Riding out the Paradigm Shift

—“Come writers and critics who prophesize with your pen.” [Wiggin Sessions] February 26, 2022 Riding out the Paradigm Shift “Come writers and critics who prophesize with your pen.” ― Bob Dylan’s “The Times They Are A-Changin’” [Addison Wiggin]Dear Reader, What’s happening in Ukraine should be the least of Wall Street’s worries. A storm is coming… one that few investors will know how to deal with. But in this week’s Session, Jim Rickards details how his experiences and personal setbacks have shaped his outlook on the world economy. And he’ll tell you what’s ahead and how to prepare for the day when the system finally careers out of control. The key, as you’ll learn, is diversification — but not in the traditional sense. Here’s the lead-up to our conversation. [Jim Rickards: An Origin Story]( After declaring bankruptcy, Jim’s family was forced to move to a new town where people were mostly either “farmers or fishermen.“ He had to find a place for himself in the homogenous community while adjusting to a lower standard of living. “My closet was a nail in the wall,” he relates. While it was “highly stressful for my family,” Jim says, “it was the best thing that ever happened to me.” For one thing, he “became very focused on studies and got good grades.” In fact, he says, “it’s kind of how I got into college.” It also taught him resilience. Even today he believes “if it all went away, I could survive just fine.” “That’s a great source of strength,” Jim Rickards will say straight to your face… which is why he felt OK decades later, when he nearly went bankrupt on his own dime. [War By Other Means]( Russia and China don’t need to resort to violence to get the United States to stand down. They can hit Americans where it will hurt the most — their wallets. In 2009, a high-level Pentagon war game showed that China could absolutely wreck the United States without bombs or even guns. As a Barron’s article about the exercise explained: “Whenever the U.S. did something Beijing didn’t like, China began dumping a fraction of its dollar-backed assets, driving down the currency, sowing economic chaos and prompting U.S. leaders to appease the Chinese.” The article is titled, “China Guts Dollar, Crushes U.S. in Alarming Financial War Game.” What it doesn’t mention is that Jim helped design the scenario… and played the part of China. How did a kid from a fishing and farming town go from negotiating a world-spanning bankruptcy to designing economic war games for the Pentagon? [Buy the Rumor, Sell the News]( Putin’s rhetoric for some months now has indicated he thinks now is the right time to invade because the West is weak. Yesterday, he reminded the West that Russia is a nuclear power, so they better not interfere with his plans in Ukraine. Out of curiosity this morning, we looked up how many nukes Russia has pointed roughly in the direction of Western Europe or the United States. They have 3,309 available for deployment. The U.S. pointed in the other direction? 2,361. Alas, it only takes one to dismantle our modern era of relative peace… possibly even civilization itself. Let’s assume no one with their finger on the button or access to the codes is dumb enough to launch one. What are the economic implications for a protracted war in the Ukraine? [The Crisis After Ukraine]( No matter what happens in Ukraine, the established investor paradigm might be in for a major shakeup. Inflation is out of control… and the Fed’s only real hope of stopping it is to raise interest rates and stop shoveling cash into the system. The effects of rising interest rates are pretty easy to predict. Borrowing will cost more, so people and businesses will take out fewer loans. Spending slows as people become less inclined to part with their cash. It slows down the velocity of money, which is mostly a function of behavior and psychology. For the most part, you can’t force people to spend money that spurs economic growth. You can only entice them to. And now the Fed is poised to take that enticement away. We could see a huge loss of confidence in our policymakers… which will make matters much, much worse. [Click here to learn more]( You can catch our full interview with Jim Rickards, [right here.]( Part of our conversation dips into the “Great Reset” and the people behind it. As always, Jim is not afraid to name names. Click on the picture above to watch the whole thing. Follow your bliss, [Addison Wiggin] Addison Wiggin Founder, The Wiggin Sessions P.S. News of the Russian invasion caused cryptocurrencies to briefly plummet, just like stocks did. Reports now suggest Ukrainians are turning to cryptos as the country’s future becomes uncertain… and some are suggesting Russia can use the decentralized digital markets to sidestep international sanctions. It could be the utility case crypto investors have been waiting for… or the impetus for more crackdowns. And there’s really only one person to talk to for the full story of what’s going on — James Altucher. We wanted to know what happens to crypto in a time of war. After all, James literally [wrote the book on cryptocurrencies](. James gave me an entirely new perspective on “crypto” during war time. You’ll learn what he has to say starting on Monday. The Easiest Way to Add Fine Art to Your Portfolio You can purchase shares in great masterpieces from artists like Pablo Picasso, Claude Monet, Andy Warhol and more, when you join an exclusive community of art investors with Masterworks. Click [here]( for details. Ed. note: Got something to say? 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