Building wealth wisely, change is both need and opportunity

by Mar 31, 2021Thinking outside the bottle0 comments

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Paulo Pinto

Alti Wine Exchange founding member

Dear reader,

Every 24th day of the month I sit down figuring out what I spent. It’s an exercise that I do every month because I want to see how much I spend to live.

There are two reasons for me to do that. One is my own way of checking inflation, and the other is that it allows me to be aware of how much I will need per month when I retire.

The first three months of the year have seen a huge increase in gasoline and in vegetables. I can tell you that from my accounts.

When you think about retirement, you must think about your pension and the return you can make of it.

***

On that front, we got bad news. This headline from Yahoo Finance: “ECB wants to keep yields in check while economy heals, Lane tells FT

And the article goes on to say:

“The European Central Bank is aiming to stop bond yields from rising before the pandemic-hit euro zone economy is ready to digest higher borrowing costs, the ECB’s chief economist Philip Lane said in an interview published on Tuesday. ‘Our objective is basically to make sure the yield curves, which play an important role in determining overall financing conditions, do not move ahead of the economy’, Lane told the Financial Times.”

That statement is just an obscure destructive theory, making it too difficult for most people to sort out cause and effect – but it basically means the ECB will control interest rates across all government bond maturities, printing money to buy bonds while governments are overspending and overborrowing.

The reason this is an obscure destructive theory is because people, politicians included, have come to think that a central bank is a magical entity that can do almost anything to make things better. Mortgages are almost free but deposits at the bank make no money – favoring debtors and punishing savers.

But guess what? Mainstream news media keeps saying inflation has not topped 2% since 2010 and is not worried at all about inflation.

***

One way to participate in discussions is to have something to say and have a point of view, but people today seem not to know how to ask questions and when they do, seem satisfied with superficial answers. It’s no coincidence that most social media that have taken over our phones makes us read only a little, write a little and also probably think just a little too.

It is critical that we understand our monetary system and our money as much as possible. It is critical we understand what it means governments running massive deficits and issuing huge quantities of debt.

It is critical to understand that, when central banks print money to buy bonds that the free market will not buy – with the intention to lower rates –, it raises inflation pressures.

After all, this trend we are seeing is not new, and has happened many times in history. It always ends with inflation and a debt crisis. 

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If you value your money, you will take action and be prepared – because the real value of money is its purchasing power. And that also means truly understanding the need to be careful with stock frenzies, and low-return bonds.

***

We at Alti Wine Exchange don’t just go along with what the talking heads in the media are saying. The actions we are seeing can only lead to buying opportunities if you know where to look.

That is part of our raison d’être – providing true alternatives backed by hard assets to investors and consumers.

Fine wine is not yet mainstream and that is a good thing, because man is a luxury-loving animal – and fine wine is a luxury product. And, unlike many other assets, fine wine is not in a financial bubble.

This means a whole new niche on its own and the opportunity to build wealth in a new way, making it easier for anyone to start a new form of investment.

Also, creating digital tokens to represent tangible assets allows those newly listed assets to be bought and sold efficiently, swiftly and with full transparency.

* * *

We have been writing about this theme for a year, suggesting the need for a new monetary system.

Think forward, think for yourself. But make sure to stay aware.

And, in the meantime, don’t keep all your eggs in one basket, avoid debt and stay diversified.


More articles by Paulo Pinto

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Summer is coming – and things really do not look promising

Building a sound strategy for your resources in the face of inflation and worsening living standards has become more crucial than ever


Outside the bottle | Building wealth wisely, change is both need and opportunity

Away from falsely reassuring economic news, seeking alternative financial strategies is inevitable in the face of low interest rates and looming inflation


Outside the bottle | A scale for reasoning and a crisis warning

It takes personal trust to let the next generation run its own course in a world where everything and everyone are being homogenized


Outside the bottle | Luxury is far simpler than what we once thought it was

 


Outside the bottle | On miscommunication and generational mismatches

 


Outside the bottle | A digital euro is coming. We should be worried

 


Outside the bottle | Prosperity is not automatic: a lesson from top wine producers

 


Outside the bottle | A Great Reset to save democracy: rebooting the financial system

 


Outside the bottle | Reseting the monetary regime to achieve true freedom

 


Outside the bottle | Why we need a Great Reset of the financial system

 


Outside the bottle | In the face of Covid-19, public enemy number one

 


Outside the bottle | A new Bretton Woods moment? It is time for a new paradigm

 


Outside the bottle | How to restart the economy without falling under piling debt?

 


Outside the bottle | Could 2021 be the year of hard assets?

 


In the ‘everything bubble’ era, we plan ahead with alternative investments

 


Outside the bottle | Drawing a new economic path to save people from falling behind

 


Outside the bottle | The right time for the irrefutable law of supply and demand

 


A simple secret to seek financial freedom with less investment risks

 


Outside the bottle | Persistence is a must-have in investments and in life

 


Outside the bottle | Time to look at the real economy for the road ahead

 

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