Financial Disruption on Steroids...Post Pandemic Wealth Divide Will Explode

The real story about the pandemic may not the virus itself, but our reaction to it?


Mass hysteria replaced rational thought in a blink of an eye.


Charts held up by "experts" said millions would die soon, assumptions were not questioned.


Real Time Apps were tracking the outbreak all over the world popped up out of no where.


Any talk that mentioned that it was overblown was quickly shunned or ridiculed as conspiracy theory.


As cases and deaths mounted, ghastly stories from the hospitals emerged.


They were more horrific than the plague.


People being ripped from their families to die alone being cared for by panicked medics in space suits.


Bodies piling up and being stored in unthinkable places.


The financial reaction and how it will go down as the game changer of all game changers.


In America, it's estimated that the economy has been loosing $25 Billion per day. (during lock down)


Depending where you live, we are close to 60 days of shuttering the economy, 60 times $25 Billion equals $1.5 Trillion.


Even if we assume that the entire economy was shut, GDP is roughly $50 Billion per day.


So, the math of a complete standstill would be $50 Billion times 60 days equals $3 Trillion lost.


If the government would have just spent $3 Trillion, it would have provided close to $10,000 to every person in the country so a family of 5 would have received $50,000.


Predictably the government has spent far more while most have received little to no aid to regular people.


Because in the same time period, the Federal Reserve has raised their balance sheet $4.5 Trillion and is even buying corporate debt.


The government has passed several Trillions in stimulus bills and is now considering another $3 Trillion "Hero's Act".


This act includes another Trillion dollars to bail out the state and local governments from their decades of pension under funding and spending on pet projects.


The financial tsunami has just begun because the fallout from the limitless amount of new dollars created out of thin air will come to obliterate the middle and lower class by pricing them completely out of financial security.


Stock markets and investments in general will forever carry the taint of the virus , money and market manipulation which until now flew deftly under the radar.


Hyperinflation could even become a reality in the not too distant future if spending is not curbed.


Tax rates, both Federal and Local, could rise dramatically to cover not only the hole left by this, prices will soon rise due to the drop in purchasing power of dollar because of all the new dollars that entered the system out of thin air.

Bottom line, assets like houses and equities will rise in value because of the monopoly cash infusion. Cost of living will increase and taxes will have to increase. Those who want to have financial freedom in the future will create and execute financial plans like their life depended on it.


Becoming nimble and able to adapt will be as important as ever moving forward. Tides will shift faster and faster. Only the prepared and mentally strong will financially survive the post pandemic world.


Never again will the world be the way it was. Get over it, move on and prepare for the challenges and opportunities ahead.


Most will become dependent on the government and others to survive. There is still time to make the shifts needed and make the pandemic become the call that gave you the motivation to go to the next level and not look back.


Be well and take care.


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