Yesterday, I’ve got to Tomamu/Hokkaido, one of the most legendary resort for skiing in Japan. Here, you can enjoy silent morning in woods, while I’m about to anticipate the very near future.
As CEO of a think tank of the Japanese style dedicated to make future risk and strategic scenarios, I’ve forecasted the future since 2005. Every time a lot of things have happened since then, I always have the same feeling again and again: The history of the human being consists of fractals. Things happen one after another, while significant events repeat themselves. What makes the whole things invisible and complicated to be understood, is the fact that ongoing events aren’t quite the same ones we experienced previously. The former phenomena are quite similar to the latter, nevertheless, they aren’t identical with each other. Some leading thinkers were fully aware of this rule and formulated as follows: “History repeats itself, first as tragedy, second as farce.”
In the course of daily communication with my closest alliance partner, Mr. HKD, one of the most reliable data scientists in the Japanese financial market, it currently occurs to me that the global market is slowly heading to what we experienced from 1986 to 1987. There are three factors which are critical to our future:
-Massive QEs in the States, Europe and Japan will be effective enough to make the stock market soar at least until the early summer or autumn of this year, because Ms. Yellen officially hesitated to hike the interest rate and seems to let it be until June or September of this year. A huge asset bubble is about to take place like one from 1986 to 1987, which a disastrous collapse of the financial market will soon follow.
-Geopolitical tensions in ME is being intensified, but awaits the last “point of no return”, where Israel won’t be able to accept her disgraced status as an abandoned alliance partner of the US due to the brandnew US-Iranian alliance to be established in late June. The so-called “Islamic State” will be causing terrorism one after another, however, it will remain “terrorism” with huge impact to the global community and won’t lead to the total war we’ve frequently had in terms of Israel after the WW II.
-The current turmoil due to accelerated default risk of Greece invites us to a new European order, but only “slowly”. From the very beginning of the whole story, it’s a kind of premeditated crime, and the Greek government is supposed to be backed by the Russian. As soon as the Russian will strategically finish their preparation for the next phase, Moscow will give a signal to Athena, which will dramatically declare come-back of its own currency called “Drachma”. Of course, that will automatically mean the end of “Euro”, one of the ambitious experiments in the history of the human kind.
Now, you may wonder what would happen afterwards and how we should be prepared for the very near future to be totally changed from the current circumstances. Because all the things will be reversed violently, I urge all of you, dear readers, to always go back to the very origin of what’s been happening since 2007. It’s the emerging total deflation on the globe that matters. At the final stage of this story, everything has to adapt itself to this new reality, while a series of phenomena we’ve enjoyed due to massive inflation since the latter half of the 19th century will be sooner or later forgotten.
In terms of currency, every single currency will have to show its value backed by certain things such as precious metals. This is why V. Putin has been massively collecting gold reserve, which other western European countries follow. When the previous worldwide inflation started to explode in early 1970s, US President Nixon suddenly declared, “USD won’t be backed by gold any more from now on.” This time, Putin is supposed to triumphantly declare to the world, “Ruble will be backed by Russian and Kazakh gold reserves.” Historians will later name this “Putin Shock”. The States will be simultaneously forced to launch her surprising “QE 5.0” because the above mentioned dramatic crash of the stock market will take place, and USD will lose its dominant status in the currency world. Instead, Ruble plus RMB will replace it and advocate their position as key currencies of the new era.
Nevertheless, make sure that this is only the end of the first chapter. The second chapter will follow with much more surprising events. If you love to anticipate the future, take a little bit time to read through “The Apocalypse”. There must be two groups of prophets and saviors. Nobody won’t disagree, if I’ll say, “The first savior is V. Putin.” What about the second one? Stay tuned…