Hi, it’s Breno here! Once again, still in Lisbon, under state of emergency.
I hope you’re holding on fine. I am okay too, trading wine as usual, even though in Portugal we’re expecting to have the worst of the situation in about two weeks. Let’s hope we can contain the covid-19 pandemic curve.
Moving on: as a journalist, I’m amazed with the huge amount of fake news, conspiracy theories and false and irrelevant information that has been circulating during the last few weeks.
Prepare your breath, here it comes:
Just the last couple of days, I’ve seen presidents accusing China of being deliberately responsible for the pandemic. Some say “They’ve done this to control the financial markets!”. Others claimed a Chernobyl-like mistake in a biological plant went terrible wrong. One blames racist supremacists and the far-right, claiming they are very interested in creating panic to make it obvious that governments and politicians are not doing their jobs. Another one stated that the Russians clearly concluded an amazing plan to destroy the West. Others believed Islamic terrorist groups spread the virus with the purpose of canceling Easter festivities and all church gatherings. One claimed it was Israel being upset because of support given by Europeans to Arab countries (what?) and the 2022 World Cup in Qatar. Another person is sure that pharma groups are responsible “because they will make billions in the process”…
You see my point. We could go on and on and on. It’s pure misinformation and disinformation, deliberate or not.
These overwhelming fake news wars only make us more anxious. Much more than we already should, in these times of uncertainty. We keep on “hanging on in quiet desperation”, as Pink Floyd’s Rick Wright sang in the one of my favorite songs, Time (although I must say in the current case this is not exclusive to the “English way”).
With all this, the past few days were rollercoaster days in the markets, with everybody wondering what is coming next.
Our founding member Paulo Pinto, whom I always talk to regarding investments and the financial system, suggests the need for a new monetary system and the end of Central Banks as they are — having them replaced by Central Banks of Social Security, as a way to regain an “old-fashioned school moral capitalism”.
The goal — Paulo argued in a phone call we (both quarantined) had — would be to stop saving banks, stop saving automakers, airlines, casinos, and instead just keep the creation of money to guarantee resources for social security. Banks, in his model, would go back to 100% reserve systems, and interest rates would be market rates. No more insure deposits because there is no such thing as a deposit: effectively, you lend money to the bank and take a risk.
I’m not nearly an expert like he is, and am not sure if this has a chance or not. But I’m more and more sure that issues with money will change… because they are already changing.
We have established digital currencies; we have Central Banks printing like there is no tomorrow; we have interest rates at zero; we have Alti Wine Exchange and its groundbreaking blockchain platform as well!
Among all these changes I’ve mentioned, no doubt the only thing I really understand is Alti Wine Exchange. Why? Because it is much easier to understand from only a very quick experience. Check what our Chief Wine Officer, Julien Miquel, has to say:
PS.: Last week, we’ve explained further how investing in fine wine can help protecting your portfolio. If you, reader, are already one of our buyers/sellers, be sure to spread the message and help friends and family to secure some very good fine wines as assets for the future.
Despite the logistics disruptions, thankfully our operations can go on remotely! So… start trading!