Great Reset
We are in the midst of the Great Reset, according to influential CEO Klaus Schwab Chairman from the World Economic Forum.
Be prepared for what is about to come. George Orwell’s Dystopian fiction classic “1984” provides us with a hellish road map of where next in the “build back better” Great Reset of the post-pandemic 2020. Orwell’s 1984 depicts a dark future where technology exists in the public realm only as a tool for the elite to control society.
The Great Reset of the 20s entails entire sectors of the economy sacrificed
Boosting the monopoly and hegemony of few high-tech/big data giants, the FANGS of the world, major global chains, the digital payments sector, biotechs, and a few big pharmaceuticals.
The Great Reset is the rebirth of neo feudalism
The financial kingpins at the top of the food chain bankrolling their corporate oligarchs, a system administered by technocrats and their sheepdogs controlling an entire global class of modern-day serfs. The slogan of the Great Reset being “you’ll own nothing but will be happy” with the vision to eventually abolish private property by 2030.
“The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world” wrote Professor Klaus Schwab, Founder and Executive Chairman, World Economic Forum.
The Great Reset is being rolled out, under the disguise of a ‘Fourth Industrial Revolution’
We are currently experiencing collectivization 2, where older enterprises are being deliberately driven into bankruptcy, or absorbed into monopolies, which is effectively shutting down huge sections of the pre-COVID economy.
So, it is through this prism of lockdowns, social distancing, curfews, fear masks, and other ridiculous measures designed to destroy small to medium-size businesses that it all makes sense.
The Great 2020 lockdown is the wrecking ball, which then enables the elites to “build back better”
In the Prince of the Yen, the monetary authorities knowingly pursued unprecedented monetary easing which would ultimately lead to an unsustainable bubble and a systemic crisis.
Their rationale was to force structural economic change by deliberately crashing the system.
In the Great Reset economies are being forcefully restructured
Similar to the Soviet Union collectivization 1928-1940, where parts of the economy are deliberately being crushed and where many jobs will be carried out by AI-driven machines.
But the sixty-four-thousand-dollar question for investors is where do they sit in this new paradigm of the Great Reset?
Small and medium enterprises SMEs are more numerous and employ a larger proportion of workers in the economy.
Moreover, SMEs have been worse impacted by the great lockdowns with bankruptcies and foreclosures rocketing.
With these Great Depression conditions, it would be wishful thinking to expect pent-up demand to come next with the economy in freefall
But the collapse of SMEs also impacts household demand, which has a knock-on impact on the larger corporations.
I was optimistic about V-shaped, particularly in airline travel, but a recent trading update from Rolls Royce (RR) has made me pragmatic and put my optimism in check.
“Due to the significant reduction in global demand for our products and services from domestic aviation customers, which is forecast to last several years, we have reduced our manufacturing capacity” reported RR.
Put simply, RR, a bellwether of commercial air travel, is not experiencing a V-shaped recovery for its services in the Great Rest, albeit for the foreseeable future
So, if household spending was lackluster before the “pandemic” how is it going to improve with SMEs decimated by lockdowns and other government regulations, which has taken a wrecking ball to the economy.
Another theme of the Great Reset is that the State will play a greater role in the economy, where it will be the State and not the free market driving investments
But more state regulations also disrupts price discovery and capital flows.
For example, the UK’s National Grid (NG), which provides the electric grid infrastructure for the UK, and parts of the East Coast of the US, is locking swords with Uk’s energy regulator, Ofgem.
In short, Ofgem is planning to impose price freeze to put a cap on the utility monopoly profits. The regulator argues that energy costs have fallen since the lockdown and National Grid’s monopoly profits should be slashed, particularly when many households are experiencing hardship in the current depression. It is worth noting that former Labour leader Corbyn wanted to nationalize Britain’s entire energy network. But socialism and capitalism don’t make good dance partners.
So Moody revises National Grid’s outlook to negative, arguing that the UK regulator has slashed the company’s revenues.
“The energy regulator, the Office of Gas and Electricity Markets, has proposed to cut allowed equity returns for network operators by about half for the next five years” wrote Moody in its August 14 research.
“Absent mitigating action, Moody’s expects these settlements will weaken key credit metrics of the relevant subsidiaries and consequently the credit quality of the group as a whole” added Moody. The final determination is due in December.
The Great Reset, which entails the decarbonization of the economy, the move towards zero emissions, the electrification of transportation requires the upgrading, fortifying the national grid, which needs investment
If the pendulum swings too far with excessive regulations that will wipe out profits and there will be no private investments
So, is the Great Reset also about sending free-market capitalism to gallows, with shareholders having a noose around their neck?
Perhaps shareholders are viewed as too short-term and vulgar by the tiny club of ruling global elites, the financial kings, and corporate oligarchs.
The waters are murky, there is too much apprehension, confusion regarding what type of system will emerge during the Great Reset, where you’ll own nothing. So where does that leave shareholders, landlords?
But be warned, the black horse of the apocalypse, famine, is coming next year as the UN recently warned of ‘famines of biblical proportions’ in 2021.
The global elites want to keep fear on the radar and they are doing a good job of it.
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