Okay. It’s not my term (cognitive dissonance) but I like it. Dr. Jim Willie has used it in reference to what he believes to be malaise and the failure of 90 per cent of us who are failing to connect the dots in respect of the current shift underway pertaining to the economic “reset”. In his August 4th interview with X22 Report Spotlight, Jim metaphorically and substantially and endearingly refers to dialogue with his father as being someone as part of the 90 per cent group. As a music hobbyist, I’m familiar with dissonance as being a sound which clashes within a key and I relate to its contextual use. Jim displays noticeable frustration by those who have difficulty seeing the implications of events simply as they are with perhaps the luxury of not having lived through the great depression. One particular example of dissonance is official government statistics of inflation compared to your neighbours street feel assessment of inflation.
At every turn in the news right now we are inundated with the political bizarre and I can’t help but wonder if folks have become so distracted with the Washington drama that they’ve been numbed by potential underlying distress of the financial system. Consider this. Is it possible that there is actual good work going on in Washington unbeknownst to you and withheld from you because of the larger implication of crisis which could unfold should you be notified? Have you been prepared by your system of education to understand risks inherent to the financial system? If the system is in fact at risk and the risk has grown, what do you know about how to protect yourself? What about 2015 Greece, 1923 Germany, 2002 Argentina, 2018 Venezuela? What did their citizens believe regarding their economies prior to dramatic negative economic events.
I’m writing about this because it’s not that difficult to create a hedge against something bad happening. Remember what your investment advisor said when your portfolio collapsed 30 per cent back in 2008? Don’t worry, it’ll come back. Well it may have taken 10 years so I guess they were right. Have you ever heard an investment advisor talk about the opportunity cost of 10 years of lost compounding?