For years now, governments around the world have been printing excessive amounts of money in order to encourage lending and investments. This is known as Quantitive Easing, and it began in 2008, following the financial crisis that had tremors around the world.
Money is the root of all evil
While inequality, and poverty subsist across much of the globe, wall-street is focused on other things. Lining their pockets with your money.
It’s not news that Wall-street bankers, analysts, and dealers are some of the most greedy people in the world, but on a broader scale, we must consider the implications of their century long greed. With QE, and consistent lobbying to different governments, they’ve managed to create one of the longest bull runs in U.S History. In October 2019, the record was broken. The U.S had officially passed 10 years, without ever seeing a recession.
In economics, Business cycles show that recession are a natural occurrence, and while the economy has been rapidly growing at rates unseen before in modern history as new companies pop up each day, and attract global investments, we cannot ignore the many red flags that have also popped up over the years.
The UBS report in 2019 found that nearly 44% of American Consumers claimed their incomes didn’t cover expenses. In addition, 40% said they had a problem getting a credit card or applying for a student loan default, up 3% from last year.
“Credit trends in US consumer markets are more worrisome, particularly in unsecured loan markets as the lower-tier consumer comes under further pressure with lending standards tightening, delinquencies rising, and interest rates near peak levels, “ wrote Matthew Mish of UBS in the report.
This is very concerning to the economy, and many economists have begun scaling back their estimated growth for US GDP.
The Hidden Costs of Corona Virus
In a paper published in 2008, Kate Jones, professor of ecology and biodiversity at University College London, says that her team’s research “supports previous hypotheses that the Corona Virus emergence is largely a product of anthropogenic and demographic changes, and is a hidden ‘cost’ of human economic development”.
Today, such warnings are mostly being drowned out by those trying to predict whether the trillions of dollars being pumped by central banks and governments into their economies to prevent them from falling into a deep recession — most commonly defined as at least two consecutive quarters of economic contraction — will be enough to restore GDP growth to its upward path.
Or by others trying to figure out whether the crash in stock and commodity prices since last month has further to go, or if now is the time for investors to start buying such assets again on the cheap.
But there is a growing awareness among economists that alternatives to GDP growth need to be seriously considered, not just because of the effect it has on the environment but also because of its impact on social inequality, which has widened to near-historic levels in recent years, and in turn led to a return to the kinds of political polarisation not seen in nearly a century.
During 1947–1991, the USA and Russia were in difficult geopolitical tensions that resulted in a strong battle for power. Nearly 40 years later, a new cold war brews. This time around, it’s between the United States, and China, Two of the top countries in the world, in terms of military strength, economic performance, and overall global influence.
A huge portion of North American goods are imported by foreign countries. China was ranked the number 1 supplier for US goods in 2018, which totalled to over $550 billion dollars. This massive amount of imports has strengthened China’s significantly. They have become the fastest growing economy in the world — doubling in a few years, and on track to surpass the US.
US President Donald Trump has long accused China of unfair trading practices and intellectual property theft. Meanwhile in China, there is a perception that America is trying to curb its rise as a global economic power.
The trade war has no end in sight, and with the continued tariffs each country is adding, they may both be negatively impacted through their rivalry.
Global Conflicts Rising Quickly
A book that I read, and highly recommend is ‘Watchman’s Rattle: Thinking Our Way Out of Extinction’ which primarily dives into answering the question surrounding why we can’t solve problems anymore. Why do threats such as the Gulf oil spill, worldwide recession, terrorism, and global warming suddenly seem unstoppable?
We’ve seen the fall of dozens of massive empires that were once seen has unstoppable forces, although this book dives into picking apart each aspect of why they eventually collapsed. We’re currently living in the height of economic performance, although many analysts, including myself, are theorizing on a sort of ‘bottleneck’ that will eventually result in massive changes throughout the global in terms of how money works, political structures, financial systems, and even legislatures.
Most people who learn about crypto are quickly intrigued by the idea. The cryptocurrency markets are still relatively young, and many investors are optimistic about the future it holds.
Bitcoin was created shortly after the 2008 recession as the threat of hyper-inflation, greed, among many other things, were becoming increasingly clear.
My personal opinion regarding cryptocurrencies is that we must not forget the speculative nature of it. Investors who have done lots of research into the economics of how bubbles work, will quickly see how Bitcoin was certainly in one shortly after 2017.
Cryptocurrency assets are heavily manipulated, and anyone in this space knows this by now. Notice how the 2017 Top at $20,000 laid on the exact day the CME futures were launched. Instead of the anticipated ‘buying’ from Wallstreet, they shorted it, and made billions.
It’s important to be exposed to Cryptocurrencies (and Gold), especially during such a pivotal moment in history.
During extreme drops (and alignment with my market calls), one would be doing themselves a favour by buying the dip in the future.
A global economic collapse, which is not a matter of if, but rather when, will result in the largest transfer of wealth ever seen. We’ve seen the disaster of fiat in countries like Venezuela, and Iran, and while the majority of western civilization live without any regard to the growing economic concerns of hyper-inflation, it’s those that do notice that will be secured.
Authored by CryptoWhale @ https://medium.com/@cryptowhalex/heres-why-the-global-economy-is-about-to-change-forever-dd6353489c9