Opportunity to contribute and the benefit

in #economics7 years ago (edited)

Markets are definitely destabilizing. It's becoming not just more volatile but the whole underlying structure of our economy is destabilizing. It is becoming more brittle and more fragile and so that's why we're seeing these wild swings in the markets lately. If you don't allow your economy to have a business cycle recession, then you're simply making it more fragile by encouraging really marginal and risky investments and that's where we're at.


source: cdn-images


If you're in the inner circle then capitalism works for you but you've protected it and only you get access to the benefits of capitalism and everybody else gets a watered-down sort of socialism. I personally think there's a role for cryptocurrencies. A lot of people feel they're completely worthless and are going to go to zero, but to me the financial system we inhabit, is so brittle and fragile, that even something that seems really out there like cryptocurrency.... starts looking better
- Charles Hugh Smith (from USAWatchdog.com report)


A "free-market" like we have, is "pay to play" system. And basically political and banking power is auctioned off right to the highest bidder. But in a real democracy and in a real free market, everybody has an opportunity to pursue what they want and to contribute. And this is what we've lost. An awareness. There's lots of studies that show this what people want is they want an opportunity to contribute and and benefit themselves their family and their community. They want to be needed. And that's where cryptocurrencies have one of the biggest impact.


With central banks in the process of normalizing monetary policy, the dollar falling and the power of digital technologies only rising, it appears a matter of time before reality catches up to this artificially-engineered stability, as is already apparent in retail. The rise of zombies is one more reason it is imperative to search for opportunities in markets largely untouched by extreme financial engineering.
source:latest.13.com


Jeffery Rosenberg, chief fixed-income strategist at BlackRock, said one factor on FT, spurring “fast-rising bond yields” is the re-awakening of “investor inflation fears”. However, he added that “increasing Treasury supply, the weakening US dollar and high oil prices” are also “at play”.

Learning course: What is the secret of keeping gold and silver price low?

Look up the London gold fix. Basically what this is (Wikipedia actually has a nice article about the London gold fix) it explains how five of the largest banks in the world get together twice a day to fix (in other words rig or falsify) the gold market! They set the prices and whatever it starts to move above or below the price they want, they start playing with it. They start dumping. They start dumping large orders on to the market using a "market order". Meaning...

Nobody is going to dump a large amount of shares of anything onto the market using a market order

When you place an order to buy or sell something in this market and you use a market order, that means you're willing to pay anything for it or sell it for whatever you can get. What a normal person would do is put it in what's called a "limit to order". In other words let's say they want to buy shares of company X. They put in, I will pay this much no more called a limit order or I'm willing to sell my shares of X share. I'm going to put a limit order so this is my bottom acceptable price. When you see this kind of large market orders dumb to the market, you know this is fakery.


An example of gold fix in action source: zerohedge

What this individual or institution or a group of people are doing is saying... okay I want to get rid of let's say paper derivative of gold, and now I'm going to sell it and I'm willing to take anything for it.

It's the same as if you were putting your Mercedes Benz outside your house for sale and putting a sign there saying "we'll take anything" and this is done to drive the price down.

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Unfortunately, wealth inequality is worse in BItcoin than in America. We still have a long way to go.

Sure it is. But there is very big difference between national currencies and cryptocurrencies. Cryptocurrencies do not hold any debt! And debt is one of the biggest things, economists and investors are looking for, when informing them self what may be still worth to buy. World Bank is functioning and getting bigger every year...because of the world debt. Debt is a kind of slavery item of the modern time. Lot of people who own bitcoin, litecoin,dash, steem...or any other cryptocurrency, still didn't get this.

However, the lack of ability to take on debt restricts spending. An economy without debt will always be much smaller, limiting the value of the currency.

The entire cryptocurrency market will reach a total value of $1 trillion this year. So it is getting bigger. Not limiting the value at all but the opposite. Debt is limiting the value of the currency to go up. That's why there are QEs in Europe and US. And in the end it is all lined up to the bond market and oil.

First, there hasn't been QE in the US since 2014. Second, the value of the crypto market is currently $500B. The top 5 companies in the world are currently EACH larger than that. The 5 richest people in the world have more money than that. If you wanted to represent all money, stock markets, real estate, debt, and derivatives in the world you would need the cryptocurrency market cap to be $1.5 quadrillion. Besides, just because crypto isn't there NOW doesn't mean it never will be. I think it will take another 10 years before we start to see crypto making a meaningful appearance in the world economy.

Sure, they tried to liquidate the market after 2008 and in EU we had an aftercrash in 2011. This time do you think they will know any other way to solve the problem and in the same time make people work more for the same payout while prices grow every year? Value of cryptomarket was more than doubling every year. What do you think will be its value in the end of this year? Well, I hope we will see $1.5 quadrillion cryptocurrency market cap even sooner. But time will tell

"This time do you think they will know any other way to solve the problem"

I have my doubts, that's why I feel more comfortable with cryptocurrency, as it is governed by code and not people. The Fed was very good at handling in the 2008 crash but completely ineffective at handling hyperinflation 70s. It is a blessing and a curse but I think the USD is more likely to implode than crypto. We came close than most people realize in 2008. BUT that shows the power of being backed by a government. Again, it is a blessing and a curse.

interesting, thanks for sharing

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