I want to share some thoughts on economic cycles and the current state of our economy. Please note that I am not an economic analyst or a stockbroker, but rather an observer of trends and patterns. I pray that my observations are incorrect, but history has shown us certain recurring economic patterns.
A wealthy man once visited a village with an abundance of monkeys. He offered to buy monkeys for $100 each, prompting the villagers to capture and sell the monkeys to him. Excited by the profit, they continued to supply monkeys, and the man increased his offer to $400 per monkey. Eventually, the man announced that he would pay $1,000 per monkey upon his return from a holiday.
The man’s servant then convinced the villagers to buy the monkeys for $750 each, promising a $250 profit when the man returned. The villagers, eager to profit, spent all their money and borrowed more to buy the monkeys. However, the servant disappeared, leaving the villagers with overfed monkeys and no buyer.
This story is reminiscent of what happened in our country when financial managers enticed us to invest in their businesses with promises of high dividends. They controlled the media, making their offers seem irresistible. Eventually, share prices collapsed, and the same managers bought back shares cheaply, becoming even wealthier. We were left with “fat monkeys” in our hands—worthless shares.
Recently, some banks have started offering shares again, even pleading for investments with promises of interest before the shares are issued. When banks begin to seek money from the public this way, it’s often a sign that they are running out of funds. I suspect that the profits they earn are insufficient to service their debts, particularly those in foreign currencies. I hope I am wrong, but we must be cautious to avoid repeating past mistakes.
Renowned analysts like Robert Kiyosaki have been predicting an imminent economic collapse. While I pray that they are wrong, and I hope my observations are incorrect, we must remain vigilant.
Again, I pray that my observations are wrong, but it’s always better to be prepared.
God bless you.
