With traditional money slowly becoming worthless, what is there to do?!
Money… Especially paper money is quickly becoming worthless all around the world.
Although the process was set in motion in the 60s, with the recent pandemic and stimulus checks the pace is now accelerating.
By the end of this article, not only will you understand why this is happening, but you will also get viable options on what to do so the changing financial world cannot impact you negatively.
As usual, here is the video version for this article:
With that said, here are 15 reasons why money is becoming worthless.
We Have Negative Interest Rates
We’ve had negative interest rates before, but this time is worse.
For those of you unfamiliar with negative interest rates here’s a simple explanation:
If you put $100,000 dollars in the bank at the beginning of the year, when you go to take the money out, you realise you have less money than before.
This is happening everywhere around the world right now.
Every Country Is in Ridiculous Amounts of Debt
It’s crazy to realize the planet is $277 trillion in debt – or 365% of world GDP-. You might be wondering “TO WHO?!” who does the world owe this money to? The short answer is to the population or other businesses. These are services that people and businesses deliver, but the governments never pay for. Certainly this single fact has the power to steer the future of money.
Revenues went down the drain during the pandemic & the relief measures have been increased global debt by $20 trillion since the third quarter of 2019.
Every country right now is going into more and more debt without any sort of plan of getting out of it.
Their plan is that someday a new war or global event will shake the world so much that all of this debt is forgiven. Just to give you a sense of the numbers: The US owes China over a trillion US dollars.
It’s No Longer Backed by Anything
We were walking down this path until 1971 when Nixon was taking the dollar off the gold standard. Up until that point, no country was allowed to print more money than they could match with their Gold reserves. This kept everybody honest.
The US was playing its military card and basically telling the world: “bruh, if we say we’re good for it.. We’re good for it! Don’t make me go hiroshima on you!”
Ever since, the US dollar has become the international reserve currency. Even to this day most countries own US dollars in their treasury, the same way they were doing with gold before.
This position has greatly been working in favor of the United States because it is allowing it to simply print as much money as it wants without any oversight.
They Just Keep Printing More of It Every Day
This blows our mind every time we say it:
22% of ALL the US dollars in circulation were printed in 2020.
But they’re not stopping there.
They’re about to print and dump another 1.9 trillion dollars into the economy, out of thin air in 2021.
Once they do, they will have increased the US dollar supply by 40% in the last 12 months.
If you don’t think this is a problem, you’re in for a very rude awakening about the future of money.
You Are Being Forced Into Inflated Assets
By this point you’re probably thinking, oh shit, I should take all my savings and put them into something safe, like real-estate.
Although you’re not wrong to do that, real-estate has been hyper inflated as well. Just look at the prices for a 2 bedroom apartment where you live and compare it to 5 years ago.
It’s the same house, it’s value did not increase, the purchasing power of the currency has lowered. These signs are only making it clear that the global situation is unfolding towards the predictable future of money.
With the pandemic hitting, there’s no more need for the skyscraper business towers to host all these employees, and big commercial real-estate owners were left up holding the bag.
With that said, in the next 24 months prices for real-estate are still going to jump like crazy, because of the amount of money they’ll be pouring into the market, money which you’ll not receive, but it will make its presence felt into your expenses.
Legendary finance writer Robert Kyiosaki has a great book on the topic, called FAKE MONEY which we’ll link to in the description, or you could simply go to alux.com/freebook and sing up. In a show of support to our community, Our friends at audible are giving you the audiobook for free if this is the first time you sign up!
If you are thinking about investing your money smartly, check out 15 BEST INVESTMENTS of 2020-2021.
The Government Is Simply Giving It Away to Buy Time
Speaking of giving things away for free, the US government -as well as plenty of other developed nations- are about to do something many of you never thought would be possible: give people money for free.
Like literally, you are receiving a paycheck in your mail just because. Welcome to the good blessed future of money in America! But hang on… is there a catch?
If there’s one fundamental rule in life is that There is no free lunch!
This money you’re getting right now is just their way of buying an additional few months before the crisis hits.
You can’t give money away for free and not expect hyperinflation to hit you hard. Zimbabwe, Venezuela, Romania and many other countries tried simply printing more money as a way to make the country wealthier. As you’d expect it didn’t work.
Money Today Is Just Numbers on a Screen
Even though they keep printing money like crazy, even more money is just digital. When you send money from one account to another, real money doesn’t actually leave your bank and go into a different bank. Nope, the numbers just change in 2 separate accounts – not to mention that the bank will charge a fee for this change.
When you exchange money within your bank app, there’s no actually someone from the bank trading your currency for the other one, it’s just numbers on a screen… yet they charge you a ton of money for that.
This is why money is no longer real and you should treat it as such.
Hedgefunds & Traders Are Abusing the System
The recent GameStop and reddit situation has been a wake-up call to the masses, when it comes to the degree of which these financial institutions are abusing the system.
We’re about to say something that will anger a lot of you, because a good portion of our audience is into trading, but it’s the truth.
Hedge funds and Traders bring no added value to society! Or to the future of money.
They do not create value in any way, yet most are incredibly rich. They use the financial rules of the game to move imaginary money from one column into another and keep a portion for themselves.
You’re even allowed to sell things that you don’t own for personal profit. We wish we could say their time was over, but they’re not even close.
Universal Basic Income
Universal Basic Income or UBI is another one of those utopian concepts that new-thinking people love throwing around as a solution to all our problems.
Although the topic is a bit more complex as we’ve discussed it in our previous articles, the entire concept is flawed to its core: It’s just a matter of time until complete collapse when you allow the majority to vote itself higher pay.
The populous will vote whoever promises them a higher UBI and now you find yourself in a financial spiral that is in no way sustainable. The entire system collapses and money becomes worthless.
Bitcoin Is a Superior Alternative
Every smart company right now is looking at its balance sheet and moving money from US dollars into Bitcoin. It’s a direct move from the past to the future of money, happening live right now in 2021.
Microstrategy moved over 1.6 billion dollars into bitcoin. Tesla announced it moved 1.5 billion dollars into bitcoin as well and every other big company is following in their footsteps.
Tesla made more profit holding Bitcoin for 1 month than they did selling cars since inception.
Let that sink in.
The dollar is losing purchasing power every single day. It has gotten to a point where these companies are forced to purchase crypto in order to save themselves from the inflation the governments are bringing upon the market.
Bitcoin is the superior option as a hedge against what every government is doing right now.
Every time they print money, they are robbing you of your wealth!
Bitcoin was created to work against that, to be a separate currency outside of the federal reserve.
The price of bitcoin isn’t actually going up! 1 Bitcoin is still 1 Bitcoin!
It’s the US dollar that is dropping in value fast!
With Mastercard finally opening up its services to crypto and institutional money securing their wealth in crypto, we’re on the verge of a new financial system.
Your children’s wealth will be measured in Bitcoin, not Dollars, Euros or Yuan!
Which is why we’ve decided to open the doors to our Bitcoin Essential course indefinitely and forgo all marketing plays where we open it up for a limited amount of time and just a handful of people get rich because of it.
Go to alux.com/bitcoin right now and use the promo code ALUXER on checkout for 25% OFF.
In retrospect, it was inevitable
Stock Market Is No Longer Correlated to the Economy
Remember when the stock market was a reflection of the economy? Not anymore.
Stocks are memes now!
When the entire economy was entering a shutdown because of covid, the stock market rose to all time highs.
We lost 20 trillion in revenue globally, yet the stock market kept booming.
The world requires an index for the quality of life and economic performance and we lost it. Traditional terms like Retirement are now in DIY mode. Unless you’re able to provide for your later years, nobody will take care of you. This is the future of money and the average human’s life.
The Rich Are Setting the Price
We are living in a seller’s market right now and everything that’s up for sale is currently owned by the rich.
The advantage of being in a seller’s market is that you set the price and the market needs to find the funds to pay for it.
It doesn’t matter how much money you’re asking! If you can’t afford it, move aside for there’s someone else who wants it just as badly as you who is gonna figure out a way to get the cash needed.
This is why home prices are shooting through the roof. This is why everything is becoming more expensive.
We hope you’re ready!
Banks Are Giving Out Loans in Imaginary Money
Did you know that banks are lending out money that does not exist nor do they own?
Sounds shocking, but it’s the absolute truth.
Banks are allowed to lend out 10 times the amount of money they own!
The system is so rigged in the banks favor, that they are confident they will get their money back, so much so that they can lend money that doesn’t exist and still get your interest rates.
As an individual who just discovered this, you might be up in arms arguing how is this even possible. They even have a name for it. It’s called: “Fractional-reserve banking” if you want to fact check us.
Infinite Growth Is a Myth
As you know, we’re big fans of index funds here at Alux, but even to us, it seems like their time might come soon.
Why? There is no such thing as infinite growth when you have limited resources. Leverage like code and innovation are just more effective ways of managing these resources.
But fundamentally, when we’re talking about growth at scale, the system flips. Imagine 8 billion people all invested in the same vanguard index fund and waiting for their 15% annually, when the world economy grew only 2.36% in 2019, the year before covid.
But here’s the last nail in this hypothetical coffin:
We’re Going to Mars
The last reason on our list of 15 reasons why money -as we know it – is becoming worthless is that it’s just a matter of time before we, as humans go to Mars.
Do you believe that the rich who will embark on this interplanetary migration will go to their banks, take out stacks of money like you see rappers do on instagram, put them in bangs and bring it with them on the rocket? You must be out of your mind! Cryptocurrency is the obvious choice, we just have to figure out which one it will be.
Money as we know it, is outdated and wrongfully diluted right now. It’s losing value quick. Humanity is looking for better alternatives. Yes bitcoin gets the job done as a store of value but you’re not gonna pay with bitcoin for coffee and wait 30 minutes for your confirmations to come in.
New digital interplanetary currencies are being developed right now and we can’t wait to see what other benefits they come with.
Just out of curiosity: How do you hold your money? Cash, in USD, EURO? In the bank? In gold? In crypto? Let us know in the comments because how you handle your wealth changes the future of money!