The Global Economy Is Heading For Some Major Changes

The first decade of the twenty-first century has certainly been eventful for anyone interested in global finance. First, we saw the decline of Enron. Then, we saw the mortgage meltdown. We also witnessed how these two events affected global confidence in the American traditional market capitalism. By no means am I suggesting market capitalism is going away anytime soon. But what I will say is this: we’re going to see some major tweaks in that system.

The great thing about market capitalism is that it’s an economic system that allows people to truly realize their potential. You work hard and that hard work pays off with financial gains. This is a basic truth that will certainly remain true in the years to come. What will most likely change however is the focus on traditional currencies and conventional investment vehicles in the markets. The problem with traditional currencies is that they’re inexorably tied to the political machinations of any given country.

That’s why we don’t invest in Zimbabwean dollars! Certainly, this paves the way for the growth in forex because you analyze the market and make trades based on various factors. However, it also paves the way for alternative currency options such as crypto currencies and even commodities. I’ve spend years traveling the world, looking for the ideal place to settle down and raise a family. One factor I’ve always considered is the political climate and how that affected the economic climate.

I came away with one thought after the mortgage meltdown—we’re now so interrelated in terms of economic ties, that nowhere is safe, no matter where you, if something goes wrong somewhere, it can affect the entire global economy. This lead me to conclude that we may be headed towards a future where people are more often than not investing in alternative currencies.

 

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