What if the virus crisis and the resulting global response, in terms of ongoing fiscal and monetary stimulus, was such an outlier, with such significant force, that it effectively reset the lifecycle of the economic expansion back to what is essentially 2010 again?
What if the fiscal and monetary response are not just meant to stimulate the economy from a demand standpoint, but to actually destroy cash as an asset class in order to force asset prices to levels that will boggle the mind, while creating economic benefits that create the foundation for inflation led, government induced prosperity?
What if $500 billion, trillion and $2 trillion dollar market caps are just the beginning rather than any conceivable end?
If cash as an asset class is on its way to oblivion then the entire investment ecosystem of 5-10 years from now is an unrecognizable leviathan compared to where we are presently.
It involves the complete economic destruction of anybody who does not possess investable assets that are deployed aggressively, preferably with leverage.
It involves the restructuring of corporate balance sheets away from cash, into asset classes, whether stocks, precious metals or cryptos, that preserve the value of corporate earnings.
This is a very raw concept presently because it is so early on. The eventual winners of this new age of the annihilation of cash as an asset class will shift multiple times over the next decade.
What is absolutely certain is that all of those times that you heard "cash on sidelines is coming into the market" is no longer just a headline but an absolute force of nature.
Global governments are destroying cash as an asset class because it's the only means of insuring an inflationary outcome that will then allow for any semblance of an unwind of stimulus over the long-term.
If the first several days are any indication, 2021 is gonna be on another level completely.
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