How to restart the economy without falling under piling debt?

by Nov 5, 2020Thinking outside the bottle0 comments

Credit: Ariel D Javellana / DER / Asian Develpoment Bank

Credit: Ariel D Javellana / DER / Asian Develpoment Bank

Paulo Pinto

Alti Wine Exchange founding member

Greetings, dear reader,

Months ago, we started to speak to you on the need to be careful with money because of the debt experiment Central Banks are managing.

As you know, Western governments are deep into debt – and will be even deeper after the covid-19 pandemic because they have to print trillions to give their citizens enough money to survive.

There are only few ways for governments to find their way out.

The best way would be to grow their economy faster than the debt pile, so debt becomes less of a burden.

That is not going to happen. It’s not unreasonable to assume that they may even consider nationalizing vast parts of the economy.


How can the economy be safely put back on track?

The correct way would be by austerity – meaning not interfering in the economy, cutting government spending.

But this is now too late for that, just when we are talking more and more about basic income.

Austerity would cause social unrest and banks would probably experience widespread default from unpaid loans.

The solution using sticking plaster is by inflating away the debt, because governments get to repay debts with money that is being devalued.

This will probably give governments a couple of years to suspend the inevitable process of a new monetary system or the construction of a new paradigm.

Talking about a new paradigm: China’s Central Bank launched its digital currency, making all competitors illegal – and in the process halted the Ant Group’s IPO, which was challenging Chinese banking system. China’s new digital currency is accessible via an app that is not linked to a bank account.

Believe me, all of this has to do with fine and rare wine.

Why, you ask?

Because this is the reason we sit and wait for the future while buying fine and rare wines at Alti Wine Exchange.

To protect our money, we buy real things: hard assets, alternative investments.

Our recently launched Moscatel Kingsman Century Edition 1919 is the perfect example of age-worthy and a true collector’s item for investors hold for a very long time.

We will see what happens.

Until next time.





More articles by Paulo Pinto


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


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


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?


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