Market Volatility And Economic Turbulence – Would You Be Comfortable?
Turbulences such as shocks, bumps & shakings are almost inevitable things to experience in each of our lives. These are aspects we need to face on, as long as we are breathing. However there are shocks and shakings that can be detrimental, destructive and fatal such as high intensity quakes that may knock down buildings and bridges. They are not frequent though.
So, why in the world do you think engineers and builders do care enough to lay down a solid foundation for their structures? Spend much money, time in planning and engineering for this foundation? Intensive quakes happen very rare or maybe not in some places. I think you knew your answer.
Then why on earth when it comes to people’s Personal Economy, plenty of us doesn’t care enough building a solid Financial Foundation? or doesn’t even care whether the ground where they build their finances is stable from within.
Market volatility or market movements & corrections as they call it, has been perceived to be a normal shakes that the economy has to deal with during its course of development. The masses have always been assured by authorities that everything is under control and there is nothing to worry about: That they’ve addressed the matter accordingly. Sadly, authorities of all the governments of the world (whether from the past or to our present world), they’ve been dealing the matter with the same measures - i.e. dozing liquidity, interest rate manipulation, capital control, wage control, increasing tax burdens, or issue bonds and debt securities, and vice versa to stimulate economic growth and activity and if worse comes, they’ll resolve into more dose of these plus intimidation and wealth confiscation of their citizens’ wealth as what had happened recently with Cyprus where their government passed on a decree let the depositors hand in 60% of their deposits to the government for bailing out their banking system.
Indeed if we look back to our history, we can see a repeated pattern and trend as to what may happen to a government that do the same thing to their respective economy - manipulation, control, debasing the currency and bloating the economy by carrying out deficit spending and heavy debt. We cannot change this. It seemed that this is the only thing they know how to run their economies, thanks to Mr.. Keynes.
The good news is, we still have our freedom of choice - and we may not necessarily put ourselves directly vulnerable to the mess and consequences of their actions. In the case of Cyprus where big bank accounts had lost 60% of their savings in bailout, that’s a lot.
Having a profound, intellectually and legally formulated financial strategy in placed in our families’ finances can enable us to control the steering wheel of our finances should inevitable consequences as in Cyprus happened. Losing 60% of your savings in favor of the few ultra rich and élite (bankers and investors) is non-sense. I’d rather spend it for tons of noodles and send to some places in Africa that badly need them. We definitely have a choice: let us not allow ourselves to be an easy prey for these greedy monsters that play manipulation, deceit and culture engineering. All they wanted is to have more people agree and believe to the kind of mindset they want for the masses.
Bottom line, these are their agenda but we can be safe if we are not going to conform to their idea, instead by renewing our minds and desiring the truth - we shall be free.
Going back to market volatility, just couple of weeks ago, the Philippine’s Equity market had lost her several months’ gains in just a matter of days - and the government together with the central bankers as always resolved into currency devaluation and interest rate control always as some of their many means of manipulation. In case you don’t know, currency devaluation has something to do with eroding your current way of living (subtly) because it implies price increases of goods and services you need for you to survive as the aftermath of these resolutions. That’s why this kind of controls have destroyed the wage earners and the middle class of great civilizations and empires in the past and will certainly destroy you and your family in the future if you take it for granted.
Nevertheless, the poor will remain poor and the rich will still be rich but majority of the working class - the producers that drives the economy in terms of output and production - those who rely mainly on wages are the ones who will be wiped out by way of dissolving their savings by value or by bank runs and holiday, or by heavy debt burdens and oppression from their lenders, or job loss and unemployment and so on... Just today, I dropped by to my usual “Suki” rice dealer to buy some rice, I am surprised to see that the cost of rice we used to buy has increased 10% compared to the price i bought 15 days ago. As I drive home, I recall that the PSEi had started to recover back up and then I silently said, they have done something.
Economic turbulence and fluctuations should be a warning signs for us that something big is coming as our government going heavy on debt and deficit spending in resolving economic challenges and inducing economic growth. A reminder that you and I ought to position ourselves in a way that before our bankrupt government and financial system can resort in their last and desperate course of action towards their beloved citizens such as bail-out and wealth confiscation or capital control or price and wage controls, and so on... given in that situation, you must have established your margin of safety and necessary preparations. That will enable you have control over your family’s resources and not be devastated economically. Also that will enable you to spot and grab emerging opportunities during economic downturn. Remember, during economic collapses & downturns has always been the greatest wealth transfer event of history and will always be. Thus, you are already few steps ahead than the crowd.
Will you be comfortable then at times of economic turbulence - As you listened to these “guru” assuring you that they’re in control and the situation has been dealt accordingly? As you learn that the government is doing something to weaken your known money (currency)? or your central bank lowered the interest rate and or printing more paper money?
It pays to educate yourself and learn how to protect you and your family’s welfare, liberty and freedom.
Till next and for your FREEDOM!
Bong Bungalan Jr.
Financial Literacy Advocate / Financial Advisor
http://beFinanciallyFreePinoy.blogspot.com
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