The Basis Of Economic Activity: Confidence

avatar
(Edited)

▶️ Watch on 3Speak


Economies are based upon the flow of capital. This is tied to confidence because money flows to where that exists. When people are not confident they tend to not spend.

In this video I discuss how people are not confident and are scared. This is going to show up in the economy as deflation because people do things they normally dont do.


▶️ 3Speak



0
0
0.000
6 comments
avatar

It's hard to gain confidence in crypto because there are a lot of things, that can go wrong: you can use the wrong address, the exchange can screw you over and so on. However once you do figure out how things work, it does feel very empowering.

Posted Using LeoFinance Beta

0
0
0.000
avatar

pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 39 of my contest just started...you can now check the winners of the previous week!
8

0
0
0.000
avatar

I always look at both points of views. I personally like Steven Van Metre (self proclaimed bond king) explaining why we are deflationary. He explains all the economic data and his view on it. His analysis shows a very compelling argument on the deflationary trade. If interest rates were to go up, then bond prices will fall (inverse correlation). If it was true then primary dealers would not be buying bonds (not true according to the bond auctions).

As Steven said, we are a debt based economy and right now loaning conditions are tough. While people pay off their debts (bad economy), money is destroyed. The primary way money is created is through loans and right now, banks don't want to lend. Therefore for at least the next few years, prices for things like gold and BTC will probably still go up. But I think deflation is the most likely scenario for at least the next few years.

Posted Using LeoFinance Beta

0
0
0.000
avatar

This hits the nail on the head as to why much of the stimulus is not working. Without going direct, it goes into through the banking system. They are sitting there saying we cant find qualified buyers for the money we have and now here comes a trillion more dollars.

Posted Using LeoFinance Beta

0
0
0.000
avatar
(Edited)

@taskmaster4450le, Most of the times Short Term Mindset is active because majority of the Population is pushing themselves hard to meet their End Needs. Stay blessed.

0
0
0.000
avatar

Short Summary:
In this video, the speaker delves into the significance of confidence in economics and how it impacts economic activities. He emphasizes the role of traders in understanding the flow of capital as a reflection of confidence. The discussion revolves around inflation, hyperinflation, and the impact of digitization on the economy. The speaker highlights the deflationary effects of lack of consumer confidence and excessive money printing on economic growth. He also addresses the challenges of increasing debt levels, the need for direct stimulus, and the potential consequences of current economic trends on individuals and the overall economy.

Detailed Article:

The video begins with a focus on the fundamental aspect of confidence in economics, emphasizing that all economic activities are inherently tied to confidence. The speaker highlights the role of traders, rather than economists, in gauging confidence through the flow of capital. This sets the stage for a discussion on inflation and hyperinflation, with the speaker arguing against the likelihood of hyperinflation due to various factors in the current economic landscape.

One significant point raised is the impact of digitization and technology on the economy, which the speaker views as deflationary. He points out that without consumer confidence, inflation becomes impossible as people tend to save instead of spending. The speaker also addresses the deflationary impact of excessive money printing and increasing debt levels, which lead to a higher cost of servicing debt and divert money away from productive economic activities.

Furthermore, the speaker advocates for direct stimulus measures rather than conventional approaches that involve intermediaries like central banks. He explains that the current stimulus efforts are insufficient to address the challenges faced by individuals, especially in the context of rising unemployment rates and business closures. The speaker also touches upon the polarization following recent political events and the unequal distribution of wealth, with billionaires increasing their wealth significantly while the average person struggles.

Moreover, the speaker expresses skepticism about the sustainability of current economic trends, highlighting concerns about interest rates, financialization, and the limitations of central banks. He warns about the potential consequences of ongoing stimulus efforts, emphasizing the risk of a self-perpetuating cycle of debt, unemployment, and defaults. The video concludes with a reflection on the interconnectedness of economic factors and the challenges of unwinding the current economic situation.

Overall, the video provides a critical analysis of confidence in economics, the impact of various factors on economic activities, and the potential implications of current economic trends. It offers insights into the complexities of economic issues, emphasizing the need for a deeper understanding of confidence and its ramifications in shaping the economic landscape.

0
0
0.000