Cryptocurrency: Another 5 Million In U.S. File For Unemployment
The situation just keeps getting worse. No matter how we analyse it, the present system is falling apart before our eyes.
Over the last 3 weeks, more than 15 million people filed first time claims for unemployment. After having record low unemployment, we are now seeing a number that is around 15%.
On the bright side of things, the government started to send out its $1,200 stimulus checks to all American adults (children are getting $500). This is a helpful idea. Of course, if you are one who is already in debt, the banks are allowed to take that money and send it to your creditors.
The Federal Reserve and government is taking from the same playbook. Of the trillions that are being doled out, very little will ever make it into the economy. Instead, we are seeing hedge funds applying for small business loans, banks receiving billions that they are not lending out, instead opting to increase their excess reserve funds, and states refusing to implement the Congressional unemployment guidelines since there is no money to pay for it.
All this leads up to a mess.
Of course, we are only halfway through the most optimistic of shutdowns. In the United States, it will continue to at least the end of the month. Other countries, like the Great Britain, are discussing going until the end of May.
For years, we discussed the idea of the existing system collapsing on itself. Here we are seeing it. Fortunately, we have the foundation of an entirely new economic system.
Cryptocurrency is providing an alternative and each day, with more news, we see how this is the case. There are hundreds if millions of people who are unable to put their hands on any money. If there is nothing in the bank, and no income, how does one accomplish this?
There are some who are able to operate online. Others are part of the remote workforce that is being established. Nevertheless, as the numbers are showing, there is little going into the hands of "average people". All the pumping by central banks appears to be helping the upper end of the spectrum, which is always the case.
Over the past couple weeks, I wrote about how important something like Hive is. Unlike the present system, money is being distributed in a timely manner. Each week, the reward pool doles out payments directly to wallet holders. This is the reward for the accumulation of what took place over the previous week.
This happens like clockwork. It occurred (on Steem) when the economy was doing well and now it continues as the economy collapses. The coronavirus affects is none in this regard.
Code might not be perfect but it is a lot better than our centrally run system. As we can see, the actions of the central banks and governments are not going to help the situation. Instead, they just reward those who had a large hand in creating the economic weakness.
Unfortunately, the aftermath of all this is really going to surprise people. The coronavirus will speed up the move towards automation. Mega-corporations are going to be investing even greater sums of money into AI and robotics. Many of the jobs lost will never return.
This means that millions are going to be in this situation ongoing. In other words, the present system is basically leaving them behind.
Crypto-economics is poised to offer a much better alternative. The key will be engaging the millions who are displaced and educating them as to what is being offered. Presently, what most know about cryptocurrency is Bitcoin. While that could be a valuable avenue to pursue, it is basically useless unless one has some money to invest.
An ecosystem like Hive has a great deal to offer. This is the opportunity to alert many to what it holds. As more is developed, the possibilities just keep growing. The same cannot be said about the present economic system which is obviously going in the other direction.
It is time to get the word out there.
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30% unemployment becoming a very tangible number now....crazy.
You're making very good points. However, for this to come to pass closing the economic loop is required. There must be something valuable on offer other than media content that someone is willing to provide in exchange for HIVE tokens for the economic system to get going. Translation and software development are already things paid for in HIVE.
Many people, however, are forced to obtain fiat because that's what their outstanding debts are denominated in, including taxes.
A big thing for the crypto world, the next major step, is marketplaces. We need places where people can purchase everyday goods and services in crypto.
While the taxes will not be covered, more of the basic items can be.
That is a key piece missing right now.
The way the Fed is bailing out corporations again is corporate welfare. People are left to fend for themselves once again. The only way to do the bailouts right would be to pay directly to people's bank accounts to keep them fed and housed until the crisis is over. In the UK, they're paying 75% of everyone's salary directly to them, the self-employed included. That's how you do it, if you're going to do it.
I agree. The Fed is bailing out Wall Street again while average individuals are left to suffer.
This is why the Fed's stimulus doesnt work. Most of the money doesnt make it to the economy. The banks are not going to lend in an economic collapse so that money just pads that excess reserve fund. The ultra wealth get bailed out and their just keeps their investments safe, doesnt stimulate spending.
Not to mention the fact that not a lot of businesses are willing to borrow money in the present uncertain situation.
Things are going to get a lot worse before they get better, change to crypto will start happening, people will start questioning all these bailouts taking nations into more debt.
High Tech Economy and low tech ( delivery) are booming .... like Amazon.com and Home schooling etc etc.. it’s just a Transformation
Unemployment stats were exceptionally high prior to Covid-19, what this will look like after, no one knows.
Only our large cities offer home deliveries, we don't have amazon (I can imagine they are doing good business). Home schooling during this period has become a possibility for those who are able to afford it.
The more fiat pumped into countries, makes it a life line for the here and now, it is when payback time arrives, the gnashing of teeth and disharmony will appear, this is only the beginning... (I really hope I am wrong, none of us lived through the great depression).
There will be a a Universal Basic Income.... everyone will have enough to subsist.... If you want more you need to get creative.
It is just a shift to technology ...l watch Amazon, Apple, Google, .... this is a Boom.
Honest money is the basis for a sound economy.
The debt and death paradigm of the central banksters was going to crash and die. It was an inevitability. So, maybe this sputtering stop and start might be a big wake up call to create both supply and demand that is not a part of the old system.
All i see is good coming from this... but a lot of pain in the transition.
I hope to see many people being paid in crypto soon.
Whatever comes out of this is going to be painful.
There is no way that people are not going to get hurt. If the stock market does take a major long term hit, we are going to see pension funds up in arms. They were in awful shape before all of this.
Europe was much further ahead in the eternal easing, meaning they have even less bullets than the U.S.
A shut down and a collapse are two very different things, and one does not necessarily predict the other. I do agree that IF the shutdown lasts long enough it could create a collapse, it's not inevitable at this point though.
Some businesses are Booming. This is not the End ... A new Beginning.
We will adapt .... New Ways of Living will be created.
I disagree. We already have seen the economy running on about 1/3 for a month. Another couple weeks will means we lost about 7% of the economy.
A hit of minus 5%-7% to GDP is a collapse.
And that is to what was the strongest economy before the crisis. The global economy is taking a much worse hit.
You use the word "loss" as if it implies it isn't coming back. People are collecting unemployment and stimulus checks, the economy is on hold it's not gone. Once things open back up, the vast majority of what you describe as "lost" comes right back.
Again, I wouldn't describe a temporary shut down in the same regards as a collapse.
No matter how badly people want this to be the end of the financial system as we know it, it's not.
I watched some news today on tv, it was the first time in about 6 months. What a bunch of drama, The china virus is covering up the collapse of the dollar!
I guess there will be more crashes