Financial Threats on the Horizon

It’s always questionable to share these types of videos.  Most times the sources are unreliable or just alarmist.  Usually they end up selling some sort of expertise, which is also the case of this one.

Regardless, this video paints a good picture of the reality in a way that is accessible.  However, the data, figures, and terminology is not watered down to the point where they loose all value.  I recommend that you watch this video, and then I will go back to writing about other, “less alarming” topics.

Essentially the imminent threats are not those that we are focusing on.   Military interventions or social equality issues are being leveraged as a distraction of the real financial threats on the horizon.  The level of debt is not so important as a vast array of other factors.

These other factors are:

  • For every dollar of debt, how many dollars of economic growth is produced?  Now debt is actually destroying economic growth.
  • What is the velocity of money?  As money pays of debts, it not only looses its multiplicity effect, but cancels out fiat currency that only exists in name.  Deflation can set in.
  • Soup kitchens exist, but they are invisible.  Food stamps have replaced the lines of the Great Depression.
  • The Misery Index is the (real) unemployment rate + the inflation rate.  Compare this across time intervals.
  • How many dollars of credit are created for every one dollar of economic growth produced by the private banking system.
  • The ratio of capital reserves v. unstable liabilities.  What leverage does the Federal Reserve actually have?
  • What is the ratio between stock market capitalization to GDP?
  •  What is the ratio between actual shares in companies versus the total global net worth of their derivatives?
  • Who owns our debt?  Why is Belgium buying the dollars that China and Russia are dumping?
  • Which countries are moving away from the petrodollar?  Why should Saudi Arabia continue to trade oil in dollars as we cede the Middle East to their adversaries?
  • What is the size of the shadow banking industry in China?  What is the ratio of new construction to GDP growth?  Are these new construction projects productive?
  • The Dollars Reigns Supreme, by Default.  What is the pace of “special drawing rights” production?
  • What is happening to the Internet?  This might cease to be a neutral forum or even become decentralized globally.

The normalcy fallacy is strong, and there is a strong tendency to be reactive instead of proactive.  In my opinion, efficient productivity is always the solution.

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