It is said that a great reset is on the horizon, but its form and timing remain subjects of debate. Below is an organized analysis of potential forms and expected timing.
Table of Contents
Forms of Great Reset
- Reconstruction of the Currency System
- Central banks may introduce Central Bank Digital Currencies (CBDCs), phasing out physical cash. This transition could lead to complete digitalization of currency, enhancing government control over asset and tax management.
- The introduction of CBDCs might partially reset the existing financial system, potentially involving debt reduction or new monetary value standards.
- Debt Cancellation
- To address ballooning global government debts, large-scale debt restructuring or defaults could occur.
- This may lead to currency devaluation (hyperinflation) or transitions to new currency units.
- Reorganization of Financial Markets
- Significant adjustments in stock and bond markets could result in changes to the rules and standards underpinning the current financial system.
- ESG (Environmental, Social, Governance) investments and green economy initiatives might dominate as new financial products and investment criteria emerge.
- Redistribution of Wealth
- To address inequality, major tax reforms or increased taxation on the wealthy could be implemented.
- Extreme measures like asset taxation or deposit freezes are also being discussed.
Timing
While specific timing is uncertain, the following factors suggest it may occur in the near future:
- Fiscal Deficits: Unsustainable fiscal deficits globally, particularly in countries like the U.S., where debt ceiling issues are recurrent.
- Inflation and Interest Rates: Rising global inflation rates and interest hikes are straining economies, necessitating systemic reviews.
- CBDC Rollouts: Many central banks plan to introduce CBDCs by 2025, which could trigger significant changes in currency systems.
- Geopolitical Risks: Tensions such as U.S.-China conflicts and the Russia-Ukraine war could accelerate great resets.
Impacts on Individuals and Countermeasures
- Investing in Tangible Assets
- Holding assets like gold, silver, or real estate can hedge against inflation and currency devaluation.
- Portfolio Diversification
- Consider diversifying into cryptocurrencies (e.g., Bitcoin) or emerging markets alongside traditional stocks and bonds.
- Staying Informed
- Monitor government policies and central bank announcements to adapt asset strategies accordingly.
- Debt Management
- Reassess repayment plans to avoid excessive liabilities during rising interest rate periods.
A great reset is not merely a conspiracy theory but a plausible economic restructuring process. Individuals should analyze the situation calmly and take proactive steps to safeguard their assets.
Comment