Decentralization vs Centralization

Good Morning.

Wrapping up the theme of this week with this early entry coming to you piping hot. Some of you might have realized that I have been writing on decentralization versus centralization theme this week.

We live in a tumultuous era of financial and economic history, according to The Fourth Turning book by William Strauss and Neil Howe. This seminal book goes into detail about how this era is paralleled to the 1930’s. Both of them were in the shadow of the great financial crisis (the one in 1929 and 2008), both with slow and disappointing economic growth, both with increasing unemployment of labor and capital, both saw threats of competitive devaluation in global trade and inflation afterwards if not hyperinflation in some, both saw the rise in inequality between the have and have nots with the systematic marginalization of the working class. Geopolitically, we spot similarities as well such as the rise in nationalism especially right wing populism across Europe and the Americas, rising authoritarian regimes and leaders embracing a totalitarian culture, in the 1930’s there was the dissolution of the league of nations and now we are witness to less and less cooperation on the global stage.

There are similar patterns and lessons to learn from the era of the rise in multigenerational family living, the decline in home ownership, the decline in fertility rates around the world (Mainly the west), changes in attitudes towards voting and huge political and civil uprisings happening in many geographical zones highlighting the unhappiness, uncertainty and mood of the masses.

An interesting read if one is interested in geopolitics and to go further in depth of the current malaise we find ourselves in. If you have the attention span of a fish, like many are in our world of 280 character tweet and do not have the time to read, you can watch an interview with the Neil Howe on Real vision finance YouTube’s channel.

Linking all this information with the great reset and the build back better agenda our political leaders are implementing around the world, we would see an increase in centralization. This is evident all around us right now ushered under the guise of a public health crisis, a financial reengineering of the society and wealth transfer. There has been simulations of lockdowns resembling prison style lockdowns and displays of totalitarian fervor with many even calling for more centralization through collectivist mentalities.

Although all that has and is happening now, there is still an ongoing struggle between decentralization and centralization.

Decentralization is the opposite of the current theme and with the rise of Bitcoin and cryptocurrencies, it has ushered an alternate world and economy that is separate from central banks and government control. All this is by understanding and harnessing the power of the individual. For further reading on this, read The Sovereign Individual by James Dale Davidson and William Rees-Mogg. A libertarian must read as some will say nevertheless, an important book to understand how to navigate the current system and regain our sovereignty in the information age.

Many of us have started decentralizing or detaching ourselves from the center or source. Relying less in everything, as the minimalist movement have championed. Declutter from unnecessary goods, space and things we barely need. Focusing more on our bodies and minds through meditation and most importantly, returning back to nature.

This is the theme I have been working with since the past 2 years; how to be more decentralized and to reclaim my sovereignty. It is not an easy task since we all have been immersed in a closed system from birth so cutting ties may not come as natural, but with time they do wither away.

The new era is going to demand decentralization from the best, those that will lead will do so as sovereign individuals. The next entrepreneurs will build their wealth from a decentralized financial model and not through CBDC’s that will be handed out to placate the mob (for more on this see, Universal Basic Income).

The question is how decentralized are you?

See you next week!

- Ope