A lot of doom and gloom is flying around about “how bad this upcoming recession is going to be, everyone is going to lose their money, and how if you don’t do XXX, you’re going to lose everything.”

Let’s just back up a second and relax, I wouldn't believe the doomsday preppers, but I would still prepare for hide times because those are still coming!

What we’ve got cooking:

• What is Inside vs. Outside money

• Prepare for the worst, hope for the best

💰 Inside vs. Outside Money

Inside money is tied into the current financial system, which means it’s all correlated to each other; cause and effect.

Anything ‘inside money’ will be HEAVILY affected by a recession or financial problems within the FED.

The Federal Reserve is the ‘Central Bank’; ultimately, they are in charge of everything within our financial ecosystem.

Think:

Outside money is independent of the problems within the system; while they may be correlated in some aspects, this is how you separate yourself from the FED.

The best way I can describe ‘Outside Money’ is to think of it like an insurance policy.

You would never want to buy a house or a car and not purchase insurance!

Why?

Because you have no idea what is going to happen in the future and you have no control over external factors, such as:

• Natural disasters

• Accidents

• Harmful People

🙏 Prepare For The Worst, Hope For The Best

As stated before, it is better to be risk-off in an environment where people are uncertain of future market risks.

But what happens when your “risk-off” assets are also possibly at risk of losing value?

With current market conditions, we’ve seen that bonds were sometimes more volatile than cryptocurrency. Bonds are supposed to be a “risk-free’ asset as they are backed by the full “Faith & Credit of the US Government”…

What are the options for ‘outside money’?

Think of assets that are not directly controlled by the US government, especially ones that will be affected in times of a recession, bank runs, defaults, and many other unforeseen issues to come.

• Bitcoin

• Precious Metals (Gold)

• Real Estate

What do those three assets have in common?

They all have a fixed supply, have perceived value among the masses, and have complete control over what you decide to do with it.

• Bitcoin: There are only 21 million coins

• Gold: “No series of chemical reactions can ever create gold” -West Texas A&M

• Real Estate: There’s only so much land in the world; you can’t make more of it

(There are some stipulations with real estate)

I forgot to mention another thing these three assets have in common: they continue to gain value over the long term against all fiat currencies, including the USD.

Anything that relies on the USD or any fiat currency period will be affected by hard times. As a person and investor, you will lose a lot of value along with the money within the sphere of control of ‘fiat money.’

This isn’t just the case for the USD; every fiat currency in history and the future will always eventually become worthless.

The reason is that inflation is a feature built into the system; the people in power always want the tool of printing money because it allows them to kick the can down the road for a long time.

But eventually, that road will end, and the people holding that native currency will be affected the hardest. 

Takeaways

This post isn’t meant to scare you or make you feel like everything is about to collapse and that we will move into the stone age, where we are returning to the barter system.

Even if the USD “collapses,” the people in power will always pivot into something new, making it seem like they knew it would happen this whole time. Unfortunately, the CBDC is the most likely pivot at this point.

But, I warn you that you have a decision to make, and that’s where you put your trust.

Will you continue to follow down the road of an unsustainable system fueled by greed and corruption, or would you rather take responsibility for your wealth and insure yourself against the risks of “inside money”.

The choice truly is yours.

- Krystian

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.