October 12, 1492 changed the world as they knew it. The Americas were discovered!

What changed?

The discovery of the Americas by Europeans had a drastic impact on wealth and how it was created in Europe. Gold and silver flooded the counties of Europe with coinage. In essence a massive inflation in commodities. Note: The more money that comes into the system it cheapens that money, thus making goods and services more expensive.

This led to what is known as “The Price Revolution”.

This was a great thing for those that looked for opportunity.

Before this time in Europe, the main driver of wealth was land ownership.

Landowners would rent out land and farmers would pay a fixed rent. When commodities began to soar and with the arrival of new materials from the Americas it led to a massive drop in value for fixed income assets like land renting.

The wealthy landlords quickly became poorer and the people that started business producing goods overtook the upper echelons of society.

New wealth is always being created and the world is ever evolving.

Why do I bring this up today?

We are seeing a seismic shift in many areas across the world.

The Federal reserve in essence printed gold in the form of US Dollars. The companies that are aiming to capture new markets are not bound by the old markets.

The revolution is here.

Low orbiting satellite internet.

The technology currently being deployed by Starlink and Blue Origin will change the world as we know it. I am stating today that it will be like discovering the Americas for the countries that are tied to its success.

Approximately 62% of the world’s population has internet access. Much of that is low speed.

Products that require high speed internet like streaming services and data streaming/sharing are vastly under utilized globally.

The internet revolution version two is underway:

  • Companies that have and utilize virtual products will prosper.
  • Population densities in cities will disperse to surrounding areas.
  • Countries around the world can be educated without the logistics.
  • Personal computing equipment will have increased demand.
  • Data monetization will be plentiful in areas that was previously impossible to collect it from.

The list can go on and on. It might even be that we get a repeat of Europe and the old way of buying houses and renting faces headwinds in the future.

Opportunities are plentiful for smart investors.

We will correct and have rough times as we transition into a pure global economy. One thing is for certain, abundance in the internet revolution version two/ digital revolution will be extraordinary.

Yes. There is a new world order and globalization has some growing pains but, for those countries and companies creating new markets, the prosperity is bountiful

May your assets grow and you Sleep Well,

Wayne Klump

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since 29 sep 2020

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