Time for a Covid Reset

It is little comfort that almost every question and concern we raised about the coronavirus pandemic is proving to be true. It is increasingly obvious that if there ever was a health rationale for decisions, it has long since been abandoned.

One could excuse the early errors as being made through a lack of knowledge by authorities. However the current circus of restrictions and lockdowns is inexcusable because it is wholly unnecessary.

Let's revisit some of the facts.

Firstly, COVID-19 has the same mortality rate as a bad influenza season. As the flu has been all but extinguished over the past twelve months, it is reasonable to conclude that a lot of Covid deaths are actually from influenza or other respiratory linked viruses.

The statistics make it plain that people generally die with Covid-19 rather than from it. If this was such a huge problem then there wouldn't be a need for the data research centres to include so many bogus COVID deaths in the stats. I told you previously about the ladder falls, motorcycle accidents and suicides who are all included as COVID mortalities.

The reason is money. In the USA, a COVID death means the hospital receives 100% funding from the government. There's a great incentive for attributing as many deaths from other causes in the stats.

We've also discovered that a lot of the deaths (at home and abroad) were due to mismanagement by government.

We'd never put influenza patients in a nursing home to get better and yet that's what they have done with COVID sufferers. That decision has proved catastrophic and yet the leaders responsible have not been held to account.

Then there is the political response. Again, it was entirely predictable.

The mantra pf politics is to never waste a crisis and this has certainly been maintained during this pandemic.

The State and Federal governments have seen this as an opportunity to abandon long held tenets like fiscal responsibility and ministerial accountability.

They have all been spending like the proverbial smashed sailor with nary a thought about the long term consequences.

It's also allowed them to implement a growing raft of socialist policies they would have been too scared to have implemented before. The seeds of a Universal Basic Income has been sown, government dictating business operations has reached a never before seen level of interference and there are now virtually no consequences for them destroying entire industries.

In fact, such is the public scare campaign the politicians are being rewarded for their oppression. It is Stockholm syndrome on a massive public scale. Eventually the leadership fraud will be exposed and the anger will grow.

Until then, Premiers will grab the glory while allowing their states to be run by bureaucrats under emergency powers. It is scarily pathetic.

The other political reaction predicted is also coming to the fore.

In times of crisis, the opposition will tick whatever box the government asks, so it can't be accused of making the crisis worse. Then, when the worst is over, every decision is picked apart and attacked for being too much, too little, wasteful or whatever convenient case for criticism they can find.

It is political opportunism 101.

Now the big question is why? Why are governments doing this to their economies and their citizens?

The easy answer is power but it is more likely to do with debt than anything else.

The world ( government and private sector) is hopelessly indebted and knows that the current and growing liabilities are unsustainable. They need to do something to arrest that debt death spiral.

Inflation has been their previous saviour and they will be looking to that again - and hoping it comes very soon. However they also know that they need much bigger reform. That's the Great Reset.

The Great Reset is using the pandemic as the trigger to take giant leap forwards in the socialist agenda. Currencies are becoming digital (for health reasons of course), moves are afoot to make government bond perpetual, regulation of cryptocurrencies is starting and citizens are more reliant on governments than ever.

Right now, the only appropriate response is to ensure you have your own house in order in preparation for inflation and more government interventions.

The crisis of confidence in government is starting. Money is already fleeing to gold, crypto, property and stocks. All have the potential to have large gains from here in the years ahead but will also experience serious volatility and periodic corrections.

Personally, while property prices may increase with inflation, they are more vulnerable to government interventions (rates and taxes etc) because they aren't transportable and the cost of transacting is relatively high.

That said, preparing yourself for what may come means you have to be comfortable with where your investment funds are stored.

I've said it before and will warn you again...the most important wealth preservation technique is to stay as far away from government bonds as you possibly can!