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Which Assets Have Performed Best During Economic Resets
The Secret Winners of Every Economic Collapse
History has been marked by numerous currency changes over time. Like it or not, the dollar, euro, yen, or pound sterling have not always been around. In fact, they have evolved significantly throughout history. It is estimated that over 5,000 different currencies have existed in history, of which only about 180 remain today.
Among the main reasons these currencies have disappeared, I would highlight three:
- Economic Collapse: Prolonged economic crises that render a currency unsustainable.
- Political Changes: Creation of new nation-states or monetary unions (e.g., the euro).
- Forced Demonetization: Governments eliminating currencies for political or economic reasons, such as India’s demonetization of high-denomination bills in 2016.
These types of changes, often referred to as “economic resets,” have occurred throughout history and will continue to do so.
We’ve talked extensively about economic cycle changes or how Ray Dalio views society as being in the last stage of the economic cycle: decline.
Honestly, I completely agree with Ray Dalio on this. Many people cling to the status quo and what has…
