You’re probably right – the crash is coming:

Been seeing too many signs recently that I might be right.

It started with Jeremy Grantham on a Bloomberg interview discussing how we’re in a massive asset bubble.

Michael Burry recently tweeted how this market is the craziest asset bubble he’s seen in his lifetime.

Robert Kiyosaki, who pioneered Rich Dad Poor Dad, said this is the greatest asset bubble history has ever seen.

Nouriel Roiubini, a famous NYU economist who predicted the last great crash in 2008, said we’re facing a stagflation environment.

Ray Dalio keeps sharing excerpts from his book, the Changing World Order, on where America is today and how it’s at the end of its cycle as the world’s leading empire.

All these signs are coming together, while so many on Reddit like Atobitt, Criand, Peruvian Bull and other incredible humans are writing more about how this economy is a complete house of cards.

Meanwhile the reverse repo market is going higher every day so that banks can maintain liquidity.

AMC and Gamestop are edging ever so close to where it’ll eventually be game over for hedge funds, market makers and banks.

I might be right.

So what?

Sure I’ll make a lot of money off this, but then what.

The world is going to enter a decade of massive instability, similar to the 1930s as Ray Dalio has talked about in his book.

That is not good for many people around the world. Revolutions are likely coming, something which I’ve discussed on my blogs the last few months. Wars could be coming.

The world has largely existed without instability since World War 2, but we’re entering a period where America is losing its grip as the leading superpower.

How they handle the consequences of this crash will be very interesting to watch. They’re losing reserve currency status as they keep devaluing their dollar through money printing. Eventually foreign reserve banks will not want to hold American bonds anymore.

Unless they increase interest rates where their bonds offer significant yield. They can’t do that because then the American economy plummets  as zombie companies die out, people can’t pay back their loans and massive defaults happen everywhere. Socially and politically, that could create a disastrous mix for the population. 

Inequality has never been as high since the 1930s, you’re getting widening political gaps between the left and right, American kids are not being educated relative to the rest of the world, half their population is obese, and to top it all off, their healthcare is tied to employment so if companies start going bankrupt, people can’t get jobs which means they can’t get healthcare. It could be a disaster locally for America. 

Many within America probably hate me for saying this, but you have to look at the evidence, especially studying history.

World leading empires always fall and they always will.

We have not enjoyed this period of stability for a very long time.

So what does it all mean?

I have no idea.

Anyone, including me, that tells you they know how things are going to play out are lying to you and themselves. Even though I’ve been writing extensively about this topic, I change my mind all the time and I have no idea what’s going to happen. 

This is why economic forecasters are terrible at their job.

The market does what the market does. It doesn’t give two shits about your forecast.

All you have to do is learn about history and other countries to understand where we are.

This environment looks different because of technology, social media, crypto, self driving cars, AI and robots, but humans are still humans. You cannot change how humans are, you can only learn about them.

So what’s my advice to you?

Get educated. Learn about the world. Understand how the world works. Travel if you can outside of your country, preferably to somewhere in the developing world so you can see how most of the world lives. We don’t appreciate how lucky we have it in the West compared to the rest of the world.

Learn how the Internet works. Learn how technology works. Yes it will be hard. Yes you will fail. Yes you may go a very long time without work. But you have to decide what you’re going to do about it. Because no one is coming to save you. No one is going to hold your hand and give you what you think you deserve. You have to go earn it.

Life sucks. Yes you may have been dealt a terrible hand. You may be in an environment with terrible parents, lots of crime and no jobs, but you can change that.

You can decide to learn. You can decide to invest in yourself. You can decide to invest in your own education. People think education stops after school. In my opinion, that’s when it starts.

So what are you going to do about it?

Many people around the world will likely suffer when all of this happens, most of them through no fault of their own. It sucks but guess what, most of life happens outside your control. The only thing you can control is how you react.

Who cares if I’m right about a market crash?

No one.

All I can do is try and help.

The choice is yours.

I hope you choose you.