A letter from Q Wealth Founder Richard Cawte
Ten years from now, we will not be talking about Covid-19 as the biggest event of the decade. We will be talking about the Financial Correction that accompanied it. My hope is that we will also be talking about all the good things that eventually emerged from the shadow: a time when greed gave way to compassion; when we woke up to our responsibilities and began to take care not just of ourselves, but of each other and the planet on which we live. That is what this article is about.
Twenty-two years ago, when I founded The Q private newsletter (which subsequently morphed into Q Wealth Report) I wrote about the inevitability of a coming financial adjustment. “At some point in the next ten or twenty years, we will see the complete correction of the banking system. It will be a seismic event, sending shockwaves through the world. It will bankrupt many millions of people and make just a few extremely wealthy. Cash will become a thing of the past as the giant Ponzi scheme run by the international banks comes crashing to its knees.”
That event, dear reader, is no longer on the horizon. It’s right on top of us. So, like Gandalf in the Lord of the Rings, I am riding, riding out of my retirement to arrive at Minas Tirith and warn its inhabitants that Sauron’s army is already on its way. It’s too late to get out of the castle, but you can shore up your defences, do what you can to weather the storm – and at very least take a step out of the prison cell of terror that mainstream media would like to lock you inside.
I write this from the UK, where the government has been dealing with the onset of Covid-19 by delaying decision-making as long as possible. Across Europe other countries have already enforced “quarantine” – which in reality is Martial Law. People are locked inside their houses. Armed police patrol the streets, ready to arrest anyone who breaks curfew. I don’t doubt that by the time you are reading this, the UK will have followed suit. Europe will be in lock down, along with the USA and many other countries.
When governments declare a State of Emergency, you know that the writing is on the wall for civil liberties. “State of Emergency” means normal laws are no longer applicable. In other words, governments can choose to ignore or flout the legal system if they wish.
So what is this all about? Is it really about halting the spread of a deadly disease? Or is it about the inevitable process of killing off a financial system that has become so infected with the fever of credit that its veins now run with intolerable levels of debt?
The answer, probably, is “both”.
There is no doubt that Covid-19 is real. It will kill many thousands of people across the world. There is also no doubt that it was first diagnosed in China, close to a biological weapons base. There is plenty of conjecture as to how it came to be released into the human population. And there is plenty of doubt as to its efficacy as a killer.
It is also a fact that the spread of the virus has been accompanied by a highly successful campaign to terrorise the citizens of every country in the world covered by mainstream media. That’s something new. Usually we’ve seen it in one country, or in a continent. This time it’s the whole kit and caboodle. And that’s why I believe the Big Correction is about to happen.
We are entering a Global Recession that will soon become a Global Depression. It’s going to be a challenging time, a violent storm. And when we re-emerge afterwards, the landscape will not be the same.
It’s been on the cards. The fever raging inside the body of international banking has only been temporarily soothed over the past decade by repeated doses of Quantitative Easing (the process whereby more fiat (fake) money is added into the pot of all the fake money that already wasn’t there). But that can’t continue forever. Up to now, the conmen have gotten away with it. Their confidence trick has worked. Each time they’ve increased the flow of fiat money, the punters have bought the con. Things have calmed down. The fever has abated.
Not this time.
Last week the US federal bank reduced interest rates to zero and injected a further great tranche of fiat money into the system, with the promise of more to come. And for the first time… nothing happened. No one bought it. It seems the people are waking up and saying to the Emperor, “Those beautiful clothes you said you are wearing, they don’t exist!” That’s because things have reached the point of no return. There is no saving this Ponzi giant.
As I write this, the Bank of England has announced another huge wave of “QE”, accompanied by reducing interest rates to their lowest ever figure of 0.1%. In reality that means we now have deflation. It has also pledged to buy government bonds to the tune of £200 billion. Which means, the government is releasing money that isn’t real in order to buy money it already borrowed, which also wasn’t real.
On the same day, the European Central Bank pledged a further E820 billion to buy government and company debt across the eurozone. Christine Lagarde says: “There are no limits…”
But there are. And she knows it.
Global debt now stands at more than 250 trillion Dollars (over 200 trillion Pounds Sterling). That is an unimaginable figure. And it rises, sharply, each day. Up to now that debt has been serviced by an almost continual growth in the markets. Growth has been fuelled by repeated borrowing and lending of money that doesn’t exist – the burgeoning Credit Market. All it takes to make that debt no longer serviceable is a change of behaviour amongst the population; an unwillingness – or inability – to continue to spend, spend, spend and suddenly the fragility of the system is clear for all to see.
Covid-19 is that change in behaviour. With people no longer able to travel, work or play, they will no longer spend the money required to prop up the system. If this lasted just for a week, it might not matter. But this is going to be a protracted period of changed spending behaviour.
Soon we will see mass unemployment, bankruptcies, failing health systems, empty schools, welfare systems defunct, pension pots ransacked and savings gone. I expect governments to requisition gold and silver (whether you like it or not) in order to “fight the good fight”. And at some point there will inevitably be widespread civil unrest, accompanied by the armed suppression of civilians.
This will suit those who run the banking system. It gives them a perfect environment in which to manipulate things back in their favour as panic-stricken, isolated populations accept new measures – even thank the government for them – rather than starting a revolution! I am not saying it was intended to be that way (I have no evidence for that). All I can say is that the outbreak of this dis-ease is being used as a smokescreen. We are all watching the hand that moves, whilst the other one slips in and picks our pockets.
Let’s be clear: Covid-19 is NOT responsible for the Depression that we are about to see: it is merely the environment that will allow governments to impose draconian measures on populations across the globe as never witnessed before. Already the UK government has stated that some of the laws being prepared right now will likely be in place for the next two years. That’s precisely what was said when income tax was first introduced (at 2%) in order to fund the Napoleonic wars.
The whole system is on the verge of the biggest correction it has ever seen. Think Germany in 1923 and roll that out across the globe. What happened then? Barrowloads of cash could buy a loaf of bread as the Deutschmark was devalued.
That currency devaluation is set to hit a bank somewhere near you. Every major bank. There are no other options left, other than out and out war with powers that the west does not wish to tackle. It has already grabbed all the low-hanging fruit. The Oil War in the Middle East has run its course. Saddam Hussein’s regime has been overthrown. Egypt has been plundered. Gaddafi’s hordes of gold have been spent. Syria and Iran have proved a bridge too far.
There remains only one possible option: the Big Correction. To achieve this, unprecedented scare tactics must be used to herd people away from the herd, to place them in solitary confinement, locked into their homes. Covid-19 has provided the perfect opportunity for this.
Every herd thrives from its ability to act together, to be a community (co-immunity). Now the whole herd of humanity is being corralled into smaller and smaller units. Over the coming weeks you can expect the spectre of families and individuals locked in their homes becoming increasingly dysfunctional; a captive audience, fed a non-stop diet of fear and terror so that when the Big Correction is announced, they will not be in a position to do anything about it. In fact, they will be so frightened by the virus, they won’t even care that much as their freedoms are ripped up. They may even welcome it.
So, what can we do about it? Well, from a financial point of view, the only things that seem to have any chance of being relatively immune to the madness are the crypto currencies. The central banks cannot (yet) set their interest rates. (Watch out very soon for new virtual cash systems run by the banks themselves by the way as they eradicate physical cash).
Above and beyond that, you can decide to step aside. Don’t fill your day with endless news bulletins. Remember who you are. Remember the inner you, the sunny you that once upon a time knew the world is full of wonder. The you that has an endless well of hope. If practicing meditation, self-hypnosis or yoga helps you to reconnect with this essential you – do these things more!
Choose not to be pushed into fear. Stand in your strength instead. That’s a choice you can make, each moment, every day.
Most important of all: HELP OTHERS.
Help your loved ones and your neighbours to feel better simply by being there for them. By showing them kindness and calm compassion. By not letting fear run amok.
There’s an expression I was taught many years ago: “Where your attention goes, your energy flows”. Put your attention to helping. Help yourself by making a determined decision not to be sucked into the panic. Help others by being there for them, running errands for the elderly and disabled, who will feel this imposed isolation the most. If you feel it’s not safe to see them, phone them, contact them on skype or whatsapp or however you can set it up.
Yes, we are about to see a huge financial correction, but that had to happen. Deep down, we all knew it. We’ve all been playing the game to one degree or another and we’ve enjoyed it whilst it lasted. But the game is up. The age of have-it-now greed and materialism is ending. Our planet can’t take any more. We have wilfully destroyed its resources and now we are faced with the biggest challenge of all. It’s a race for survival, not just for us, but for all living things.
So what can we do? We can do what we KNOW deep inside to be right. We can remember who we are: amazing creatures who thrive as part of a community of interlocking life-forms – human, animal and vegetable – and who have a shared responsibility to each one.
We can choose how we respond to this challenge. We can choose to be strong, to let compassion and kindness thrive. Compassion, kindness, empathy: these things dissolve fear and bring light to those who are depressed. They are currencies just as real as any monetary instrument.
Whatever happens to our financial wealth, each one of us can choose to be rich in the qualities and resources that give our lives real meaning. And we can help others to do the same. Perhaps, when all this settles down (in a way none of us can yet foresee), we will have a new definition of wealth; one that includes respect and nurture of the world in which we live.
Perhaps, this is humanity’s chance to wake up, to go through a shock so huge that nothing will be the same. We may be forced to respect the natural world and by doing so we may discover our own self-respect. We may find our way once again. We may rediscover what it is to belong.
Twenty two years ago, in the first issue of The Q, I wrote an article called The Collective Individual. Let’s all be individuals. Let’s not be conned into doubting who we really are. Let’s all be a part of the Collective too. Let’s diffuse this dis-ease by choosing love over fear, each moment, every day.
To your health and (true) wealth,