The capitalistic system based on the debt we've been building for a long time will definitely have to end somewhere. Unless we will never charge positive interest rates anymore. Since the last decade financial institutions, governments and companies receive money when taking on debt. Most of it seems to flow towards stock markets (and asset markets). As in Australie, also properties in my tiny country the Netherlands is skyrocketing. Corona or no Corona, doesn't matter. The main reasons for the increase of property value: 1) foreign investors buying a lot of property, 2) long term interest rates are rock bottom allowing those who earn decent to good money, to pay more for the same (and better to buy something rather than putting the money in the bank with almost zero interest).
Any sound thinking persons can only conclude: This system must collabs. But I'm afraid, not so many people think that far into the future. All the people I try to discuss this topic with, say: "Time will tell. We had hard times in the past, and the wold always survived. We have this financial system for a long time, why will it collabs, the governments and financial institutions will not let that happen." It's almost funny to notice so many people are living in the same tunnel and not worry that the tunnel may have a dead end, or end up at places we all don't want to be.
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Would this mean that whenever cash comes in, it will go out to something just so it doesn't lose value? I see this is why the foreign investors are able to buy, as they can put it into something "solid" and owned, rather than leave it in the bank.
And the light at the end of the tunnel is a train.
I try to explain my view to people and most think I am crazy or a conspiracy theorist. It is interesting when economics is considered a conspiracy.
!ENGAGE 20
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ENGAGEtokens.No positive interest rates anymore means essentially borrowing money doesnt cost money therefore we can start borrowing limitless. Debts are increasing, but will not fly into endless debts due to interest. But when interest rates start to become positive again, suddenly all the debts are increasing by itself, without taking more loans. We may see collabs of economies when the central banks start using positive interest rates again. Nobody knows what this will mean, but in EU we already have more than 10 years of negative interests rates for short term debts. Now we see 10 year loans approaching zero interest rates as well. And more money flowing into the 'economy'... well, shares, governments, and rich peoples pockets.
One that is approach us, not driving in the same direction as we are waling. Its gonna be a huge 'bang'.
Many people I talk to, just dont want to believe. They dont understand that the 4th industrial revolution we are in, is gonna be life changing for humans, in relative short amount of time (decades). They say: Same they said about 1st, 2nd and 3rd industrial revolutions. General behaviour of people, dont want to think too much, and when they try, fall into the trap of taking the history to 'predict' the future. One statement they make regarding technology and automation: History shows that when we automate we take away jobs, but we also create jobs again, so no worries. They forget, in this industrial revolution we are at the start of, automation will take away jobs, whilst it will not create new jobs anymore, since AI will repair itself. But here is the problem: Many people don't understand what AI is. They don't understand what it means when we get Quantum Computing commercialy available and as small it can fit into our watch, or body. They don't understand what it means we do in bio-tech making advanced steps towards endless life (or at least extension of life with a fcator of 2 and more). Very interesting how this works. Recently, some of the people I talk with on all these topic already for as long as I know them, come back to me and say things like: "Recently watched a documentary, news items, and you are right edje, they said..."... slowely, very slowely I see people gettting similar information through other channels then my own mouth. I suppose, TV items have more value then the human word of a friend or family member :) But I'm happy the come to me with this information, since I can build on this further. Suddenly these people start believing my 'SyFy' stories, understanding my SyFy stories are more realistic then they expected before.