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Big Currency Changes in Progress! Prepare for TWO polar Systems (EAST/WEST)!

June 23, 2022
BRICS (the EAST) will start their own RESERVE currency to compete with the WEST!

Our digital economy is changing rapidly. What is emerging are TWO polar economic systems. We can call them the EAST and the WEST. As I write the EAST (the BRICS) are developing a new RESERVE Currency for the EAST. The WEST is also developing a CBDC (Central Bank Digital Currency) for their system. Russia, China, India, Brazil, and South Africa want their own RESERVE currency.

So we will soon have market chaos within all these markets as these changes evolve. My sense is that Russia will be significant within the BRICS (Brazil/Russia/India/China/South Africa) system. China could also be significant. Within the WEST the dollar, pound, yen, and euro will be significant. All this change is a result of this Ukraine War situation. Our world of commerce is fragmenting!

The WEST wants a uni-polar world system and the EAST wants a multi-polar system. The fight is now in progress and this is producing TWO polar systems for global commerce. The remainder of 2022 will lead to these TWO polar systems as fighting continues over Ukraine, NATO, and war issues. All this will also lead to a World War at some point. I see no solution as the EAST and the WEST will not compromise. What a mess!

The new RESERVE currencies will be DIGITAL. The EAST will tie their digital currencies to some commodity (probably gold and/or oil). The WEST will attempt to work with a pure ‘digital’ marketplace with Central Banks manipulating all asset prices. The systems are not compatible so we will likely witness much confusion over trade issues going forward. Instability and confusion will be everywhere.

The WEST is now in recession (IMO). The EAST is heading for recession. We could witness huge defaults within the DEBT structure in the next year or so. Interest rates are increasing and asset prices are crashing. The real estate industry will soon be in decline. In Phoenix, the listings are going up rapidly and this means that prices will eventually be declining. The BUBBLE is soon over for real estate.

Europe is in BIG trouble economically as well. As America goes further into recession we could witness Europe following by this fall. The DEBT problems in Europe are similar to America. Once prices decline by 20% or more, the entire sector will be in bankruptcy. Will the Central Banks pivot to easy money by this fall? This is possible. But this will actually make the problems more DIRE. There is no solution!

Debts and deficits are much too high and a decline in all markets is needed. This is starting NOW in the USA and Europe will witness similar by this fall. China and the EAST will also have similar issues starting in 2023. The entire system of global commerce is collapsing. All these digital currencies are part of the problem. All are VIRTUAL units which have no TIE to physical reality. This produces a decoupling with all the markets. Algorithms are used to manipulate our prices. It’s all diabolical.

Our Central Banks manipulate their algorithms to try and create positive sentiment for traders and investors. But this will make issues much worse going forward. The electronic markets are mostly DECOUPLED from material reality. This produces artificial changes in prices even as the production situation gets more dire. Digital currencies are unstable when asset prices decline and crash.

Prepare for BIG changes in the coming months. The EAST will have their markets (and their RESERVE currency) and the WEST will have theirs. Nothing will be stable under this dual polar system. At some point we will need to restructure the entire GLOBAL system of commerce. This could happen in 7 to 10 years. For the time being, it LOOKS like the EAST will fight the WEST. What a mess!

I am: Donald B. Swenson (Svensson), Economist/Philosopher,

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