia is cheaper than in central London. Studies have shown that 74.1 percent of the network rely on the network and thus certainly do not contribute to the release of climate-damaging gases.
Bitcoin miners are not only increasingly relying on climate-neutral energy sources, but are also constantly looking for new, innovative ways to obtain electricity even more cheaply and actively help to research more sustainable ways of generating electricity.
If that still doesn't convince you: Bitcoin still uses significantly less energy compared to today's banking system, gold mining operations or the huge bureaucratic government apparatus
Bitcoin is for criminals.
Attempts are often made to give the impression that Bitcoin is only used to buy drugs, launder money or finance terrorism. But the reality looks different. According to various studies, around $ 2 trillion a year is generated from illegal activities. For comparison, all cryptocurrencies don't even have a market cap of $ 300 billion. Banks, on the other hand, have been fined hundreds of billions for illegal activities in the past decade alone.
Bitcoin, cash offers the possibility to interact completely anonymously, while Bitcoin offers a maximum of pseudo anonymity. The currency of choice for criminals is the dollar in cash. In contrast to Bitcoin transactions offer 100 percent transparency and can be viewed globally at any time. Doesn't sound like the best criminal tool, does it?
Just as the use of VPNs and other tools can blur traces on the Internet, Bitcoin also offers opportunities to protect your privacy. Still, it's nowhere near as anonymous as cash.
Ultimately, Bitcoin is a new form of money, and money will always be used for illegal purposes.
Who invented it? Not the Swiss, but the CIA.
This question can probably never be answered with 100% certainty. Satoshi Nakamoto, the inventor, remains unknown to this day. However, as is often claimed, Bitcoin did not arise out of nothing, quite the contrary.
The Cypherpunks, a group of Internet activists who are particularly committed to liberal ideals and the protection of individual privacy and freedom, predict many problems and challenges in the digital age. Since the 1990s, they have been dreaming of a digital money system that cannot be controlled and monitored by the state.
Bitcoin is a result of exactly those experiments and projects. Bitcoin has demonstrably not fallen from the sky, but stood on the shoulders of giants. In his white paper, Satoshi himself quotes numerous precursors to Bitcoin, including Adam Backs Hashcash (1997) and Wei Dais B-Money (1998).
Satoshi Nakamoto's accomplishment is not about achieving new technological breakthroughs for Bitcoin, rather he has partially reconnected existing systems for 20 years and created Bitcoin from them.
Now, of course, it cannot be ruled out at this point that secret services such as the CIA or NSA have also carried out this step. As you know, intelligence agencies employ some of the most talented hackers and mathematicians. What would be the motivation behind such an intelligence operation? Control.
And this is where the story of Nasa agent Satoshi Nakamoto begins to crack. Should total control of a digital cash system be the reason why a decentralized open source computer network is created, over which one loses control?
Because that's exactly what happened. Even US MPs at the Libra hearings before the US Congress admitted that Bitcoin cannot be banned or stopped by the state. The Chinese government can sing a song about it.
Bitcoin is not controlled by anyone. The code is publicly available online and has been unsuccessfully checked for potential back doors by thousands of independent programmers. Even if there were back doors or other code errors, they could be corrected at any time.
In addition, bitcoin had little value in its early years and was only supported by a few developers. A state operation aimed at creating a new monetary system would have received greater resources.
In short, we'll probably never know who really created Bitcoin, but even if it came from intelligence operations, which we don't believe, they have lost control of Bitcoin.
continued on next post!