 Good day fellow investors. Central banks in the last nine years have made the rich richer. I'll explain what happened, what's the difference between now and 2007 and how everybody should take advantage of what central banks are doing and they have announced that they will continue to do it. There is a big difference between asset values pumped up by central banks, assets that are owned by rich people and the real economy, thus the real people in a country. I'm not going to go into the social issues that this kind of behavior raises. I'm just going to look it from a financial side and how also the people can take advantage of it. So let's immediately see what's going on. Since 2009 central bank balance sheets have more than quadrupled. In 2007 the total european central bank assets, bank of japan assets and the federal reserve assets have been around 3 trillion. Now 10 years later we are at around 14 trillion. So those assets have more than quadrupled. This means that central bank have injected four times more money than they were putting into the system 10 years ago. That's a huge amount of money. Why did they do that? Well let's have Ben Bernanke, the former Fed chair, give us the answer. Lower corporate bond rates will encourage investment and higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. So their goal was to inflate asset prices, inflate bond prices, lower yields, give more money to companies that they borrow more at lower yields and inflate asset prices, stocks and other similar assets. Who owns bonds? Who issues bonds? Who owns the majority of stocks? Rich people. So the goal was to make the rich richer in order to hope that there will be a positive effect on the economy. Now was there a positive effect on the economy? A little bit in the US. Europe has just after eight years entered into some economic growth. However, that economic growth is purely based on credit. I bought a house in the Netherlands one and a half year ago. I took a mortgage that has the value of 103% of my house. So I bought my house without any down payment. So when people talk about bubbles in China when there is 20% minimum down payment, why don't they look at the Netherlands or other European countries where the situation is totally crazy 103% mortgage on my house? Okay. Just to illustrate the point that this is unsustainable if interest rates go up. If interest rates go up due to inflation or something, Europe is toasted. So remember that. How is the European Central Bank going to prevent it by keeping interest rates low, by keeping more money, adding more money into the system? Yes, they're saying something about tightening, but don't trust them. They are still buying bonds every freaking day. The worst case scenario is Japan where they bought everything they can buy. They own 80% of some ETFs, all the bonds that they can own, and there has not been a benefit to the economy. So in this case, it's better to let Einstein define what they are doing. Einstein used to define insanity as doing the same thing over and over again and expecting different results. So we can ask ourselves how much longer will central banks continue to do what they are doing in order to reach those targets that seem elusive, because productivity, real technological knowledge is what drives the economy in the long term. Credit can make it do well for a while, but at some point, especially when you take a mortgage, that's 103% of your house value. At some point, it inflects and then you have a deep crisis. Politicians think short-term and don't think about the long-term consequences. So what we can expect by all this environment, perhaps there will be some slow tightening in the next year or two, but in the long term, there will be more and more money coming into the system. What does this money do? Low interest rates, low corporate bond rates inflate asset prices. You can see in this chart how the SAP 500 is up more than 200% since 2009. European high-yield bonds are junk bonds. Junk bonds are bonds issued by institutions, countries, corporations that would go bankrupt if something changes, especially if interest rates go up. Think Greece, Spain, Italy, Croatia, a lot of European countries. So Europe needs to keep interest rates low. Interest rates low, the rich get richer and you know the story. Going back here, all asset prices have been going up while the real economy prices, what's really important, wages, European wages, consumer price index, house prices. Since 2009, it's a little bit bubbly, but commodities have declined in prices and significantly. This is the real thing. The real economy is what drives the economy and you want to see improvements there, not in asset prices because asset prices are just a number on a piece of paper. It can change immediately. If asset prices change, then we are in trouble. So central banks will not allow that. Therefore, they will be putting as much money as needed into the system. And if you read the Fed Minutes, the European Central Bank Minutes, you will see that they will be putting more and more money into the system if needed. So we know that we is going to happen. Now you can think how this is terrible for the long term for everything, but the best thing to do is take advantage of it. I took a mortgage because I wanted to take advantage of it. I have a fixed rate 20 years long. So in 20 years a lot can happen, especially inflation, more money. So asset prices will go up probably. So I'm protected there. So let's see three ways how to take advantage of the rich getting richer and get rich alongside the rich. So I have two scenarios that I forecast for the long term. One scenario is more quantitative easing with low inflation and low interest rates. And one scenario is quantitative easing with higher inflation. So we have to find assets that protect us from both scenarios, higher inflation and easing and lower inflation and easing. Because you never know when people will lose confidence in a currency, especially when there is so much money coming to the table, then it's possible that inflation gets triggered. So the first option to get rich is what I already mentioned, a mortgage. Long term mortgage, fixed interest rate. If you have a fixed interest rate, the cost is a little bit higher, of course, but you are protected against increases in interest rates due to inflation. You have a real estate that protects you against inflationary movements because it's fixed costs and that the historically low interest rates that we have now, I think it's a really, really smart thing to do. The cost is a bit higher than a volatile, but the risk is minimal and you get the protection for whatever happens in the future. So think about that if you have a mortgage or if you're planning to buy a house. Second investment is to look around the world for strong currencies, to spread around and to diversify from US, Europe and Japan. So look around, make an internationally diversified portfolio that will give you strength, base fundamental strength, productivity growth. We'll be talking a lot about countries. We have already discussed some countries and their productivity ratios, especially if you look at our radio video and we'll talk about the old weather portfolio. So currencies is two and the third that gives some return, it's really in the downturn, are commodities. They haven't been affected by quantitative easing. Their stocks, however, have been. So commodity stocks are a good way to take advantage of what has been going on, what will be going on, especially if at some point we see inflation. So we're going to talk a lot about ways to take advantage of the macroeconomic situation. So don't forget to subscribe in order to get all the knowledge we share here in YouTube videos. So to conclude, everything is based on credit, cheap money. That is not sustainable for the long term. Everything should be based on productivity, technology, knowledge, creativity, growth. And those trends diverge in the short term can be kept very separate in the also in the longer term, but that sometimes they will inflect. In order to prevent inflection, central banks will put more money into the system and we have to be smart and take advantage. If you have some ideas how to take advantage, how to make us richer from what's going on, please write them down in the comment section. Thank you for watching. Looking forward to your comments, click like if you like the content and I'll see you in the next video.