We’re in January of 2016. It’s going to be a massive year, it’s going to be a really big year for the world economy. I’m in Canada, I also spend some time in the United States. I’m going to be speaking a little bit about my nine predictions for 2016. This is going to be the biggest year in real estate, the biggest year in commodities, the biggest year in stocks. This is the year. If you aren’t rich already, this is the year to get rich. If you have some money, this is the year to probably get even richer. The reason why is we’re going to see so many things go on sale, but let me walk you through my nine predictions for 2016.
[embedyt] http://www.youtube.com/watch?v=AB8h3rvJal0[/embedyt]
Number one, the first prediction I’m bringing for 2016 is the Canadian dollar is likely to hit fifty cents. Now what does that mean? Why do you care? If you’re Canadian and you run your business in Canadian dollars, if the Canadian dollar hits fifty cents, it’s a currency based on mostly oil and other commodities. Canada is a commodity based economy. If you’re American or Canadian this applies to you, especially if you live in Canada because it’s going to be a great time to sell products and services to the United States. You’re selling it half price. If you’re American it’s a great time to buy Canadian products or services because of the disparity in the currency. This is going to go back to the traditional way where we’ve had the Canadian dollar at fifty cents of the United States dollar. At the time I’m making this video, if I’m a Canadian living in the states I pay a 40% premium, I think we’re going to see that go right up to 50% premium.
My second prediction for 2016 is we could see something called “negative interest rates.” At the central banks, I’m trying to make a short vid, I don’t want to make a super long video, but the central banks, the banks that supply the major banks with money have such a low interest rate at almost zero right now and the way that they stimulate the economy when things go wrong during recessions is they lower the interest rate even more. The interest rate right now is almost zero so the only way that the bank could, or the central banks could stimulate more growth in the economy is to go to a negative interest rate. What this means for you is if you’re a person who has money in the bank, instead of earning 1% interest or half a percent, the bank might charge you to leave your money in the bank. What’s happening right now, it’s scary. I was at the bank the other day, I live in Canada, the bank is raising all their fees right now. Things aren’t going well in the economy but the fees are all going up. The fees are kind of like a negative interest rate. That’s something to watch out for.
The third prediction I have for this year is that oil is going to hit a record low. My guess is somewhere in the ten to twenty dollars per barrel range. This is based on the fact that we have some economic warfare going on right now between countries in the Middle East, Russia, the United States, and some of the other countries, it’s an economic warfare where we have countries with large oil supplies undercutting the bigger countries so that they can essentially bankrupt those economies. It’s going to be very interesting to see oil come online at ten to twenty dollars a barrel. I live in Canada and in Alberta in Canada, that economy runs on seventy dollars per barrel oil. If you are selling oil in your economy at ten to twenty dollars, that entire part of the country can’t function, especially in Canada where we have an entire part of our country running on seventy dollar a barrel oil. If we’re selling at ten to twenty dollars a barrel there’s going to be lots of problems in the Canadian economy. Other countries like Norway, the United States, Russia, are all going to have problems because their oil costs more than ten to twenty dollars a barrel whereas the Saudis and the guys in Iran, they can sell their oil for much cheaper.
The next thing you’re going to see or may see, if you look back on history, is we may see some hyper-inflation. Hyper-inflation is where the government prints more money to get themselves out of their debts and their problems. In history, in the western world, we saw this, Germany did this in the 1930s as they were preparing for war. They printed more and more and more money and eventually their currency became completely worthless. There was a story about a lady bringing a basket of money to pay for some goods and services and when she came out of the store her basket was stolen but the pile of money was still there. That’s how worthless the money was. Hyper-inflation could happen. There’s been a lot of people talking about hyper-inflation since at least 2008, 2009, 2010, 2011, 2012, every year, hyper-inflation can come, hyper-inflation can come. This might be the time where hyper-inflation actually comes and this could even wipe out currencies all together. Something to definitely watch out for in the next little bit. The words that you need to watch out for, in the past they called hyper-inflation “quantitative easing” where the government was printing more money so that QE1, QE2, they might change the name of it so the public doesn’t know what it means.
Fifth prediction is all out war. There’s a thing called the 25 year cycle of war. If you study that, you can Google that, you can look. Every 25 years is a major war. The last one was in 1990 with the Gulf War which puts us on track for 2015 to have a major war. Now we didn’t really have one but we’re on the ready point right now to have a real major conflict, probably somewhere in the Middle East. If you look at the news, if you look at what’s going on in Syria and some of these other countries, this could be a time where the United States, Canada, some other countries, actually end up fighting some other countries that actually have air forces and could actually fight back. This is something to watch out for. This would be a real X factor in what’s going on. If you look at history, during the Great Depression in the 1930s the only way that the world was able to bail itself out of the 1930s was to go to World War II in the 1940s. Some people say the 2008 recession, the 2008 crash, today’s crash is somewhere here in history. We’re repeating the 1930s and to get out of it we might have to enter the 1940s which was World War II.
The sixth thing I want to share with you guys, predictions, is market crashes. We’re going to see some market crashes this year. You’re going to see probably some Chinese crashes, probably Chinese property bubbles going to burst, you’re probably going to see some Chinese stocks crash, you’re probably going to see some American stocks, you’re going to see lots of things crash this year. I’m in Canada, I’m in Canadian real estate, if we’re basing our economy on seventy dollars a barrel oil and we’re trading at ten and twenty dollars, we’re probably going to see a Canadian property crash. There’s lots of market crashes that are going to happen this year and it’s going to be time for you to go out and get some bargains in the market.
Number seven is commodities, in general, last year has not been a good year for commodities. Lots of things have gone down. Silver’s gone down, gold relatively has gone down, steel has gone down, oil has gone down, all the commodities, the hard goods in the economy, have gone down. Commodities are likely going to go down further. Of course if we do have a war at some point, if we do enter a war, commodities will probably go up because people will be needing those to build war machines, but for now commodities, my guess in the next year, are probably going to keep going down.
Number eight, my eighth prediction, is something that happened in Cyprus, it was called a bail-in regime. That’s where the government gets in trouble and they go to the banks and they say, “We want to bail-in the money of our citizens.” Rather than a bail-out where the government pays the banks that have screwed up and they bail out all the banks that have screwed up and are going to go bankrupt, this is the opposite where the government goes to the banks and gets the people, steals your savings and issues you government bonds in return for your cash. That’s where the government, through the banks, takes your cash in your account and gives you some government bonds. If you look at Cyprus, you can Google “Cyprus bail-in” and you can read about how it happened. A lot of legislation has passed in Canada and some other countries where it’s now possible for a bail-in to happen. Stay tuned. I hope that doesn’t happen, but that is something that can certainly happen in the next little bit.
The last one here, the last prediction of 2016 is your 2016 predictions, is my guess is that with all these things happening you’re going to have your government, mostly the US government, is likely going to have a terrorist attack. Now I don’t say this because I want it to happen. I’m saying this because usually terrorist attacks happen when there’s crashes. In 2001 we had a crash in the stock market bubble, excuse me the dot-com bubble, and at the same time we had a terrorist attack so everyone was talking about the terrorist attack rather than the economy. That is how the big machine works when you look at all these things working together. 2016 guys is going to be the biggest year in your life economically. If you’re ready to take advantage of some of these things I’m going to share with you on another video on how you can get prepared to get richer than ever off of some of these catastrophes because chaos and opportunity are the same word in the Chinese language. Check this out on the next video. I’m going to give you five ways that you can go about this to get richer than ever.
I’m Stefan and I respect the grind. Please like, share and comment on this blog post.
