“The pandemic represents a rare but narrow window of opportunity to reflect, reimagine and reset our world.”

— Professor Klaus Schwab, Founder and Executive Chairman, World Economic Forum

Dear Reader,

The Federal Reserve’s first report on turning the dollar into a cryptocurrency — which we’ve dubbed the Fedcoin — wasn’t as informative as many people expected.

It simply lays out the pros and cons of a central bank digital currency, then says it will seek public and political input on the idea.

Meanwhile, the major cryptos are in freefall, with Bitcoin heading to prices it hasn’t dropped to since last summer. But as our Jonathan Rodriguqez and Bob Byrne have both pointed out, the crypto has a habit of bouncing back after approaching the $30,000 mark.

Is $30,000 the floor for Bitcoin? (Image source: YCharts.)

So this could be a case where buying the dips could deliver a nice short-term gain. As for the longer term, we’ve dispatched a team to talk to James Altucher. James, you may know, literally wrote the Big Book of Crypto, which you can learn more about, here.

Here’s the thing about cryptos, right now. From the chart above you can see they’re extremely volatile. And have been for some time. In the longer term, we do have some concerns. As you know, the Davos Agenda we noodled over with some intemperance last week has plans to reorganize the global banking system from the top down.

Their plans have been labeled “The Great Reset” by Klaus Schwab, the founder and executive chairman of the World Economic Forum. Schwab, as diabolical as his name sounds, is probably even more so in person. He’s gaining some traction among social media fans for making the statement “by 2030, you’ll own nothing, and you’ll be happy.”

A word of caution here: we can’t find any proof Schwab actually said this, but it appears to be helping sell his book, Covid-19: The Great Reset. Like all popular delusions, people hear what they want to hear. Finding proof for what you believe is fairly easy when googling for such phrases online. As far as we can tell, it’s an interpretation of the World Economic Forum’s forecast that by 2030 renting will be the norm.

(Perhaps, we’re projecting the second part… that the Davos set are also saying we’ll “be happy about it.” Here’s where picturing Klaus Schwab as Colonel Klink, from the 1970s TV show Hogan’s Heroes, helps to imagine what the world will be like if the Davos Agenda forecast actually begins to take shape.)

We know the Davos billionaires and other muckety-mucks have their eyes on cryptocurrencies. On the first day of the online conference last week, Indian Prime Minister Narendra Modi said cryptocurrencies were a challenge requiring “collective and synchronized action by every country, every global agency.” When it comes to digital money, the world needs “to have a similar mindset.”

And that’s really the whole point of the “Great Reset,” as I discuss with our Wiggin Sessions guest this week, Dan Denning.

As you may know, Dan is a good friend of mine and the godfather to our middle child. He’s also the architect of the newly minted Bonner Private Research along with Bill Bonner, who lends his name to the project, and Tom Dyson from the Daily Reckoning, wayback.

Dan is also an Agora long-hauler. He cut his teeth with me back in the 1990s on a publication called Tax-Wise Money. We launched another together called Penny Stock Fortunes. If you’ve been hanging around the water cooler long enough, you’ll remember both.

Dan went global soon after. He founded Port Phillip publishing in Melbourne in the mid-2000s. Then did a stint in London which ultimately yielded Southbank Research. He understands the global markets as equally well as the best writers and money managers I know in our business.

This week, however, we honed directly in on the Davos Agenda and the Great Reset; Dr. Fauci — who gave the opening address at Davos; the aforementioned Klaus Schwab; Mark Carney, who raised $130 trillion of private money to fight climate change a month ago in Edinburgh… and future plans for Bonner Private Research.

It’ll be worth your while this week to hear what Mr. Denning has to say from his bolt hole in Laramie, Wyoming. More tomorrow.

Follow your bliss,

Addison Wiggin
Founder, The Financial Reserve