The rich learn to buy up assets. The poor do not have any assets
The Rots-childs believe that the only money is gold, and so have hoarded it for centuries.
What happens when the assets of the future are not the assets of today? Will it change who the rich people are?
Do we need a change in assets to rebalance the world? Or do we just need some sort of reset?
Iron age replaces Bronze age
We have seen assets come into favor and others leave. But, it has really been about engineering. A century ago, it was all iron, and now it is almost all aluminum. So many of our iron smelters have been left abandoned.
However, plastics have come, and they replaced glass jars. But, today, we have even more glass jars, along with all the plastic containers. But, this is mostly due to propaganda making people believe that it is ok to throw away plastic containers. We have created the throw away society. (plastics are not really recyclable.)
Commodities change in price when serious problems with mining happen, or some new process is created that suddenly spikes a need for a commodity. And commodities take years to adjust the output.
But, this is not so in the paper space. Where we create new paper to trade, daily. Derivatives are created every time so debt, risk or profit needs to be swapped.
Today, our assets are almost all paper.
Assets are mostly regulation
If you haven't stopped to think about it, most of our assets that we put our money into, can die tomorrow if the govern-cement changes the regulations.
Imagine investing in real estate in California. Then governor NewScum allows every city to impose rent controls. All of a sudden, you real estate holding could go from cash flowing to money sinking. And, if you don't get out before the switch is toggled, then you may never be able to sell what you thought was an asset.
If any of the regulations that were removed, are reimposed (like Glass–Steagall) than all of our assets, paper assets, would be re-evaluated overnight. REITs could become toxic, or even legal suicide, if any of the legislation about price controls/affordable housing gets passed.
Similarly, Japan raises its interest rates just a little bit, and suddenly cash flows change directions. The world economy stops. Everything gets repriced.
Congress is currently looking at regulations on cryptos. When this passes, some cryptos will skyrocket, and some will disappear. And if congress doesn't pass it, then the regulators will pass something similar.
Is an asset that can disappear overnight via one man's signature really an asset?
Going cold-turkey off of money-printing
Lets say that tomorrow, or maybe next week, we go from a debt-based, fractional-reserve-lent, inflationary fiat currency, to a gold-oil backed money? (Or we all switch to bitcoin) What is considered an asset changes drastically.
Wallymart immediately goes out of business. Or their prices go up by 20% across the board. Because they rely on printed money and inflation to make their profit.
The stock market and the real estate market have gone up almost solely from inflation/money printing.
Cut off the printed money, and the prices of everything changes. Much of the paper assets we rely on today, just disappears.
You cannot pay interest on a sound money. If you charge interest on a bitcoin loan, paid in bitcoin, you will quickly owe more than 21 million bitcoin. Which, anyone who knows bitcoin, can see that that can never be paid. Usury is ANY amount of interest charged.
So, bonds… gone.
The way corporations make money drastically changes. Most of them will fold. The stock market will never be the same.
House prices will be what the buyer has in his pocket. No longer what the bank will give on a mortgage.
When the paper goes poof, the assets become real, solid, meaningful.
When the grocery store has no food (it already doesn't) then that garden + greenhouse becomes very valuable. This is what the near future will look like as paper implodes. (This was meant as an analogy about paper markets, but it is also very true in a real, and starvation filled future)
What is really amazing is how long this house of cards has stayed standing.
It is a good things that cryptos allow us to send money from our phones/computers, because credit cards are about to become non-existent. (This may be quick or slow. Credit cards will no longer be able to exist, but debit cards of some form will be kept running while we transition. I hope)
What will probably be the thing that destroys trust the most is when we audit the COMEX, and find there is no gold or silver there. All those paper contracts are just paper. And they will go poof. The investigations into where it all went, will destroy the trust in many banks. (When we audit the COMEX, will be a staged event, only after all the gold and silver has been transferred)
It will seem, that almost overnight, what is an assets changed.
Buy silver, food, lead and a greenhouse.