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How do our UK based readers feel about their country striving to become the world’s next great hub for crypto?
Well, that’s the plan if Monday’s news that the Right Honorable Rishi Sunak, Chancellor of the Exchequer, is following in the footsteps of El Salvador’s president Nayib Bukele.
Sunak wants to commission via the Royal Mint an NFT (non-fungible token) to turn Great Britain into the world’s number 1 crypto nation.
Here is how the Chancellor of the Exchequer explained it.
“We’re working to make the UK a global crypto assets hub. We want to see the businesses of tomorrow, and the jobs they create, here in the UK”
The Royal Mint NFT will serve as “an emblem of the forward-looking approach the UK is determined to take”.
Now if you are struggling with the cost of housing, food and energy right now I’d hardly think you’d be pleased to hear that this is your governments priority right now.
However, apply just a little history of the 18.6-year Real Estate Cycle and you begin to witness a recurrent theme playing out…again!
The same emotions, the same behavior.
Let’s dive in.
Rule Bit-annia!
Now to be upfront and transparent, it’s not simply about a Royal Mint NFT.
It includes regulations to attract digital companies and brand-new stable coins.
Less well reported was a plan to issue future government debt using a DLT (Distributable Ledger technology).
The ironic part for me though is the fact London is one of the world’s great financial hubs.
An enormous amount of global wealth passes through the city. A lot of that was from Russia.
Well, no guesses what’s happened to those flows today.
But this is where we need to cut right through the UK government propaganda here to discover the heart of the matter.
Yes, the government will want you to think they have a plan here. That they really do want to be at the forefront of the new digital revolution that these coins promise to the global financial system.
But do you believe leopards can change their spots too? Or that the tail wags the dog?
Here’s the truth: the financial system has wanted to get all in on this crypto trend and has demanded the government update or change their regulations and laws surrounding them.
It’s not a good look when they read comments like those from Bank of England Governor Andrew Bailey that crypto-currencies are the new “front line” in criminal scams, and that the technology has created an “opportunity for the downright criminal”.
This type of public rebuke is harmful when it comes to attracting the world’s best fin-tech companies to the UK.
More welcomed to the Bank’s ears are news of a crypto business engagement group to allow private input into regulatory changes.
Even better still are mooted changes to the taxation system to remove disincentives for UK fund managers to hold cryptos as part of their portfolio.
Appears the tail does wag the dog after all!
I ask now you place your real estate lenses on here. Things are not what they seem. This will not end how they think it will when you consider what this means in the context of the real estate cycle.
The 200 year old lesson about cryptocurrency
There is one irrevocable truth present when it comes to the banks and financial system in general after more than 200 years of history.
Don’t look at the ‘asset’ being promoted, in this case crypto currencies.
The true motive here is the one not discussed. And that is the desire to financialize an underlying asset by lending enormous amount of credit against it.
And right now, the global credit spigots are only just warming up.
To continue to push earnings up, to pay for ever increasing bonuses and put a rocket under the share price these banks need to embed themselves deeply in the next ‘big thing’.
Don’t confuse this simple fact with an awakening to the digital truth that can revolutionize how the global financial system can work.
It’s nothing of the sort!
This is the kind of trap that will be set for us…
The playbook here has now been proven.
Ironically, you can thank the Covid related lock downs for it.
Like almost all of you reading this, I too was forced into lock down here in Australia.
Alarmingly though, some of the trends I was witnessing then haven’t been reported on since.
This is a shame really because what I recall was the groundwork for the greatest wealth generation in our lifetimes.
At the right time too.
I’m speaking of course of the explosion of zero commission e-trading platforms and the combination of social media and meme-stock ‘investing’.
What was actually happening was bringing this type of seamless and easy digital trading to the lowest common denominator.
It wasn’t enough that you join in, but they needed your children, your parents, even your grandparents all in too.
“Hey, it’s so simple – and look at the money being made whilst you’re locked up at home! Don’t miss this opportunity!”
This is critical to unpacking what lies behind the mad rush of the UK government into the crypto space.
The trial run for these zero-commision brokers was so successful that it’s time to do the exact same thing to crypto currencies and NFTs.
Do note this is timed with the more speculative half of the real estate cycle.
It’s amazing just how well this is all beginning to line up.
There will be multi-millionaires made here.
Even better is the government laying the groundwork for those millions to be made as well.
It’s now clear the current real estate cycle (at least) will be heavily influenced by the credit created against all types of digital assets.
Which means they will also be heavily influenced by the same timing that drives the land markets too.
If you want to dive in, make your millions and then most importantly get out before the peak then I have no doubt the Boom Bust Bulletin can help you.
It will teach you the history of the 18.6-year Real Estate Cycle, why it continues to repeat to this day and explain the unique opportunities that the cycle presents.
You may be wondering; “how do these no-fee online brokerage companies make any money?”
It because, once they have you signed up with your own money in the game, they bombard you with adverts, extoling the use of options and derivatives to “boost your profits.” And their margins!
That use of options and derivatives is credit creation, pure and simple. It’s time for this to now go into overdrive.
And it is, at the end, what ends up destroying you financially. Unless you are careful and have a guide to how this will play out and when.
Get educated, nail your timing, and invest with the cycle and not against it.
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.