How an America the World Can't Trust Goes from Collapse to Implosion.

Hi guys. I’m going to keep this short and sweet because I have a lot of sessions to do today. (Which I like, by the way!)

There are two words you need to know right now about American collapse. And what’s coming next. 

Those two words are: “capital flight.”

The world just learned it can’t trust a collapsing America, given the shocking, humiliating spectacle in the White House. And the consequences of that, coupled with what’s about to happen to the economy, are going to be far more severe than many think even right now.

Capital flight, as I’m going to teach you, is how societies go from collapse to implosion. And this is what’s about to happen next.

What is Capital Flight?

Capital flight’s a term we use in economics. It means sort of what it sounds like, only worse.

When capital “flees.” An institution, which can be a company, a stock market, or even a…country.

Think of it as a bank run, but on a bigger scale. And no, I’m not saying there are about to be bank runs, that part happens later, if it’s going to happen, I’m just giving you a way to understand what capital flight is.

I want you to understand this concept well, because it’s useful.

There are many different kinds of capital, not just money, and we’ll come to that in a moment, but first let’s discuss a little more. Let me put it another way. 

Why does capital flee? Because it becomes too risky. To stay in a given situation, context, place, institution. It’s at risk of being destroyed, looted, expropriated, captured.

More to the point, those who own it are.

So capital flight is the opposite of my little idea of Havens Thinking. In Havens Thinking, we are trying to find contexts, institutions, situations, where we, and the capital we own, which isn’t just money, but our skills, talents, relationships, happiness, and much more, doesn’t have to flee, because it isn’t melting down with risk.

What Happens Next in American Collapse? Capital Flight 

Now. That’s all very abstract, so I’m going to give you some examples of capital flight that are going to hit the economy.

Very, very fast.

And destabilize it.

Plunge it into a depression-like situation, and no, that doesn’t mean “the 1930s,” maybe not as in breadlines and dust bowls, but only in the way that the tides of fanaticism sweeping the globe “aren’t the 1930s.” Maybe pundits can say that literally, but they’re sure a lot like it.

All of this is sure feeling a lot like the 1930s.

Capital flight is incredibly dangerous.

It is how societies go from collapse to implosion.

Please, say that to yourself three times, because your financial future and probably a lot more besides depends on you understanding this.

Now. Let’s talk about examples.

See those stock market jitters? How the markets have been slowly declining since the election? That’s risk, accelerating massively. But it’s not capital flight yet.

In exactly three days, the tariffs are set to start. This time, maybe for real. Or maybe every first Monday of the month will be Nuclear Threat for the Global Economy Day. Doesn’t matter.

When they do hit, that’s when capital flight is going to take place, on a mega-scale.

Stock markets will crash. Maybe not at 1929 levels, but they are going to be hit, and hit hard.

That is because institutions of a large kind are going to be selling all kinds of American assets.

And what are they going to buy instead?

European and Asian ones.

In fact, if you follow the markets, right now, over the last month, since the election, America’s markets have been steadily declining, while those have been growing.

So capital flight is already happening. A trickle of it. The question is when that trickle becomes an implosion.

As and when it does? 

A lot of people are going to be ruined. Wiped out. 

And they won’t understand why.

I am trying to teach you why.

Capital flight is how societies go from collapse to implosion.

Do you see how important this lesson is now?

Let’s keep going.

Capital Flight is How Societies Go From Collapse to Implosion

What’s another example of capital flight?

Many, many businesses right now are incredibly worried about the effects of what’s to come, from tariffs to levies to blah blah blah folly.

Here’s an article about it, it’s a very good one.

People have spent decades building businesses of all kinds, and now they’re worried: who’s going to be able to absorb costs that are 10%, 20%, 30%, 50% more—in a time when people are already stretch to the limit?

They’re right. A lot of those guys are, unfortunately, going to get blown up. They won’t make it. That’s the micro effect of this kind of folly.

But the macro effect is more capital flight. Would you invest in a business that…might not exist…in a few years? A few months? Of course not. So investment dries up. And it goes somewhere else.

As it does, all kinds of economic activity plunges. Jobs. Employment in general. Trade and commerce. Ultimately, growth itself.

That is how depressions begin.

And once they do? They’re a vicious spiral that cannot be stopped, especially not by people this foolish in charge of things. They will not know what hit them, as much as they don’t know what they’re doing, and that’s when things will get really bad.

Capital flight is how societies go from collapse to implosion.

What You Need to Pay Attention To Now

Now. I’m not writing all this to scare you.

I’m writing it to help you. To prepare you. We talked about being kinetic, taking action, not sort of sitting there in panic and bewilderment. This is one aspect of your life that is going to need serious attention, I’d bet. Because many of you are invested in America, and maybe America alone. In many ways.

And as capital flight really kicks in, then you’ll have to answer some serious questions. How much more do you want to stay invested in America? I’m not saying that every company or asset in America is a bad bet, but I am saying that it’s not going to be nearly as easy or simple to find good ones. And probably, a lot of your financial advisors and so on will be behind the curve, and you really don’t want to be in that situation. Sorry, I lost you this much money, because I didn’t know this was going to happen.

That’s why I’m teaching you about capital flight. It’s a concept from serious economics. Wall St doesn’t really know it, because Wall St’s about money, and here we’re talking about capital, growth, maturity, reality. 

Understanding this concept is what’s going to separate those who make it from those who Sink with the Ship now. In many ways. Investors, funds, all kinds of asset managers, for sure. Companies, too, large and small. And you, in your capacity as an adult and person who has to protect yourself and your loved ones.

Take all this seriously. Sit with it and think about it.

Let me help you do that a little bit more.

The World Just Learned it Can’t Trust a Collapsing America

When will serious capital flight begin in America now?

My guess is in the period after the tariffs kick in. Now that Europe knows it can’t count on America in any capacity. Now that the world knows America is run by incompetents who are so incompetent they’re happy to “do business” with Russia and North Korea.

Would you trust an institution like that? Would you trust a person like that? My guess is that America with this calibre of leadership, which is somewhere between the gutter and the abyss, and this quality of governance, which is somewhere between malicious and idiotic—this America? Nobody much is going to trust it for very much longer.

That is when capital flight really kicks in. When you lose trust. When you lose the confidence of people who maybe want to back you, support, guide you, but now can’t rely on you.

Then, there’s no choice but to pull the plug.

The first month of this new Presidency has been a shock for the world. But it has also been a steep learning curve. The world now understands, thanks to this horrific sequence of events, which culminated with the humiliating spectacle at the White House, that it can’t trust America anymore.

—Not as an ally

—Not as a partner

—Not as a friend

So the question becomes: can you trust someone like that even just with your capital? As a trustee or guardian of it? As a steward? Will you even get it back? Or will someone like that just squander, ruin, or maybe even just loot it?

This is How the Ship Sinks

I think the answer to that question is self-evident, and it’s not me asking, but the world. It’s governments, companies, institutions, the holders of all its capital, and even institutions within America.

When the answer to this question becomes “no,” and there’s a consensus around it? When institutions begin to feel the same way, and make those feelings known? That is how capital flight ignites, because then everyone pulls the plug in a rush.

And the result for the country experiencing capital flight is usually a pretty severe degree of ruin. Stock markets crash, financial assets of all kinds crater, mass unemployment spreads, investment plummets, trade comes to what’s known as a “sudden stop,” and in the end, you have the Hollywood move level consequences of bank runs and shortages and whatnot, but those aren’t the point, because by then, people have already lost everything.

I’m not saying that’s going to be you. But I am saying I don’t want it to happen to you. Any of it. Not everyone is going to be ruined, but many will be. Yet the flipside is also true: every one of us, and I mean every one, is now going to take a hit. The only question is how much.

This is why you must learn what I’m teaching you. Sit with it and think about it. Plan around it. Change some of your decisions and choices. Consider carefully where you stand and how much you might stand to lose. And how to redress that imbalance.

Capital flight is how societies go from collapse to implosion.

Financial capital isn’t the only form, by the way. There’s also “human capital flight,” meaning that talented and skilled and smart people flee, too, collapsing contexts, and as institutions or societies lose them, then collapse becomes implosion, because then there are huge losses and gaps in talent and knowledge and possibility itself.

We’ll discuss that more later. For now, I felt the need to share all this with you.

Because if all this happens in exactly three days, just after the world learned it can’t trust this America?

There is sure to be capital flight of an implosive kind. And I don’t want you and your loved to be caught in the undertow.

This is how the Ship Sinks.

❤️ Don't forget...

📣 Share The Issue on your Twitter, Facebook, or LinkedIn.

💵 If you like our newsletter, drop some love in our tip jar.

📫 Forward this to a friend and tell them all all about it.

👂 Anything else? Send us feedback or say hello!