The Great Taking and the Currency Reset Are Already Happening.

Summary

In this video, the host discusses the concept of 'The Great Taking,' a theory about how deflationary collapse and currency devaluation could erode wealth, particularly through the collapse of fiat currencies. The speaker emphasizes the importance of thinking beyond traditional currencies like the dollar, pound, or euro, urging people to consider alternative assets like gold, silver, and tangible investments such as real estate and antiques. Drawing on insights from figures like George Soros and David Rogers Webb, the video underscores the need to protect wealth from systemic risks by positioning it outside the financial system.

Takeaways

• 😀 George Soros emphasizes the importance of determining the currency you think in when investing, as investments in countries with collapsing currencies (e.g., Zimbabwe or Venezuela) become worthless over time.
• 😀 The concept of the 'Great Taking' involves the potential for a deflationary collapse where governments and financial institutions could legally seize securities like stocks and bonds.
• 😀 The author believes the 'Great Taking' is already happening and might be accelerating, as global economies are experiencing a reset.
• 😀 To protect savings from potential financial collapse, the author suggests diversifying assets, including gold, silver, and other tangible assets like real estate and antiques.
• 😀 Precious metals, particularly gold and silver, are highlighted as critical for protecting wealth against the debasement of currencies.
• 😀 In a deflationary collapse scenario, wealth may be seized through the legal mechanisms in place, as institutions have been preparing for this over decades.
• 😀 Investors in the 60/40 portfolio (60% stocks, 40% bonds) may be losing wealth despite strong stock market performance because of inflation and currency devaluation.
• 😀 The rise in gold prices, especially over the last two years, suggests that we may be moving toward a global currency reset, where traditional fiat currencies lose value.
• 😀 The author advises against holding wealth in fiat currencies (dollars, pounds, euros) and instead recommends using hard assets like gold and silver, which have been reliable stores of value for millennia.
• 😀 The very wealthy are reportedly buying hard assets like gold, silver, and real estate, as well as investing in private equity markets to protect their wealth from potential financial instability.
• 😀 The ultimate measure of wealth should be based on timeless assets like gold, which has been a reliable store of value for thousands of years, unlike paper money which is based on promises and can be easily manipulated.

Q & A

What is the significance of George Soros' quote about investment currencies?

George Soros emphasizes the importance of determining the 'common denominator' when making investments. This refers to the currency you think in, as thinking in volatile currencies like the Argentine Peso, Brazilian Real, or Zimbabwe Dollar can result in losses if these currencies collapse, even if your investments seemed successful initially.

What is the 'Great Taking' mentioned in the transcript?

The 'Great Taking' refers to a potential event where, in the case of a deflationary collapse, governments and financial systems might seize stocks, bonds, and other assets. This is supported by long-term legal preparations to allow the seizure of these assets, which could affect investors' wealth.

Why does the speaker suggest not being part of the financial system?

The speaker suggests that assets outside the financial system, such as gold and silver, could offer protection during a potential 'Great Taking.' He believes that avoiding the traditional system and holding hard assets may safeguard wealth in the event of an economic collapse.

How does the rising price of gold relate to economic trends?

The rising price of gold, especially in the past two years, signals that currencies, including the US Dollar, are losing their significance as the primary measure of wealth. This suggests the world may be moving towards a 'third world currency' event, where the value of fiat currencies is in decline.

What is the '60/40 portfolio,' and why is it discussed in the transcript?

The '60/40 portfolio' refers to the traditional investment strategy of allocating 60% in equities (stocks) and 40% in bonds (fixed income). The transcript discusses this portfolio to show how investors are losing wealth despite the apparent success of their investments in dollar terms, particularly due to the debasement of fiat currencies.

What does the Dow Jones to Gold ratio illustrate?

The Dow Jones to Gold ratio shows how many ounces of gold are needed to buy the Dow Jones Industrial Average. Historically, this ratio has fluctuated, and the speaker highlights that since 1999, this ratio has been in a bear market, indicating the Dow's performance relative to gold is declining as fiat currencies lose value.

Why does the speaker believe the deflationary collapse is unlikely?

The speaker suggests that a deflationary collapse is unlikely because politicians and central banks primarily rely on inflationary measures, such as printing more money, to keep the economy afloat. This makes it difficult for a complete deflationary collapse to happen in the current financial system.

How does the price of gold compare to bonds in the transcript?

The transcript shows that the price of gold, when compared to bonds (specifically US 10-year Treasuries), has increased dramatically over time. This suggests that while bonds may appear to perform well in dollar terms, they are losing value relative to gold, further supporting the notion that fiat currencies are debasing.

What is the speaker's view on physical assets like gold and real estate?

The speaker believes physical assets, like gold, real estate, and luxury items, are good stores of value during uncertain times. However, while gold is highly liquid and can be used as money, real estate and antiques are less liquid and harder to use as immediate currency.

Why does the speaker suggest that the wealthy are buying gold and other hard assets?

The speaker notes that the wealthy are buying gold and other hard assets (such as physical gold, silver, and even private equity in mining companies) as a hedge against potential economic collapse and asset seizures, particularly in the case of a 'Great Taking' scenario. These assets offer protection against inflation and currency devaluation.