There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

Ludwig von Mises - Economist

There may be no means to avoid the collapse but there are actions you can take to protect yourself and your business.

With New Zealand already in recession what comes next?

Is there any need to worry about the NZ Reserve Bank printing $1 billion of new money a week or that the government plans to increase its debt from 19% in 2019 to 54% of GDP by 2024?

Peter Bernholz has studied 29 hyperinflations.  They have remarkably similar characteristics:

• 28 have taken place in the last 120 years (the other was the Assignats launched during the French Revolution.)
  
  
• All took place outside of a gold-standard, that is with fiat money like the NZ dollar
  
  
• All are associated with huge budget deficits.  He says: all hyperinflations, and there are very many other high inflations, have usually been caused by deficits of the government financed by money creation.
  
  

Do these attributes sound familiar?  What makes the NZ dollar different so it will not share the same fate?

Bernholz says severe inflations begin when enough people realise, in the words of billionaire hedge fund manager, Ray Dalio, cash is trash and start getting rid of their fiat money as fast as they can in exchange for more durable money and other assets.

RedPill money is designed as an insurance policy against such events.  The currency, owned by Kiwis, is designed to track the price of gold so that 1,000 RedPill equals 1 ounce of gold.  Unlike fiat money supply of the currency is also capped so that no more can ever be issued.

New Zealanders can prepare themselves and their business by becoming RedPill Ready.  It is free and anonymous for all who wish to participate.

Egon von Greyerz from Matterhorn Asset Management AG enables people to preserve their wealth by storing gold in Swiss underground vaults.  In this interview he explains the surge in new deposits this year and why gold is not just for the rich. 

• Fiat currencies have already lost 98% of their value since 1971.  It is now a race to the bottom of the last 2%.
• The more “helicopter money” printed the faster the end comes – inflation followed by hyperinflation.
  
• The USD will lead the way but all fiat currencies are in the same race.
• The outcome is inevitable – there is nothing the central banks can do about it.

New Zealand is a long way from Switzerland but as COVID-19 has shown we are subject to the same global events.  This is why RedPill money is designed as an insurance policy.  Like von Greyerz’s clients, RedPill understands that wealth preservation has to do with gold because gold has kept stable value for thousands of years.  The price of gold is not going up so much as fiat currencies are debasing. 

If you are one of the Kiwis that has not yet received their 10,000 RedPill free, no strings attached, you can do so from the website.  The resources section then shows how you can make yourself and your business “RedPill Ready”

For those of your who wish to simply sample some of the von Greyerz’s highlights:

2:22 the collapse of the financial system, the collapse of the currency system.

5.10 central banks are exacerbating the debt problem by printing more money – there is no way out.

7:00 and 35:45 we are in the exponential phase of money printing with “unlimited money”.
8:20 people will see the value of their currencies fall.

25:99 the risks are unknowable.  Embrace uncertainty.  Probabilities are unlikely to work because we are in unprecedented times.

26:30 gold is not just for the rich.

28.20 people in Venezuela could have saved themselves.

32:00 the US has had a budget deficit for 90 years.

35:00 US deficit currently $27 trillion.

RedPill - Kiwis creating their own insurance against troubled times.