The Important 7-Year Sabbatical Cycle
Cycles of time are central to Jewish life. Less known, but no less central in the Jewish cycle of time, is Shmitah — “year of release,” which is more widely known as the Sabbatical year and occurs every 7 years. Today, 7th September 2021, is the start of the next Sabbatical year in the Jewish year 5782 and will end on 26th September 2022.
What is so important about this 7-Year Sabbatical Cycle?
In the Jewish Bible, there is a 7-year agricultural cycle mandated by the Torah for the Land of Israel which states that:
“You may sow your field for 6 years, and for 6 years you may prune your vineyard, and gather in its produce. But in the 7th year, the land shall have a complete REST, a Sabbath to the Lord; you shall not sow your field, nor shall you prune your vineyard. You shall not reap the aftergrowth of your harvest, and you shall not pick the grapes you had set aside, it shall be a year of REST for the land. — (Leviticus 25:3–6)
The 7th year is known as the Sabbatical Year when the land is left to lie fallow and all agricultural activities, including plowing, planting, pruning and harvesting, is forbidden after prior 6 years of activities. In today’s world, there exists a startling connection between the Sabbatical Year and the major TURNING POINTS of the world’s geopolitical events as well as several major cultural and economic shifts over many decades of the last century.
The pattern of this 7-year Sabbatical Cycle can actually be traced back to the financial collapse that led to the Great Depression of the 1930’s, Germany began its 3rd Reich with the annexation of Austria in 1938, Adolph Hitler committed suicide and World War II finally ended in 1945, gold price peaked in January 1980 at around US$850/ounce which marked the end of the massively inflationary 1970s, 19th October 1987 “Black Monday” with the biggest 1 day percentage drop in history on the Dow, the 1994 bond market massacre, the 9/11 terrorist attack in 2001 and Global Financial Crisis in 2008. Hence, Sabbatical Cycle is known as a cycle for Socio-Political events, which includes wars, demographic/population shifts and governmental/political policies that can impact the global economy and financial systems. This is a UNIVERSAL frequency. It is not restricted to the financial markets or any nation. It is the GLOBAL composite frequency or the “Cycle of Life”. What becomes clear is that people will change direction every 7 years as they shift their focus from 1 sector to another and nations. Sabbatical Year is therefore NOT a good time to start a major project, conduct big transactions, build a house, start a business, or buy stocks and bonds. It is instead a good year to REST, take our profits off the table, consolidate, cut back, economize, clean out, downsize, slim down and prepare for the next Sabbatical Cycle.
Starting from today, we are now entering into the next Sabbatical year in the year 5782 on the Jewish calendar for the next 1 year till 26th September 2022. What I am expecting is the convergence of Sovereign Debt Crisis (SDC) and Global Monetary Crisis (GMC) accelerated by the COVID-19 PLAN-demic which will result in economic turbulence and huge volatility in the financial markets. We will see the confidence citizens have had in their leaders going to shift away from the government back to the private sector. In another word, the confidence is going to leave government, investment will leave government debt because everyone will start to realize that the governments will never make do on their social promises, or even their government bonds and that they are going to start raising taxes and fight like caged animals to survive. That means that investors are going to look to other types of investments other than bonds, basically private assets that have nothing to do with the government. The end result as we get closer to 2022 and beyond is that this crisis is really going to hit full steam when the leaders of the world will have to get together to forgive debt and restructure the monetary system, change the entire way everyone does business and change the single world reserve currency from primarily the US$ to some sort of basket of currencies. There is going to be a whole change, just like Bretton Woods some 77 years ago in 1944. So BEWARE, fasten our seat belts and hang on to our seats tight!!
** Please note that what is being shared in this article is NOT meant to be regarded as an advice or a recommendation, it is meant for EDUCATIONAL AND INFORMATION PURPOSES only and it does not constitute an investment advice, an offer or solicitation to purchase or sell the investment asset classes mentioned. **
