Relocation of money and the transfer of wealth

In one of his classic talks, Jim Cramer said, “the pandemic led to one of the greatest transfers of wealth in history”.

And this is very true as history can always provide us with a good guide into the future.

This is the more reason why I believe that those who understand and use history are always favoured by the gods.

From time to time, the world economic system rebalances itself.

And when this happens, we call it a global economic crisis.

Crisis because it comes with changes that bear both dangers and opportunities.

Read Also: Pandora Papers: Why do Rich People hide money offshore?

It could come in form of wars.

Famine.

Debt crisis.

Trade wars.

Pandemics and the likes.

The Coronavirus was new to us, but the pandemic is not new nor is it the worst pandemic in history yet.

The world has survived the worst times and we still have many ahead of us.

But here is the main thing, crisis help in the rebalancing of wealth and relocation of money.

In the face of crisis, money changes location.

Those who quickly discover and take a position in the new location of money profits while those who keep looking for it in the old places suffer greatly.

The dot-com bubble of 1990/1991 strengthened the internet.

The mortgage collapse of 2008/2009 strengthened the world credit and lending system.

Coronavirus has strengthened something in world economics…

By my study, it has to do with earnings mobility and currency bypass.

Have you seen the gyrations in digital currency and remote working so far?

Now, you can work from anywhere and get paid any amount.

You can move your money without necessarily having the big guys know about it.

My study also shows that on average, the world experiences a large-scale crisis once every 10 years which brings about the relocation of money and rebalancing of wealth.

In the last 144 years, we have had about 14 events that impacted global economies at scale.

The least amount of time it has taken for this to happen is 6 years while the highest has been 29 years.

But that of 2020 was uniquely different.

Much of the other crises in the past had concentrated epic centres.

But the pandemic of 2020 had a universal epic centre.

Meaning that it impacted everyone everywhere almost equally.

The rich and poor were presented with equal losses and gains.

So, the opportunities and losses were decentralized.

This is why it caused the kind of wealth transfer that is unprecedented in the history of the world…

The individuals and companies that got favoured got madly rich.

Here is one key thing to note though…

When there is economic reshuffling, people are blessed in the capacity of their readiness.

Those who have nothing, even the very little they have are usually taken and given to those who are ready.

It is like turning open a massive flow of River…

When it happens, those with Buckets fetch to capacity, those with spoon fetch to capacity, those with multiple tanks are filled too while those who came empty are swept along with the tides.

This is why when there is a global economic crisis, those who get wealthy get really wealthy and those who get poor get really poor.

Understanding this is very important so that you can train and be ready for the next tides.

In times of crisis, here are the two most important things to do…

First, Get to safety

You need to be alive to take advantage of life. This is why safety first is important.

Millionaires and Billionaires were killed by the pandemic.

They were just victims of the times.

In crisis always remember… SAFETY FIRST.

The second thing is to engage wisdom which is the intentional application of discernment.

Mike Murdock refers to it as the study of difference.

Anyhow, wisdom is all about knowing what has changed and making good Judgment about it…

Check for the epic centre of the crisis to know the extent of reach.

Observe history for patterns as nothing is entirely new.

Evaluate the possible opportunities that might arise as no crisis is without one.

Then, engage fully by taking an advantageous position.

This is how you prepare and take advantage of a crisis.

Fortune always favours the ready.