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Dear Readers,

I don’t know what I can say anymore. The evidence simply continues to mount seemingly every other week.

The news cycle at the moment seems to be perpetually in overdrive.

The problem is they keep rolling snake eyes.

And no one seems any wiser. Can people truly not see the set up here? Are they oblivious to the astounding compounding effect that we are witnessing?

Then again, if they were, why write to you today about it?

Today the world has reached a historic decision. Take a look at the following headline.

Source – Financial Times

Germany is rearming. I will come on to that in a second.

But it also means that we are seeing vast amounts of new money printing, at the expected time of the real estate cycle. Plus, policies that involve loosening regulations and boosting infrastructure. It all makes for a powerful headline for the German chancellor-in-waiting.

But – do you see it? Can you grasp by looking at that headline the potential for utter collapse and ruin across the world a few years from now?

No, this is not all on Germany of course, but it reflects a much bigger trend.

A collision for the ages awaits us all, the colliding of different forces these world leaders cannot yet fathom. Even though they purport to be preparing for them.

Let me show you the astonishing repeat occurring here, what it means for the future of society, your financial future, and the upcoming global financial crisis.

You’ll never look at history in the same way after this.

How history rhymes

In effect, we are talking about Germany’s part in a broader Europe-wide trend of increased defense spending. Given the recent comments from the Trump White House on the future of key alliances such as NATO, and the need for them to uncouple themselves from the idea of the US always being there militarily, it’s no surprise.

Now, for this to reach fruition, deals needed to be made with Germany’s Green Party. This resulted in a fund specifically focused on infrastructure, including transition to more green energy projects.

The outcome was this: a plan to inject up to one trillion euros into defense and the aforementioned infrastructure programs. Even more importantly, Germany’s government decided to pass constitutional changes once thought impossible.

This was the changes to the application of the country’s debt brake (which, at approximately 0.35% of GDP, prevented all sitting German governments from going too far into deficit spending). In one fell swoop, this enabled defense spending to become unlimited, as these changes exempt such spending from this constitutional debt brake.

Such incredible sums of money printing and corresponding changes to enshrined law are certainly a very big deal for neighbouring countries.

It was no surprise to see various news articles released about Germany’s new rearmament plans. Here’s an excerpt I found:

“…a knowledge of German intentions…[then] seems essential to establish the nature of German (rearmament) plans and preparations.”

“Germany then saw herself forced to take measures for her own protection and is now publishing those measures, part of which have already been adopted…”

It all seems clear: the changes have been made to facilitate Germany protecting herself. Here, though, is the key point: this excerpt was published in….1935!

Now, let me make it perfectly clear. In no way am I implying that the German government of today like the one of 1935 is in any way, shape, or form.

But the historical resonance is quite astounding, almost exactly 90 years ago.

The way to understand this is to note that this is how history repeats according to set time frames within the context of the here and now.

Germany today is not a belligerent state actor. That baton for now has passed to Russia. Hence the context here is different. History is playing out within that context. But stop and think for a moment about the similarities playing out here.

Is there nowhere now to hide?

Conventional wisdom suggests that, because of the Ukraine/Russia war, Europe has never been at more risk of direct conflict since the end of World War 2. That same logic then suggests that, should a lasting ceasefire or peace be found between these two warring nations, that risk dissipates.

But is that really the case?

Can history provide further clues for us? Consider then back in 1935 the German government announced to the world the formation of the Luftwaffe (air force). There was also the announcement of the introduction of conscription and an expansion of the army to 500,000.

On 18 June 1935, the German government signed the Anglo-German Naval Agreement with Britain. Under this agreement, Germany could expand its navy to 35% of the size of the British Navy. Britain made this agreement to avoid a major naval arms race against Germany.

But this pact again broke the limitations on armaments set out in the Treaty of Versailles. Now, what does it take to do all this? An enormous amount of new money had to be introduced into the economy to facilitate this build up.

I see the echoes of history resonating here across Europe today. And it is here that you can start to see the evidence I spoke about at the start.

Consider our place within the overall 18.6-year Real Estate Cycle. You should know that we are but a couple of years away from the current boom in land markets becoming a bust.

This time of the cycle is referred to as the mania, or the winner’s curse, phase. It is the time when the most money is printed and used for the purposes of speculation.

That is happening globally.

And, on top of that, you now need to consider yet another cycle coming due, the Kondratieff wave (or K-wave). Should history repeat then it is due to peak at or around the same time as the current real estate cycle.

This cycle is best known for the re-ordering of society, new ways of doing business, and wars of expansion. To name but three. We’ve seen all of this in the last decade and more is to come.

It is the last of these three that is important. Because this level of rearmament needs what exactly? Incredible amounts of new money and credit. That’s right, all occurring during the final few years of both cycles.

Germany’s own rearmament push from 1935 onwards yielded a similar response too from other European countries – how could it not? It allowed a global war to rage for six straight years.

Is there a repeat occurring today here?

Source – Financial Times

Within the context of the times, that’s a remarkable repeat of history, no?

I don’t normally cover this macro view of the world. Frankly, it isn’t generally necessary for you to be aware of it in order to live a productive life, and to invest and financially plan the rest of your life.

Until, one day, it is.

And that “one day” is about to come.

The set up is occurring now where the ultimate peak then bust of not one, but two, of the most important and influential cycles we research demands a big picture view.

Because you will have to face the consequences of them.

And you’ll have to work out what do alone…unless you educate yourself in the fundamentals of what is truly driving these trends, and most important of all, when they are likely to happen.

And that starts with membership of the Boom Bust Bulletin (BBB).  Let the BBB guide you on the inherent timing of the economy only knowledge of these cycles – the 18.6 year Real Estate Cycle and the Kondratieff Wave – can give you.

Each month this history and knowledge will be yours via monthly newsletters and video postcards that will help explain these cycles like never before.

History to me is clear: we do not see such extraordinary spending on defense when the outlook for the world is good and peaceful. Quite the opposite.

The evidence from history continues to mount. It tells us what to expect during a real estate cycle-led crisis, how wars of expansion and the capture of resources play out, and of course that, while history doesn’t repeat precisely, it is about to be writ large for future generations to ponder.

You must get ready. Start by learning the timing inherent in  these cycles.

Sign up now.

Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team

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This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.