With 2021 soon drawing to a close, it’s time to do some crystal ball gazing and take a guestimate of what we think the likely trends for 2022 could be.
Starting with central banks’ monetary policy since it has been the main driver of asset prices since 2008, we see the continuation of monetary accommodation policy as one of our top trends for 2022.
Hawkish Fed Chair Powell has turned market sentiment downwards based on fears of ending the period of monetary accommodation. The consensus is that the Fed will embark on tightening and the scaling back of its asset purchases.
“we see the continuation of monetary accommodation policy as one of our top trends for 2022”
WEALTH TRAINING COMPANY
But we believe it’s all Fed talk and no bark, that it will be the shortest Fed tightening cycle ever that could be over before it has even begun. Remember the 2018 three-dot plot rate hike that ended up being one and done, and even then, the Fed reversed the policy.
Why we believe monetary accommodation will be one of the top trends for 2022
Declining worker participation rates in developed economies due to fourth revolution technology, AI robotics, and digitalization is a macro trend that will continue to displace humans from the economy.
Modern Monetary Theory will become policy, and it will finance universal basic income, which we believe will be one of our top trends for 2022
Matrix thinking will brainwash investors into believing that money supply M2 is no longer relevant in determining inflation as it is the velocity of money that counts. Notice how the Fed no longer published weekly M2 data, which they now believe is irrelevant data. So Friedman’s monetarist school is demolished and replaced with the Keynesian school of economics, which jives with totalitarian state corporatism.
“Declining worker participation rates in developed economies due to four revolution technology, AI robotics, and digitalization is a macro trend that will continue to displace humans from the economy”
WEALTH TRAINING COMPANY
Central bank digital currency CBDC is another one of our top trends in 2022, and we believe, will be the vehicle used to administer universal basic income
The list of countries trying UBI is growing by the year, with California being the first State to fund UBI in 2021.
CBDC will make a UBI policy easier to administer, bearing in mind smartphone wide adoption is now complete. You can no longer travel without an internet phone.
“But nothing is truly for free, so we believe greater State control over its population could be another top trend for 2022. The pandemic has softened the population to curfews, lockdowns, and travel restrictions” – Wealth Training Company
But nothing is truly for free, so we believe greater State control over its population could be another top trend for 2022. The pandemic has softened the population to curfews, lockdowns, and travel restrictions.
So pick your dystopian novel, which could define 2022.
CBDC version of UBI could come with a location tracker, an AI social credit system that rewards compliance to the new world order and ruthlessly punishes dissidence.
So the ongoing currency debasement could lead to persistent inflation in necessities, food, shelter, energy, and medicines.
Price control policies could become common in 2022 if price inflation in necessities spins into a political crisis. Food rationing, rent controls, and the curbing of speculation are just a few examples of how the State has attempted to suppress prices and calm social tensions. A price control policy is a double-edged sword as it can lead to shortages, which could be another theme in 2022.
Trends for 2022 – Part Two next week where we believe opportunities lie ahead for investors.