Drawing a new economic path to save people from falling behind

by Sep 10, 2020Thinking outside the bottle0 comments


Matt Kenyon/FT

Matt Kenyon/FT


Paulo Pinto

Alti Wine Exchange founding member

Dear reader, Paulo Pinto here.

It is great to be back with more ideas on how to a general redesign of social organizations and finance and monetary system can incentivize the creation of a new society, freer and more educated.

* * *

A nice subscriber wrote me an email saying that I was “another Bolshevik suggesting something for nothing” with my proposed idea of a Central Bank of Social Security, which I have been developing lately.

The short answer is: no, I am not a Bolshevik.

The idea is to create a new monetary system able to jump start the economy, while at the same time giving an opportunity to those that are left out because of the increasing costs of doing business with increased regulation.

My motto is simple: when circumstances get out of control, change the circumstances.

Creating a universal basic income is not changing circumstances, but it is recognizing that things are getting out of control.

Why? Because all tests of basic income are coming out of taxes from the ones effectively working.

I am not talking about the super-rich, but all the others in the private sector being squeezed by taxes and regulations to support the other people that are left behind because they are not able to find work, which is creating moral hazard.

Under our suggested monetary system with a Central Bank of Social security, everybody will get a basic income – those working and those not working –, but the money will be created by the Central Bank, not out of taxes.

Just like that, we are reducing a huge amount of taxes levied now, also because of the Social Security Ponzi scheme in existence.

The idea we have is not that people should be paid just for existing, but instead give people the freedom to achieve their full potential – either by learning a skill by using their creativity or starting a new business, but with no excuses of needing to earn money for basic survival.

The reason this is a huge change is that those working not only won’t be taxed more – as they inevitably will in our current system –, but will also receive universal basic income on top of the salary, to use as they please, but also to demonstrate that laziness does not pay.

For those who are not familiar with the money system: it dries up during crisis, banks are not able to lend money to companies, and because of that a lot of people are left behind.

The consequences of this current system? Some people will get rich, others will get richer and many more will fall further behind under this financial system – because they do not understand the huge generation shift and legal transfer of wealth now taking place.

From alerts to personal protection

The posts and articles I have been recently writing are simply alerting people about what is coming next and how it will affect them – and how I think one should do to get ready. I simply get the facts, and you should do the same. I am not giving advice.

We are living a massive economic event, that I have never seen in my 30 years in finance and it is accelerating and becoming more disruptive.

I wish this could be simply defined as being a Bolshevik or not, but the reality is: this is about knowing what to do with money and, in the meantime, it is about knowing what to do with our money.

These free posts that Alti Wine Exchange is bringing you are very different from mainstream media, I get that. But they are also a step-by-step game plan for you to put in action with fine and rare wine investment, if you feel the same, while I am able to tell you what is going on in the money world, by putting the pieces of the puzzle together.


You see, in 2008 billions were lent to people who shouldn’t have been allowed to borrow money, and then there were losses. The only question of great significance at that time of crisis was: who would take the losses? How would the system be cleared?

The solution then was the use of Central Banks. It allowed the market not to take losses, the banks not to take losses, politicians not take losses, and once again, a “few” poor people were left behind.

And so we are here today in a situation comparable to the Great Depression, with GDP quarterly losses of 30%. Markets are making new highs and banks are not worried with their loans to families and companies, because of the magic discovery in 2008, borrowing and printing trillions to keep the financial system.

The good news? All you have to do is get a handle on the concepts I have been talking about. The more people understand what is happening, the better for all of us.

In the meantime…

We have launched at Alti Wine Club a few interesting wines this month. Get the facts for yourself if you think the information provided for them is not enough. But I promise you: they are a fantastic starting point for this new game plan to protect your savings ahead of what might come next.




Articles by Paulo Pinto


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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?


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