ARRO Capital Trends has been peering into the telescope, gauging the causal stream which dictates social trends and we’ve uncovered many insights, though here we’ll share with you the core economic insight which we believe will shape the future more than any other:

We see an ongoing and protracted readjustment of the tangible economy, which will be felt as hyperinflation.

By ‘tangible economy’ we mean the economy that supports human life - agriculture, raw materials, and energy. These tangible assets have become more expensive over time, while non-essential consumer goods have become cheaper, the result of corporate trade systems that promote meaningless products manufactured with low cost labor. The increase in the rate of inflation will be parabolic as a result of the falling value of fiat currencies world wide in relation to commodities such as oil, natural gas, agricultural goods and precious metals. As currencies devalue, even under depression like circumstances, the value of commodities will stabilize in relation to one another rather than in relation to fiat currency.

This commodity stabilization will be felt as inflationary largely because of a system wide undervaluation of the earth’s natural resources relative to actual reserves. This process of inflation will be exacerbated by global competition that will exist for those commodities that are essential to the daily functioning of society. Commodities of this nature will become much scarcer as bankruptcies in producing industries such as agriculture, mining and fuel extraction compound the shortfall in an already overwhelming demand environment.

The tangible economy will remain after the fall of the fiat currency model, but who will be positioned with tangible assets with which to prosper?